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Steve Viera Supplier Corporate Responsibility Manager

May 19, 2011

Electronic Industry Code of Conduct

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The Conversation: Congo and Your Computer

ABC News with Diane Sawyer, June 29, 2010

Silicon Sweatshops 20 November 2009 – goodelectronics.org

Jonathan Adams and Kathleen E. McLaughlin “ … Hourly wages below a dollar. Firings with no notice. Indifferent bosses. Labor brokers that leech away months of a worker's hard-earned wages. A corporate shell game that leaves no one responsible. Such conditions are widespread at the contract factories cranking out some of the most popular gadgets on the holiday season’s gift lists, according to labor rights activists and workers interviewed by GlobalPost. .

Why Demonstrate EICC (Code) Compliance?

Complete supply chain reputational risk mitigation is the new reality for our industry.

Recession boosts global human trafficking ….The State Department's annual Trafficking in Persons Report also says trafficking has increased in Africa and slaps six African nations on a blacklist of countries not meeting the minimum standard of combating trafficking. ….The report cites the International Labor Organization, which estimates that at least 12.3 million adults and children are victims of forced labor, bonded labor and sex slavery each year. CNN June 2009�

Reputation is no longer a substitute for data

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Electronic Industry Code of Conduct/ Citizenship Coalition (EICC)

  Founded in 2004 to create a sector code of conduct and means for efficient / consistent implementation

  By working together, the industry can reduce potential code/audit proliferation, leverage resources, and make progress faster than solo-efforts

  A vector of positive change for Technology firms to embrace and drive the effort

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EICC is:   A Code of Conduct – a minimum standard of expectation for the

electronics industry and its supplier network   A coalition or collective of many large electronic industry companies

working to implement a Code of Conduct (“CofC” or “Code”) via the methodology

–  A methodology – not only the collection of thoughts on the CofC, but creation of the methods and tools by which it is to be implemented

The Code is intended to apply to all companies in the electronics and computer supply chain,

  These are the minimum expectations that will be followed by all EICC member companies and delivered to their supply chains.

Electronic Industry Code of Conduct/ Citizenship Coalition (EICC)

EICC URL: http://www.eicc.info

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• Freely Chosen Employment • Child Labor Avoidance • Working Hours • Wages and Benefits • Humane Treatment • Non-Discrimination • Freedom of Association

• Business Integrity • No Improper Advantage • Disclosure of

Information • Intellectual Property • Fair Competition • Protection of Identity • Community Engagement

• Occupational Safety • Emergency Preparedness • Occupational Injury & Illness

• Industrial Hygiene • Physically Demanding Work • Machine Safeguarding • Dormitory & Canteen

• Permits & Reporting • Pollution Prevention • Hazardous Substances • Wastewater • Solid Waste • Air Emissions • Product Content

EICC Code of Conduct Elements

A management systems approach drives sustainable

solutions

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Supplier Risk Assessment Process

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Supplier Risk Assessment 1 (RA1)

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Scorecard for: Company Name

Date Corporate Questionnaire was Completed: Date

Date Facility Questionnaire was Completed: Date

Corporate Section Overall Score: 0.00% Facility Section Overall Score: 0.00%

Section Score Section Score CL1-Management Accountability for Labor and Ethics 0.00% FL2-Management Accountability and History 0.00% CL2-Company Labor/Ethics Policy and Procedures 0.00% FL3-Labour and Ethics Policy and Procedures 0.00% CL3-Labor/Ethics Management System Status 0.00% FL4-Freely Chosen Employment 0.00% CL4-Labor/Ethics Management System Elements 0.00% FL5-Child Labor Avoidance 0.00% CH1-Management Accountability and History for HS and E 0.00% FL6-Working Hours 0.00% CH2-Health, Safety and Environmental Policy and Procedures 0.00% FL7-Wages And Benefits 0.00% CH3-HS and E Management System Status 0.00% FL8-Humane Treatment 0.00% CH4-HS and E Management System Elements 0.00% FL9-Non-Discrimination 0.00%

FL10-Freedom Of Association 0.00% FL11-Ethical Business Practices 0.00% FL12-Labor/Ethics Management System Status 0.00% FL13-Labor/Ethics Management System Elements 0.00% FH2-Management Accountability and History for HS and E 0.00% FH3-Health, Safety and Environment Policy and Procedures 0.00% FH4-Occupational Safety and Machine Safeguarding 0.00% FH5-Emergency Preparedness 0.00% FH6-Occupational Injury/ Illness and Physically Demanding Work 0.00% FH7-Industrial Hygiene 0.00% FH8-Living Conditions 0.00% FH9-Environmental Permits 0.00% FH10-Pollution Prevention 0.00% FH11-Hazardous Substances 0.00% FH12-Wastewater and Solid Waste (Non-Hazardous Waste) 0.00% FH13-Airborne Emissions 0.00% FH14-Product Content 0.00% FH15-Facility HS and E Management System Status 0.00% FH16-HS and E Management System Elements 0.00%

Supplier Risk Assessment 2 (RA2)

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Supplier Risk Assessment 2 (RA2)- Services

Scorecard for: Company Name

Date Corporate Questionnaire was Completed: Date

Date Facility Questionnaire was Completed: Date

Services Overall Score: 0.00%

Section Score S2-Business Ethics 0.00%

S3-Labor Management 0.00%

S4-Health & Safety 0.00%

S5-Environmental Protection 0.00%

S6-Management Controlled Approach 0.00%

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Supplier Risk Assessment 3 (RA3/On-site Audit)

The RA3 is an EICC validated audit(s) conducted at the supplier’s facility   Key components: Covers all sections of the EICC Code, risk is based on %

compliance and/or critical areas

It is a single credible process where each facility is audited using a common set of tools

 Internal Stakeholders Notification

 Supplier Notification  EICC Guidance Document

 Facilities Demographics  Pre-audit Checklist

  Audit Questions   Scoring   Audit Report

Pre-audit Communication

Auditor Selection

Audit Checklist

Common Audit

  Auditor Capability and Quality

Copyright © 2009 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. *Other names and brands may be claimed as the property of others.

Copyright © 2009 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. *Other names and brands may be claimed as the property of others.