Case study: How HP combats corruption
With a presence in 170 countries around the globe, HP is committed to always acting with integrity, fairness, and accountability Tweet This!, which are fundamental to an inclusive society and a thriving business. Accordingly, everyone at HP is expected to meet the highest ethical standards and to treat others with integrity, respect, and fairness.
This case study is based on the 2016 Sustainability Report by HP published on the Global Reporting Initiative Sustainability Disclosure Database 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.
HP is committed to complying with all applicable laws and regulations everywhere it operates and is vigilant in combating corruption, not tolerating corrupt behaviour of any kind, including bribery and kickbacks. In order to combat corruption HP took action to:
- implement an anti-corruption compliance programme
- conduct risk assessments and audits
- provide anti-corruption training
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With this case study you will see:
- Which are the most important impacts (material issues) HP has identified;
- How HP proceeded with stakeholder engagement, and
- What actions were taken by HP to combat corruption
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What are the material issues the company has identified?
In its 2016 Sustainability Report HP identified a range of material issues, such as product energy efficiency, privacy, product life cycle management, labour practices in the supply chain, social application of IT. Among these, combating corruption stands out as a key material issue for HP.
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 HP engages with:
| Stakeholder Group |
| Employees |
| Suppliers |
| Customers |
| Peer companies |
| Public policy makers |
| Industry bodies |
| Nongovernmental organisations (NGOs) |
| Sector experts |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics, HP interviewed key internal and external stakeholders.
What actions were taken by HP to combat corruption?
In its 2016 Sustainability Report HP reports that it took the following actions for combating corruption:
- Implementing an anti-corruption compliance programme
- HP’s anti-corruption compliance programme requires HP employees, business partners, and suppliers to follow all applicable national laws and regulations, including the U.S. Foreign Corrupt Practices Act and the UK Bribery Act. Additionally, suppliers must comply with HP’s rigorous internal standards, including its Anti-corruption Policy and Global Business Amenities Policy. In 2016, HP improved the functionality of its online Amenities Approval Tool, which streamlines approvals for providing or receiving business amenities such as meals, travel, entertainment, or gifts.
- Conducting risk assessments and audits
- Anticipating potential corruption risks across its global operations helps HP operate safely and securely, and protect its reputation. HP uses both internal data and Transparency International’s Corruption Perceptions Index to detect high-risk regions, assess risks related to third-party business partners and, subsequently, alert relevant employees. HP also benchmarks its approach against peer companies, to identify best practices in areas that include operational procedures, employee education, and supplier and partner training and monitoring. In addition, HP carries out regular audits focusing on potential corruption risks, including audits of its own operations. In 2016, HP assessed corruption-related risks for the company and also conducted risk assessments of third parties, including sales intermediaries or “agents,” suppliers, lobbyists, and channel reseller partners. These assessments used an improved due diligence questionnaire, focusing on organisations with high-risk profiles.
- Providing anti-corruption training
- Anti-corruption content is central to the annual SBC (Standards of Business Conduct) refresher training course for all HP employees. Additionally, HP provides specialist training to staff in sensitive jobs. For example, in 2016:
- Over 27,000 employees worldwide received specialist training and there were an additional 41 live (face-to-face and virtual) sessions.
- More than 2,000 employees completed training tailored to the unique requirements of conducting business with the U.S. government.
- In addition, HP communicates globally year-round, to reinforce compliance policies, controls, and training. This is intensified around critical business times.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standards addressed in this case are:
1) Disclosure 205-1 Operations assessed for risks related to corruption
2) Disclosure 205-2 Communication and training about anti-corruption policies and procedures
Disclosure 205-1 Operations assessed for risks related to corruption corresponds to:
- Sustainable Development Goal (SDG) 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
- Business theme: Anti-corruption
Disclosure 205-2 Communication and training about anti-corruption policies and procedures corresponds to:
- Sustainable Development Goal (SDG) 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
- Business theme: Anti-corruption
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References:
1) This case study is based on published information by HP, 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 original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:
http://database.globalreporting.org/
2) http://www.fbrh.co.uk/en/global-reporting-initiative-gri-g4-guidelines-download-page
3) https://g4.globalreporting.org/Pages/default.aspx
4) https://www.globalreporting.org/standards/gri-standards-download-center/
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