huawei india csr report 2011

8/9/2019 Huawei India CSR Report 2011

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HUAWEI MAITREE SCHOLARSHIPHUAWEI MAITREE SCHOLARSHIP

Enriching Through

LifeCommunications

Huawei IndiaCorporate Social Responsibility Report 2011


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About This Report

This report is the first Corporate SocialResponsibility (CSR) report released byHuawei Telecommunications (India) Co. Pvt.Ltd (hereinafter referred to as 'Huawei India',the 'Company', or 'We'). The report uses'Huawei' to refer specifically to Huawei as aglobal entity.

The aim of this report is to strengthen themutual understanding and communicationbetween stakeholders and Huawei India, andprovide information about the company'ssocially responsible initiatives and activitieswith regard to environmental protection,bridging the digital divide, managing thesupply chain, looking after our people, andsupporting the local communities in which weoperate. This report includes Huawei India'skey initiatives since the inception of itsoperations in 1999. As the company'scommitment to CSR evolves, we willcontinuously optimize and enhance the levelof detail in each subsequent CSR report.


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Contents

Message from the CEO

Huawei Vision, Mission and Core Values

Huawei India CSR Strategy

Huawei India CSR Highlights

Environmental Protection

Bridging the Digital Divide

Supply Chain CSR

Caring for Employees

Community Support

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23 Business Code of Conduct


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Max YangCEO, Huawei India


Globally, the market for ICT solutions is a rapidly growingone. But, perhaps, the pace of growth, change andinnovation is most pronounced in countries like India,where almost every month witnesses a demand for newsolutions, services, applications and equipment.Consequently, we drive ourselves to innovate constantlyand adopt an end-to-end approach in the ICT solutions that

we provide.

We believe that an enterprise can survive, sustain itsgrowth, and contribute to society only if it consistentlyaligns its core values and operational responsibilities with itssocial responsibilities. At Huawei India, we strive to respondto need gaps, both in the regions where we operate andwithin the organization, thereby establishing ourselves as aresponsive organization, besides being a responsible one.As such, we are firmly committed to creating a win-winindustry ecosystem that promotes the sustainabledevelopment of the economy, society and environment.

We are a technology company. Hence, the use orpromotion of technology is integral to most of our CSRprograms. Huawei India's CSR strategy includes initiativesto protect the environment by developing a wide range ofgreen solutions; to attempt to bridge the digital divide inIndia by giving less privileged children a chance to learnhow to use computers and access the informationhighway; to provide best-in-class technical and leadershiptraining to our suppliers; to foster a stimulating work andlearning culture for our employees; and to support localcommunities through educational scholarships, disasterrelief efforts, and numerous other activities.

The promotion of a safe and healthy environment is at theheart of everything we do. Indeed, we are convinced thatsound environment, health and safety (EHS) systems are theway of the future. So, whether through solutions forreducing carbon emission, or stringent guidelines forsuppliers to work in safe environments and comply with allCSR requirements, or an advanced Health and Safetymanagement system for our employees, we work hard toensure that EHS becomes intrinsic to our operations and

ethos.

Working closely with our valued partners, we envisage afuture of meaningful and enduring contributions to theworld we live in. As we evolve as a company, we willcontinue to build upon our commitment to enrich lives andempower communities.


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Vision

Mission

Core ValuesCustomers First

Openness and Initiative



To focus on our customers' market challenges and needsby providing excellent communications networksolutions and services in order to consistently createmaximum value for customers.

To enrich life through communications.

Huawei exists to serve customers whose demand is thedriving force behind our development. We continuouslycreate long term value for customers by being responsiveto their needs and requirements. We measure our workagainst how much value we bring to customers becausewe can only succeed through our customers' success.

Dedication

We win customers' respect and trust primarily throughdedication. It includes every effort we make to createvalue for customers and to improve our capabilities. Wevalue employees' contributions and reward themaccordingly.

Continuous Improvement

Continuous improvement is required for us to becomebetter partners for our customers, improve our company

and grow as individuals. This process requires that weactively listen and learn in order to improve.

Driven by customer needs, we passionately pursuecustomer-centric innovations in an open manner. Webelieve that business success is the ultimate measure ofthe value of any technology, product, solution or processimprovement.

Integrity

Teamwork

Integrity is our most valuable asset. It drives us to behavehonestly and keep our promises, and, thus, win ourcustomers' trust and respect.

We can only succeed through teamwork. By workingclosely in both good times and bad, we lay thefoundation for successful cross-cultural collaboration,streamlined inter-departmental cooperation andefficient processes.

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Openness &Initiatives

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I n t e g

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Core Values


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CSR Strategy

CSR Strategy EnvironmentalprotectionCommunity

supportBridging thedigital divide

Supplychain CSR

Caring foremployees

CSR Strategy

Huawei India CSR Strategy

To build an excellent CSR management system, operate with integrity,promote a harmonious business ecosystem, ensure sustainable

development of the company, and provide benefits to ourcustomers and society.

CSR Mission

As a member of the United Nations Global Compact,Huawei strives to create a win-win industry ecosystem thatpromotes the sustainable development of the economy,society and environment. At Huawei India, we arecommitted to becoming a truly sustainable organizationand meeting the triple 'P' bottom line (people, planet,profit). In order to fulfill this commitment, our activities arefocused on key business sustainability parameters.

Environmental protection: Huawei India activelycommunicates with customers on energy conservationand environmental protection. We closely collaboratewith enterprises across the value chain to buildenvironment-friendly networks, and promote thesustainable development of the industry in order toachieve our objective: 'Green Communications, GreenHuawei, and Green World'. We have successfullyimplemented an ISO 14001 :2004-compl ian tEnvironmental Management System, taken proactivemeasures to make our offices and facilities moreenvironment-friendly, undertaken initiatives to estimate

our carbon emission levels, and are continually devisingnew strategies to reduce our carbon footprint.

Bridging the digital divide: Huawei India providescustomized solutions that enable people in differentregions to access information. We help underdevelopedregions nurture talent and form effective educationsystems using ICT, and improve regional technology topromote communications.

Supply chain CSR: Huawei India has established closeties with its suppliers to strengthen CSR management inorder to gain its customers' confidence, enable thecompany to take appropriate action to ensure CSRcompliance, and improve the CSR risk control of suppliers.We are in the process of implementing a socialaccountability management system in accordance with SA8000:2008 standards, which will help us to address issuessuch as child labor, or forced labor, in our supply chain. Wealso regularly assess every link in our supply chain in orderto ensure compliance with Environment, Health and

Safety and Sustainability requirements.Caring for employees: Huawei India attaches greatimportance to its employees' growth, health and safety.We value employees' contributions and make every effortto ensure that employees' personal growth is realizedalongside the company's success. We have successfullyimplemented an OHSAS 18001:2007-compliant Healthand Safety Management System, and are stronglycommitted to provide a safe and comfortable workingenvironment for all our employees. We have also institutedan SA 8000 management system that ensures conformitywith the best labor standards, the payment of fair wages,and non-discriminatory working hours.

Community support: Huawei India believes strongly in'giving back' to society. We support communities in theareas where we operate by insisting on local operationsand contributing to local welfare, education, and disasterrelief efforts.


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Environmental ProtectionGreen Solutions

Bridging the Digital DivideE-Hope

Supply Chain CSRSupplier Training Programs

CSR Highlights

Huawei India CSR Highlights

Huawei India's supplier training programs are amongthe best in the industry. They include comprehensive on-

site training programs, classroom teaching sessions toeducate suppliers about new products, customizedcourses for each of the company's products, specialprograms that train suppliers to expand their offeringsand grow their competencies, leadership trainingprograms to enhance the skills of suppliers' teamleaders, and many others. Huawei India's emphasis oncontinuous learning and betterment and its genuinedesire to help its suppliers grow, has helped the companybuild enduring relationships with its suppliers.

Launched in 2010, Huawei India's E-Hope initiative aimsto equip less privileged schoolchildren with basictechnical knowledge and access to the latestinformation, technology and computer systems. Byproviding computers to schools and promoting equalaccess to connectivity, the program will contribute

significantly to narrowing the gap between the digital'haves' and 'have-nots'. E-Hope is being rolled out inphases: it intends to reach out to about 100,000 childrenannually, and to create a knowledge network of 1,000schools within the next two to three years.

Huawei India's green site solutions encompass a varietyof initiatives that stem from (a) innovative measures toreduce power consumption and minimize carbonemissions for the company's operations and products;(b) relentless efforts to ensure that every link in thecompany's supply chain and every part of itsmanufacturing process use environment-friendlytechniques.

Community SupportThe Maitree Scholarship Program

Launched in early 2011, Huawei India's MaitreeScholarship Program offers 10 scholarships annually toIndian undergraduate and postgraduate students whohave already secured admission to institutions of highereducation in China. The scholarship scheme aims tobuild a platform for the exchange of ideas between thetwo nations and foster a closer understanding of eachothers' culture and society.

Caring for EmployeesThe Environment, Health and Safety Program

The health, safety and well-being of our people mean alot to us. Huawei India has successfully implemented anOHSAS 18001:2007-compliant Health and SafetyManagement system. Fully committed to providing asafe working environment for our employees, weregularly conduct health checks, and safety andemergency preparedness training sessions at work.


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A Multi-faceted Approach to Green ProductEfforts

Lifecycle Product Management

Power Efficiency Highlights

WIRELESS Next-generation BTS design : Huawei India's

high-density BTS designs reduce carbon emissions by80% and power consumption by 30%.

Intelligent equipment shutdown: The intelligentsoftware shutdown feature (based on the time ofday) can result in 16% power savings, and our radioresource management (RRM) software can alsoreduce power usage dramatically.

Intelligent/ alternative energy : Our hybridbatteries or solar power reduce the dependence ondiesel generators in remote areas, and we have alsoinitiated geothermal and ambient cooling schemes

that depend on geographic conditions.

CENTRAL OFFICE Blade servers : Huawei India's clustering and

intelligent software can generate 20% powersavings.

ATCA-based virtualization : We are deployingvirtualization to reduce equipment footprint by 50%and power consumption by 40%.

Thermal management : Our fresh air coolingsystems can save up to 65% on HVAC-related energyconsumption.

BROADBAND AND TRANSPORT PON-based Access Network : Next-gen PON (i.e.,

WDM PON) can improve throughput per Watt byalmost 400%, compared to the conventional ADSL.

Intelligent Optical Networking : The migrationfrom 'ring' to 'mesh' results in a 40% improvement inbandwidth utilization, as well as a 30% improvementin power consumption.

Improved ASIC Design : Chips that can withstandhigher temperatures lower cooling requirements.And photonic integration eliminates the need fordiscrete components, lowering both power

consumption and cooling requirements. Thecombined effect of these factors could result in resultin a 200% throughput per Watt improvementbetween 2008 and 2012.

While Huawei India's primary green product strategy is toreduce raw power consumption, the company firmlybelieves in a multi-faceted and holistic approach to greenefforts. Hence, we undertake lifecycle productmanagement, adhere to the norms of internationalstandards bodies and participate in initiatives launched bythem, acknowledge and abide by relevant governmentregulations (e.g. cap and trade policies), and ensure that ourcorporate governance reinforces the importance of theseactivities.

The detailed lifecycle assessment (LCA) that Huawei Indiaconducts for all its major products conforms to ISO 14040and 14044 standards. Applied across the product'slifecycle, i.e. phases such as a product's manufacture, use,and end of life, the LCA measures the total mass of CO2emission per year and helps determine the need forinnovation or immediate corrective action. Huawei hasdeveloped stringent green certification standards toevaluate product performance during each phase of thelifecycle, and, since September 2010, all new Huaweiproducts are required to be certified as 'green' products.

Product design : Huawei India is committed to 'greenaction' during every possible stage of a product's lifecycle.By using eco-environment-friendly material, innovativeenergy-saving frames, middleware and ASIC chips, weensure that our products are 'designed for theenvironment'.

Manufacture and supply chain : Huawei India managesits supply chain creatively, urging suppliers to source rawmaterials judiciously, adopt efficient laser welding,phosphate-free surface treatments and recyclablepackaging technologies. This means that our suppliers'manufacturing processes can significantly reduce theconsumption of power, water, oil and packaging materials,and can thereby cut the volume of carbon emission.

Operation and use : At Huawei India, we focusintensively on managing the environment, health andsafety (EHS) during the operational phase of products.While the attempt to curb carbon emissions is an ongoingactivity, we are also concerned about potential health


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Other green initiatives

Participation in industry standards


Core network footprint optimization : New networkelements are being implemented for the evolved PacketCore (ePC). Eventually, the ePC will become the single,unified packet core for R5, R7 and future architectures,leading to a significant reduction of the carbon footprint.

Using renewable energy : By using solar power for off-grid sites in rural areas, Huawei India has achieved totalsavings of at least 24 liters of diesel, which is equivalent to63.12 kg of CO2 emissions, per day per site. Studying thefeasibility of deploying renewable energy for our basestations in different parts of the country is an ongoingactivity at Huawei India.

problems that may be caused by electromagnetic radiation,in particular. As such, we have established rigorous internalcontrol procedures for product design, testing andinstallation to ensure that all wireless communicationsproducts meet the safety requirements of national andinternational electromagnetic radiation regulations. Whenconstructing wireless base stations, Huawei India strictlyadheres to all India-specific electromagnetic radiationstandards and environment impact evaluationspecifications. It is very important to us that our customersenjoy safe mobile communications services, and that wecan cooperate with our customers to instill the idea of greenand safe communications.

End-of-life initiatives : A product's end-of-life phase

finds Huawei India managing the processes of theirremoval, collection and recycling. As a leading ICT solutionsprovider, we take our responsibility for electronic wastetreatment very seriously. We have established a system forrecycling and reuse, and by dismantling waste electronicequipment and extracting useful materials from thesewastes, we are able to circulate a large percentage of rawmaterials for reuse, with the rest being incinerated or sent tolandfills. Various other types of waste are also generated byHuawei (recyclable solid waste, dangerous waste andhousehold waste). A variety of waste disposal units acrossour office buildings, production bases and other facilities

encourage the optimal treatment of waste. We alsocollaborate with qualified waste management serviceproviders for professional treatment, recycling and disposalof waste.

Eco-friendly base stations : Huawei India's eco-friendlybase stations consume only 250-300W of power, savingover 8,000 kWh each year. Multiplied by 1,000 basestations, annual savings of 8 million kWh are achieved. Also,the company's eco-friendly, outdoor micro base station

makes it possible to use renewable sources of energy suchas solar or wind power. The optimal use of natural energysources results in significantly reduced power consumptionand environmental degradation.

The Single RAN platform : Radio Access Network (RAN)sharing between two or more operators for 3G orBroadband Wireless Access (BWA) can help reduce carbonemissions, as operators can share many of the accesselements, leading to lower overall power consumption.Also, the Single RAN platform supports GSM/UMTS/LTEsimultaneously, resulting in lower TCO and average revenueper user (ARPU).

Globally, Huawei is strongly committed to compliance withindustry norms. It believes that the adherence to establishedindustry standards will make the global ICT industryhealthier and more environment-friendly in every way.Huawei is closely involved with international standardsbodies such as the International Telecommunications Union(ITU), Alliance for Telecommunications Industry Solutions(ATIS), European Telecommunications Standards Institute(ETSI), China Communications Standards Association andenvironment protection programs, such as Energy Star.

Huawei's association with these bodies and programs oftentakes the form of active participation in devising andrecommending new standards and proposals for energyefficiency.

Additionally, Huawei is associated with leadinginternational organizations, such as the United NationsEducational, Scientific and Cultural Organization (UNESCO)and World Economic Forum (WEF) that are exploring waysto lower carbon emissions and to leverage ICT in developingsociety in a low-carbon manner. As a member of many ofthese global organizations, Huawei has been working withpartners to realize the goal of a green world and to deliveron the promise of a green ICT industry.


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The E-Hope Initiative

Young beneficiaries of E-Hope in Delhi



With a vision of 'enriching lives through communication',Huawei India applies its professional ICT experience to helpbridge the digital divide in the country. The digital divide inIndia is multi-layered and complex as such, we believe inproviding solutions and technologies that go beyondincreasing penetration and attempt to drive social andeconomic development.Huawei India is proud that its initiatives to promotecomputer literacy, technical knowhow and access toconnectivity and information are making a positivedifference to thousands of less privileged schoolchildrenaround the country. Besides, constant innovation and astrong focus on customer requirements are behind thecompany's advanced, efficient and low-ARPU solutions thathave made the information society accessible to moreIndians today. Huawei India is also committed to universalbroadband convenience by deploying broadband networksand helping construct national broadband networks. Thecompany wants to enable people from different regions toenjoy the conveniences that broadband services can bring,and is confident that increased access and knowledge willmake a powerful socio-economic impact.

Launched in Orissa in Oct 2010, 'E-Hope for ComputerEducation' is Huawei's flagship program in the area ofbridging the digital divide. It aims to equip less privilegedschoolchildren with basic technical knowledge and accessto the latest information, technology and computersystems. By providing computers and promoting equalaccess to connectivity, the program will contributesignificantly to narrowing the gap between the digital'haves' and 'have-nots'.

E-Hope intends to reach about 100,000 children annually.The program is being launched across India in phases: theobjective is to build a knowledge network of 1,000 schoolswithin the next two or three years. E-Hope has beenendorsed and widely praised by students, teachers,educationists and government officials.

Huawei India makes every effort to ensure that the benefitsof E-Hope reach those who need them most. The roll-out ofthe program first began in Orissa's poorest district at a timewhen the region had been hit by severe floods. Overcomingseemingly insurmountable physical obstacles, E-Hope gotoff to a very promising start in Orissa and is playing animportant in educating students from the local tribal and

fishing communities. Under the E-Hope program, 74desktop computers with Internet connections have beengiven to 37 secondary government schools in the city ofFarrukhabad, in Uttar Pradesh. The Farrukhabad programaims specifically to empower students from minoritycommunities with skill sets that will make them moreemployable.

E-Hope has also been launched in other selected districts ofDelhi, Uttar Pradesh Rajasthan and West Bengal (wherespecial 'computer labs' allow schoolchildren to usecomputers and the Internet for a range of relatively more

complex educational purposes). Huawei India also provided202 desktops and laptops to the students of Satya Primary,Secondary and Higher Secondary schools run by the BhartiFoundation.

This initiative reinforces our belief in furthering educationthrough technological progress. In the space of just a fewmonths, E-Hope has been able to cover many regions inIndia.


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Huawei India is making every effort to ensure that thebenefits of E-Hope reach those who need them most.

E-Hope aims to equip less privileged schoolchildrenwith basic technical knowledge

Some of the eHope activities included contribution of over 700 computers and internetconnectivity to nearly 250 schools in India :

100 computers, 50 UPS, 50 Internet connections to 50 schools in Orissa 110 computers, 10 Internet connections to 11 schools or institute in Delhi 172 computers, 87 UPS, 87 Internet connections to 87 schools in Uttar Pradesh 80 computers, 40 Internet connections to 40 schools in Rajasthan 80 computers, 40 Internet connections to 40 schools in West Bengal 202 computers to Satya Bharti Schools thru Bharti Foundation


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Selecting Suppliers

Supplier Training

Supply Chain CSR

Supply Chain CSR

It has been a pleasure to serve Huawei India over the last three years. We want you to know that we truly value yourbusiness and appreciate the support we have always received from you We look forward to many more years ofworking with you, and wish your company the success that it deserves. Amit Tiwari, Account Director, Metrotelworks

Huawei India has implemented ethical and green sourcingmethods and improved CSR management in its supply chainto ensure that product procurement meets the company'sCSR requirements. We are committed to helping oursuppliers improve their CSR awareness, productionstrengths and management capability while encouragingthe sustainable development of the industry chain. We arekeen that our suppliers work, learn, and grow in the bestpossible environment as such, we do everything we can toreduce risks to our suppliers, and develop extensive trainingprograms, capability-building initiatives and otherengagement platforms in order to build lasting relationshipswith them.

Huawei India selects its suppliers through a stringent process

of evaluation in order to ensure that the company's productsare of the highest quality. Before suppliers are invited to bidfor a contract, we assess their qualifications against adefinite set of parameters operating standards, registeredcapital, financials, EHS and ISO certifications, existing andpotential skills and capabilities, and several other factors.Suppliers must then pass a rigorous technical evaluationbefore proceeding to the next level of assessment: an on-sitecheck conducted by a cross-functional Huawei India teamwhose findings are presented to the company'sProcurement Management Committee. Throughout theselection procedure, there operates a system of continual

monitoring and surveillance; non-compliance withrequirements leads to warnings to suppliers and eventualdisqualification in case the problems of non-compliancecontinue.

At the heart of our relationship with our suppliers is theSupplier CSR Agreement. Put into place soon after a supplieris selected, the Agreement details Huawei India's laborstandards, occupational safety and health standards,environmental standards, business ethics, CSR managementsystem requirements, and sub-supplier managementrequirements. We regard the Supplier CSR Agreement ascritical to maintaining the highest standards of environment,health and safety (EHS), and more broadly, as being integralto effective CSR.

Huawei India is committed to the improvement of standardsthrough continuous learning. It is very important to us tohelp our suppliers move from strength to strength, and tobuild enduring relationships with them. We conduct a widerange of training and certification programs for oursuppliers, often in collaboration with our Technical SolutionsDepartment. While we run customized supplier trainingprograms for each of Huawei India's many products, we alsoconduct courses that encourage suppliers to move beyondtheir immediate offerings and expand their competencies. Inseveral instances, our suppliers' capabilities have becomesufficiently advanced for us to help them to beginoperations overseas.

A great deal of importance is attached to on-site training.

Our trainers demonstrate a particular activity, such asconnectorization or weatherproofing, and then thesupplier's team is invited to repeat the procedure. Ourtrainers are always at hand to offer help and advice wherenecessary. Besides, we conduct a range of 'classroomtraining' sessions to educate suppliers about specificproducts, particularly when new equipment is beingintroduced or is in its initial stages of implementation.Additionally, we take care to devise special, personalizedprograms for suppliers whose procedures or output havebeen found wanting during visits by our Quality Team.


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Supply Chain CSR

iFriends

Helping suppliers grow

A classroom training session in progress

Our team leader training program aims to enhance the skillsof our suppliers' team leaders with respect to hardwareinstallation work and site quality management. We prideourselves on having built long-standing partnerships with67 suppliers and having trained 571 team leaders, as of end-July 2011.

In order to help improve both the company's and suppliers'efficiency, Huawei India has created a powerful tool for'cooperation resource management' called iFriends.iFriends registers key information about a supplier and hiscapabilities and helps visualize the supplier's potential forproviding global services. The iFriends system is also used tomanage the activities of suppliers' employees and evaluatetheir work performance in order to standardize operationalprocedures and improve overall quality on projects.

GTL, Huawei's oldest supplier in India, hassupported us in a number of different domains. Wehave helped them grow their business volume byalmost 200%, and their recent acquisition of acompany called ADA Cell, saw them increase theirworkforce in the NTS domain by about 300%.Today, GTL is a global supplier for Huawei.

Netwing was initially one of Huawei's suppliers inthe NTS space. But it was soon encouraged to rampup operations in order to support us across all ourdomains of activity. As a result, Netwing's businesshas grown by 300% and today they are amongHuawei's global suppliers.

Microqual's capabilities were earlier limited to theproduction and supply of very few products. Buttheir expansion to address our needs across thegamut of our operations has helped them growtheir business by 200% and also become one of ourglobal suppliers.

IWS's outstanding performance for us, particularlyin the NTS domain, has led us to recommend themfor a global support role. They have consistently

achieved a year-on-year business growth of about200%.


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Ensuring Employees Health and Safety

Employee Recognition

Employee Engagement

The health, safety and well-being of our employees mean alot to us. Huawei India has successfully implemented anOHSAS 18001:2007-compliant Health and SafetyManagement system. Fully committed to providing a safeworking environment for our employees, we regularlyconduct health checks, and safety and emergencypreparedness training sessions at work. Additionally, wehave instituted an SA 8000 management system thatensures conformity with the best labor standards, thepayment of fair wages and non-discriminatory workinghours. While the system is already in place, its certificationwill be completed by end 2011.

Recognition, for many, is a key to success and long-termemployment. Huawei India's 'Rewards and Recognition'Awards seek to promote excellence by acknowledgingexemplary individual and team achievements. Awards arepresented in various categories the Long Service, Honor,Gold and Sprint Awards recognizing outstandingperformance, the demonstration of the company's valuesand principles, and remarkable customer service.

Additionally, project bonuses and awards for individuals andteams are presented through the year for extraordinaryperformance and the achievement of targets.

Recognizing and rewarding achievement

Performance of a different kind

A firm believer of 'One Team, One Company', Huawei Indiais committed to building a spirit of solidarity and fosteringstrong interpersonal ties among its employees. We publishan annual employee engagement calendar, tying events inwith regional or cultural festivals. While our Dragon Boat,Diwali and Christmas festivities have become something ofan annual tradition, our tug-o'-war contests and cricket andbadminton tournaments are perhaps the most popular andeagerly awaited events. Huawei's Annual Day celebration isa major yearly event that brings people at all levels together,with cultural performances by Chinese and Indianemployees reflecting the organization's cultural diversity, awarm team spirit, and employees' mutual appreciation ofeach other. Our periodic team-building activities helpidentify various business challenges and discuss how theymight be addressed. We also conduct workshops on specialoccasions such as Women's Day, and arrange for eminentguests to talk to employees about their work-life balanceand other issues of common interest.


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Open Communication Channels

Cultural Sensitization

Employees Show They Care

Our employee cricket tournaments are eagerlyawaited by participants and spectators alike

Huawei India has developed a range of communicationchannels across regions to ensure that employees feel astrong connection with the company. Our popular monthlyemployee newsletter 'Huawei People' provides updatesabout the telecom sector, information about the companyand employee activities, and includes a special focus on newhires. We also hold regular town hall meetings andleadership connect sessions, allowing the senior leadershipto keep employees, informed, engaged and in sync withbusiness goals and objectives. In establishing and operatingour communication channels, we are especially particularabout reaching employees who work remote or virtual sites.

The HR Business Partner division seeks periodic employeefeedback and attends to the dissemination of organization-level updates. To ensure that employees' HR queries orconcerns are addressed promptly, our HR Operations teamhas launched an initiative called the 'HR Helpdesk'.Employees can participate in discussions about theirprovident fund, medical insurance, banking solutions, otherbenefits and income tax returns on designated days of themonth. The Helpdesk's awareness campaigns around healthand wellness issues have generated much interest,discussion and participation.

The rapid globalization of Huawei's operations and thegrowing diversity of its workforce prompted the need for aneffective cultural sensitization program. Consequently,Huawei launched its 'Migratory Bird Program' (MBP) in2006. The MBP seeks to strengthen ties between Huawei'sHeadquarters and its Regional Offices, and to developleadership by building a strong understanding of Huawei'sroots, values, corporate culture and business processesamong selected employees at its Regional Offices. This isdone in two ways. Key employees from Huawei India andother regional offices are trained at headquarters for aperiod of one to three months, in order to enrich theirunderstanding of organizational responsibilities, operationsand specific businesses. Additionally, a system of jobrotation requires potential leaders from regional offices towork for a one-year term in a specific position atheadquarters, imbibing business knowledge and Huawei'scorporate culture.

Huawei India firmly believes in making a difference to localcommunities through employee participation programs,sponsorships and engagement events. Our partnershipswith various non-profit organizations across the countryhave allowed employees to make a significant contributionin terms of CSR. Besides, teams of employees haveorganized cleanliness drives and undertaken programs toeducate schoolchildren about maintaining standards ofhygiene and safety. A very large and steadily increasingnumber of our people participate in Huawei India's 'Save theEarth' marathons and 'Walk for a Cause' events, and ourteams also conduct periodic blood donation drives as part oftheir commitment to support local communities.


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Community Support

Educational Initiatives

Our focus areas for community support

Educationalinitiatives

Helpingspecially

abledchildren

Miscellaneousinitiatives

Reliefoperations

Community Support

Corporate social responsibility is an integral part of work culture at Huawei India and is tightly aligned with ourstrategic business priorities. As a world leader in telecommunications and networking equipment, we understandthat our operations are closely linked with the social-economic environment of the communities where we operate.Max Yang, CEO, Huawei India

Huawei India is committed to fulfilling its responsibilities as agood corporate citizen in the regions and communitieswhere it operates. We support local communities in thefollowing ways:

Educational initiativesHelping specially abled childrenRelief operationsMiscellaneous initiatives

The Maitree Scholarship Program : In early 2011,Huawei India announced the 'Maitree Scholarship

Program' as part of its CSR initiatives in the country. Opento Indian undergraduate and postgraduate students whohave already secured admission to institutions of highereducation in China, the Maitree Scholarships aim to builda platform for the exchange of ideas between the twonations, and foster a closer understanding of eachothers' culture and society. The scholarship program willhelp promote scientific and academic aptitude and willexpand the career opportunities available to Indianstudents. Every year 10 scholarships of up to USD 10,000each will be awarded to selected students for pursuingacademic courses in China. Each scholarship will coverthe student's full tuition and living expenses for theduration of his or her study in China. We are certain thatboth Indian and Chinese students will benefit from eachothers' interests, knowledge and expertise.

The Huawei Excellence Awards Program : In orderto support IT education in India, more specifically in thefield of higher education and research, Huawei India hasinstituted a generous scheme of 'Huawei ExcellenceAwards' (annual scholarships) in partnership with apremier engineering university in Bangalore.

The association with Parikrama : Every year, our R&Dstaff contributes half a day's salary towards the fundingof schools for destitute children run by Parikrama, aBangalore-based NGO. Called 'Change Your World in 1/2a Day', the program has been enthusiastically supportedby our employees. Both the number of contributors andthe contributions themselves have grown steadily overthe years, and the funds raised in 2010 were used tolaunch a scholarship program that would help children atParikrama enter colleges and professional or vocationalcourses.

Donation of computers : The donation of usedcomputers to needy educational institutes andorganizations is an ongoing activity at Huawei India, andwe have already donated over 500 computers to suchinstitutes.

HUAWEI MAITREE SCHOLARSHIP

HUAWEI MAITREE SCHOLARSHIP


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Community Support

Helping Specially Abled Children

Relief Operations

Miscellaneous Initiatives

The association with Deepalaya : We have partneredwith Deepalaya, a leading national NGO, and contributeda generous sum to aid the development and education ofspecially abled children in the National Capital Region.

Promoting sports : During the ATP tennis tournament inBangalore in 2002, Huawei India contributed a significantamount for the promotion of sports among physicallyhandicapped children.

Earthquake relief : When a major earthquake hit Gujarat

in 2001, Huawei was among the first multinationals tomobilize funds and donate generously to reliefoperations.

Tsunami relief : When parts of India were ravaged by thetsunami in December 2004, Huawei India rapidlymobilized and donated a large sum for relief operations tothe Prime Minister's Relief Fund. Further, as part of abroader Huawei initiative directed at other countriesimpacted by the tsunami, Huawei India contributed criticalemergency wireless access communication equipment forrelief efforts.

Participating in the Airtel Delhi Half Marathon : Inboth 2009 and 2010, Indian and Chinese employees fromHuawei India participated in the Airtel Delhi Half Marathon(ADHM) conducted by the Bharti Foundation. In the lastfew years, we have contributed significant amounts to theFoundation. Our employees took part in the 'CorporateChallenge' category of the two annual half marathons,and the amount donated by the company each yearsponsored the education of a particular class in one of theSatya Bharti schools.

The 'Clean Delhi' drive : In September 2010 ouremployees took to the streets, joining the 'Clean Delhi'

drive, an initiative undertaken by the Delhi governmentand Art of Living to inspire over a million citizens to cleantheir city. More than 100 Huawei employees participatedin the community-driven initiative, undertook to cleanmultiple locations across the city, and worked withvolunteers to raise awareness about Delhi's cleanliness.


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Business Code of Conduct

Employee Business Conduct Guidelines

Compliance with the National and InternationalExport Control Regulations

Business Code of Conduct

Huawei became a member of the United Nations GlobalCompact in 2004, and has since incorporated the basicprinciples it advocates into the company's culture andbusiness activities. In conducting business, Huawei firmlyabides by the principle of integrity and strictly obeys the lawsof the countries and regions in which it operates. Huaweialso requires all its employees to adhere to those laws andtheir own ethical standards in their daily actions.

Adherence to laws and ethical standards by each Huaweiemployee is one of the fundamentals that ensure ourcompany's long-term and sound development. In 2008,Huawei issued the Huawei Employee Business ConductGuidelines (BCGs), a mandatory regulation that requires theentire workforce to demonstrate integrity as they carry outtheir duties. The guidelines require that each employeeshould: 1. Be honest and reliable when dealing with allbusiness activities and relationships of the company; 2.Comply with laws and regulations that are applicable toHuawei's business activities; 3. Protect and appropriately

use Huawei's assets, and respect the intellectual propertyrights of others; 4. Protect Huawei's interests, andappropriately deal with conflicts between corporate andindividual interests; 5. Treat with respect and impartiality thedifferences in culture, religion, and belief of customers,suppliers, business partners, and employees. The guidelinesfurther elaborate the company's requirements of itsemployees in 18 areas, including internal business conduct,respecting the intellectual property rights of others, gifts andamenities, compliance with laws, conflicts of interests, andpersonal conduct.

Full compliance with all national and international exportcontrol laws and regulations is a fundamental policy ofHuawei. The company has established an internal controlprogram (ICP) on exports that is in line with industrystandards. We have also published the Statement ofCompliance with Export Control Regulations signed by ourCEO, and we have formed a Trade Compliance Committee

and a Trade Compliance Office under the supervision of ourChief Legal Officer. In addition, a globally consistent processon export audits has been defined and implemented, inwhich all projects involving export controls are required toundergo an export control audit that includes a thoroughinvestigation on the customer, the end-user of the product,and other issues such as risk factors. These multi-foldarrangements on policy, organization, process andexecution, ensure maximum legal and regulatorycompliance on all projects.


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The information contained in this document is forreference purpose only, and is subject to change orwithdrawal according to specific customerrequirements and conditions.

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