Intel reduces supplier labour violations by focusing on supply chain responsibility

Intel’s 2017-2018 Corporate Responsibility Report shows that the firm’s continued focus on supply chain responsibility is paying off. In concrete terms, supplier violations related to forced and bonded labour decreased by 60 percent last year, down from 126 in 2016 to 50 in 2017. Intel has been working with its suppliers – over 17,000 companies in over a hundred countries – to address human rights issues like forced and bonded labour in the technology industry since 2013.

As a technology industry innovator and corporate responsibility leader, Intel states that it is committed to advancing transparency, driving performance improvements in its global operations and exploring new ways to apply its technology to address global challenges. The report highlights the ways in which Intel proactively collaborates with others and leads industry initiatives to drive greater impact on complex issues – from climate change and water management, to diversity in the technology sector and human rights issues in the global technology supply chain.

Highlights

Advancing accountability and improving performance across its supply chain creates value for Intel and its customers by helping reduce risks, improve product quality and achieve environmental and social goals. Through communication, assessments and capability-building programmes, Intel is working to ensure that its supply chain is resilient, responsible and respectful of human rights. Some highlights from the report include:
• As a result of Intel’s work with its suppliers to build a system to detect and address risks of forced and bonded labour (such as fees charged to workers to obtain or keep employment), suppliers have returned over US$13 million in fees to their workers in Intel’s supply chain since 2014.
• In 2017, 86 percent of suppliers participating in Intel’s CSR leadership programme (representing more than 60 percent of supplier spends) fulfilled all of the requirements. This is a significant increase from 57 percent of suppliers in 2013, when the programme started.
• All of the first-tier Intel suppliers that were asked to participate in the supply chain survey in 2017 responded.
• In 2017, Intel made significant progress towards validating that its supply chain uses responsibly sourced minerals, with approximately 98 percent of its relevant suppliers using only smelters and refiners whose products are from conflict-free sources.

The annual Corporate Responsibility Report is a comprehensive assessment of the company’s performance in the areas of supply chain responsibility, environmental sustainability, diversity & inclusion and social impact. It is prepared using the Global Reporting Initiative (GRI) standards, and reflects Intel’s continued work to evolve its integrated reporting approach and alignment to frameworks such as the UN Sustainable Development Goals in response to feedback from investors and other stakeholders. Read the full 2017-2018 Corporate Responsibility Report.