huawei india csr report

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HUAWEI MAITREE SCHOLARSHIP HUAWEI MAITREE SCHOLARSHIP Enriching Through Life Communications Huawei India Corporate Social Responsibility Report 2011

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HUAWEI MAITREE SCHOLARSHIPHUAWEI MAITREE SCHOLARSHIP

Enriching Through

Life Communications

Huawei India Corporate Social Responsibility Report 2011

About This Report

This report is the first Corporate Social Responsibility (CSR) report released by Huawei 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 a global entity.

The aim of this report is to strengthen the mutual understanding and communication between stakeholders and Huawei India, and provide information about the company's socially responsible initiatives and activities with regard to environmental protection, bridging the digital divide, managing the supply chain, looking after our people, and supporting the local communities in which we operate. This report includes Huawei India's key initiatives since the inception of its operations in 1999. As the company's commitment to CSR evolves, we will continuously optimize and enhance the level of detail in each subsequent CSR report.

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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About Huawei

About Huawei

Huawei is one of the world's leading providers of ICT solutions, with a footprint spanning 140 countries and revenues of USD 28 billion in 2010. With a significant presence in Carrier Network, Enterprise Business, Device Business and other business, Huawei provides cutting-edge, next generation solutions in the domains of Information, Communications and Technology.

Huawei began its India operations in 1999. Today, with a pan-India presence, and partnerships with every telecom service provider and other key stakeholders, Huawei has contributed significantly to the growth of the Indian ICT industry. Huawei's largest overseas R&D centre is located in Bangalore, and the company employs over 6,000 engineers and managers in the country. Working closely with its customers, Huawei India is committed to enriching lives through communication.

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Message from the CEO

Max YangCEO, Huawei India

Message from the CEO

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

We believe that an enterprise can survive, sustain its growth, and contribute to society only if it consistently aligns its core values and operational responsibilities with its social responsibilities. At Huawei India, we strive to respond to need gaps, both in the regions where we operate and within the organization, thereby establishing ourselves as a responsive organization, besides being a responsible one. As such, we are firmly committed to creating a win-win industry ecosystem that promotes the sustainable development of the economy, society and environment.

We are a technology company. Hence, the use or promotion of technology is integral to most of our CSR programs. Huawei India's CSR strategy includes initiatives to protect the environment by developing a wide range of green solutions; to attempt to bridge the digital divide in India by giving less privileged children a chance to learn how to use computers and access the information highway; to provide best-in-class technical and leadership training to our suppliers; to foster a stimulating work and learning culture for our employees; and to support local communities through educational scholarships, disaster relief efforts, and numerous other activities.

The promotion of a safe and healthy environment is at the heart of everything we do. Indeed, we are convinced that sound environment, health and safety (EHS) systems are the way of the future. So, whether through solutions for reducing carbon emission, or stringent guidelines for suppliers to work in safe environments and comply with all CSR requirements, or an advanced Health and Safety management system for our employees, we work hard to ensure that EHS becomes intrinsic to our operations and ethos.

Working closely with our valued partners, we envisage a future of meaningful and enduring contributions to the world we live in. As we evolve as a company, we will continue to build upon our commitment to enrich lives and empower communities.

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Vision

Mission

Core Values

Customers First

Openness and Initiative

Huawei Vision, Mission and Core Values

Huawei Vision, Mission and Core Values

To focus on our customers' market challenges and needs by providing excellent communications network solutions and services in order to consistently create maximum value for customers.

To enrich life through communications.

Huawei exists to serve customers whose demand is the driving force behind our development. We continuously create long term value for customers by being responsive to their needs and requirements. We measure our work against how much value we bring to customers because we can only succeed through our customers' success.

Dedication

We win customers' respect and trust primarily through dedication. It includes every effort we make to create value for customers and to improve our capabilities. We value employees' contributions and reward them accordingly.

Continuous Improvement

Continuous improvement is required for us to become better partners for our customers, improve our company and grow as individuals. This process requires that we actively listen and learn in order to improve.

Driven by customer needs, we passionately pursue customer-centric innovations in an open manner. We believe that business success is the ultimate measure of the value of any technology, product, solution or process improvement.

Integrity

Teamwork

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

We can only succeed through teamwork. By working closely in both good times and bad, we lay the foundation for successful cross-cultural collaboration, streamlined inter-departmental cooperation and efficient processes.

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Customer First

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Openness & Initiatives

Ded

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Core Values

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CSR Strategy

CSR Strategy Environmental protection

Community support

Bridging the digital divide

Supply chain CSR

Caring for employees

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 our customers and society.

CSR Mission

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

Environmental protection: Huawei India actively communicates with customers on energy conservation and environmental protection. We closely collaborate with enterprises across the value chain to build environment-friendly networks, and promote the sustainable development of the industry in order to achieve our objective: 'Green Communications, Green Huawei, and Green World'. We have successfully implemented an ISO 14001:2004-compl iant Environmental Management System, taken proactive measures to make our offices and facilities more environment-friendly, undertaken initiatives to estimate our carbon emission levels, and are continually devising new strategies to reduce our carbon footprint.

Bridging the digital divide: Huawei India provides customized solutions that enable people in different regions to access information. We help underdeveloped regions nurture talent and form effective education systems using ICT, and improve regional technology to promote communications.

Supply chain CSR: Huawei India has established close ties with its suppliers to strengthen CSR management in order to gain its customers' confidence, enable the company to take appropriate action to ensure CSR compliance, and improve the CSR risk control of suppliers. We are in the process of implementing a social accountability management system in accordance with SA 8000:2008 standards, which will help us to address issues such as child labor, or forced labor, in our supply chain. We also regularly assess every link in our supply chain in order to ensure compliance with Environment, Health and Safety and Sustainability requirements.

Caring for employees: Huawei India attaches great importance to its employees' growth, health and safety. We value employees' contributions and make every effort to ensure that employees' personal growth is realized alongside the company's success. We have successfully implemented an OHSAS 18001:2007-compliant Health and Safety Management System, and are strongly committed to provide a safe and comfortable working environment for all our employees. We have also instituted an SA 8000 management system that ensures conformity with 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 the areas where we operate by insisting on local operations and contributing to local welfare, education, and disaster relief efforts.

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Environmental Protection

Green Solutions

Bridging the Digital Divide

E-Hope

Supply Chain CSR

Supplier Training Programs

CSR Highlights

Huawei India CSR Highlights

Huawei India's supplier training programs are among the best in the industry. They include comprehensive on-site training programs, classroom teaching sessions to educate suppliers about new products, customized courses for each of the company's products, special programs that train suppliers to expand their offerings and grow their competencies, leadership training programs to enhance the skills of suppliers' team leaders, and many others. Huawei India's emphasis on continuous learning and betterment and its genuine desire to help its suppliers grow, has helped the company build enduring relationships with its suppliers.

Launched in 2010, Huawei India's E-Hope initiative aims to equip less privileged schoolchildren with basic technical knowledge and access to the latest information, technology and computer systems. By providing computers to schools and promoting equal access to connectivity, the program will contribute significantly to narrowing the gap between the digital 'haves' and 'have-nots'. E-Hope is being rolled out in phases: it intends to reach out to about 100,000 children annually, and to create a knowledge network of 1,000 schools within the next two to three years.

Huawei India's green site solutions encompass a variety of initiatives that stem from (a) innovative measures to reduce power consumption and minimize carbon emissions for the company's operations and products; (b) relentless efforts to ensure that every link in the company's supply chain and every part of its manufacturing process use environment-friendly techniques.

Community Support

The Maitree Scholarship Program

Launched in early 2011, Huawei India's Maitree Scholarship Program offers 10 scholarships annually to Indian undergraduate and postgraduate students who have already secured admission to institutions of higher education in China. The scholarship scheme aims to build a platform for the exchange of ideas between the two nations and foster a closer understanding of each others' culture and society.

Caring for Employees

The Environment, Health and Safety Program

The health, safety and well-being of our people mean a lot to us. Huawei India has successfully implemented an OHSAS 18001:2007-compliant Health and Safety Management system. Fully committed to providing a safe working environment for our employees, we regularly conduct health checks, and safety and emergency preparedness training sessions at work.

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Energy Effciency and Carbon Emission

• Wireless• Central Office• Broadband and Transport

Environmental Protection

Environmental Protection

Our three product areas

Wireless

Broadband and Transport

Central Office

At Huawei India, we realize that the industrial consumption of energy is on an upward trend. In such a context, energy saving and emission reduction measures become imperative.

'Environmental protection' is one of Huawei India's fundamental strategies for corporate development. We communicate with customers about energy saving and environmental protection and closely collaborate with enterprises across the industry chain to build energy-efficient telecom networks. We actively promote the sustainable development of the industry, thereby realizing Huawei's 'Green Communications, Green Huawei, and Green World' vision.

As a result of Huawei India's green initiatives, the company reduced direct CO2 emission by more than 30% in 2008 and 2009. Huawei's record of reducing its carbon footprint has only improved since. Further, we have achieved a significant and highly encouraging 'resource reduction rate' (a key green performance indicator) due to our combined efficiencies with respect to energy, materials and space.

The 'green' debate within the ICT industry may be about 'more than energy consumption', but we believe that it is mostly about energy consumption. Approximately 85% of an operator's carbon footprint comes from network operations, the majority of which are related to the power consumption of products in service. Indeed, 75% of a product's carbon footprint is generated during its 'in service' period. Consequently, Huawei India's primary strategic focus with respect to green products is the reduction of raw power consumption. Our power efficiency initiatives are making a positive difference to each of our three product areas :

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Environmental Protection

A Multi-faceted Approach to Green Product Efforts

Lifecycle Product Management

Power Efficiency Highlights

WIRELESS• Next-generation BTS design : Huawei India's

high-density BTS designs reduce carbon emissions by 80% and power consumption by 30%.

• Intelligent equipment shutdown: The intelligent software shutdown feature (based on the time of day) can result in 16% power savings, and our radio resource management (RRM) software can also reduce power usage dramatically.

• Intelligent/ alternative energy : Our hybrid batteries or solar power reduce the dependence on diesel generators in remote areas, and we have also initiated geothermal and ambient cooling schemes that depend on geographic conditions.

CENTRAL OFFICE• Blade servers : Huawei India's clustering and

intelligent software can generate 20% power savings.

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

• Thermal management : Our fresh air cooling systems can save up to 65% on HVAC-related energy consumption.

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

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

• Intelligent Optical Networking : The migration from 'ring' to 'mesh' results in a 40% improvement in bandwidth utilization, as well as a 30% improvement in power consumption.

• Improved ASIC Design : Chips that can withstand higher temperatures lower cooling requirements. And photonic integration eliminates the need for discrete components, lowering both power consumption and cooling requirements. The combined effect of these factors could result in result in a 200% throughput per Watt improvement between 2008 and 2012.

While Huawei India's primary green product strategy is to reduce raw power consumption, the company firmly believes in a multi-faceted and holistic approach to green efforts. Hence, we undertake lifecycle product management, adhere to the norms of international standards bodies and participate in initiatives launched by them, acknowledge and abide by relevant government regulations (e.g. cap and trade policies), and ensure that our corporate governance reinforces the importance of these activities.

The detailed lifecycle assessment (LCA) that Huawei India conducts for all its major products conforms to ISO 14040 and 14044 standards. Applied across the product's lifecycle, i.e. phases such as a product's manufacture, use, and end of life, the LCA measures the total mass of CO2 emission per year and helps determine the need for innovation or immediate corrective action. Huawei has developed stringent green certification standards to evaluate product performance during each phase of the lifecycle, and, since September 2010, all new Huawei products are required to be certified as 'green' products.

Product design : Huawei India is committed to 'green action' during every possible stage of a product's lifecycle. By using eco-environment-friendly material, innovative energy-saving frames, middleware and ASIC chips, we ensure that our products are 'designed for the environment'.

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

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

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Other green initiatives

Participation in industry standards

Environmental Protection

Core network footprint optimization : New network elements are being implemented for the evolved Packet Core (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 total savings of at least 24 liters of diesel, which is equivalent to 63.12 kg of CO2 emissions, per day per site. Studying the feasibility of deploying renewable energy for our base stations in different parts of the country is an ongoing activity at Huawei India.

problems that may be caused by electromagnetic radiation, in particular. As such, we have established rigorous internal control procedures for product design, testing and installation to ensure that all wireless communications products meet the safety requirements of national and international electromagnetic radiation regulations. When constructing wireless base stations, Huawei India strictly adheres to all India-specific electromagnetic radiation standards and environment impact evaluation specifications. It is very important to us that our customers enjoy safe mobile communications services, and that we can cooperate with our customers to instill the idea of green and safe communications.

End-of-life initiatives : A product's end-of-life phase finds Huawei India managing the processes of their removal, collection and recycling. As a leading ICT solutions provider, we take our responsibility for electronic waste treatment very seriously. We have established a system for recycling and reuse, and by dismantling waste electronic equipment and extracting useful materials from these wastes, we are able to circulate a large percentage of raw materials for reuse, with the rest being incinerated or sent to landfills. Various other types of waste are also generated by Huawei (recyclable solid waste, dangerous waste and household waste). A variety of waste disposal units across our office buildings, production bases and other facilities encourage the optimal treatment of waste. We also collaborate with qualified waste management service providers for professional treatment, recycling and disposal of waste.

Eco-friendly base stations : Huawei India's eco-friendly base stations consume only 250-300W of power, saving over 8,000 kWh each year. Multiplied by 1,000 base stations, 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 such as solar or wind power. The optimal use of natural energy sources results in significantly reduced power consumption and environmental degradation.

The Single RAN platform : Radio Access Network (RAN) sharing between two or more operators for 3G or Broadband Wireless Access (BWA) can help reduce carbon emissions, as operators can share many of the access elements, leading to lower overall power consumption. Also, the Single RAN platform supports GSM/UMTS/LTE simultaneously, resulting in lower TCO and average revenue per user (ARPU).

Globally, Huawei is strongly committed to compliance with industry norms. It believes that the adherence to established industry standards will make the global ICT industry healthier and more environment-friendly in every way. Huawei is closely involved with international standards bodies such as the International Telecommunications Union (ITU), Alliance for Telecommunications Industry Solutions (ATIS), European Telecommunications Standards Institute (ETSI), China Communications Standards Association and environment protection programs, such as Energy Star. Huawei's association with these bodies and programs often takes the form of active participation in devising and recommending new standards and proposals for energy efficiency.

Additionally, Huawei is associated with leading international organizations, such as the United Nations Educational, Scientific and Cultural Organization (UNESCO) and World Economic Forum (WEF) that are exploring ways to lower carbon emissions and to leverage ICT in developing society in a low-carbon manner. As a member of many of these global organizations, Huawei has been working with partners to realize the goal of a green world and to deliver on the promise of a green ICT industry.

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The E-Hope Initiative

Young beneficiaries of E-Hope in Delhi

Bridging the Digital Divide

Bridging the Digital Divide

With a vision of 'enriching lives through communication', Huawei India applies its professional ICT experience to help bridge the digital divide in the country. The digital divide in India is multi-layered and complex – as such, we believe in providing solutions and technologies that go beyond increasing penetration and attempt to drive social and economic development.Huawei India is proud that its initiatives to promote computer literacy, technical knowhow and access to connectivity and information are making a positive difference to thousands of less privileged schoolchildren around the country. Besides, constant innovation and a strong focus on customer requirements are behind the company's advanced, efficient and low-ARPU solutions that have made the information society accessible to more Indians today. Huawei India is also committed to universal broadband convenience by deploying broadband networks and helping construct national broadband networks. The company wants to enable people from different regions to enjoy the conveniences that broadband services can bring, and is confident that increased access and knowledge will make a powerful socio-economic impact.

Launched in Orissa in Oct 2010, 'E-Hope for Computer Education' is Huawei's flagship program in the area of bridging the digital divide. It aims to equip less privileged schoolchildren with basic technical knowledge and access to the latest information, technology and computer systems. By providing computers and promoting equal access to connectivity, the program will contribute significantly 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: the objective is to build a knowledge network of 1,000 schools within the next two or three years. E-Hope has been endorsed and widely praised by students, teachers, educationists and government officials.

Huawei India makes every effort to ensure that the benefits of E-Hope reach those who need them most. The roll-out of the program first began in Orissa's poorest district at a time when the region had been hit by severe floods. Overcoming seemingly insurmountable physical obstacles, E-Hope got off to a very promising start in Orissa and is playing an important in educating students from the local tribal and fishing communities. Under the E-Hope program, 74 desktop computers with Internet connections have been given to 37 secondary government schools in the city of Farrukhabad, in Uttar Pradesh. The Farrukhabad program aims specifically to empower students from minority communities with skill sets that will make them more employable.

E-Hope has also been launched in other selected districts of Delhi, Uttar Pradesh Rajasthan and West Bengal (where special 'computer labs' allow schoolchildren to use computers and the Internet for a range of relatively more complex educational purposes). Huawei India also provided 202 desktops and laptops to the students of Satya Primary, Secondary and Higher Secondary schools run by the Bharti Foundation.

This initiative reinforces our belief in furthering education through technological progress. In the space of just a few months, E-Hope has been able to cover many regions in India.

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Bridging the Digital Divide

Huawei India is making every effort to ensure that the

benefits of E-Hope reach those who need them most. E-Hope aims to equip less privileged schoolchildren

with basic technical knowledge

Some of the eHope activities included contribution of over 700 computers and internet connectivity 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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Bridging the Digital Divide

Low-ARPU solutions

Eco-friendly base stations

The Single RAN platform“For us at Bharti Foundation, the ADHM is a platform where all our corporate partners join hands to support us in our endeavour to provide free quality education to underprivileged children through the Satya Bharti Schools in rural India. We are grateful to Huawei India for joining us in this initiative and endorsing our program. Their contribution will not only help us reach out to more children but also sensitize other people to the cause of education.” – Vijay Chadda, CEO, Bharti Foundation

The Indian telecom industry is taking the next leap forward with new developments, such as the launch of third generation (3G) services by private operators, 3G and broadband wireless access (BWA) auctions, the launch of mobile number portability (MNP), and the emergence of mobile commerce (m-commerce). Rural and semi-rural markets will drive growth, especially in the realm of wireless technologies.

A significant part of the rollout of new networks is expected to occur in hitherto untapped rural areas where current mobile teledensity is barely in double digits. At Huawei India, we realize that the remoteness, wide dispersal and extent of rural areas will create a need for many more ground-based towers, further increasing CapEx requirements. Sharing could help save funds on a large scale, and newer operators could build an asset-light model.

We understand that power is scarce in rural areas. Hence, network architectures that consume relatively less power than conventional systems must be used. Huawei India's eco-friendly base stations consume only 250-300W, saving over 8,000kWh of power each year. Multiplied by 1,000 base stations, the savings is 8 million kWh per year. These savings translate readily into lower average revenue per user (ARPU). Additionally, eco-friendly outdoor micro base stations make it possible to use renewable energy sources, such as solar or wind power. The optimal use of natural energy sources results in less power consumption and environmental degradation, higher savings and lower ARPU.

RAN (Radio Access Network) sharing between two or more operators for 3G or BWA can further help reduce power consumption, carbon emissions and ARPU. The frequencies of currently allocated 3G (FDD) and 3.9G (TDD) technologies are 2.1GHz and 2.3GHz. But the re-farming of spectrum for 3G and 3.9G will allow the use of the Single RAN platform, whereby a single platform will support GSM/UMTS/LTE simultaneously, enabling low TCO and making low ARPU feasible for rural areas.

Huawei has pioneered several R&D initiatives in order to develop low-TCO and low-ARPU solutions. These solutions include the following:

• Easy site solutions for rural areas• Multi-mode multi-band radio equipment• High gain antennas• Natural cooling solutions• Spectrum efficient techniques• Enhanced efficiency of solar PV module• New renewable energy resources beyond solar,

wind and fuel cells• DC diesel generator technology• Dynamic power management technology

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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 your business and appreciate the support we have always received from you … We look forward to many more years of working with you, and wish your company the success that it deserves.” – Amit Tiwari, Account Director, Metrotelworks

Huawei India has implemented ethical and green sourcing methods and improved CSR management in its supply chain to ensure that product procurement meets the company's CSR requirements. We are committed to helping our suppliers improve their CSR awareness, production strengths and management capability while encouraging the sustainable development of the industry chain. We are keen that our suppliers work, learn, and grow in the best possible environment – as such, we do everything we can to reduce risks to our suppliers, and develop extensive training programs, capability-building initiatives and other engagement platforms in order to build lasting relationships with them.

Huawei India selects its suppliers through a stringent process of evaluation in order to ensure that the company's products are of the highest quality. Before suppliers are invited to bid for a contract, we assess their qualifications against a definite set of parameters – operating standards, registered capital, financials, EHS and ISO certifications, existing and potential skills and capabilities, and several other factors. Suppliers must then pass a rigorous technical evaluation before proceeding to the next level of assessment: an on-site check conducted by a cross-functional Huawei India team whose findings are presented to the company's Procurement Management Committee. Throughout the selection procedure, there operates a system of continual monitoring and surveillance; non-compliance with requirements leads to warnings to suppliers and eventual disqualification in case the problems of non-compliance continue.

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

Huawei India is committed to the improvement of standards through continuous learning. It is very important to us to help our suppliers move from strength to strength, and to build enduring relationships with them. We conduct a wide range of training and certification programs for our suppliers, often in collaboration with our Technical Solutions Department. While we run customized supplier training programs for each of Huawei India's many products, we also conduct courses that encourage suppliers to move beyond their immediate offerings and expand their competencies. In several instances, our suppliers' capabilities have become sufficiently advanced for us to help them to begin operations overseas.

A great deal of importance is attached to on-site training. Our trainers demonstrate a particular activity, such as connectorization or weatherproofing, and then the supplier's team is invited to repeat the procedure. Our trainers are always at hand to offer help and advice where necessary. Besides, we conduct a range of 'classroom training' sessions to educate suppliers about specific products, particularly when new equipment is being introduced or is in its initial stages of implementation. Additionally, we take care to devise special, personalized programs for suppliers whose procedures or output have been 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 skills of our suppliers' team leaders with respect to hardware installation work and site quality management. We pride ourselves on having built long-standing partnerships with 67 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 his capabilities and helps visualize the supplier's potential for providing global services. The iFriends system is also used to manage the activities of suppliers' employees and evaluate their work performance in order to standardize operational procedures and improve overall quality on projects.

GTL, Huawei's oldest supplier in India, has supported us in a number of different domains. We have helped them grow their business volume by almost 200%, and their recent acquisition of a company called ADA Cell, saw them increase their workforce in the NTS domain by about 300%. Today, GTL is a global supplier for Huawei.

Netwing was initially one of Huawei's suppliers in the NTS space. But it was soon encouraged to ramp up operations in order to support us across all our domains of activity. As a result, Netwing's business has grown by 300% and today they are among Huawei's global suppliers.

Microqual's capabilities were earlier limited to the production and supply of very few products. But their expansion to address our needs across the gamut of our operations has helped them grow their business by 200% and also become one of our global suppliers.

IWS's outstanding performance for us, particularly in the NTS domain, has led us to recommend them for a global support role. They have consistently achieved a year-on-year business growth of about 200%.

Huawei India's Partnership Summit is an annual event that seeks to strengthen ties between the company and its suppliers. The Summit allows us to articulate our gratitude to our suppliers, understand their concerns and share our vision for the future with them. Around 100 key suppliers are invited to the Summit, at which Huawei's global head presents important company developments, projections and strategies. The event provides an excellent forum for interaction and dialogue between the company management and suppliers, culminating in an awards ceremony that recognizes the contribution of our suppliers and highlights our commitment to them.

We recognize that working with suppliers requires sensitivity, mutual understanding and trust. In order to create a meaningful environment for ongoing cooperation, we have also instituted a system of 'sponsor meetings' which allow Huawei India's senior management to engage directly with suppliers. These meetings help us understand suppliers' competition in the industry chain, focus on our mainstream suppliers, overcome any impediments to cooperation, and ultimately work towards smoother project delivery.

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Supply Chain CSR

Partnership Summit

Huawei India Partnership Summit 2010

“On behalf of Microqual, I would like to convey our appreciation to Huawei for its confidence in us and for giving us an opportunity to undertake various service-related activities for the company on a pan-India basis. Huawei's support has helped Microqual grow from a small-time, circle-centric company into a significant player with India-wide operations. Helping us build confidence in ourselves and expand from selling RF/IBS products to providing the entire gamut of services in a period of only three years testifies to Huawei's magnanimity. We are deeply grateful for Huawei's efforts to build a long-lasting relationship with a small company like Microqual.” – Inderbir S Chowdhary, Head MS, Microqual Techno Ltd.

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Caring for Employees

Learning the Ropes

Training and Development

Caring for Employees

A development program for new managers

At Huawei India, we believe that dedicated and passionate employees are our most valuable asset. Hence, we strive to nurture talent, to create a workplace that values individual differences and contributions, and to build a high-performance work culture. Our policies attach great importance to people development, career growth, and competitive remuneration and incentives. A robust orientation program, competency building initiatives, comprehensive training modules, cultural exchange programs and other HR interventions make learning and development an ongoing process at Huawei India. Further, our concern for employees' psychological health and well-being is reflected in a wide range of activities that enhance people's leisure life.

Upon joining Huawei India, new hires immediately become part of a phased induction program designed for employer and employee get to know each other better. The subsequent orientation program gives employees a comprehensive overview of Huawei India's business and culture, and is supplemented by a session on the company's core values and principles. Besides these, we offer a large number of predefined and customized training programs for our various business units.

Huawei India is the first entity among Huawei's global operations to provide an exclusive online learning platform for its employees. The iLearn platform offers over 14,070 online courses and allows employees to access learning materials, support resources and administrative tools quickly and easily. With its built-in content management, communication, and assessment tools, iLearn provides a powerful online environment for collaboration and learning among employees.

Huawei India has developed several pioneering training initiatives. Our India Training Center conducts two signature programs - New Managers Development Program (NMDP) and SPARKLE. NMDP focuses on building young high-potential managers' leadership skills. Emphasizing the company's overall values, culture and business strategy, the program grooms talented employees to take on higher management responsibilities. SPARKLE comprises a variety of online courses meant to help product and solution managers upgrade their skills, expand their knowledge base of specific areas, and familiarize themselves with the latest technologies.

We invest heavily in superior training standards and the continual development of our employees' skills. The high-end classroom and technical training at Huawei India is supported by a state-of-the-art training center in Gurgaon, where a dedicated team of 10 full-time and 20 part-time trainers conduct various programs for employees of different positions and levels. Huawei India continues to lead Huawei operations worldwide in terms of its 'learning completion percentage'.

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Caring for Employees

Ensuring Employees’ Health and Safety

Employee Recognition

Employee Engagement

The health, safety and well-being of our employees mean a lot to us. Huawei India has successfully implemented an OHSAS 18001:2007-compliant Health and Safety Management system. Fully committed to providing a safe working environment for our employees, we regularly conduct health checks, and safety and emergency preparedness training sessions at work. Additionally, we have instituted an SA 8000 management system that ensures conformity with the best labor standards, the payment of fair wages and non-discriminatory working hours. While the system is already in place, its certification will be completed by end 2011.

Recognition, for many, is a key to success and long-term employment. Huawei India's 'Rewards and Recognition' Awards seek to promote excellence by acknowledging exemplary individual and team achievements. Awards are presented in various categories – the Long Service, Honor, Gold and Sprint Awards – recognizing outstanding performance, the demonstration of the company's values and principles, and remarkable customer service.

Additionally, project bonuses and awards for individuals and teams are presented through the year for extraordinary performance and the achievement of targets.

Recognizing and rewarding achievement

‘Performance’ of a different kind

A firm believer of 'One Team, One Company', Huawei India is committed to building a spirit of solidarity and fostering strong interpersonal ties among its employees. We publish an annual employee engagement calendar, tying events in with regional or cultural festivals. While our Dragon Boat, Diwali and Christmas festivities have become something of an annual tradition, our tug-o'-war contests and cricket and badminton tournaments are perhaps the most popular and eagerly awaited events. Huawei's Annual Day celebration is a major yearly event that brings people at all levels together, with cultural performances by Chinese and Indian employees reflecting the organization's cultural diversity, a warm team spirit, and employees' mutual appreciation of each other. Our periodic team-building activities help identify various business challenges and discuss how they might be addressed. We also conduct workshops on special occasions such as Women's Day, and arrange for eminent guests to talk to employees about their work-life balance and other issues of common interest.

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Caring for Employees

Open Communication Channels

Cultural Sensitization

Employees Show They Care

Our employee cricket tournaments are eagerly

awaited by participants and spectators alike

Huawei India has developed a range of communication channels across regions to ensure that employees feel a strong connection with the company. Our popular monthly employee newsletter 'Huawei People' provides updates about the telecom sector, information about the company and employee activities, and includes a special focus on new hires. We also hold regular town hall meetings and leadership connect sessions, allowing the senior leadership to keep employees, informed, engaged and in sync with business goals and objectives. In establishing and operating our communication channels, we are especially particular about reaching employees who work remote or virtual sites.

The HR Business Partner division seeks periodic employee feedback and attends to the dissemination of organization-level updates. To ensure that employees' HR queries or concerns are addressed promptly, our HR Operations team has launched an initiative called the 'HR Helpdesk'. Employees can participate in discussions about their provident fund, medical insurance, banking solutions, other benefits and income tax returns on designated days of the month. The Helpdesk's awareness campaigns around health and wellness issues have generated much interest, discussion and participation.

The rapid globalization of Huawei's operations and the growing diversity of its workforce prompted the need for an effective cultural sensitization program. Consequently, Huawei launched its 'Migratory Bird Program' (MBP) in 2006. The MBP seeks to strengthen ties between Huawei's Headquarters and its Regional Offices, and to develop leadership by building a strong understanding of Huawei's roots, values, corporate culture and business processes among selected employees at its Regional Offices. This is done in two ways. Key employees from Huawei India and other regional offices are trained at headquarters for a period of one to three months, in order to enrich their understanding of organizational responsibilities, operations and specific businesses. Additionally, a system of job rotation requires potential leaders from regional offices to work for a one-year term in a specific position at headquarters, imbibing business knowledge and Huawei's corporate culture.

Huawei India firmly believes in making a difference to local communities through employee participation programs, sponsorships and engagement events. Our partnerships with various non-profit organizations across the country have allowed employees to make a significant contribution in terms of CSR. Besides, teams of employees have organized cleanliness drives and undertaken programs to educate schoolchildren about maintaining standards of hygiene and safety. A very large and steadily increasing number of our people participate in Huawei India's 'Save the Earth' marathons and 'Walk for a Cause' events, and our teams also conduct periodic blood donation drives as part of their commitment to support local communities.

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Community Support

Educational Initiatives

Our focus areas for community support

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Community Support

“Corporate social responsibility is an integral part of work culture at Huawei India and is tightly aligned with our strategic business priorities. As a world leader in telecommunications and networking equipment, we understand that 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 a good corporate citizen in the regions and communities where it operates. We support local communities in the following 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. Open to Indian undergraduate and postgraduate students who have already secured admission to institutions of higher education in China, the Maitree Scholarships aim to build a platform for the exchange of ideas between the two nations, and foster a closer understanding of each others' culture and society. The scholarship program will help promote scientific and academic aptitude and will expand the career opportunities available to Indian students. Every year 10 scholarships of up to USD 10,000 each will be awarded to selected students for pursuing academic courses in China. Each scholarship will cover the student's full tuition and living expenses for the duration of his or her study in China. We are certain that both Indian and Chinese students will benefit from each others' interests, knowledge and expertise.

The Huawei Excellence Awards Program : In order to support IT education in India, more specifically in the field of higher education and research, Huawei India has instituted a generous scheme of 'Huawei Excellence Awards' (annual scholarships) in partnership with a premier engineering university in Bangalore.

The association with Parikrama : Every year, our R&D staff contributes half a day's salary towards the funding of schools for destitute children run by Parikrama, a Bangalore-based NGO. Called 'Change Your World in 1/2 a Day', the program has been enthusiastically supported by our employees. Both the number of contributors and the contributions themselves have grown steadily over the years, and the funds raised in 2010 were used to launch a scholarship program that would help children at Parikrama enter colleges and professional or vocational courses.

Donation of computers : The donation of used computers to needy educational institutes and organizations is an ongoing activity at Huawei India, and we have already donated over 500 computers to such institutes.

HUAWEI MAITREE SCHOLARSHIPHUAWEI MAITREE SCHOLARSHIP

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Community Support

Helping Specially Abled Children

Relief Operations

Miscellaneous Initiatives

The association with Deepalaya : We have partnered with Deepalaya, a leading national NGO, and contributed a generous sum to aid the development and education of specially abled children in the National Capital Region.

Promoting sports : During the ATP tennis tournament in Bangalore in 2002, Huawei India contributed a significant amount for the promotion of sports among physically handicapped children.

Earthquake relief : When a major earthquake hit Gujarat in 2001, Huawei was among the first multinationals to mobilize funds and donate generously to relief operations.

Tsunami relief : When parts of India were ravaged by the tsunami in December 2004, Huawei India rapidly mobilized and donated a large sum for relief operations to the Prime Minister's Relief Fund. Further, as part of a broader Huawei initiative directed at other countries impacted by the tsunami, Huawei India contributed critical emergency wireless access communication equipment for relief efforts.

Participating in the Airtel Delhi Half Marathon : In both 2009 and 2010, Indian and Chinese employees from Huawei India participated in the Airtel Delhi Half Marathon (ADHM) conducted by the Bharti Foundation. In the last few years, we have contributed significant amounts to the Foundation. Our employees took part in the 'Corporate Challenge' category of the two annual half marathons, and the amount donated by the company each year sponsored the education of a particular class in one of the Satya Bharti schools.

The 'Clean Delhi' drive : In September 2010 our employees took to the streets, joining the 'Clean Delhi' drive, an initiative undertaken by the Delhi government and Art of Living to inspire over a million citizens to clean their city. More than 100 Huawei employees participated in the community-driven initiative, undertook to clean multiple locations across the city, and worked with volunteers to raise awareness about Delhi's cleanliness.

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Business Code of Conduct

Employee Business Conduct Guidelines

Compliance with the National and International Export Control Regulations

Business Code of Conduct

Huawei became a member of the United Nations Global Compact in 2004, and has since incorporated the basic principles it advocates into the company's culture and business activities. In conducting business, Huawei firmly abides by the principle of integrity and strictly obeys the laws of the countries and regions in which it operates. Huawei also requires all its employees to adhere to those laws and their own ethical standards in their daily actions.

Adherence to laws and ethical standards by each Huawei employee is one of the fundamentals that ensure our company's long-term and sound development. In 2008, Huawei issued the Huawei Employee Business Conduct Guidelines (BCGs), a mandatory regulation that requires the entire workforce to demonstrate integrity as they carry out their duties. The guidelines require that each employee should: 1. Be honest and reliable when dealing with all business activities and relationships of the company; 2. Comply with laws and regulations that are applicable to Huawei's business activities; 3. Protect and appropriately use Huawei's assets, and respect the intellectual property rights of others; 4. Protect Huawei's interests, and appropriately deal with conflicts between corporate and individual interests; 5. Treat with respect and impartiality the differences in culture, religion, and belief of customers, suppliers, business partners, and employees. The guidelines further elaborate the company's requirements of its employees in 18 areas, including internal business conduct, respecting the intellectual property rights of others, gifts and amenities, compliance with laws, conflicts of interests, and personal conduct.

Full compliance with all national and international export control laws and regulations is a fundamental policy of Huawei. The company has established an internal control program (ICP) on exports that is in line with industry standards. We have also published the Statement of Compliance with Export Control Regulations signed by our CEO, and we have formed a Trade Compliance Committee and a Trade Compliance Office under the supervision of our Chief Legal Officer. In addition, a globally consistent process on export audits has been defined and implemented, in which all projects involving export controls are required to undergo an export control audit that includes a thorough investigation on the customer, the end-user of the product, and other issues such as risk factors. These multi-fold arrangements on policy, organization, process and execution, ensure maximum legal and regulatory compliance on all projects.

Huawei Telecommunications (India) Co., Pvt. Ltd14th Floor, Tower C, Unitech Cyber ParkSector 39, Gurgaon, Haryana.

Copyright © Huawei Technologies Co., Ltd. 2011All Rights Reserved.

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