Philips 2008 Annual Report Download - page 188

Summary supplier sustainability audit results
% of newly audited BOM-sites where the following types of non-compliances
were found
zero
tolerance
limited
tolerance
Labor
Freely choosen employment 1 11
Child labor avoidance – 9
Working hours 15 26
Wages and benefits – 26
Humane treatment – 2
Non-discrimination 1 4
Freedom of association – –
Collective bargaining – –
Health and safety
Occupational safety 22 11
Emergency preparedness 26 1
Occupational injury and illness – 21
Industrial hygiene 14 22
Physically demanding work – –
Machine safeguarding 7 2
Dormitory and canteen 7 4
Environmental
Environmental permits and reporting 15 2
Pollution prevention and resource
reduction – 2
Hazardous substances 20 29
Waste water and solid waste 9 3
Air emissions 1 4
Product content restrictions 5 2
Management system
Company commitment – 8
Management accountability – –
Legal and customer requirements – 4
Risk assessment and management – 13
Performance objectives – 23
Training – 5
Communication – 5
Worker feedback and participation – 2
Audits and assessments – 14
Corrective action process – 4
Documentation and records – 5
Ethics
Business integrity – –
No proper advantage – 7
Disclosure of information – –
Intellectual property 2 –
Fair business, advertising and competition 6 1
Protection of identity – 3
Supplier indicators
Supplier sustainability training
In 2008 Philips Sustainability Officers held 15 training sessions in China,
India and the United States, attended by more than 400 suppliers.
2008 supplier audits
Before a formal audit takes place, a quick scan of the supplier’s site
is conducted to identify critical issues where possible. This increases
the supplier’s understanding of our sustainability requirements and
standards. In 2008 we performed more than 100 scans in our
supply base.
A total of 572 audits of Bill of Material (BOM) and non-product
related (NPR) identified risk suppliers were carried out in 2008,
comprised of:
244 initial audits of new suppliers, including those from acquisitions,
•
new sites or spend growth exceeding EUR 100,000
33 continual conformance audits at suppliers audited in 2005, and
•
295 resolution audits focusing on zero-tolerance issues (for •
example: child labor, continual seven-day work weeks, immediate
life threatening situations, slave labor conditions and banned
substances).
The majority (80%) of BOM-related audits were conducted in China.
Some 60% of initial audits were performed by specialized external
auditing bodies for reasons of independence, professionalism
and capacity.
Philips Annual Report 2008188
180
Sustainability performance
- Supplier indicators
- Independent assurance report
192
IFRS financial statements
244
Company financial statements
124
US GAAP financial statements