Supply Chain Management
Helping suppliers meet our standards
Our responsibility extends beyond our direct operations. Because our Qualcomm CDMA Technologies (QCT) and Qualcomm Atheros (QCA) businesses depend on suppliers for the manufacture of our integrated circuit (IC) products, suppliers play a crucial role in determining our ability to offer products that are socially responsible. So we’re keenly interested in making sure our suppliers meet our standards for social responsibility and sustainability.
Making our expectations clear
In addition to requiring that each of our direct IC manufacturing suppliers has an ISO14001-certified environmental management system, QCT and QCA work with each IC manufacturing supplier in various stages of design and manufacturing to ensure compliance with applicable global environmental legislation and various environmental initiatives.
In 2011, QCT continued implementation of the Supplier Code of Conduct we launched in 2010. The Code describes QCT’s expectations of our IC suppliers. It promotes safe working conditions, respectful treatment of workers and responsible environmental operations, and it outlines our requirements for such areas as labor, health and safety, the environment, business ethics and more. The Code embodies the principles outlined in the Electronic Industry Citizenship Coalition Code of Conduct, which is supported by the leading electronics companies around the world.
In accepting the Supplier Code of Conduct, suppliers agree to meet its requirements. To help them do so, we plan to provide them with a self-assessment checklist and, eventually, to develop a supplier audit program.
Working toward a conflict-free supply chain
We are aware of concerns that minerals mined in conflict areas in the Democratic Republic of the Congo (DRC) and surrounding areas may be making their way into the electronics industry supply chain and may be fueling human rights violations and environmental degradation. We strive to ensure that our supply chain is free of DRC conflict minerals by supporting industrywide efforts to implement due diligence standards, systems and procedures. In addition to requiring that our suppliers comply with applicable laws, we expect that they source materials from environmentally and socially responsible suppliers, and not from conflict areas in the DRC and adjoining countries.
In 2011, to help suppliers understand and meet our expectations, QCT implemented its Conflict-Free Minerals Requirements for Suppliers. QCT requires its direct suppliers to adopt similar policies and practices to those specified in the Requirements. Suppliers are also required to have their own direct suppliers do the same. QCT is developing audit tools to help its suppliers meet these Requirements.
QCT also took steps to comply with forthcoming regulations regarding DRC conflict minerals and to provide transparent sourcing for our customers. In addition, QCT expanded its conflict-free supply chain strategy to include the five-step, risk-based due diligence strategy described in the OECD Due Diligence Guidance.
Increasing diversity among our suppliers
In 2011, we continued to increase the diversity of our suppliers, reaching out to small, disadvantaged and minority-owned businesses; businesses owned by women, veterans and people with disabilities; and businesses situated in historically underutilized business zones. Including such suppliers in our supply chain makes us a stronger company. Not only do we benefit from a variety of capabilities and perspectives, we also gain the value of unique, entrepreneurial customized services that many of these suppliers provide. Contracting with such suppliers also helps support local economies—an important consideration in the midst of a global economic slowdown.
Number of Registered Global Diverse Suppliers
In 2011, we:
- Provided Qualcomm’s business units with comprehensive training demonstrating the benefits of engaging diverse businesses. We also made it easier for managers and procurement personnel to engage diverse suppliers through our database of registered suppliers.
- Continued to encourage all suppliers to link to the Small Business Administration’s Central Contractor Registration (CCR) site as well as our own supplier site, which gives their businesses greater visibility to Qualcomm and many other global prime contractors.
- Participated in monthly networking events that give our personnel and suppliers a chance to connect with one another. We also work with national diverse supplier support agencies that provide suppliers with free counseling, workshops and training programs.