final assessment hewlett-packard...

HEWLETT-PACKARD 16/09/14 WWW8.HP.COM

FINAL ASSESSMENT

HEWLETT-PACKARD COMPANY

The following pages contain the detailed scoring for your company based on

public information.

The following table represents a summary of your scores:

Topic Number of

questions

% score based

on public

information

Leadership, Governance

and Organisation

10 80%

Risk Management 7 57.1%

Company Policy and Codes 12 95.8%

Training 5 90%

Personnel and Helplines 7 57.1%

Total 41 78%


A1:

Does the company publish a statement from the Chief Executive Officer or the Chair of the Board supporting the ethics and anti-corruption agenda of the company?

Score:

1

Comments:

Based on public information, there is evidence that the company has published a statement from CEO and Chairman Meg Whitman, supporting the ethics and anti-corruption agenda of the company. In the 2014 Standards of Business Conduct she stresses the importance of a shared set of values that guide the company’s business practices. TI notes that statements in the 2013 Annual Report, 2013 Living Progress Report and 2012 Global Citizenship Report lack focus on the company’s ethics and anti-corruption. The company therefore scores 1. To score higher the company would need to provide evidence of at least two other statements from the last two years, which promote the company the company’s ethics and anti-corruption agenda, or one statement from the last two years that supports the company’s strong stance against corruption.

References:

Public:

2013 Annual Report, p.2:

‘We want to be a company known for its ethical leadership —a company where employees are proud to work; a company with which customers, business partners, and suppliers want to do business – Meg Whitman, President and CEO’

http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MjE4NDA1fENoaWxkSUQ9LTF8VHlwZT0z&t=1

Standards of Business Conduct (February 2014), p.6:

‘At HP, how we do things is as important as what we do.

Our conduct is the core of our culture, founded on shared values that are as relevant today as when HP was established back in 1939. The HP Standards of Business Conduct (SBC) sets the standards that guide our business practices and govern our behavior.

We are all responsible for protecting and enhancing HP’s reputation for integrity. Every decision we make matters in our effort to deliver meaningful contributions to people,




organizations, our communities, and the world. We’re accountable for our actions, responsible for their consequences, and proud of our efforts. Together, let’s build trust in everything we do by living our values.

Meg Whitman, CEO’

http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MjI3ODAzfENoaWxkSUQ9LTF8VHlwZT0z&t=1

2013 Living Progress Report, p.4:

Letter from CEO Meg Whitman

‘Together with our customers and partners, and with Living Progress as our framework, we promise to bring together our people and technology to help solve society’s toughest challenges. And we promise to consider human, economic, and environmental impact as we develop our products, services, and solutions, manage our operations and supply chain, and drive interactions with our customers, partners, and communities.’

http://www8.hp.com/h20195/v2/GetDocument.aspx?docname=c04152740

2012 Global Citizenship Report, p.4:

Letter from CEO Meg Whitman

‘In our Global Citizenship Report, you’ll learn about these examples and many others. In addition, to promote higher standards across the areas of human rights, labor, environment, and anticorruption, we endorse the United Nations Global Compact as a practical framework for the development, implementation, and disclosure of sustainability policies and practices.

The contributions we make to benefit people, communities, and the planet also create value for HP, our employees, our customers, and our shareholders.

It’s not just good values, it’s good business—and that means a path to sustainable growth.’

http://h20195.www2.hp.com/V2/GetPDF.aspx/c03742928.pdf

Company website: Living Progress

CEO Meg Whitman ‘describes HP's Living Progress framework, which builds on our commitment to global citizenship. We bring together our people and technology to help solve society's toughest challenges’. It compliments the 2013 Living Progress Report.

http://www8.hp.com/us/en/hp-information/global-citizenship/index.html





http://www8.hp.com/us/en/hp-information/global-citizenship/index.html


A2:

Does the company’s Chief Executive Officer or the Chair of the Board demonstrate a strong personal, external facing commitment to the ethics and anti-corruption agenda of the company?

Score:

1

Comments:

Based on public information, there is no readily available evidence that the CEO or the Chairman demonstrate a strong personal, external facing commitment to the ethics and anti-corruption agenda of the company. However, evidence suggests that this engagement has been delegated. The Chief Ethics and Compliance Officer Ashley Watson, has written online articles on ethics and anti-corruption issues and the Global Manager of Supply Chain Social & Environmental Responsibility Bob Mitchell, is on the Board of the Eletronic Industry Citizenship Coalition (EICC). The company therefore scores 1. To score higher the company would need to provide evidence that the CEO has demonstrated active external engagement in anti-corruption matters on more than one occasion over the last two years.

References:

Public:

Inside Counsel website: Ethics vs. compliance: Do we really need to talk about both? (27 January 2014)

‘If your policies and training place great emphasis on high-level values of right and wrong, you may not be properly pushing a culture of compliance. Of course, too much focus on legal standards without strong ethics messaging may inhibit the kind of values-based culture that makes employees proud and companies great.’

http://www.insidecounsel.com/2014/01/27/ethics-vs-compliance-do-we-really-need-to-talk-abo

EICC website: Board and Advisors

On the EICC Board of Directors, ‘Bob Mitchell, Global Program Manager for Supply Chain Social and Environmental Responsibility, HP’

http://www.eicc.info/about_us_board.shtml



http://www.eicc.info/about_us_board.shtml


A3:

Does the company’s Chief Executive Officer demonstrate a strong personal, internal-facing commitment to the ethics and anti-corruption agenda of the company, actively promoting the ethics and anti-corruption agenda at all levels of the company structure?

Score:

0

Comments:

Based on public information, there is no readily available evidence that the company’s CEO demonstrates a strong personal, internal-facing commitment to the ethics and anti-corruption agenda of the company.

References:

Public:

NA


A4:

Does the company publish a statement of values or principles representing high standards of business conduct, including honesty, trust, transparency, openness, integrity and accountability?

Score:

2

Comments:

Based on public information, there is evidence that the company publishes a statement of values representing high standards of ethical business conduct, including trust, integrity, honesty and openness. The Standards of Business Conduct provides a detailed explanation of integrity and trust, and clearly demonstrates how they are translated into company policies.

References:

Public:


‘HP Values: Trust & Respect, Achievement & Contribution, Results through Teamwork, Meaningful Innovation, Uncompromising Integrity.

Core Principles: We have a desire to make a difference, We are driven to achieve meaningful results, We believe in the power of people

Leader Attributes: Always Accountable, Will to Win, Passion for Customers, Highly Capable & Innovative, People & Team Develop’.

(p.5): ‘We want to be a company known for its ethical leadership—a company where employees are proud to work; a company with which customers, business partners, and suppliers want to do business.

We gain trust by treating others with integrity, respect, and fairness. We must continue to demonstrate these values in all our interactions, every day.’

(p.7):


(p.10): Explanation of trust as a value, linking it company policies. For example:

‘Building trust

We gain trust by treating others with integrity, respect, and fairness

We make ethical decisions

• Obey the law and HP policies

• Do not engage in any fraudulent conduct or behavior

• Seek guidance from the SBC and the resources and policies linked to it

• Talk to colleagues, your manager, or other members of management to get help to make the right decision

• Use your good judgment, the Headline Test, and the supporting decision-making model to work through situations when the right course of action may not be clear

• Always act honestly, in good faith, and in a respectful manner when raising concerns or otherwise using the SBC

•Managers must be ethical leaders and cultivate a work environment that promotes integrity, trust, and respect

•Managers must provide proper guidance to employees and take appropriate action to prevent, detect, and respond to misconduct

» Global HR Policies

» Fraud Mitigation Policy’.

(pp.12-14): Explanation of integrity as a value, linking it to company policies. For example:

‘Uncompromising integrity

We are open, honest, and ethical in all of our dealings

We use assets wisely


• Keep personal use of HP assets to a minimum

• Do not allow other people, including friends or family, to use HP resources

• Theft, damage, or unauthorized possession or use of property or systems is prohibited

• Do not use HP equipment or systems to violate the law or to create, store, or send content that others might find offensive

• Avoid any usage that might lead to loss or damage, including the introduction of viruses or a breach of our IT security

• Uphold your responsibility to protect HP financial assets

» Conflicts of Interest Policy

» IT Policy Set’.

Anti-Corruption Policy (November 2013), p.2:

‘At HP, our integrity is non-negotiable—we do not tolerate bribery of any kind—and we will not knowingly facilitate any other party’s corrupt conduct. We will never trade our integrity for a business opportunity. We believe it is important that public officials spend public money based on the merits of the deal, not for personal interests.’

The company’s anti-corruption guiding principles are: we do not bribe; we do not allow third parties to bribe on our behalf; we do not engage in activites that create the appearance of improprity; we maintain accurate books and records; we comply with local laws.




A5:

Does the company belong to one or more national or international initiatives that promote anti-corruption or business ethics with a significant focus on anti-corruption?

Score:

2

Comments:

Based on public information, there is evidence that the company belongs to the Electronic Industry Citizenship Coalition (EIIC) and the United Nations Global Compact.

References:

Public:

2013 Living Progress Report, pp.17-19:

A list showing HP membership and affiliation. It includes:

‘Electronic Industry Citizenship Coalition, a coalition of the world’s leading electronics companies working together to improve efficiency and social, ethical, and environmental responsibility in the global supply chain.’

‘Ethics and Compliance Officer Association (ECOA), a nonprofit, member-driven association exclusively for individuals who are responsible for their organization’s ethics, compliance, and business conduct programs.’

‘United Nations Global Compact, a voluntary and strategic policy initiative for businesses that are committed to aligning their operations and strategies with 10 universally accepted principles in the areas of human rights, labor, environment, and anti-corruption.’


A6:

Has the company appointed a Board committee or individual Board member with overall corporate responsibility for its ethics and anti-corruption agenda?

Score:

2

Comments:

Based on public information, there is evidence that the company has appointed the Audit Committee with overall corporate responsibility for its ethics and anti-corruption agenda. The Committee’s charter is publically available and states it oversees the Company’s ethics and compliance programmes, with respect to legal and regulatory requirements, and conducts reviews with management and the Director of Internal Audit.

References:

Public:

Audit Committee Charter (September 2013), p.6:

‘The Committee will oversee HP’s ethics and compliance programs with respect to legal and regulatory requirements, and review with management and the Director of Internal Audit the results of their review of compliance with applicable laws, regulations and listing standards, HP’s Standards of Business Conduct and internal audit reports. The Chief Ethics and Compliance Officer shall have the express authority to communicate personally to the Committee, including authority to promptly communicate personally to the Committee on any matter involving criminal conduct or potential criminal conduct and authority to communicate no less than annually on the implementation and effectiveness of the ethics and compliance program.’

http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MTc4ODEzfENoaWxkSUQ9LTF8VHlwZT0z&t=1


‘Our commitment to the highest ethical standards starts at the top with the Board of Directors. The board has ultimate responsibility for ethics and compliance and, along with company executives, sets the tone for employees. Its Audit Committee provides nonexecutive input on our program and guidance to our Chief Ethics and Compliance Officer. Our Ethics and Compliance Office oversees day-today work on this issue across our




global operations.’



A7:

Has the company appointed a person at a senior level within the company to have responsibility for implementing the company’s ethics and anti-corruption agenda, and who has a direct reporting line to the Board?

Score:

2

Comments:

Based on public information, there is evidence that the company has appointed Chief Ethics and Compliance Officer Ashley Watson, with responsibility for implementing the company’s ethics and anti-corruption agenda. The Chief Ethics and Compliance Officer has a direct reporting line to the Audit Committee.

References:

Public:Audit Committee Charter (September 2013), p.6:

‘The Chief Ethics and Compliance Officer shall have the express authority to communicate personally to the Committee, including authority to promptly communicate personally to the Committee on any matter involving criminal conduct or potential criminal conduct and authority to communicate no less than annually on the implementation and effectiveness of the ethics and compliance program.’


‘Our commitment to the highest ethical standards starts at the top with the Board of Directors. The board has ultimate responsibility for ethics and compliance and, along with company executives, sets the tone for employees. Its Audit Committee provides nonexecutive input on our program and guidance to our Chief Ethics and Compliance Officer. Our Ethics and Compliance Office oversees day-today work on this issue across our global operations.’



World Economic Forum website: Ashley Watson

‘Oversees the strategy and implementation of HP's ethics and compliance programme, which includes ethical decision-making based on HP's Standards of Business Conduct, HP's anticorruption programme and both internal and external investigations’

http://www.weforum.org/global-agenda-councils/ashley-watson

http://www.weforum.org/global-agenda-councils/ashley-watson


A8:

Is there regular Board level monitoring and review of the performance of the company’s ethics and anti-corruption agenda?

Score:

2

Comments:

Based on public information, there is evidence that the Audit Committee monitors the company’s ethics and anti-corruption agenda. The Audit Committee has responsibility to evaluate, with management and the Director of Internal Audit, the results of their review of compliance. Evidence suggests that this review process takes place at least annually, as the Committee meets at least six times a year. Further evidence suggests that the company conducts an annual review of the anti-corruption compliance programme.

References:

Public:

Corporate Governance Guidelines (November 2013), p.1:

‘Among other things, the Board monitors overall corporate performance, the integrity of HP’s controls and the effectiveness of its legal, ethics and compliance programs.’

http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MTc4ODE1fENoaWxkSUQ9LTF8VHlwZT0z&t=1







‘Our commitment to the highest ethical standards starts at the top with the Board of Directors. The board has ultimate responsibility for ethics and compliance and, along with company executives, sets the tone for employees. Its Audit Committee provides nonexecutive input on our program and guidance to our Chief Ethics and Compliance Officer. Our Ethics and Compliance Office oversees day-today work on this issue across our global operations.’


‘We ensure compliance with all applicable anticorruption laws wherever we do business through our Anticorruption Compliance Program, which is reviewed and revised each year to ensure that HP has adequate procedures in place to prevent bribery.’

Plea Agreement between the United States of America and ZAO Helwett-Packard AO, Exhibit 3 p.3:


A8(a):

Is there a formal, clear, written plan in place on which the review of the ethics and anti-corruption agenda by the Board or senior management is based, and evidence of improvement plans being implemented when issues are identified?

Score:

2

Comments:

Based on public information, there is evidence of a formal, clear, written plan, on which the review of the ethics and anti-corruption agenda by the Board is based. Evidence suggests that the Audit Committee reviews the company’s ethics and anti-corruption agenda at least annually. The specific plans and goals for the ethics and anti-corruption programme regard training, third party controls, policy improvements, and event and hospitality screening.

References:

Public:


‘Among other things, the Board monitors overall corporate performance, the integrity of HP’s controls and the effectiveness of its legal, ethics and compliance programs.’




‘Conflicts of Interest Policy: Following a comprehensive review, we reorganized our Conflicts


of Interest Policy, revised the content to reflect employee needs, and translated the text into 13 languages. Additional new resources include FAQs and a Disclosure Matrix, which defines what should be disclosed, to whom, and what level of management approval is needed.’

‘During 2013, we simplified our anti-corruption policies to provide streamlined guidance to our workforce and introduced a new, stand-alone Anti-corruption Policy and a revised Global Business Amenities Policy’

(p.23):


‘We ensure compliance with all applicable anticorruption laws wherever we do business through our Anticorruption Compliance Program, which is reviewed and revised each year to ensure that HP has adequate procedures in place to prevent bribery.’


A9:

Does the company have a formal process for review and where appropriate update its policies and practices in response to actual or alleged instances of corruption?

Score:

2

Comments:

Based on public information, there is evidence that the company has a formal process to review and update its policies and practices, in response to actual or alleged instances of corruption. The company’s investigation process has five steps, including the review of investigation findings and the implementation of recommendations. In particular, in response to a recent corruption case it is seeking to improve its policies and practices.

References:

Public:

2013 Living Progress Report, pp.21-22:

‘HP uses a global case management system to record allegations of ethical violations. It enables us to identify geographical hotspots and trends, and determine whether additional action such as supplemental training or controls would be valuable in a specific region or area of risk.

We take all alleged violations of company policy seriously, responding promptly and conducting investigations when appropriate. These investigations may involve the participation of local, regional, or corporate-level employees and other relevant functions, including regional human resources teams. The Office of General Counsel’s dedicated investigations team oversees all escalated, corporate-led investigations. Details and results of investigations are confidential and shared only on a need-to-know basis. We take appropriate disciplinary or remedial action, when required.

In 2013, we undertook a Lean Six Sigma review1 of the processes under which investigations of serious misconduct are handled. This review identified ways to improve our investigative procedures without compromising the thoroughness and effectiveness of an investigation. The end result was a more efficient approach and a significantly reduced time period to complete investigations.’

(p.22):


(p.23):

‘In April 2014, HP resolved a case that involved a small number of former employees violating our SBC and the Foreign Corrupt Practices Act. As part of the resolution the U.S. Department of Justice recognized HP’s extraordinary cooperation with the authorities, extensive remediation, and continued improvement and enhancement of its anticorruption compliance program.

As a company, we have no tolerance for unlawful behavior, and pride ourselves on holding employees to the highest ethical standards. Our Ethics and Compliance team has taken and will continue to take actions to prevent corrupt conduct, and as a company we remain focused on providing our customers around the world the best quality products and services and adhering to the highest standards of business conduct and ethics.’


‘The German Public Prosecutor’s Office, the U.S. Department of Justice, and the Securities and Exchange Commission are currently investigating allegations of misconduct in connection with a 2003 transaction between a former HP subsidiary in Germany and the Russian General Prosecutor’s Office (GPO). HP takes such matters very seriously and continues to cooperate fully with the authorities in their ongoing investigations.’

Plea Agreement between the United States of America and ZAO Helwett-Packard AO, p.10: ‘In order to address deficiencies in its internal control, policies, and procedures, HP Co. represents that it has undertaken, and will continue to undertake in the future, a review of its existing internal control, policies, and procedures regarding compliance with the FCPA and other applicable anti-corruption laws’.

(Exhibit 3 p.1):

‘The company agrees to adopt new or to modify existing internal controls, compliance code, policies, and procedures’.

(Exhibit 3 p.5):


A9(a):

Does the company have a formal anti-corruption risk assessment procedure implemented enterprise-wide?

Score:

1

Comments:

Based on public information, there is some evidence that the company has a formal anti-corruption risk assessment procedure implemented enterprise-wide. It includes determining the risks associated with different geographies, interactions with government officials and internal procedures. The company therefore scores 1. To score higher the company would need to provide evidence on how the anti-corruption risk assessment is applied, who owns the mitigation plans and when they must be applied.

References:

Public:


‘In many foreign countries, particularly in those with developing economies, it is common to engage in business practices that are prohibited by laws and regulations applicable to us, such as the Foreign Corrupt Practices Act (the ‘‘FCPA’’). For example, as discussed in Note 17 to the Consolidated Financial Statements, the German Public Prosecutor’s Office, the U.S. Department of Justice and the Securities and Exchange Commission have been investigating allegations that certain current and former employees of HP engaged in bribery, embezzlement and tax evasion. In addition, the U.S. enforcement authorities, as well as the Polish Central Anti-Corruption Bureau, are conducting investigations into potential FCPA violations by a former employee of an HP subsidiary in connection with certain public-sector transactions in Poland, and the U.S. enforcement authorities are conducting investigations into certain other public-sector transactions in Russia, Poland, the Commonwealth of Independent States and Mexico, among other countries. Although we implement policies and procedures designed to facilitate compliance with these laws, our employees, contractors and agents, as well as those companies to which we outsource certain of our business operations, may take actions in violation of our policies. Any such violation, even if prohibited by our policies, could have an adverse effect on our business and reputation.’



‘We use internal data and Transparency International’s Corruption Perceptions Index to identify countries at high risk for corrupt activity and raise employee awareness of potential issues in these higher-risk countries. We also benchmark our program with those of other companies to identify potential improvements.’


‘The Company will maintain, or where necessary, develop these compliance policies and procedures on the basis of a periodic risk assessment addressing the individual circumstances of the Company, in particular the foreign bribery risks facing the Company, including, but not limited to, its geographical organisation, interactions with various types and levels of government officials, industrial sectors of operation, involvement in joint venture arrangements, importance of licenses and permits in the Company’s operations, degree of governmental oversight and inspection, and volume and importance of goods and personnel clearing through customs and immigration.’


A10:

Does the company have a formal anti-corruption risk assessment procedure for assessing proposed business decisions, with clear requirements on the circumstances under which such a procedure should be applied?

Score:

2

Comments:

Based on public information, there is evidence that the company has a formal anti-corruption risk assessment procedure for assessing proposed business decisions. Evidence shows that the company conducts due diligence of potential acquisitions, which includes an assessment of its internal controls, as well as third parties such as agents and joint venture arrangements.

References:

Public:


‘Mergers and acquisitions present business opportunities for HP, as well as risks. For example, HP can be held accountable for the actions of an acquired company, so we must conduct anti-corruption due diligence, both prior to and after the acquisition, to evaluate the target company’s internal controls and third-party relationships. As part of the integration, HP will begin moving the third-parties onto HP contractual terms and conditions. HP also incorporates the acquired company into our ethics and compliance program and provides training to the acquired company employees as soon as practicable after the acquisition. If you have any questions regarding the anti-corruption risks in mergers and acquisitions, please contact [email protected].’


‘Our due diligence process may fail to identify significant issues with the acquired company’s product quality, financial disclosures, accounting practices or internal control deficiencies.’


‘We use internal data and Transparency International’s Corruption Perceptions Index to identify countries at high risk for corrupt activity and raise employee awareness of potential issues in these higher-risk countries. We also benchmark our program with those of other


companies to identify potential improvements.’

Plea Agreement between the United States of America and ZAO Helwett-Packard AO, pp.9-10:

‘A compliance and ethics program designed to prevent and detect violations of the FCPA and other applicable anti-corruption laws throughout its operations, including those of its subsidaries, affiliates, agents, and joint ventures, and those of its contractors and subcontractors whose responsibilities include interacting with foreign officials or other activities carrying a high risk of corruption.’

(Exhibit 3 p.3): ‘The Company will maintain, or where necessary, develop these compliance policies and procedures on the basis of a periodic risk assessment addressing the individual circumstances of the Company, in particular the foreign bribery risks facing the Company, including, but not limited to, its geographical organisation, interactions with various types and levels of government officials, industrial sectors of operation, involvement in joint venture arrangements, importance of licenses and permits in the Company’s operations, degree of governmental oversight and inspection, and volume and importance of goods and personnel clearing through customs and immigration.’

(Exhibit 3 p.6):


(Exhibit 5 p.6):


A11:

Does the company conduct due diligence that minimises corruption risk when selecting or reappointing its agents?

Score:

1

Comments:

Based on public information, there is evidence that the company conducts due diligence that minimises corruption risk when selecting or reappointing its agents. The company therefore scores 1. To score higher the company would need to provide evidence that it refreshes due diligence at least every 3 years and/or when there is a significant change in the business relationship.

References:

Public:


‘We conduct appropriate due diligence. HP is committed to conducting properly documented risk-based due diligence before retaining agents, business partners, and other third parties. When engaging a third party, you must follow the applicable mandatory onboarding process (e.g., through Global Procurement or the Channel Partner organization) and must document the engagement in writing using approved terms and conditions.’


‘Use agents and distributors only after they have passed our due diligence process to ensure that our commissions or fee arrangements will not be used as bribes on our behalf’


‘Continue expanding controls relating to third-party due diligence, including initiating rescreening of existing channel partners.’



A12:

Does the company have contractual rights and processes for the behaviour, monitoring, control, and audit of agents with respect to countering corruption?

Score:

2

Comments:

Based on public information, there is evidence that the company has contractual rights and processes for the behaviour, monitoring, control and audit of agents with respect to countering corruption. The company has rights to monitor and audit agents’ activities, and terminate a contract if corrupt activities are found.

References:

Public:


’We must be extremely vigilant when we engage third parties and actively monitor our relationship to ensure that they will conduct business in an ethical manner and that our fee arrangements will not be used as bribes on our behalf, or for other corrupt activity.’

(p.7): ‘Third parties must be informed of our ethical expectations and agree not to engage in bribery. HP expects every third party it engages to abide by the law and our standards for conducting business. For example, HP’s authorized forms of agreement contain provisions prohibiting third parties from making improper payments and requiring channel partners to comply with HP’s Partner Code of Conduct, among other things. To ensure that HP receives the benefits of these provisions, you must follow the applicable onboarding process and must use an approved contract template when engaging a third party.’

‘We must be alert for “red flags” that indicate that a third party may engage in corrupt activities. When you learn of any signs that a third party may engage in improper business practices like bribery, you must take prompt action to obtain reasonable assurance that the third party will not engage in such practices. If you are not sure about what action to take or if the assurances are not adequate, you should report your concerns immediately to your HP attorney or the Ethics and Compliance Office.’

Partner Code of Conduct (May 2012), p.1:


‘HP requires that HP Partners (1) implement effective business controls that prevent and detect unlawful conduct; (2) comply with and agree to contractual provisions that require strict adherence to all applicable anti-corruption laws and other laws that are relevant to their HP Partner status and their HP Partner business; (3) grant HP audit rights to review the Partners’ compliance with such laws relevant to their HP partner status; (4) to the extent they become aware, report to HP actual or potential violations of this Partner Code of Conduct or applicable laws involving HP products by their employees and representatives, as well as actual or potential violations of HP’s Standards of Business Conduct, this Partner Code of Conduct, and applicable laws by HP’s employees and representatives; and (5) provide certification of their compliance with these laws and complete all related HP training and due diligence modules as and when requested by HP.

Although HP recognizes the different legal and cultural environments in which its Partners operate throughout the world, HP Partners must comply with the fundamental legal and ethical principles described in this Partner Code of Conduct. This Partner Code of Conduct is applicable to HP Partners, their employees, temporary employees, and independent contractors. An HP Partner is any party selling HP products, including distributors, resellers, agents, and any other party to an HP partner or channel agreement. An HP Partner also includes any party providing services directly or indirectly to HP in support of HP business, such as system integrators, logistics companies and other service providers to HP supporting HP business with its customers. A breach of this Partner Code of Conduct will be considered a breach of the Partner’s contract with HP and may lead to the termination of the business relationship with HP.’

‘HP policy prohibits offers or payments of bribes, kickbacks or gifts to win or retain business or to influence a business decision. HP Partners, therefore, are prohibited from offering or providing money or anything of value, either directly or indirectly, by employees or through other parties, to any person with an intent to obtain or retain business or otherwise gain an improper business advantage. In addition, HP Partners must comply with specific applicable local laws related to gifts to and entertainment of commercial entities and government officials.’

(p.3): ‘Investigations and HP’s Ongoing Monitoring of the HP Partners’ Compliance

HP Partners must, consistent with applicable laws and contractual obligations, provide reasonable assistance to any investigation by HP of a violation of this Partner Code of Conduct or of a violation by an HP employee of HP’s Standards of Business Conduct if related to the HP Partner’s business or applicable laws relevant to their HP partner status, and to allow HP reasonable access to all documentation concerning the HP Partners’ compliance with this Partner Code of Conduct and laws applicable to their sale and distribution of HP products.’

http://www.hp.com/hpinfo/globalcitizenship/society/pdf/English.pdf

Plea Agreement between the United States of America and ZAO Helwett-Packard AO,

Exhibit 3 p.6:



A13:

Does the company make clear to contractors, sub-contractors, and suppliers, through policy and contractual terms, its stance on bribery and corruption and the consequences of breaches to this stance?

Score:

2

Comments:

Based on public information, there is evidence that the company makes clear to contractors, sub-contractors, and suppliers, through policy and contractual terms, its stance on corruption and the consequences of breaches to this stance. Suppliers agree to conform to the Supplier Code of Conduct and the company has the right to terminate a contract for violations.

References:

Public: Company website: Supplier SER requirements ‘ Supplier represents and warrants that it will: 1. Comply with all applicable laws and regulations and require their suppliers to do the

same (including labor agencies) 2. Read and understand HP's Supply Chain Social and Environmental Responsibility Policy 3. Conform to the expectations and standards in HP's Electronic Industry Code of

Conduct(a.k.a. Supplier Code of Conduct in certain agreements) and HP’s Student and Dispatch Worker Guidance Standard for Supplier Facilities in the People’s Republic of China (PRC), as applicable.’

http://www8.hp.com/us/en/hp-information/global-citizenship/society/supplier-ser-requirements.html


‘HP demands that our suppliers operate their businesses ethically. Working with the EICC, HP has tightened auditing standards in this area to verify the presence of policies, procedures, record keeping, and training that demonstrate an ongoing commitment to preventing unethical behavior and protecting whistleblowers. Due to our higher expectations, there was an increase in the number of findings in many ethics provisions of our Code of Conduct, including business integrity and protection of identity, although we uncovered no actual cases of ethical misconduct during our audits. As with other audit




provisions, we require our suppliers to correct and close these issues. We then confirm that the supplier sites took corrective actions through on-site follow-up audits.’

Supply Chain Responsibility: Our Approach (2014), p.3:

‘We require all suppliers to conform to HP’s EICC Code of Conduct’.

(p.5): ‘Major nonconformance A significant failure in the management system that affects a company’s ability to ensure that conditions conform to HP’s EICC Code of Conduct or General Specification for the Environment. For example, a site may not have implemented a required standard, or 20% or more of workers are not aware that such a standard exists. Suppliers must demonstrate that they have addressed major nonconformances within 180 days by delivering appropriate documentation or other evidence of resolution.

Zero-tolerance items are the most serious type of major nonconformance. Examples include underage workers (below the local legal age for work or apprenticeship), forced labor, health and safety issues posing immediate danger to life or risk of serious injury, and perceived violation of environmental laws posing serious and immediate harm to the community. Our zero-tolerance policy requires auditors to escalate such items immediately. Suppliers must rectify these items no later than 30 days after the original audit. HP then reexamines the zero-tolerance item between 30 and 90 days after the audit with an in-person visual verification to confirm resolution of the issue. Zero-tolerance items also result in suppliers being downgraded in our SER scorecards and either a reduction or elimination of business if both the zero-tolerance item and the underlying management system deficiencies are not addressed.’

(p.6): ‘If a supplier rejects the continual improvement approach, we emphasize that we will not tolerate serious or repeated violations of HP’s EICC Code of Conduct and will terminate the relationship if needed.’


HP Electronic Industry Code of Conduct (June 2012), p.5:

‘To meet social responsibilities and to achieve success in the marketplace, Participants and their agents are to uphold the highest standards of ethics including:

1) Business Integrity

The highest standards of integrity are to be upheld in all business interactions. Participants shall have a zero tolerance policy to prohibit any and all forms of bribery, corruption, extortion and embezzlement (covering promising, offering, giving or accepting any bribes). All business dealings should be transparently performed and accurately reflected on Participant’s business book and records. Monitoring and enforcement procedures shall be implemented to ensure compliance with anti-corruption laws.

2) No Improper Advantage

Bribes or other means of obtaining undue or improper advantage are not to be offered or accepted.’



http://www.hp.com/hpinfo/globalcitizenship/environment/pdf/supcode.pdf



A13(a):

Does the company explicitly address the corruption risks associated with offset contracting?

Score:

0

Comments:

Based on public information, there is no readily available evidence that the company explicitly addresses the corruption risks associated with offset contracting.

References:

Public:

TI notes:

GOCA website: Regular Member Directory

‘Hewlett-Packard Ges.m.b.H’

http://www.globaloffset.org/regularmembers.php



A13(b):

Does the company conduct due diligence that minimises corruption risk when selecting its offset partners and offset brokers?

Score:

0

Comments:

Based on public information, there is no readily available evidence that the company conducts due diligence that minimises corruption risk when selecting its offset partners and offset brokers.

References:

Public:

TI notes:

GOCA website: Regular Member Directory

‘Hewlett-Packard Ges.m.b.H’




A15:

Does the company have an anti-corruption policy that prohibits corruption in its various forms?

Score:

2

Comments:

Based on public information, there is evidence that the company has an anti-corruption policy that prohibits corruption in its various forms, including bribery, facilitation payments and kickbacks.

References:

Public:


‘We avoid conflicts of interest

• Make decisions in the best interest of HP

• Discuss with your manager any situation that could be perceived as a potential conflict of interest

• Proactively address situations that may put your interests or those of a family member or friend in potential conflict with HP’.

(p.13): ‘We do not bribe or accept kickbacks

• Do not offer or provide bribes or other improper payments or inducements to win business or to influence a business decision—anywhere on anything, even if it means losing business in the short term

• Do not request or accept a bribe or kickback of any sort

• Report to your manager any requests for, or offers of, bribes or kickbacks

• Do not make facilitation payments, and report any requests for facilitation payments

• Use agents and distributors only after they have passed our due diligence process to ensure that our commissions or fee arrangements will not be used as bribes on our behalf’.


‘At HP, our integrity is non-negotiable—we do not tolerate bribery of any kind—and we will


not knowingly facilitate any other party’s corrupt conduct.’

(p.3): ‘We have a duty to spend HP resources in ethical ways. You may never provide or promise to provide anything of value to a third party to improperly influence a decision on their part. Instead, you may provide or accept gifts, meals, travel, entertainment and other items of value only when appropriate. You must never solicit any item of value from any third party.’

(p.6): ‘HP prohibits facilitation payments by HP employees or by any third party on HP’s behalf.’


‘HP does not tolerate corrupt behavior and prohibits bribery or kickbacks in any circumstance. Corrupt behavior is an impediment to social and economic development. It undermines the values on which HP is built, the principles of fair competition, and the rule of law.’


A16:

Is the anti-corruption policy explicitly one of zero tolerance?

Score:

2

Comments:

Based on public information, there is evidence that the company has an explicit zero tolerance stance to corruption.

References:

Public:

Company website: Corporate ethics

‘We do not tolerate corrupt behavior and prohibits bribery or kickbacks in any circumstance. Corrupt behavior is an impediment to social and economic development. It undermines the values on which we are built, the principles of fair competition, and the rule of law.’

http://www8.hp.com/us/en/hp-information/global-citizenship/governance/ethics.html


‘At HP, our integrity is non-negotiable—we do not tolerate bribery of any kind—and we will not knowingly facilitate any other party’s corrupt conduct.’


‘HP does not tolerate corrupt behavior and prohibits bribery or kickbacks in any circumstance. Corrupt behavior is an impediment to social and economic development. It undermines the values on which HP is built, the principles of fair competition, and the rule of law.’

http://www8.hp.com/us/en/hp-information/global-citizenship/governance/ethics.html


A17:

Is the company's anti-corruption policy easily accessible to Board members, employees, contracted staff and any other organisations acting with or on behalf of the company?

Score:

2

Comments:

Based on public information, there is evidence that the company’s ethics and anti-corruption policies are easily accessible to Board members, employees and third parties. The Anti-Corruption Policy, the Standards of Business Conduct, the Partner Code of Conduct, and the Supplier Code of Conduct are all available on the company website and most are provided in numerous languages.

References:

Public:

Standards of Business Conduct (February 2014)

Available to download in 21 languages at:

http://h30261.www3.hp.com/phoenix.zhtml?c=71087&p=irol-govConduct

Partner Code of Conduct (May 2012)

Available in numerous languages at:

http://www.hp.com/hpinfo/globalcitizenship/society/codes_conduct.html


Available in Dutch, Hungarian, Korean, Spanish, French, Italian, Portuguese, English, Arabic, Chinese-Simplified, Chinese-Traditional, German Japanese, Russian. Available to download at: http://www8.hp.com/h20195/v2/GetDocument.aspx?docname=c04293436

http://h30261.www3.hp.com/phoenix.zhtml?c=71087&p=irol-govConduct

http://www.hp.com/hpinfo/globalcitizenship/society/codes_conduct.html



A17(a):

Is the company’s anti-corruption policy easily understandable and clear to Board members, employees and third parties?

Score:

2

Comments:

Based on public information, there is evidence that the company’s ethics and anti-corruption policies are easily understandable and clear to Board members, employees and third parties. The policies are written in clear, comprehensible language.

References:

Public:


‘We avoid conflicts of interest



• Proactively address situations that may put your interests or those of a family member or friend in potential conflict with HP’.

(p.13): ‘We do not bribe or accept kickbacks

• Do not offer or provide bribes or other improper payments or inducements to win business or to influence a business decision—anywhere on anything, even if it means losing business in the short term

• Do not request or accept a bribe or kickback of any sort

• Report to your manager any requests for, or offers of, bribes or kickbacks

• Do not make facilitation payments, and report any requests for facilitation payments

• Use agents and distributors only after they have passed our due diligence process to ensure that our commissions or fee arrangements will not be used as bribes on our behalf’.


‘At HP, our integrity is non-negotiable—we do not tolerate bribery of any kind—and we will


not knowingly facilitate any other party’s corrupt conduct.’

(p.3): ‘We have a duty to spend HP resources in ethical ways. You may never provide or promise to provide anything of value to a third party to improperly influence a decision on their part. Instead, you may provide or accept gifts, meals, travel, entertainment and other items of value only when appropriate. You must never solicit any item of value from any third party.’


A18:

Does the anti-corruption policy explicitly apply to all employees and

members of the Board?

Score:

2

Comments:

Based on public information, there is evidence that all employees and Board members are required to act in ways that are consistent with the Standards of Business Conduct.

References:

Public:


‘This Policy establishes HP’s global anti-corruption principles and applies to HP employees worldwide. HP employees may not deviate from HP’s Anti-Corruption Policy or any of the related policies without prior written authorization from the Chief Ethics and Compliance Officer or the General Counsel. Violations of this Policy may lead to disciplinary action up to and including termination of employment with HP. Any employee with knowledge or suspicion of any violations of this Policy must report these concerns to the Ethics & Compliance Office.’


‘The SBC is a resource for employees and all those who represent HP. All employees and members of the Board of Directors are required to act in ways that are consistent with the SBC.’


‘The Board expects all directors, as well as officers and employees, to display the highest standard of ethics, consistent with HP’s longstanding values and standards. HP has and will continue to maintain a code of conduct, known as the “Standards of Business Conduct” that is applicable to directors, officers and employees. Directors are expected to comply with the letter and the spirit of the Standards of Business Conduct, to focus on areas of ethical risk, to report unethical conduct and to help foster a culture of honesty and accountability. Directors are encouraged to bring questions about particular circumstances to the attention


of the Chairman, CEO, Chairman of the Nominating and Governance Committee, or Chairman of the Audit Committee, who may consult with HP attorneys or outside counsel, as appropriate. The Board also expects directors, officers and employees to acknowledge their adherence to the Standards of Business Conduct on an annual basis. The Audit Committee periodically reviews compliance with the Standards of Business Conduct. Directors are expected to report any possible conflict of interest between the director and HP or any violation of the Standards of Business Conduct to the Chairman, CEO or Chairman of the Nominating and Governance Committee, who will review the matter and take appropriate action.’


‘We adhere to the highest ethical standards. Our Ethics and Compliance program requires employees, business partners and suppliers worldwide to use only lawful and ethical business practices.’

(p.22): ‘Everyone at HP is accountable for their actions, regardless of position in the company.’

‘In November 2013, we communicated the new Anti-corruption Policy and Global Business Amenities Policy to all employees globally, and, in early 2014, successfully trained HP’s sales force on these policies. HP communicates regularly with employees worldwide to promote understanding and familiarity with all aspects of our Anti-corruption Compliance Program.’


A20:

Does the company have a policy on potential conflicts of interest, and does it apply to both employees and board members?

Score:

2

Comments:

Based on public information, there is evidence that the company has a policy on potential conflicts of interest. The Conflicts of Interest Policy is not publically available, but via the Contingent Worker Code of Conduct and the Standards of Business Conduct, the company clearly defines conflicts of interest and provides examples. Evidence suggests that Board members have a separate conflicts of interest policy.

References:

Public:

Contingent Worker Code of Conduct (January 2014), p.2:

‘Conflicts of interest

Contingent workers must always make decisions in the best interest of HP and based on the contract with their employer when conducting HP business. Contingent workers may not receive any personal profit or advantage, other than their compensation from their employer, in connection with any transaction involving HP.

Contingent workers must not engage in:

• Any activity that would present a conflict of interest related to their employer and/or HP

• Any activity that could be perceived as a potential conflict of interest related to their employer and/or HP’.

https://h20168.www2.hp.com/classC/spwebdocs/HP001_04_External.pdf

Standards of Business Conduct (February 2014), pp.12-13:

‘We avoid conflicts of interest



• Proactively address situations that may put your interests or those of a family member or



friend in potential conflict with HP

Conflicts of Interest Policy’

‘We avoid conflicts of interest:

• Outside employment with, or receiving compensation from, a customer, business partner, supplier, or competitor

• Significant financial interest in a customer, business partner, supplier, or competitor held by you or a family member

• Conducting business with a business partner, supplier, channel partner or customer when someone in your family, or anyone else with whom you have a close personal relationship, has a substantial role in that company

• Service in a government or public body that has regulatory authority over HP or that purchases from HP

• Family members or individuals with close personal relationships should not report to each other, either directly or indirectly

• Family members or individuals with close personal relationships should not directly or indirectly be involved in each other’s employment-related decisions such as hiring, work assignments, compensation, performance reviews, disciplinary actions, or recommendations for promotions’


‘Directors are expected to report any possible conflict of interest between the director and HP or any violation of the Standards of Business Conduct to the Chairman, CEO or Chairman of the Nominating and Governance Committee, who will review the matter and take appropriate action.’

(p.8): ‘In determining independence, the Board reviews whether directors have any material relationship with HP. The Board considers all relevant facts and circumstances. In assessing the materiality of a director’s relationship to HP, the Board considers the issues from the director’s standpoint and from the perspective of the persons or organizations with which the director has an affiliation and is guided by the standards set forth below. The Board reviews commercial, industrial, banking, consulting, legal, accounting, charitable and familial relationships. An independent director must not have any material relationship with HP, either directly or as a partner, stockholder or officer of an organization that has a relationship with HP, or any relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director.’


A21:

Does the company have a policy for the giving and receipt of gifts to ensure that such transactions are bona fide and not a subterfuge for bribery?

Score:

2

Comments:

Based on public information, there is evidence that the company has a policy for the giving and receipt of gifts, to ensure that such transactions are bona fide and not a subterfuge for bribery. The policy is extremely detailed and provides comprehensive coverage. The policy lists the types of gifts that may never be given or received, sets clear upper values on the acceptable value of a gift, and specifies thresholds that when exceeded will require senior management authorisation.

References:

Public:


‘We provide and accept gifts and entertainment only when appropriate

• Provide gifts, meals, travel, and entertainment only if they comply with the Global Business Amenities Policy; gifts, meals, travel, and entertainment must be reasonable for the business relationship and intended only to improve HP’s image, better represent products and services, or establish cordial relationships

• Accept gifts, meals, travel, and entertainment only if they comply with the Global Business Amenities Policy

• Exchange gifts, meals, travel, and entertainment that foster goodwill in business relationships, but never provide or accept gifts, meals, travel, or entertainment that may create undue influence, or even the appearance of undue influence, and never provide or accept gifts, meals, travel, or entertainment in exchange or return for a reciprocal action

• Provide gifts, meals, and entertainment only if consistent with the policies of the recipient’s employer, as well as HP policies

• Do not provide gifts, meals, or entertainment to a government official unless doing so is legal and consistent with HP policies

• Do not solicit gifts, meals, or entertainment

• Report to your manager any gifts, meals, or entertainment you receive, as required by the


Global Business Amenities Policy

• Consult the Global Business Amenities Policy before offering or accepting gifts, meals, travel or entertainment, and act according to the policy, including any approval process’.

‘HP has restrictions on the types of amenities that may be provided to our customers, partners, or other third parties, because certain types of amenities create unnecessary risk to HP. Refer to the Global Business Amenities Policy.

The following business amenities are never permitted:

• Cash, loans, stock, or stock options

• Cash gift cards such as, but not limited to, American Express, Visa, MasterCard

• Any gift or entertainment provided in direct exchange for a reciprocal action

• Any item that is illegal or sexually explicit, involves gambling, or would otherwise violate our values or the SBC

• Any item that might present an appearance of impropriety or conflict of interest

• Any item exchanged during a competitive bid process or contract negotiation

• Excessive, lavish, or frequent gifts or entertainment

• Any item that might violate the recipient’s policies

• Amenities given to, or received from, immediate family members (parents, children, spouse, and in-laws), significant others, close friends, and business associates (e.g., agents, consultants, etc.) of third parties. Exception is infrequent attendance of immediate family member or significant other at commercial events of nominal value where the family members or significant others of HP employees are also attending or where customary for a family member or significant other to attend.’


• Frequent giving or receipt of gifts, meals, travel, or entertainment to or from customers, business partners, or suppliers

• Giving or receipt of gifts, meals, travel, or entertainment to or from customers, business partners, or suppliers during a bid, deal, or contract negotiation

• Lavish or excessive gifts, meals, travel, or Entertainment’

Anti-Corruption Policy (November 2013), pp.3-4:

‘We have a duty to spend HP resources in ethical ways. You may never provide or promise to provide anything of value to a third party to improperly influence a decision on their part. Instead, you may provide or accept gifts, meals, travel, entertainment and other items of value only when appropriate. You must never solicit any item of value from any third party.

Gifts of nominal value are generally permitted, but cash and expensive or lavish items are not. You must not provide things of value too frequently to the same recipient.


In addition to these principles, the Global Business Amenities Policy sets specific limits on the value of, and the approvals required for, business amenities that may be given or received, including gifts, door prizes/raffles/drawings, travel, meals, entertainment, and combinations of these categories. These rules may vary in different countries and you must know and follow any country-specific requirements outlined in the Global Business Amenities Policy.

Travel

Unless prohibited by a country-specific policy, HP may in limited circumstances pay for travel (that is, transportation and/or accommodation) for third parties, provided the travel is related to a legitimate HP business purpose. The following principles apply to HP-paid travel for third parties:

• Travel must be necessary for a legitimate business meeting or event.

• Any travel must be reasonable, not lavish, and consistent with HP’s internal travel policies and practices, including using HP approved hotels and HP travel services when possible.

• HP must pay any expenses directly to the service provider, not the traveler. HP must not pay per diems to the traveler.

• Sightseeing or other recreational activities are allowed only if they are minimal or incidental in nature.

• You must obtain prior approval as detailed in the Global Business Amenities Policy.

HP Events and Amenities Related to an HP Event

HP often invites third parties to attend HP Events such as:

• HP organized corporate activities • Demonstrations of HP products • Trade show events

• CIO events • Road shows • Advisory councils

• Executive Briefing Center/Lab visits • Technical workshops, seminars, lunch and learns

• Sales account activities and hospitality

‘’Event’’ does not include ordinary business meals or amenities. As part of an HP Event, you


may be able to provide attendees with free access to the Event as well as various business amenities, including gifts, travel, meals, entertainment, and other items of value, provided the Event is directly related to the promotion, demonstration, or explanation of HP products or services. The Event, including all amenities, cannot be lavish.’

Contingent Worker Code of Conduct (Janaury 2014), p.2:

‘Business gifts and entertainment

Contingent workers may not provide or receive business amenities (gifts, meals, services, entertainment, or anything else of value) when doing so creates the appearance of impropriety or undue influence. This restriction applies to amenities given to or received from representatives of HP, or its current or potential customers, channel partners, suppliers, other business partners or competitors.’

Global Business Amenities Policy, p.1:

‘HP’s Anti-Corruption Policy provides the guidelines and principles to help HP’s directors, officers and employees uphold HP’s anti-corruption commitment. This Global Business Amenities Policy establishes HP’s standards for providing or receiving business amenities to or from third parties and applies to all HP employees worldwide. Some countries may have more restrictive rules or guidance than in this Policy. If so, the more restrictive rules apply. You should always consult and comply with the country-specific rules. Before providing any business amenity, ask yourself these questions:

(1) Is the recipient public sector or Commercial sector? What might be acceptable for Commercial sector recipients may not be acceptable for public sector recipients.

(2) Is there a country-specific rule that applies? The country you should look at is the country where the recipient works.

(3) When was the last time HP gave business amenities to or received business amenities from this recipient? Does the frequency or timing create the appearance of impropriety?

(4) Are my actions consistent with HP’s Anti-Corruption Policy and other rules, guidelines and values?’

‘Violations of this Policy may lead to disciplinary action, up to and including termination of employment with HP. Any employee with knowledge or suspicion of any violations of this global policy must report these concerns to the Ethics and Compliance Office.’

p.2: ‘Certain items of value can never be provided to or received from third parties:

• Cash – in any form – is absolutely prohibited.

• Cash-equivalent gift cards such as American Express, Visa or MasterCard gift cards, as well as gold and other precious metals or gemstones are also strictly prohibited.

• You cannot accept cash (or cash equivalent) in return for advocating or selling products from a partner/supplier, except commissions and customer loyalty programs as allowed under HP’s Conflicts of Interest Policy.

• You cannot provide gifts to or receive gifts from a third party during a competitive bid process or contract negotiation.


• You cannot provide or receive any item or entertainment that is illegal or sexually explicit, involves gambling or would otherwise create embarrassment to the company.

• You may not provide business amenities to, or receive business amenities from, the immediate family members (parents, children, spouse, and in-laws), significant others, close friends and business associates (e.g., agents, consultants, etc.) of third parties. The only exception is the infrequent attendance of an immediate family member or significant other at commercial events of nominal value where the family members or significant others of HP employees are also attending or where it would otherwise be customary for a family member or significant other to attend.

• You may not indirectly provide or receive any business amenity through a third party that this Policy would prohibit you to provide or receive directly. This includes asking a third party to pay for any business amenity on HP’s behalf, for example using MDF.’

‘In order to determine whether you can provide or receive business amenities, consult the countryspecific policy and the tables below based on the Total Value of the business amenity, and follow the general principles of this Policy and the Anti-Corruption Policy. Any required approvals must be in writing and obtained in advance of providing or receiving the business amenity. You must consult the U.S. Public Sector Compliance Office for any business amenity intended to be provided to a representative of a U.S. (including U.S. territories) federal, state or local government entity (including public or private K-12 educational institutions and all libraries).’

(p.3): One of the tables listing limits for giving gifts and hospitality to public sector recipients


(p.5): One of the tables listing limits for giving gifts and hospitality to commercial sector recipients

(p.8):


(p.10):



Global Business Gifts, Travel & Entertainment Policy (November 2012), pp.3-4:

‘Subject to the specific rules outlined further in this policy, the following business amenities are generally permitted:

-Pens

-Calendars

-Memo pads

-T-shirts

-Coffee mugs

-A local sporting event or cultural entertainment valued at less than $50 USD

-Gift cards or coupons for HP products and services valued at less than $50 USD

-Gift cards or coupons for non-HP products and services that do not compete with HP’s products or services valued at less than $25 USD

-Any travel, meals and entertainment exchanged during a competitive bid process or contract negotiation must be reasonable and directly related to the promotion, demonstration or explanation of HP’s products or services. Gifts should not be provided during a competitive bid process or contract negotiation.


-Cash, loans, stock or stock options

-Cash gift-cards such as, but not limited to, American Express, Visa, MasterCard

-Any gift or entertainment provided in direct exchange for a reciprocal action

-Any item or entertainment that is illegal or sexually explicit, involves gambling, or would



otherwise violate our values or our Standards of Business Conduct

-Any item that might present an appearance of impropriety, conflict of interest or undue influence

-Anything that may cause embarrassment to HP or damage HP's reputation.

-Excessive, lavish, or frequent gifts or entertainment

-Any item that might violate the recipient’s policies

-Gifts provided during a competitive bid process or contract negotiation

-Amenities for the immediate family members, other relatives, or significant others of public sector and commercial recipients are prohibited, except for infrequent attendance of an immediate family member or significant other at Events of nominal value where the family members or significant others of HP employees are also attending or where it would otherwise be customary for a family member or significant other to attend, and all other rules of this policy are met. For commercial recipients, infrequent attendance of an immediate family member or significant other at high-value Events may be allowed only when pre-approved by Country Legal.

-HP employees may never accept cash (or cash equivalent) in return for advocating or selling products from a partner/supplier, except commissions and customer loyalty programs as allowed under HP’s Conflicts of Interest Policy.

-You may not accept any combination of gifts/travel/meals/entertainment totaling more than $500 USD per person from the same non-HP source more than once per quarter, and you should consider whether the frequency or timing of gifts totaling more than $500 USD per person may create any appearance of impropriety. HP employees must obtain prior written approval from their vice president and the Office of the General Counsel in order to accept any combination of gifts/travel/meals/entertainment from a non-HP source totaling more than $500 USD per person. To obtain pre-approval from the Office of the General Counsel, complete and submit the “Accepting Amenities over $500 USD” form from the Global Business Gifts, Travel and Entertainment (GBGTE) Approval Tool. As stated in the “Commercial Business Gifts, Travel and Entertainment Unrelated to an HP-sponsored Event” section, if you receive a gift valued at more than $150 USD, you are required to give the gift to your manager for appropriate disposition, or otherwise follow your manager’s instructions for appropriate disposition.’

(p.5): ‘The following rules apply to the giving of business amenities by HP or its employees to commercial (private sector, non-governmental) recipients, and to the receipt of business amenities by HP or its employees from non-HP sources. If you are unsure whether you may give or accept a proposed business amenity, consult your HP attorney for guidance.

As indicated in the country-specific policies below, some countries prohibit or restrict any business amenities for commercial employees. If no country-specific rule applies (based on the country in which the commercial employee provides his or her service), the following rules apply:

Business Gifts

-Gifts of $50 USD or less. You may generally give or accept gifts of $50 USD or less. Even for such items of nominal value, you should consider whether the frequency or timing of gifts


may create any appearance of impropriety, such as a frequency of more than once per quarter.

-Gifts of $50 - $150 USD require approval of manager. With your manager’s prior written approval, you may occasionally give or receive a gift valued between $50 and $150 USD, provided that your manager agrees that the gift is in keeping with accepted business norms and will not create the appearance of undue influence. Gifts above $50 USD should not be given to or received from the same non-HP source more than once per quarter.

-Gifts requiring prior written approval from your vice president. The following business amenities require prior written approval by your vice president:

o Business gifts valued between $150 and $500 USD provided to a commercial recipient; however, if you receive a gift valued at more than $150 USD, you are required to give the gift to your manager for appropriate disposition.

o Gift cards or coupons for HP products and services valued at more than $50 USD.

o HP products and services valued at more than $50 USD.

o Trips or tickets to major sporting events, such as the Super Bowl, the World Cup, the U.S. Open, or the Olympics.

o Gifts requiring prior written approval from your vice president should not be given to or received from the same non-HP source more than once per quarter.

o Gifts above $500 USD to a commercial recipient: see below (Providing any combination of gifts, meals, and/or entertainment totaling more than $500 USD).

Meals and entertainment

Business meals and entertainment should be infrequent, consistent with accepted local business practice, and for the express purpose of furthering a business relationship. A representative from each entity must be present.

-Meals and entertainment of $100 USD or less. You may generally provide or receive meals and entertainment of a value up to $100 USD per person or less. Even for such meals and entertainment of nominal value, you should consider whether the frequency or timing may create any appearance of impropriety, such as a frequency of more than once a quarter.

-Meals and entertainment of $100 - $150 USD require approval of manager. With your manager’s prior written approval, you may occasionally provide or receive meals and entertainment of a value up to $150 USD per person provided that your manager agrees that the meal/entertainment is in keeping with accepted business norms and will not create the appearance of undue influence. Meals and entertainment above $100 should not be given to or received from the same non-HP source more than once per quarter.

-Meals and entertainment of $150 - $500 USD require prior written approval from your vice president. With your vice president’s prior written approval, you may occasionally provide or receive meals and entertainment valued between $150 and $500 USD per person provided that your vice president agrees that the meal/entertainment is in keeping with accepted business norms and will not create the appearance of undue influence. You may not provide or receive meals or entertainment valued between $150 and $500 USD to the same commercial recipient more than once a quarter. Any exception request to provide or receive meals or entertainment involving a Corporate Account more than once per quarter must be sent to [email protected] fourteen days in advance of the planned activity.


-Providing any combination of gifts, meals and/or entertainment totaling more than $500 USD requires prior written approval from your vice president and the Office of the General Counsel. With prior written approval from both your vice president and the Office of the General Counsel, you may occasionally provide a combination of gifts, meals and/or entertainment totaling more than $500 USD to a commercial recipient. To obtain pre-approval from the Office of the General Counsel, complete and submit the “Commercial (non-Public sector) Recipient Business Gifts, Travel and Entertainment Approval Request Form” from the GBGTE Approval Tool. You may not provide gifts, meals, or entertainment totaling more than $500 USD to the same commercial recipient more than once per quarter, and you should consider whether the frequency or timing of gifts, meals, and entertainment totaling more than $500 USD may create any appearance of impropriety.

-Accepting any combination of gifts, travel, meals and/or entertainment totaling more than $500 USD from a non-HP source requires prior written approval from your vice president and the Office of the General Counsel. With prior written approval from both your vice president and the Office of the General Counsel, you may occasionally accept a combination of gifts, travel, meals, and/or entertainment totaling more than $500 USD from a non-HP source. To obtain pre-approval from the Office of the General Counsel, complete and submit the “Accepting Amenities over US $500” form from the GBGTE Approval Tool. You may not accept gifts, travel, meals and/or entertainment totaling more than $500 USD from the same non-HP source more than once per quarter, and you should consider whether the frequency or timing of gifts, travel, meals and/or entertainment totaling more than $500 USD may create any appearance of impropriety. If you receive any gift valued at more than $150 USD, you are required to give the gift to your manager for appropriate disposition, or otherwise follow your manager’s instructions for appropriate disposition.

Travel

You may not accept transportation, accommodation, or other travel-related amenities from any non-HP source, nor may you provide transportation, accommodation, or other travel-related amenities to representatives of HP customers, suppliers, other business partners or competitors, without prior written approval from your vice president. Additionally, you may not accept or provide such travel-related amenities more than once per quarter to the same non-HP source without prior written approval from your vice president. All travel must serve a legitimate HP business purpose.

-Travel, gifts, meals and/or entertainment totaling more than $500 USD per person require prior written approval from your vice president and the Office of the General Counsel. With prior written approval from both your vice president and the Office of the General Counsel, you may occasionally provide HP-sponsored travel, gifts, meals and/or entertainment totaling more than $500 USD per person (unrelated to an HP-sponsored Event) to a commercial recipient. To obtain pre-approval from the Office of the General Counsel, complete and submit the “Commercial (non-Public sector) Recipient Business Gifts, Travel and Entertainment Approval Request Form” from the GBGTE Approval Tool. You may not provide travel, gifts, meals and/or entertainment totaling more than $500 USD per person to the same commercial recipient or entity more than once a quarter, and you should consider whether the frequency or timing of travel, gifts, meals and/or entertainment totaling more than $500 USD per person may create any appearance of impropriety.’


(p.12):

http://www.hp.com/hpinfo/globalcitizenship/media/files/hp_global_business_gifts_travel_entertainment_policy.pdf

US Public Sector Code of Conduct (November 2013), p.1:

‘Gifts, Bribes, Gratuities, and Kickbacks

You may not offer, give or promise to give, directly or indirectly, an employee of the U.S. federal government, U.S. state/local government, or public higher education institution, or to any public or private K-12 educational institution, or library, anything of value—including gifts, meals, entertainment or travel—unless the recipient pays its fair market value. The prohibition on gifts to private or public K-12 educational institutions and libraries includes those entities' board members, employees, officers, representatives, agents, consultants, or independent contractors. You also may not offer, give, solicit, or receive any gift or other thing of value (directly or indirectly) to or from one of these entities in exchange for favorable treatment or advantage, or for the purpose of obtaining, or attempting to influence the award of a contract or subcontract. See: U.S. Business Amenities.’

http://www.hp.com/hpinfo/globalcitizenship/media/files/us_public_sector_code_of_conduct.pdf






A22:

Does the company’s anti-corruption policy include a statement on the giving and receipt of hospitality that ensures that such transactions are bona fide and not a subterfuge for bribery?

Score:

2

Comments:

Based on public information, there is evidence that the company has a policy for the giving and receipt of hospitality, to ensure that such transactions are bona fide and not a subterfuge for bribery. The policy is extremely detailed and provides comprehensive coverage. The policy lists the nature of hospitality that may never be given or received, sets clear upper values on the acceptable value of hospitality, and specifies thresholds that when exceeded will require senior management authorisation.

References:

Public:



• Provide gifts, meals, travel, and entertainment only if they comply with the Global Business Amenities Policy; gifts, meals, travel, and entertainment must be reasonable for the business relationship and intended only to improve HP’s image, better represent products and services, or establish cordial relationships

• Accept gifts, meals, travel, and entertainment only if they comply with the Global Business Amenities Policy

• Exchange gifts, meals, travel, and entertainment that foster goodwill in business relationships, but never provide or accept gifts, meals, travel, or entertainment that may create undue influence, or even the appearance of undue influence, and never provide or accept gifts, meals, travel, or entertainment in exchange or return for a reciprocal action

• Provide gifts, meals, and entertainment only if consistent with the policies of the recipient’s employer, as well as HP policies

• Do not provide gifts, meals, or entertainment to a government official unless doing so is legal and consistent with HP policies

• Do not solicit gifts, meals, or entertainment


• Report to your manager any gifts, meals, or entertainment you receive, as required by the Global Business Amenities Policy

• Consult the Global Business Amenities Policy before offering or accepting gifts, meals, travel or entertainment, and act according to the policy, including any approval process’.

‘HP has restrictions on the types of amenities that may be provided to our customers, partners, or other third parties, because certain types of amenities create unnecessary risk to HP. Refer to the Global Business Amenities Policy.












• Frequent giving or receipt of gifts, meals, travel, or entertainment to or from customers, business partners, or suppliers

• Giving or receipt of gifts, meals, travel, or entertainment to or from customers, business partners, or suppliers during a bid, deal, or contract negotiation

• Lavish or excessive gifts, meals, travel, or Entertainment’

Anti-Corruption Policy (November 2013), pp.3-4:

‘We have a duty to spend HP resources in ethical ways. You may never provide or promise to provide anything of value to a third party to improperly influence a decision on their part. Instead, you may provide or accept gifts, meals, travel, entertainment and other items of value only when appropriate. You must never solicit any item of value from any third party.

Gifts of nominal value are generally permitted, but cash and expensive or lavish items are not. You must not provide things of value too frequently to the same recipient.


In addition to these principles, the Global Business Amenities Policy sets specific limits on the value of, and the approvals required for, business amenities that may be given or received, including gifts, door prizes/raffles/drawings, travel, meals, entertainment, and combinations of these categories. These rules may vary in different countries and you must know and follow any country-specific requirements outlined in the Global Business Amenities Policy.

Travel

Unless prohibited by a country-specific policy, HP may in limited circumstances pay for travel (that is, transportation and/or accommodation) for third parties, provided the travel is related to a legitimate HP business purpose. The following principles apply to HP-paid travel for third parties:

• Travel must be necessary for a legitimate business meeting or event.

• Any travel must be reasonable, not lavish, and consistent with HP’s internal travel policies and practices, including using HP approved hotels and HP travel services when possible.

• HP must pay any expenses directly to the service provider, not the traveler. HP must not pay per diems to the traveler.

• Sightseeing or other recreational activities are allowed only if they are minimal or incidental in nature.

• You must obtain prior approval as detailed in the Global Business Amenities Policy.

HP Events and Amenities Related to an HP Event

HP often invites third parties to attend HP Events such as:

• HP organized corporate activities • Demonstrations of HP products • Trade show events

• CIO events • Road shows • Advisory councils

• Executive Briefing Center/Lab visits • Technical workshops, seminars, lunch and learns

• Sales account activities and hospitality

‘’Event’’ does not include ordinary business meals or amenities. As part of an HP Event, you


may be able to provide attendees with free access to the Event as well as various business amenities, including gifts, travel, meals, entertainment, and other items of value, provided the Event is directly related to the promotion, demonstration, or explanation of HP products or services. The Event, including all amenities, cannot be lavish.’

Contingent Worker Code of Conduct (Janaury 2014), p.2:

‘Business gifts and entertainment

Contingent workers may not provide or receive business amenities (gifts, meals, services, entertainment, or anything else of value) when doing so creates the appearance of impropriety or undue influence. This restriction applies to amenities given to or received from representatives of HP, or its current or potential customers, channel partners, suppliers, other business partners or competitors.’

Global Business Amenities Policy, p.1:

‘HP’s Anti-Corruption Policy provides the guidelines and principles to help HP’s directors, officers and employees uphold HP’s anti-corruption commitment. This Global Business Amenities Policy establishes HP’s standards for providing or receiving business amenities to or from third parties and applies to all HP employees worldwide. Some countries may have more restrictive rules or guidance than in this Policy. If so, the more restrictive rules apply. You should always consult and comply with the country-specific rules. Before providing any business amenity, ask yourself these questions:

(1) Is the recipient public sector or Commercial sector? What might be acceptable for Commercial sector recipients may not be acceptable for public sector recipients.

(2) Is there a country-specific rule that applies? The country you should look at is the country where the recipient works.

(3) When was the last time HP gave business amenities to or received business amenities from this recipient? Does the frequency or timing create the appearance of impropriety?

(4) Are my actions consistent with HP’s Anti-Corruption Policy and other rules, guidelines and values?’

‘Violations of this Policy may lead to disciplinary action, up to and including termination of employment with HP. Any employee with knowledge or suspicion of any violations of this global policy must report these concerns to the Ethics and Compliance Office.’

p.2: ‘Certain items of value can never be provided to or received from third parties:

• Cash – in any form – is absolutely prohibited.

• Cash-equivalent gift cards such as American Express, Visa or MasterCard gift cards, as well as gold and other precious metals or gemstones are also strictly prohibited.

• You cannot accept cash (or cash equivalent) in return for advocating or selling products from a partner/supplier, except commissions and customer loyalty programs as allowed under HP’s Conflicts of Interest Policy.

• You cannot provide gifts to or receive gifts from a third party during a competitive bid process or contract negotiation.


• You cannot provide or receive any item or entertainment that is illegal or sexually explicit, involves gambling or would otherwise create embarrassment to the company.

• You may not provide business amenities to, or receive business amenities from, the immediate family members (parents, children, spouse, and in-laws), significant others, close friends and business associates (e.g., agents, consultants, etc.) of third parties. The only exception is the infrequent attendance of an immediate family member or significant other at commercial events of nominal value where the family members or significant others of HP employees are also attending or where it would otherwise be customary for a family member or significant other to attend.

• You may not indirectly provide or receive any business amenity through a third party that this Policy would prohibit you to provide or receive directly. This includes asking a third party to pay for any business amenity on HP’s behalf, for example using MDF.’

‘In order to determine whether you can provide or receive business amenities, consult the countryspecific policy and the tables below based on the Total Value of the business amenity, and follow the general principles of this Policy and the Anti-Corruption Policy. Any required approvals must be in writing and obtained in advance of providing or receiving the business amenity. You must consult the U.S. Public Sector Compliance Office for any business amenity intended to be provided to a representative of a U.S. (including U.S. territories) federal, state or local government entity (including public or private K-12 educational institutions and all libraries).’

(p.3): One of the tables listing limits for giving gifts and hospitality to public sector recipients


(p.5): One of the tables listing limits for giving gifts and hospitality to commercial sector recipients

(p.8):


(p.10):


Global Business Gifts, Travel & Entertainment Policy (November 2012), pp.3-4:

‘Subject to the specific rules outlined further in this policy, the following business amenities are generally permitted:

-Pens

-Calendars

-Memo pads

-T-shirts

-Coffee mugs

-A local sporting event or cultural entertainment valued at less than $50 USD

-Gift cards or coupons for HP products and services valued at less than $50 USD

-Gift cards or coupons for non-HP products and services that do not compete with HP’s products or services valued at less than $25 USD

-Any travel, meals and entertainment exchanged during a competitive bid process or contract negotiation must be reasonable and directly related to the promotion, demonstration or explanation of HP’s products or services. Gifts should not be provided during a competitive bid process or contract negotiation.


-Cash, loans, stock or stock options

-Cash gift-cards such as, but not limited to, American Express, Visa, MasterCard

-Any gift or entertainment provided in direct exchange for a reciprocal action

-Any item or entertainment that is illegal or sexually explicit, involves gambling, or would otherwise violate our values or our Standards of Business Conduct


-Any item that might present an appearance of impropriety, conflict of interest or undue influence

-Anything that may cause embarrassment to HP or damage HP's reputation.

-Excessive, lavish, or frequent gifts or entertainment

-Any item that might violate the recipient’s policies

-Gifts provided during a competitive bid process or contract negotiation

-Amenities for the immediate family members, other relatives, or significant others of public sector and commercial recipients are prohibited, except for infrequent attendance of an immediate family member or significant other at Events of nominal value where the family members or significant others of HP employees are also attending or where it would otherwise be customary for a family member or significant other to attend, and all other rules of this policy are met. For commercial recipients, infrequent attendance of an immediate family member or significant other at high-value Events may be allowed only when pre-approved by Country Legal.

-HP employees may never accept cash (or cash equivalent) in return for advocating or selling products from a partner/supplier, except commissions and customer loyalty programs as allowed under HP’s Conflicts of Interest Policy.

-You may not accept any combination of gifts/travel/meals/entertainment totaling more than $500 USD per person from the same non-HP source more than once per quarter, and you should consider whether the frequency or timing of gifts totaling more than $500 USD per person may create any appearance of impropriety. HP employees must obtain prior written approval from their vice president and the Office of the General Counsel in order to accept any combination of gifts/travel/meals/entertainment from a non-HP source totaling more than $500 USD per person. To obtain pre-approval from the Office of the General Counsel, complete and submit the “Accepting Amenities over $500 USD” form from the Global Business Gifts, Travel and Entertainment (GBGTE) Approval Tool. As stated in the “Commercial Business Gifts, Travel and Entertainment Unrelated to an HP-sponsored Event” section, if you receive a gift valued at more than $150 USD, you are required to give the gift to your manager for appropriate disposition, or otherwise follow your manager’s instructions for appropriate disposition.’

(p.5): ‘The following rules apply to the giving of business amenities by HP or its employees to commercial (private sector, non-governmental) recipients, and to the receipt of business amenities by HP or its employees from non-HP sources. If you are unsure whether you may give or accept a proposed business amenity, consult your HP attorney for guidance.

As indicated in the country-specific policies below, some countries prohibit or restrict any business amenities for commercial employees. If no country-specific rule applies (based on the country in which the commercial employee provides his or her service), the following rules apply:

Business Gifts

-Gifts of $50 USD or less. You may generally give or accept gifts of $50 USD or less. Even for such items of nominal value, you should consider whether the frequency or timing of gifts may create any appearance of impropriety, such as a frequency of more than once per


quarter.

-Gifts of $50 - $150 USD require approval of manager. With your manager’s prior written approval, you may occasionally give or receive a gift valued between $50 and $150 USD, provided that your manager agrees that the gift is in keeping with accepted business norms and will not create the appearance of undue influence. Gifts above $50 USD should not be given to or received from the same non-HP source more than once per quarter.

-Gifts requiring prior written approval from your vice president. The following business amenities require prior written approval by your vice president:

o Business gifts valued between $150 and $500 USD provided to a commercial recipient; however, if you receive a gift valued at more than $150 USD, you are required to give the gift to your manager for appropriate disposition.

o Gift cards or coupons for HP products and services valued at more than $50 USD.

o HP products and services valued at more than $50 USD.

o Trips or tickets to major sporting events, such as the Super Bowl, the World Cup, the U.S. Open, or the Olympics.

o Gifts requiring prior written approval from your vice president should not be given to or received from the same non-HP source more than once per quarter.

o Gifts above $500 USD to a commercial recipient: see below (Providing any combination of gifts, meals, and/or entertainment totaling more than $500 USD).

Meals and entertainment

Business meals and entertainment should be infrequent, consistent with accepted local business practice, and for the express purpose of furthering a business relationship. A representative from each entity must be present.

-Meals and entertainment of $100 USD or less. You may generally provide or receive meals and entertainment of a value up to $100 USD per person or less. Even for such meals and entertainment of nominal value, you should consider whether the frequency or timing may create any appearance of impropriety, such as a frequency of more than once a quarter.

-Meals and entertainment of $100 - $150 USD require approval of manager. With your manager’s prior written approval, you may occasionally provide or receive meals and entertainment of a value up to $150 USD per person provided that your manager agrees that the meal/entertainment is in keeping with accepted business norms and will not create the appearance of undue influence. Meals and entertainment above $100 should not be given to or received from the same non-HP source more than once per quarter.

-Meals and entertainment of $150 - $500 USD require prior written approval from your vice president. With your vice president’s prior written approval, you may occasionally provide or receive meals and entertainment valued between $150 and $500 USD per person provided that your vice president agrees that the meal/entertainment is in keeping with accepted business norms and will not create the appearance of undue influence. You may not provide or receive meals or entertainment valued between $150 and $500 USD to the same commercial recipient more than once a quarter. Any exception request to provide or receive meals or entertainment involving a Corporate Account more than once per quarter must be sent to [email protected] fourteen days in advance of the planned activity.

-Providing any combination of gifts, meals and/or entertainment totaling more than $500


USD requires prior written approval from your vice president and the Office of the General Counsel. With prior written approval from both your vice president and the Office of the General Counsel, you may occasionally provide a combination of gifts, meals and/or entertainment totaling more than $500 USD to a commercial recipient. To obtain pre-approval from the Office of the General Counsel, complete and submit the “Commercial (non-Public sector) Recipient Business Gifts, Travel and Entertainment Approval Request Form” from the GBGTE Approval Tool. You may not provide gifts, meals, or entertainment totaling more than $500 USD to the same commercial recipient more than once per quarter, and you should consider whether the frequency or timing of gifts, meals, and entertainment totaling more than $500 USD may create any appearance of impropriety.

-Accepting any combination of gifts, travel, meals and/or entertainment totaling more than $500 USD from a non-HP source requires prior written approval from your vice president and the Office of the General Counsel. With prior written approval from both your vice president and the Office of the General Counsel, you may occasionally accept a combination of gifts, travel, meals, and/or entertainment totaling more than $500 USD from a non-HP source. To obtain pre-approval from the Office of the General Counsel, complete and submit the “Accepting Amenities over US $500” form from the GBGTE Approval Tool. You may not accept gifts, travel, meals and/or entertainment totaling more than $500 USD from the same non-HP source more than once per quarter, and you should consider whether the frequency or timing of gifts, travel, meals and/or entertainment totaling more than $500 USD may create any appearance of impropriety. If you receive any gift valued at more than $150 USD, you are required to give the gift to your manager for appropriate disposition, or otherwise follow your manager’s instructions for appropriate disposition.

Travel

You may not accept transportation, accommodation, or other travel-related amenities from any non-HP source, nor may you provide transportation, accommodation, or other travel-related amenities to representatives of HP customers, suppliers, other business partners or competitors, without prior written approval from your vice president. Additionally, you may not accept or provide such travel-related amenities more than once per quarter to the same non-HP source without prior written approval from your vice president. All travel must serve a legitimate HP business purpose.

-Travel, gifts, meals and/or entertainment totaling more than $500 USD per person require prior written approval from your vice president and the Office of the General Counsel. With prior written approval from both your vice president and the Office of the General Counsel, you may occasionally provide HP-sponsored travel, gifts, meals and/or entertainment totaling more than $500 USD per person (unrelated to an HP-sponsored Event) to a commercial recipient. To obtain pre-approval from the Office of the General Counsel, complete and submit the “Commercial (non-Public sector) Recipient Business Gifts, Travel and Entertainment Approval Request Form” from the GBGTE Approval Tool. You may not provide travel, gifts, meals and/or entertainment totaling more than $500 USD per person to the same commercial recipient or entity more than once a quarter, and you should consider whether the frequency or timing of travel, gifts, meals and/or entertainment totaling more than $500 USD per person may create any appearance of impropriety.’


(p.12):

US Public Sector Code of Conduct (November 2013), p.1:

‘Gifts, Bribes, Gratuities, and Kickbacks

You may not offer, give or promise to give, directly or indirectly, an employee of the U.S. federal government, U.S. state/local government, or public higher education institution, or to any public or private K-12 educational institution, or library, anything of value—including gifts, meals, entertainment or travel—unless the recipient pays its fair market value. The prohibition on gifts to private or public K-12 educational institutions and libraries includes those entities' board members, employees, officers, representatives, agents, consultants, or independent contractors. You also may not offer, give, solicit, or receive any gift or other thing of value (directly or indirectly) to or from one of these entities in exchange for favorable treatment or advantage, or for the purpose of obtaining, or attempting to influence the award of a contract or subcontract. See: U.S. Business Amenities.’


A23:

Does the company have a policy that explicitly prohibits facilitation payments?

Score:

2

Comments:

Based on public information, there is evidence that the company has a policy that explicitly prohibits facilitation payments, except in circumstances of duress and possible physical harm. The company provides guidance on how this policy is to be implemented in practice.

References:

Public:


‘HP prohibits facilitation payments by HP employees or by any third party on HP’s behalf.

A facilitation or “grease” payment is a payment, generally of low value, made to a government official to facilitate or expedite a routine, non-discretionary government activity that the official is required to perform as a matter of course. Examples of these activities includes:

• Permits, licenses, or other documents that allow companies to conduct business in a particular country

• Processing of visas and work papers

• Inspections related to transit of goods, for example loading and unloading of cargo

• Certain one-time fees, such as a government-owned utility company activating a telephone line

The only circumstance when HP permits a facilitation payment is:

• When a demand for a facilitation payment is made in circumstances of ‘duress,’ or ‘extortion’, and

• The person being asked to pay fears physical harm, or imprisonment, and

• It is a one-time payment, and

• There is no safe alternative to complying with the demand.

You must report any demands for facilitation payments whether the demand is made directly or indirectly to HP, or if you learn of a demand to or payment made by a third party acting on HP’s behalf. The report must be made to [email protected], an HP


attorney or the Chief Ethics and Compliance Officer within 24 hours of the demand. You should make all reasonable efforts to ensure that third parties acting on behalf of HP (for example, partners, suppliers, agents, consultants or contractors) are aware of, and comply with, HP’s policy. HP will not reimburse third parties for facilitation payments.’


‘Facilitation Payments: Unless subjected to duress, contingent workers may not offer or make facilitation payments to any government official for routine government actions, either directly or indirectly. Duress occurs when a contingent worker fears physical harm or imprisonment if the facilitation payment isn’t made and there is no safe alternative to complying with the demand. The duress exception applies only to one-time payment, typically of small value. Repeated facilitation payments or facilitation payments of high value are not permitted. Any payment of a facilitation payment must be reported to HP Legal within 24 hours of the payment.’


A24:

Does the company prohibit political contributions, or regulate such contributions in order to prevent undue influence or other corrupt intent? Does the company record and publicly disclose all political contributions?

Score:

2

Comments:

Based on public information, there is evidence that the company regulates political contributions, in order to prevent undue influence or other corrupt intent. The Government Relations department manages all political contributions, which must be authorised by the Vice President of HP Government Relations. The HP Political Action Committee (HP PAC), a separate legal entity from the company, makes contributions to U.S. congressional and state candidates where corporate contributions are not allowed. The company list recipients of political contributions on its website and provides the total amount in the 2013 Living Progress Report.

References:

Public:


‘HP supports public policy activities worldwide and the election of public officials who understand HP’s business interests and support legislation important to those interests.

The use of HP’s influence, funds and other assets as political contributions must comply with global anti-corruption laws, HP’s Political Participation Policy, and the principles and rules in this Policy. HP must not provide political contributions or engage in any activity that could create the appearance of bribery, undue influence or other corrupt practice.’

Company website: HP political contributions policies

‘Within the U.S., the company makes a limited number of political contributions as part of its Global Citizenship Objective and in furtherance of its public policy agenda. All HP political endorsements and contributions must be authorized by the Vice President of HP Government Relations as part of political programs reviewed by HP's Board of Directors. The HP Government Relations department manages all political programs and contributions and works with HP employees in the regions regarding HP involvement in any political or public policy activities. HP does not provide political contributions that could create even the

http://www.hp.com/hpinfo/globalcitizenship/


appearance of undue influence.

HP may not use its corporate funds or assets for U.S. federal political contributions. The HP Political Action Committee (HP PAC) makes contributions to U.S. congressional candidates (and in limited cases, contributions to state candidates where corporate contributions are not allowed) who share HP's public policy views. The HP PAC is a separate legal entity from the company. Voluntary personal contributions to fund the HP PAC are solicited from selected employees in compliance with federal election laws.

Company funds may be used, where legally permissible, to participate in the election of state officials who share HP's public policy views, as well as passage or defeat of state and local ballot measures having an impact on the company and the quality of life in HP communities. In rare instances, HP will consider contributions to local candidates.

HP makes contributions to federal and state organizations for the purpose of public policy development. A committee of HP managers annually reviews eligible recipients of funds for both the HP PAC contributions and corporate contributions and develops an HP PAC contributions plan and a corporate contributions plan. The HP PAC plan undergoes an initial legal review and is presented to the HP PAC Board of Directors, which reviews, revises and approves the plan. Both the final HP PAC plan and the corporate contributions plan are then presented to HP's Vice President of Government Relations, HP's Chief Communications Officer, and the Nominating and Governance Committee of the HP Board.

Upon approval of the plans, the HP Political Contributions Committee, comprised of HP Government Relations managers, implements the plans by reviewing all specific political contributions requests and events requiring corporate and HP PAC funding. After final legal review of each such contribution, funds are disbursed.

On a limited basis and with the approval of the Vice President of HP Government Relations, the company may also make contributions to policy-based partisan organizations, state partisan organizations, trade association political committees and coalitions to further its public policy and business interests.

In-kind contributions of equipment or employee time are considered to be political contributions, and must be approved by the Vice President of HP Government Relations.

No HP funds or assets may be used for political contributions outside the United States, even where permitted by local law, without the prior written approval of HP's Chief Executive Officer.’

http://www8.hp.com/us/en/hp-information/government-affairs/engagement/policies.html

Company website: HP corporate contributions

An example of the contributions made in Alabama:

http://www8.hp.com/us/en/hp-information/government-affairs/engagement/policies.html


http://www8.hp.com/us/en/hp-information/government-affairs/engagement/corporate.html

Company website: HP contributions to 527 organisations

‘The following "527" organizations received support from HP in 2013. The name derives from Section 527 of the Internal Revenue Code, under which these organizations are tax exempt. They also have a purely political focus, rather than one supporting an issue or cause. HP contributions to 527 organizations are made with corporate - rather than HP PAC - funds.’

http://www8.hp.com/us/en/hp-information/government-



http://www8.hp.com/us/en/hp-information/government-affairs/engagement/organizations.html


affairs/engagement/organizations.html

Company website: HP PAC contributions to candidates

A table listing some of the recipients of HP PAC contributions:

http://www8.hp.com/us/en/hp-information/government-affairs/engagement/pac-candidates.html


‘We exercise our rights in the political process

• Ensure that your individual political views and activities are not viewed as those of HP

• Obtain advance approval from HP Corporate Affairs before lobbying a government official or engaging a lobbyist

• Remember that HP Corporate Affairs is solely responsible for managing political contributions on behalf of HP, including donations of products, services, transportation, and facilities’


‘The Nominating and Governance Committee oversees the HP PAC and the policies relating to, and the manner in which HP conducts, its government affairs activities.’


‘In 2013, HP contributed $1,175,636 to state and local candidates, political memberships or

http://www8.hp.com/us/en/hp-information/government-affairs/engagement/organizations.html




sponsorships, and ballot measure campaigns in the United States. These contributions aligned with our policy positions and complied with HP’s political guidelines, SBC, and applicable laws. HP does not make corporate contributions to federal political candidates. However, eligible employees can make voluntary donations to the HP Political Action Committee (PAC). It is a separate legal entity that contributes to both Democratic and Republican campaign committees, PACs, and party committees in the United States that share our policy views. In 2013, HP PAC disbursed a total of $350,886.1 Where permissible, limited political contributions are made outside the United States.’


A25:

Does the company have a clear policy on engagement in lobbying activities, in order to prevent undue influence or other corrupt intent, and discloses the issues on which the company lobbies?

Score:

2

Comments:

Based on public information, there is evidence that the company has a policy that regulates lobbying activity. All employees must obtain approval from Corporate Affairs before lobbying a government official or engaging a lobbyist. In the 2013 Living Progress Report the company provides an overview of the policy areas it seeks to influence and its approach.

References:

Public:


‘We exercise our rights in the political process

• Ensure that your individual political views and activities are not viewed as those of HP

• Obtain advance approval from HP Corporate Affairs before lobbying a government official or engaging a lobbyist

• Remember that HP Corporate Affairs is solely responsible for managing political contributions on behalf of HP, including donations of products, services, transportation, and facilities’

Company website: HP association memberships

‘We are members of numerous industry associations in our major product and geographic markets. HP's positions on public policy issues are often communicated through these organizations, enabling us to engage with public officials and entities more efficiently and in concert with industry partners.

HP also participates in standards bodies and industry coalitions to advance its global citizenship and business objectives as a strategic partner. This includes collaborations to develop industry standards in areas such as energy efficiency and supply chain responsibility.’

Links are provided that give lists of associations the company is a member of.


http://www8.hp.com/us/en/hp-information/government-affairs/association.html

2013 Living Progress Report, p24 :

‘HP’s Corporate Affairs team leads our public policy engagement around the globe with oversight from the Nominating, Governance and Social Responsibility Committee (NGSR), a subcommittee of HP’s Board of Directors. HP’s Senior Vice President of Corporate Affairs is required to provide regular updates to the NGSR on government relations activities and political engagement. We also magnify our influence to shape policies by working through IT industry and broader business associations. View HP’s membership in these major organizations and coalitions worldwide. Where legally permissible and in accordance with our SBC, HP also engages external consultants and contract lobbyists to work closely with our team.’

‘Corporate Affairs spearheads engagements with policy makers around the world to develop relationships and influence key policies. Specific highlights in 2013 included:

• Engaging with governments and international organizations such as the Organisation for Economic Co-operation and Development (OECD) to promote progressive tax reform, research and development incentives, and a competitive global economy

• Advocating for immigration reform for highly skilled professionals, such as provisions included in the U.S. Senate-passed comprehensive immigration bill (S.744) and the U.S. House of Representatives SKILLS Act (H.R. 2131)

• Playing a leadership role to include data center energy efficiency provisions in the U.S. House of Representatives passed Energy Efficiency Improvement Act (H.R. 2126). The provisions set a minimum standard for federal acquisition of energy efficient data center technology and call for an update of an eight-year-old U.S. Environmental Protection Agency data centers report

• Advising trade negotiators on advancing the Trans-Pacific Partnership and Transatlantic Trade and Investment Partnership, updating the Information Technology Agreement, and launching the Trade in Services Agreement

• Providing recommendations to the European Commission-appointed mediator on copyright levies, including how to adapt the current hardware-based levies system to the digital age

• Securing European Commission recognition of the Voluntary Agreement on Imaging Equipment, reflecting a 2011 commitment by 16 leading companies to substantially improve the energy efficiency of printers, copiers, and multifunctional devices

Current policy priorities

Our public policy work focuses on five areas critical to our business. See below for a summary of our approach in each area, or click on the links to read more detailed descriptions of our policy positions.

• Technology policy

• Tax policy

• Market access

• Intellectual property and anti-counterfeiting

http://www8.hp.com/us/en/hp-information/government-affairs/association.html


• Social and environmental policies

(p.25): ‘Technology policy

Technology policy has a direct and fundamental impact on our business. Trends in cloud, security, mobility, and big data are driving significant shifts in the consumption of technology. This New Style of IT benefits from a policy environment that encourages the growth and adoption of new technologies. We advocate for strong privacy and data protection regulations, outcome-based cyber security standards, and energy-efficient cloud delivery. We support regulatory frameworks that enable standardization, interoperability, and portability across IT systems and solutions. We also promote government procurement standards and policies that take into account the speed of innovation and total life cycle costs of technology.

Tax policy

HP promotes responsible and progressive tax policies that encourage innovation, economic growth, and job creation. We support comprehensive federal tax reform in the United States. Globally, we are engaged with the OECD’s global taxation reform efforts, providing input to their work.

Market access

HP supports trade agreements that liberalize markets for our products and services. We also advocate for these agreements to benefit the global high-tech economy, by including strong protections for IP and increasing transparency in government procurement, regulations, and standards. HP supports the use and recognition of international standards whenever possible and discourages policies that promote domestic industry at the expense of access to global technologies.

Intellectual property and anti-counterfeiting

Our business is powered by innovation and relies on fair and efficient IP protection. Counterfeiting poses a significant global challenge to HP and our customers and is more sophisticated and pervasive than ever. Our anticounterfeiting program works with governments and law enforcement agencies to strengthen IP laws and promote prosecution of counterfeiters. In the United States, we support reforms to strengthen the patent system, improve patent quality, and curb excessive patent litigation in the courts and at the International Trade Commission. Additionally, we advocate for more effective fair compensation systems in jurisdictions that apply copyright levies to IT products and digital media.

Social and environmental policies

HP promotes public policies that support human, economic, and environmental progress. HP supports efforts to develop, attract, and retain a strong science and engineering workforce, through worldwide advocacy for educational improvements and promotion of U.S. immigration reform that affects our highly skilled international employees. To protect the environment, we engage with governments to help improve local, state, national, and international legislation governing responsible management of electronic waste

and restriction of hazardous substances. HP actively lends our expertise to developing and improving energy efficiency standards, such as the ENERGY STAR® program, and other


voluntary agreements to improve energy efficiency. We also encourage governments to prioritize energy efficiency when they procure IT products and data centers. As an industry leader in enabling the responsible sourcing of minerals, HP advises legislative efforts on this high-profile issue.’

Company website: U.S. federal and state lobbying disclosure

‘HP has requested information regarding lobbying expenses and political expenditures from trade associations that received from HP total dues or payments of $15,000 or more. Based on the information we received, the following portion of those HP dues or payments to trade associations were used for lobbying or political expenditures in 2013:

http://www8.hp.com/us/en/hp-information/government-affairs/lobbying.html

http://www8.hp.com/us/en/hp-information/government-affairs/lobbying.html


A25(a):

Does the company prohibit charitable contributions, or regulate such contributions in order to prevent undue influence or other corrupt intent?

Score:

1

Comments:

Based on public information, there is evidence that the company regulates charitable contributions, in order to prevent undue influence or other corrupt intent. The Sustainability & Social Innovation Organisation administers the company’s charitable contributions and grant-making protocols, to ensure they are fair, transparent and comply with anti-corruption laws. The company therefore scores 1. To score higher the company would need to provide evidence that recipients of charitable contributions are publically declared.

References:

Public:


‘We support giving and volunteering in our communities

• Get involved with efforts of your choice to improve your community

• Do not pressure others to contribute to or join your preferred charities, groups, or political activities

• Do not participate in HP decisions regarding a charity or other organization where you volunteer

• Do not use HP resources for the benefit of your preferred charities, groups, or political activities, unless approved officially by HP’.


‘HP seeks to address social needs through strategic philanthropic investments that support our communities, build brand equity and align with HP business priorities. Our Sustainability & Social Innovation Organization administers the company’s charitable contributions and grant-making protocols, ensuring charitable actions are fair and transparent, comply with global anti-corruption laws, and reflect HP values and business and social interests. Any payment to a chariatable organisation must :

• Not create the appearance of a bribe, kickback or other corrupt practice.


• Never be used to directly procure HP future business or otherwise be made with the intent to obtain or retain business, secure an improper advantage, or induce anyone to act improperly.

• Not be used to circumvent HP’s rules relating to giving business amenities.

• Be consistent with HP’s Conflicts of Interest Policy.

For more information on global contributions, please see the Grant Making Website and the Global Contributions Policy.’


A26:

Does the company provide written guidance to help Board members and

employees understand and implement the firm’s ethics and anti-corruption

agenda?

Score:

2

Comments:

Based on public information, there is evidence that the company provides written guidance to help Board members and employees understand and implement the company’s ethics and anti-corruption agenda. In particular, the Standards of Business Conduct and the Anti-Corruption Poilcy are well organised, unambiguous and suitably illustrated.

References:

Public:Standards of Business Conduct (February 2014), p.10:

‘Question and answer

Q: I have a concern, but it is not covered in the SBC. Does that mean there is no problem?

A: No. The SBC cannot possibly address every situation or ethical dilemma. However, the principles, values, and other guidance discussed in the SBC, including the Headline Test, can help you make the right decision. We are all expected to act ethically even in the absence of a company policy. If you need more help, talk to your manager, another member of management, HP Human Resources, your local SBC team, or your business group or region SBC liaison. You can also contact the HP Ethics and Compliance Office.’

(pp.12-13): ‘We avoid conflicts of interest:

• Outside employment with, or receiving compensation from, a customer, business partner, supplier, or competitor




• Family members or individuals with close personal relationships should not report to each


other, either directly or indirectly


(p.13): ‘Question and answer

Q: Are there any limits on what types of gifts or entertainment can be provided to a representative of a customer, partner, or other person on behalf of HP?

A: Yes. HP has restrictions on the types of amenities that may be provided to our customers,

partners, or other third parties, because certain types of amenities create unnecessary risk to HP. Refer to the Global Business Amenities Policy.












‘A facilitation or “grease” payment is a payment, generally of low value, made to a government official to facilitate or expedite a routine, non-discretionary government activity that the official is required to perform as a matter of course.

Examples of these activities includes:

• Permits, licenses, or other documents that allow companies to conduct business in a particular country

• Processing of visas and work papers

• Inspections related to transit of goods, for example loading and unloading of cargo

• Certain one-time fees, such as a government-owned utility company activating a telephone line’.


(p.7): ‘Examples of “red flags” include:

• Requests for excessive compensation, discounts, fees, or commissions

• The third party is required by a government official

• Comments suggesting improper conduct or bribery

• Requests for unusual payment arrangements, like payment in a different name or unrelated country

• Refusals to provide detailed invoices

• Requests to add multiple additional subcontractors without clear business justification’.


A27:

Does the company have a training programme that explicitly covers anti-corruption?

Score:

2

Comments:

Based on public information, there is evidence that the company has an explicit anti-corruption module as part of its ethics and compliance training programme. Anti-corruption is a key element of the annual Standards of Business Conduct refresher training course and sales employees take an additional anti-corruption course annually.

References:

Public:


‘We provide a range of anti-corruption training to enhance employee awareness and understanding:

• New hires complete anti-corruption training as part of our mandatory ethics and compliance induction process

• Anti-corruption is a key element of the annual SBC refresher training course for all employees.

• Sales employees are required to take an additional anti-corruption course every year that provides scenariobased training to deepen their understanding of how to apply anti-corruption policies in their everyday work.

• Relevant employees complete training tailored to the unique requirements of conducting business with the U.S. government.

• Our Ethics and Compliance Office provides specific guidance and training in certain higher-risk countries, which includes face-to-face training and materials adapted for localized training on the SBC and Global Business Amenities Policy.

• HP makes anti-corruption training materials available to channel reseller partners that participate in the Legal and Regulatory Partner Due Diligence Program.

In 2013, more than 50 live (face-to-face and online) training sessions were provided to more than 5,700 employees worldwide on anti-corruption, SBC, global trade, amenities, and global security.’


A28:

Is anti-corruption training provided in all countries where the company operates or has company sites?

Score:

2

Comments:

Based on public information, there is evidence that anti-corruption training is provided in all countries where the company operates or has company sites. Specific anti-corruption training modules are provided to employees globally and in 2013, 99.7% of active employees completed an annual Standards of Business Conduct refresher course.

References:

Public:


‘Mandatory SBC annual refresher course 99.7% of active employees, including every senior officer and executive, completed a one-hour training session covering our SBC and key policies, procedures, and high-risk issues. Board members were also required to complete a similar training. New hires complete a comprehensive SBC training course within 30 days of joining HP.’

‘In November 2013, we communicated the new Anti-corruption Policy and Global Business Amenities Policy to all employees globally, and, in early 2014, successfully trained HP’s sales force on these policies. HP communicates regularly with employees worldwide to promote understanding and familiarity with all aspects of our Anti-corruption Compliance Program.’

(p.23): ‘Anti-corruption is a key element of the annual SBC refresher training course for all employees.’

‘Our Ethics and Compliance Office provides specific guidance and training in certain higher-risk countries, which includes face-to-face training and materials adapted for localized training on the SBC and Global Business Amenities Policy.’

‘In 2013, more than 50 live (face-to-face and online) training sessions were provided to more than 5,700 employees worldwide on anti-corruption, SBC, global trade, amenities, and global security.’



‘HP Russia employees received mandatory SBC training annually, among other training’


A29:

Does the company provide targeted anti-corruption training to members of the Board?

Score:

1

Comments:

Based on public information, there is some evidence that the company provides anti-corruption training to Board members. However, it is not clear how often this training is refreshed. The company therefore scores 1.

References:

Public:


‘Mandatory SBC annual refresher course 99.7% of active employees, including every senior officer and executive, completed a one-hour training session covering our SBC and key policies, procedures, and high-risk issues. Board members were also required to complete a similar training. New hires complete a comprehensive SBC training course within 30 days of joining HP.’


A30:

Does the company provide tailored ethics and anti-corruption training for employees in sensitive positions?

Score:

2

Comments:

Based on public information, there is evidence that the company provides tailored ethics and anti-corruption training for employees in sensitive positions. This includes specific training for employees who work in sales, conduct business with the US government and work in high-risk countries.

References:

Public:


‘In November 2013, we communicated the new Anti-corruption Policy and Global Business Amenities Policy to all employees globally, and, in early 2014, successfully trained HP’s sales force on these policies.’

‘We use internal data and Transparency International’s Corruption Perceptions Index to identify countries at high risk for corrupt activity and raise employee awareness of potential issues in these higher-risk countries. We also benchmark our program with those of other companies to identify potential improvements’

(p.23): ‘• Sales employees are required to take an additional anti-corruption course every year that provides scenario-based training to deepen their understanding of how to apply anti-corruption policies in their everyday work.

• Relevant employees complete training tailored to the unique requirements of conducting business with the U.S. government.

• Our Ethics and Compliance Office provides specific guidance and training in certain higher-risk countries, which includes face-to-face training and materials adapted for localized training on the SBC and Global Business Amenities Policy.

• HP makes anti-corruption training materials available to channel reseller partners that participate in the Legal and Regulatory Partner Due Diligence Program.’


A31:

Does the company have a clear and formal process by which employees declare conflicts of interest?

Score:

0

Comments:

Based on public information, there is no readily available evidence that the company has a clear and formal process by which employees declare conflicts of interest. The company instructs employees to discuss any potential conflicts of interest with their manager. To score higher the company would need to provide evidence that employees are instructed to declare conflicts of interest, either to a manager in writing or to an independent department.

References:

Public:

TI notes:


‘Business with family or friends

During their HP assignment, contingent workers must disclose to their employer and HP all situations where they may be conducting business with members of their family, friends, or others with whom they have a close personal relationship.’

Standards of Business Conduct (February 2014), pp.12-13:

‘We avoid conflicts of interest



• Proactively address situations that may put your interests or those of a family member or friend in potential conflict with HP

Conflicts of Interest Policy’

‘We avoid conflicts of interest:

• Outside employment with, or receiving compensation from, a customer, business partner,


supplier, or competitor




• Family members or individuals with close personal relationships should not report to each other, either directly or indirectly



‘Directors are expected to report any possible conflict of interest between the director and HP or any violation of the Standards of Business Conduct to the Chairman, CEO or Chairman of the Nominating and Governance Committee, who will review the matter and take appropriate action.’


A32:

Is the company explicit in its commitment to apply disciplinary procedures to employees, Directors and Board members found to have engaged in corrupt activities?

Score:

1

Comments:

Based on public information, there is evidence that the Standards of Business Conduct and Anti-Corruption Policy state that violations of either policy ‘may’ result in disciplinary action. The company therefore scores 1. To score higher the company would need to provide evidence of an explicit commitment to apply disciplinary procedures to those found to have violated either policy, or examples of discplinary procedures being taken in response to corrupt activites.

References:

Public:


‘The SBC is a resource for employees and all those who represent HP. All employees and members of the Board of Directors are required to act in ways that are consistent with the SBC.’

‘Because HP is committed to getting things done the right way, violations of the SBC or HP policies or rules may result in disciplinary action, up to and including termination of employment.’


‘Violations of this Policy may lead to disciplinary action up to and including termination of employment with HP.’


A33:

Does the company have multiple, well-publicised channels that are easily accessible and secure, to guarantee confidentiality or anonymity where requested by the employee (e.g. web, phone, in person), to report concerns or instances of suspected corrupt activity?

Score:

1

Comments:

Based on public information, there is evidence that the company has multiple, well-publicised, accessible channels, that allow employees to report instances of suspected corrupt acitivty confidentially. Channels include the HR department, local SBC teams, regional SBC liasons, and the company’s Ethics and Compliance Office. In particular, the hotline and corporate compliance email allow anonymous reporting. The company therefore scores 1. To score higher the company would need to provide evidence that employees can report to independent sources.

References:

Public:


‘When concerns or questions come up, communication at the local level, either peer-to-peer or with your manager, is often the best place to start. When it is not possible to raise or resolve an issue with your immediate manager, use the Open Door Policy to contact the next level of management, or contact HP Human Resources, your local SBC team, your business group or region SBC liaison, or the HP Ethics and Compliance Office:

• By email: [email protected]

• By phone: Call the GuideLine from anywhere in the world, 24 hours a day. Translators are available and callers can remain anonymous except where anonymous reporting is prohibited by local law.

From the U.S. and Canada: 800-424-2965

Outside the U.S. and Canada:

1. Go to AT&T Access Codes

2. Find your country in the alphabetical listing

3. Dial the AT&T Direct® Code


4. When prompted, dial 800-424-2965

• By mail:

Hewlett-Packard Company

Ethics and Compliance Office

Mailstop 1050

3000 Hanover St.

Palo Alto, CA 94304–1112

United States’.

Company website: Report ethics concerns

‘Reports are kept confidential and can even be submitted anonymously. We take each and every report seriously; we review every concern raised, respond promptly and investigate alleged violations as appropriate.’

‘For assistance or to report a concern:

Email: [email protected]

Phone: Call the GuideLine from anywhere in the world 24 hours a day. Translators are available and callers can remain anonymous, except where anonymous reporting is prohibited by local law.



Go to the AT&T Access Codes page

Find your country in the alphabetical listing

Dial the AT&T Direct® Code

When prompted, dial 800-424-2965

Mail:



Mailstop 1050

3000 Hanover Street

Palo Alto, CA 94304-1112

United States’.

http://www8.hp.com/us/en/hp-information/global-citizenship/governance/report-ethics-concerns.html


‘We provide formal, confidential reporting channels for employees and third parties, including e-mail, an online form, and a global 24-hour toll-free hotline with translators available. Where allowed by law, reporting can be anonymous. The hotline and corporate compliance e-mail channels provide two-way communication for anonymous sources so we can respond promptly and follow-up as needed. In 2013, employees and third parties




reported a total of 1,268 items to our Global SBC team or other compliance functions.’


A33(a):

Are the whistleblowing channels available to all employees in all geographies?

Score:

2

Comments:

Based on public information, there is evidence that the company has whistleblowing channels available to all employees globally. Channels include an employees’ local SBC team, the region SBC liason and the company’s Ethics and Compliance Office. In particular, the Ethics and Compliance Officer has a global 24-hour toll-free hotline with translators available.

References:

Public:











• By mail:




Mailstop 1050

3000 Hanover St.


United States’.


‘Reports are kept confidential and can even be submitted anonymously. We take each and every report seriously; we review every concern raised, respond promptly and investigate alleged violations as appropriate.’

‘For assistance or to report a concern:

Email: [email protected]

Phone: Call the GuideLine from anywhere in the world 24 hours a day. Translators are available and callers can remain anonymous, except where anonymous reporting is prohibited by local law.



Go to the AT&T Access Codes page

Find your country in the alphabetical listing

Dial the AT&T Direct® Code

When prompted, dial 800-424-2965

Mail:



Mailstop 1050

3000 Hanover Street

Palo Alto, CA 94304-1112

United States’.



‘We provide formal, confidential reporting channels for employees and third parties, including e-mail, an online form, and a global 24-hour toll-free hotline with translators available. Where allowed by law, reporting can be anonymous. The hotline and corporate compliance e-mail channels provide two-way communication for anonymous sources so we can respond promptly and follow-up as needed. In 2013, employees and third parties reported a total of 1,268 items to our Global SBC team or other compliance functions.’




A33(b):

Does the company have formal and comprehensive mechanisms to assure itself that whistleblowing by employees is not deterred, and that whistleblowers are treated supportively?

Score:

1

Comments:

Based on public information, there is some evidence that the company has formal and comprehensive mechanisms, to assure itself that whistleblowing by employees is not deterred and that whistleblowers are treated supportively. The company encourages employees in policies and on the company website to raise any concerns or questions. The company monitors whistleblowing channel usage statistics using a global case management system and recently conducted a review of the investigation process. The company therefore scores 1. To score higher the company would need to provide evidence of other practices to ensure whistleblowing is encouraged, such as independent employee surveys or follow ups with whistleblowers.

References:

Public:


‘Open door approach

HP operates with an “open door” approach to communication. We encourage employees to raise concerns and ask questions when they are unsure of the best course of action—without fear of retaliation. We provide guidance on how to do so in our SBC and accompanying training module, as well as through our corporate policy directory and internal ethics and compliance website. Where specific ethical issues arise, employees can talk to their line manager or more senior managers. They may also seek advice from our ethics and compliance experts, or from regiona or business SBC liaisons.

We provide formal, confidential reporting channels for employees and third parties, including e-mail, an online form, and a global 24-hour toll-free hotline with translators available. Where allowed by law, reporting can be anonymous. The hotline and corporate compliance e-mail channels provide two-way communication for anonymous sources so we can respond promptly and follow-up as needed. In 2013, employees and third parties reported a total of 1,268 items to our Global SBC team or other compliance functions.’


(p.22-23): ‘Investigating concerns

HP uses a global case management system to record allegations of ethical violations. It enables us to identify geographical hotspots and trends, and determine whether additional action such as supplemental training or controls would be valuable in a specific region or area of risk.

We take all alleged violations of company policy seriously, responding promptly and conducting investigations when appropriate. These investigations may involve the participation of local, regional, or corporate-level employees and other relevant functions, including regional human resources teams. The Office of General Counsel’s dedicated investigations team oversees all escalated, corporate-led investigations. Details and results of investigations are confidential and shared only on a need-to-know basis. We take appropriate disciplinary or remedial action, when required.

In 2013, we undertook a Lean Six Sigma review1 of the processes under which investigations of serious misconduct are handled. This review identified ways to improve our investigative procedures without compromising the thoroughness and effectiveness of an investigation. The end result was a more efficient approach and a significantly reduced time period to complete investigations.’


‘We encourage anyone with a concern to speak up and report things that don't seem right.

We provide multiple channels, making it easy to ask questions or report a concern. Use any of the options listed on this page when you have questions or concerns about a potential violation of law, company policy, or HP's Standards of Business Conduct.

Reports are kept confidential and can even be submitted anonymously. We take each and every report seriously; we review every concern raised, respond promptly and investigate


alleged violations as appropriate.’


‘Any employee with knowledge or suspicion of any violations of this Policy must report these concerns to the Ethics & Compliance Office.’

Company website, Our People:

‘Engaging our people

When employees are engaged and loyal, companies perform better. We continually invest in improving the experience of working at here, even in a challenging economic environment. We promote engagement through a wide range of programs—efforts that produced significant increases in key measures of employee engagement and satisfaction in 2013. These include:

- Voice of the Workforce — our annual, confidential survey, revamped to better reflect HP’s business priorities and employee attitudes related to innovation and quality, with 80% of all employees taking part, up from 79% in 2012;

- HP Pride Builders — our new global network of 2,100 leaders who integrate our HP Way Now culture and make the connection to daily work, including reinforcing positive behaviors and identifying new opportunities to improve business performance.’

http://www8.hp.com/us/en/hp-information/global-citizenship/society/hppeople.html

http://www8.hp.com/us/en/hp-information/global-citizenship/society/hppeople.html


A34:

Does the company have well-publicised resources available to all employees where help and advice can be sought on corruption-related issues?

Score:

2

Comments:

Based on public information, there is evidence that the company has well-publicised resources available to all employees where help and advice can be sought on corruption-related issues. Resources include a local SBC team, a business group or region SBC liason or the company’s Ethics and Compliance Office.

References:

Public:











• By mail:




Mailstop 1050

3000 Hanover St.


United States’.

(p.16): ‘When concerns or questions come up, communication at the local level, either peer-to-peer or with your manager, is often the best place to start. When it is not possible to raise or resolve an issue with your immediate manager, use the Open Door Policy to contact another member of management, or contact HP Human Resources, your local SBC team, your business group or region SBC liaison, or the HP Ethics and Compliance Office.’


A35:

Is there a commitment to non-retaliation for bona fide reporting of corruption?

Score:

1

Comments:

Based on public information, there is evidence that the company has a commitment to non-retaliation for bona fide reporting of corruption. The company therefore scores 1. To score higher the company would need to provide evidence that disciplinary measures are applied to employees who breach this policy.

References:

Public:


‘We provide a variety of avenues for employees to ask questions or voice their concerns. And we don’t tolerate retaliation against employees who speak up honestly and in good faith. We take action when we find misconduct, and we hold people accountable.’

(p.7): ‘HP does not tolerate retaliation against anyone who raises a concern or question honestly and in good faith.’

(p.10): ‘Speak up for HP values, knowing that our company does not tolerate retaliation against anyone who raises a concern honestly and in good faith

Managers must encourage open and honest communication, and ensure that employees can ask questions or raise concerns without fear of retaliation’.

‘We take action when aware of misconduct and do not retaliate

• Awareness of an issue without willingness to raise it with anyone

• Different treatment of any employee who raised an issue or concern’.

(p.16): ‘Q: I’ve seen activities at HP that may be creating an environmental hazard, but I don’t want to get involved. Isn’t this the safest course?

A: No. All HP employees are responsible for taking action when aware of potential violations of the SBC. This responsibility includes reporting environmental hazards or other unsafe


working conditions of which you are aware. Retaliation against anyone making a good faith report will not be tolerated.’


‘HP operates with an “open door” approach to communication. We encourage employees to raise concerns and ask questions when they are unsure of the best course of action—without fear of retaliation.’

Standards of business conduct, p10 : ‘Red flags. We take action when aware of misconduct and do not retaliate : Awareness of an issue without willingness to raise it with anyone ; Different treatment of any employee who raised an issue or concern’

‘Speak up for HP values, knowing that our company does not tolerate retaliation against anyone who raises a concern honestly and in good faith. Managers must encourage open and honest communication, and ensure that employees can ask questions or raise concerns without fear of retaliation’


Information Sources:

Company website:

www8.hp.com

2013 Annual Report:


2012 Global Citizenship Report:


2013 Living Progress Report:


Anti-Corruption Policy (November 2013):


Audit Committee Charter (September 2013):


Contingent Worker Code of Conduct (January 2014):


Corporate Governance Guidelines (November 2013):
















Global Business Amenities Policy:


Global Business Gifts, Travel and Entertainment Policy (November 2012):


HP Electronic Industry Code of Conduct (June 2012):


Partner Code of Conduct (May 2012):


Plea Agreement between the United States of America and ZAO Helwett-Packard AO:

http://www.corporatecrimereporter.com/wp-content/uploads/2014/04/HP-Russia-plea-agreement.pdf

Standards of business conduct (February 2014):


Supply Chain Responsibility: Our Approach (2014):


US Public Sector Code of Conduct (November 2013):















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