Case study: How HTC promotes sustainability among its suppliers
Established in 1997 and headquartered in Taiwan, HTC is a global leader in innovative mobile phone and virtual reality design. HTC follows the Responsible Business Alliance Code of Conduct and has formulated an “HTC Supplier Code of Conduct”, so as to protect the environment with its supply chain partners Tweet This!, safeguard the human rights of its workers, their ethics, safety and health, and extend this social responsibility to its supply chain system.
This case study is based on the 2020 Corporate Social Responsibility Report by HTC, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
HTC is committed to the highest standards of social, environmental and ethical integrity, fully respects human rights and workplace rights, has a zero-tolerance approach to worker abuse of any kind, and holds all of its suppliers to the same high standards of corporate responsibility. In order to promote sustainability among its suppliers HTC took action to:
- implement a Supplier Code of Conduct
- assess and audit suppliers
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With this case study you will see:
- Which are the most important impacts (material issues) HTC has identified;
- How HTC proceeded with stakeholder engagement, and
- What actions were taken by HTC to promote sustainability among its suppliers
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What are the material issues the company has identified?
In its 2020 Corporate Social Responsibility Report HTC identified a range of material issues, such as economic performance, customer privacy, labour/management relations, information security, environmental compliance. Among these, promoting sustainability among its suppliers stands out as a key material issue for HTC.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups HTC engages with:
| Stakeholder Group | Method of engagement |
| Investors
| · Shareholder conference · Annual report · Monthly revenue statement · Visiting investors · Market Observation Post System · Investor Relationship Website · Spokesperson |
| Enterprise customers | · Business review with key customers (QBR meeting) · Reply to customer inquiries · Customer audit and replies to customer’s questionnaires · Meeting the customer requirements about environmental and social responsibilities |
| General consumers | · Local service contact channels in 11 languages to provide customers with real-time communication and assistance · Websites in different languages for customers to give feedback and to access information in a real-time manner (59 established) · Dedicated email boxes for different functions (Support, Copyright, Security, etc.) to provide convenient customer contact with HTC · Automated support survey invitations to collect customer satisfaction feedback. · Immediate corrective actions in place based on customer’s insights |
| Employees | · Department quarterly meeting · One-on-one interview with supervisors · Annual performance appraisal/ interview · New employee seminar · Employee assistance hotline and mailbox, Health Centre · Labour-management meeting |
| Suppliers | · Supplier communication conference · Guidance and audit for suppliers · Cooperation project with suppliers for addressing CSR and greenhouse gas issues |
| Contractors
| · Induction training · Patrol inspection in the facility |
| Local Communities | · Positive employee engagement in public interest activities · HTC cooperation with governmental agencies and non- profit organisations in eco, environmental and other public welfare activities |
| Governmental agencies
| · Official document, E-mail, on-site Visit · Meeting such as Forums, Seminars etc. |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics HTC sent out online survey questionnaires to stakeholders – including employees, consumers, customers and suppliers -, with a total of more than 80 responses received.
What actions were taken by HTC to promote sustainability among its suppliers?
In its 2020 Corporate Social Responsibility Report HTC reports that it took the following actions for promoting sustainability among its suppliers:
- Implementing a Supplier Code of Conduct
- The HTC Supplier Code of Conduct details the responsibilities and regulations that have to be followed by all suppliers doing business with HTC. In addition, HTC also conducts a regular assessment of the implementation of the Code as the basis for its further selection of business partners. At the end of 2020, a total of 175 suppliers signed the Supplier Code of Conduct, with the rate of signing reaching 100%.
- Assessing and auditing suppliers
- All HTC candidate suppliers are required to fill in a Self-assessment. Since 2016, the weight of CSR-related questions in the Self-assessment survey for new suppliers increased. During each quarterly supplier review meeting, the CSR-related performance of major suppliers will be checked and the results will act as the reference for the supplier screening process. For new suppliers, the CSR self-assessment questionnaire must be filled and returned. The content of the questionnaire is designed based on the five major aspects of HTC’s Supplier Code of Conduct: labour, environment, health and safety, ethics and management system. Additionally, a “Supply Chain CSR Compliance Audit” has been implemented since 2011, based on initial risk determination (including geographic location, products, news, etc.). In cases of noncompliance, besides requesting the suppliers to respond with improvement measures, HTC also provides management system and implementation experience to suppliers for reference and puts them in the priority list for an on-site audit next year, in order to prevent similar incidents from happening.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standards addressed in this case are:
1) Disclosure 308-1 New suppliers that were screened using environmental criteria
2) Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken
3) Disclosure 414-1 New suppliers that were screened using social criteria
4) Disclosure 414-2 Negative social impacts in the supply chain and actions taken
Disclosure 308-1 New suppliers that were screened using environmental criteria does not correspond to any SDG.
Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken does not correspond to any SDG.
Disclosure 414-1 New suppliers that were screened using social criteria corresponds to:
- Sustainable Development Goal (SDG) 5: Gender Equality
- Targets: 5.2
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.8
- Sustainable Development Goal (SDG) 16: Peace, Justice and Strong Institutions
- Targets: 16.1
Disclosure 414-2 Negative social impacts in the supply chain and actions taken corresponds to:
- Sustainable Development Goal (SDG) 5: Gender Equality
- Targets: 5.2
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.8
- Sustainable Development Goal (SDG) 16: Peace, Justice and Strong Institutions
- Targets: 16.1
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References:
This case study is based on published information by HTC, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:
https://dl.htc.com/csr/HTC-CSR-report-2020-eng.pdf
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