Supply Chain Social Responsibility global supply chain. Vision: A global electronics industry supply chain that consistently operates with social, environmental and economic responsibility.

Supply Chain Social Responsibility

IBM Finance & Operations

IBM stakeholders and business environment

2Supply Chain Social Responsibility / © 2019 IBM Corporation

IBM & Supplier

Compliance

Government

Customers

NGO’s

InvestorsMedia

Industry Groups

Society Supply Continuity

Legal and Regulatory

Cybersecurity

Reputation

IBM Global Procurement


Compliance Program

In relationships with approximately 13,000 suppliers worldwide, IBM requires a commitment to social and environmental responsibility — just as IBM’s own clients expect of us. We establish requirements for suppliers and assess compliance, collaborate with industry groups to drive broader improvements, and work to expand the diversity of our supply chain.

Supply Chain Social Responsibility (SCSR)

• SCSR is integral to IBM’s Corporate Citizenship activity

• SCSR is a requirement for all IBM suppliers

• Compliance to the RBA code of conduct is the baseline

• Confirmed by completing an RBA validated audit (or demonstrated equivalent)

– Requirements supported by the Chief Procurement Officer and procurement managers/staff

Responsible Business Alliance (RBA)formerly the Electronic Industry Citizenship Coalition

The RBA is a coalition of the world’s leading electronics companies working together to improve efficiency and social, ethical, and environmental responsibility in the global supply chain.

Vision: A global electronics industry supply chain that consistently operates with social, environmental and economic responsibility.

Mission: To enable and encourage our members to progress towards the RBA vision through a common code of conduct, collaborative efforts and shared tools and practices.

RBA Code of Conduct & VAP


RBA Code of Conduct provides requirement for performance and compliance with critical CSR policies and provides companies a structure to deploy Corporate Social Responsibility into their extended supply chain

The Code of Conduct addresses five areas:

LaborHealth and SafetyEnvironmentEthicsManagement Systems

The RBA Code of Conduct is updated every three years

RBA has a Self Assessment Questionnaire (SAQ) to help companies determine potential risk of noncompliance to the Code; and an audit protocol to assess compliance with the Code

The RBA audit protocol is called the Validated Audit Process (VAP)

Validated Audit Process (VAP)

All audits are conducted by RBA approved audit firms with auditors who are either RBA IRCA certified or RBA VAP qualified

All auditors are approved and auditor performance is monitored

Consistent methodology and tools are used

Audit reports can be shared with multiple customers

The VAP provides a full facility evaluation to the RBA Code of Conduct

VAP quick facts

IBM is a founding member of RBA (formerly EICC)

IBM started using VAP with hardware

suppliers in 2008

In 2011 IBM started using VAP with

software and services suppliers

Since then > 1000 supplier audits have been conducted using the VAP process

Data shown in this deck covers 2012-2018

Supply Chain Social Responsibility / © 2019 IBM Corporation 5

Supply Chain Social Responsibility / © 2019 IBM Corporation 6

IBM Supply Chain Social Responsibility


IBM Corporate Policies

RBACode of Conduct

Supplier Assessment

Supplier Audit (RBAVAP Protocol)

Corrective Actions and Re-audits

Capability Building and Continuous Improvement

RBA Code of Conduct

Supply Chain Social Responsibility / © 2019 IBM Corporation8

Treat employees with dignity and respect

Protect the environmentEvaluate and control exposure to hazards

Uphold the highest standards Management Systems

A1) Freely Chosen Employment

A2) Young Workers

A3) Working Hours

A4) Wages and Benefits

A5) Humane Treatment

A6) Non-Discrimination

A7) Freedom of Association

B1) Occupational Safety

B2) Emergency Preparedness

B3) Occupational Injury and Illness

B4) Industrial Hygiene

B5) Physically Demanding Work

B6) Machine Safeguarding

B7) Sanitation, Food, and Housing

B8) Health and Safety Communication

C1) Environmental Permits and Reporting

C2) Pollution Prevention and Resource Reduction

C3) Hazardous Substances

C4) Solid Waste

C5) Air Emissions

C6) Materials Restrictions

C7Water Management

C8) Energy Consumption and Greenhouse Gas Emissions

D1) Business Integrity

D2) No Improper Advantage

D3) Disclosure of Information

D4) Intellectual Property

D5) Fair Business, Advertising and Competition

D6) Protection of Identity and Non-Retaliation

D7) Responsible Sourcing of Minerals

D8) Privacy

E1) Company Commitment

E2) Management Accountability and Responsibility

E3) Legal and Customer Requirements

E4) Risk Assessment and Risk Management

E5) Improvement Objectives

E6) Training

E7) Communication

E8) Worker Feedback, Participation and grievance

E9) Audits and Assessments

10) Corrective Action Process

E11) Documentation and Records

E12) Supplier Responsibility

Labor EnvironmentalHealth and

SafetyEthics

Management Systems

Code of Conduct V6Code Interpretation Guidance

http://www.responsiblebusiness.org/code-of-conduct

http://www.responsiblebusiness.org/media/docs/CodeInterpretationGuidance.pdf


Step 1 RBA-OnlineSelf Assessment Questionnaire

Step 2 Audit request & scheduling

Step 3 On site audit

Step 4 Audit report

Step 5Follow up

Register on RBA-Online and conduct a Self

Assessment of your facility (SAQ)

RBA schedules and coordinates the audit with your

company

On site audit is conducted under the oversight of

the RBA APM

Audit report review & release on RBA-

Online

Corrective Actions Plan review and

approval

2 – 5 days process(varies per facility)

Request access to RBA learning academy (free for

IBM suppliers)

Register on RBA-Onlinecomplete and release the SAQ for your facility and provide access to IBM in

RBA-Online

Request VAP Audit through RBA-Online

RBA contracting and VAP Audit Scope

VAP audit cost approval

audit scheduling

Draft report is released

Review draft report

Final report released on RBA-Online

If score < 200/200 a corrective action plan will

be requested

Corrective action plan is reviewed and approved

Non-compliance closure audit verification required

Validated Audit Process Overview

VAP audit observations/results


• High frequency noncompliant findings in full audits:

❖ Health & Safety

❖ Working Hours

❖ Wages & Benefits

❖ Management systems are not fully developed relating to social responsibility and laws/regulatory compliance

• Substantial reductions in noncompliance have been shown through rigorous completion of the CAP process and re-audit

• Over 80% of suppliers resolve all major non-compliance issues after completion of one Audit -> CAP -> Re-audit cycle

IBM team


Manager, SCSR and Chair emeritus RBA

John [email protected]

Asia Pacific Program Manager – SCSR/CM

Natalie LC Mulicenmu@cn ibm com

Europe-Middle East-Africa Program Manager SCSR/CM

Ilona Bartfaiilona bartfai@hu ibm com

Latin America Program Manager - SCSR

Juan Carlos Martinezjcmartin@mx1 ibm com

India & SE Asia Program Manager – SCSR/CM

Rituraj Mukhiarituraj mukhia@in ibm com

Asia Pacific Program Manager - SCSR

Yuki Luyukiyu@cn ibm com

Conflict Minerals Supply Chain Lead

Lily [email protected]

mailto:[email protected]








Supply Chain Social Responsibility global supply chain. Vision: A global electronics industry supply chain that consistently operates with social, environmental and economic responsibility.

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