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Supply-Chain Responsibility<br />

Commitment and Scope<br />

<strong>Intel</strong>’s commitment to corporate responsibility does not stop with our employees.<br />

Our suppliers must also operate in a manner consistent with our Corporate<br />

Business Principles. They are expected to operate healthy, safe and lawful<br />

work environments that are environmentally progressive and free from discrimination.<br />

We are committed to the protection of human rights and the environment<br />

throughout our supply chain. <strong>Intel</strong> expects suppliers to understand and fully<br />

comply with all applicable international, national, state and local laws and regulations,<br />

including environmental, health and safety (EHS) and related laws and<br />

regulations. In addition, suppliers must agree to abide by all <strong>Intel</strong> rules, including<br />

all applicable EHS policies, procedures and guidelines.<br />

Supply-Chain Editorial<br />

“We believe the adoption of high<br />

standards will improve working<br />

conditions for everyone in the<br />

technology industry’s supply chain.<br />

Transparency will continue to be a<br />

driving theme for us as we work<br />

together on implementation tools<br />

based on the EICC standard, and<br />

dialogue with stakeholders.”<br />

Brad Bennett<br />

<strong>Intel</strong> representative and EICC<br />

Implementation Group chairman<br />

<strong>Intel</strong> expects suppliers to maintain progressive employment practices and to<br />

comply with all applicable laws including, at a minimum, those covering nondiscrimination<br />

in the terms and conditions of employment, child labor, minimum<br />

wages, employee benefits and work hours. In the event that local standards do<br />

not exist, we expect suppliers to establish progressive employment practices<br />

and apply U.S. standards where appropriate. Formal expectations for suppliers<br />

have been in place since 1998.<br />

Electronics Industry Code of Conduct<br />

As global standards for supply-chain performance continue to strengthen,<br />

they affect <strong>Intel</strong> and our suppliers. A major effort on continuous improvement<br />

in our industry came about with the adoption of the Electronics<br />

Industry Code of Conduct (EICC). The code was adopted by <strong>Intel</strong> in 2004<br />

and is available on our comprehensive supplier web site under <strong>Intel</strong><br />

Supplier Ethics Expectations.<br />

This code was created by a supply-chain working group established in 2004 by HP, Dell, IBM and others<br />

to develop integrated, harmonized leadership expectations for supplier conduct. The EICC outlines a<br />

consistent approach for supplier performance in many areas, including labor and employment practices,<br />

health and safety, ethics, and protection of the environment.<br />

In 2005, the working group focused on developing common mechanisms for enabling compliance with<br />

the EICC and building capacity in the supply chain. In 2006, we will continue working with other electronics<br />

companies to develop surveys, assessments and reporting tools to enhance supplier capabilities and<br />

maintain open channels with other stakeholders. For the latest information, visit the EICC web site.<br />

<strong>Intel</strong> has established a rigorous screening process for its suppliers. We strive to create long-term relationships<br />

with capable suppliers and work closely with them over time to achieve high levels of quality and<br />

<strong>Intel</strong> Corporate Responsibility Report 2005 • Our Business<br />

www.intel.com/go/responsibility<br />

64

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