Sustainability Report - Dell

Stakeholder CommunicationSustainability Sessions at Product LaunchDuring the Dell product OptiPlex 520/620 launchin Monaco, Dell facilitated seven working sessionsregarding environmental design, ethical supply chainprinciples and product recycling.Dialogue with Supply-Chain Stakeholders ThroughVideo ConferenceIn July of 2005, a video conference was arrangedbetween Washington, D.C. and London to facilitatea stakeholder feedback session with sponsoringcompanies of the EICC and active stakeholdersfocused on supply-chain labor practices.Quarterly Socially Responsible Investor StakeholderMeetingsSince 2003, Dell has convened quarterly feedbacksessions with a subset of our Socially ResponsibleInvestor stakeholders. These meetings provide transparentinsights into Dell's progress surrounding sustainabletopics. Additionally, these meetings provide aforum for constructive, two-way dialogue regardingDell's sustainability focus and priorities.to structured engagement such as quarterly meetings withinterested Socially Responsible Investment (SRI) groups, Dellconducted several focused interactions with stakeholders infiscal year 2006.Table 5 on page 25 provides a sample of some of the manystakeholders with whom Dell has worked during fiscal year2006, regarding our company's sustainable business activitiesand priorities. Our decisions have been significantly influencedand enriched by engaging with these groups. Dell thanks theseorganizations for their collaborative engagement and their contributionsto our efforts. Interested stakeholders may contactDell at Dell_Sustainability@dell.com.Supply-Chain ManagementDell believes that the same high standards we use forworkplace and labor conditions must be extended to ourglobal supply chain.Supplier CommitmentDell recognizes the responsibility we have to work with oursuppliers to promote sustainable social and environmentalpractices. We also understand that we can deliver more efficientand consistent results through cooperation and coordinationamong our EICC partners. Thus, through 2005, while themain focus was to work with the EICC member companies todevelop a common implementation approach, we continuedto monitor supplier compliance to Dell's Global Citizenshiprequirements through global supplier communications, selfassessments, and industry recognized standards.AwarenessOur Supplier Principles were first introduced in March 2004,during Dell's Global Supplier Conference. Executives representingmore than 150 production and general procurement suppliersaround the globe participate within this annual conferencein which Global Citizenship expectations are reaffirmed. Duringour 2005 Supplier Conference, hosted by Martin J. Garvin andGlenn E. Neland, our chief procurement officers, Dell presentedour first Global Citizenship award to NEC for their commitmentand execution of our Global Citizenship expectations.During 2004 and 2005, Dell worked together with third-partyauditor Impactt Limited to perform on-site audits in China toassess current conditions and create corrective action plans.The assessments were completed by careful selection ofsuppliers to ensure Dell obtained an understanding of thechallenges and opportunities our supply chain faces whenimplementing industry-recognized, socially-responsiblepractices.Dell Presents First Global Citizenship Award to NEC"NEC’s approach to corporate responsibility (CSR) isto contribute to a prosperous society by deliveringinnovation through sound business activities. Thisprocess is also essential to fulfilling our responsibilitiesto numerous stakeholders, including customers, shareholders,the community at large and employees. Fiscal2005 has seen NEC undertake more systematic andstrategic initiatives under a newly assembled CSR promotionframework in order to reinforce CSR activities."In fiscal 2005, CSR activities were reinforced based onthree fundamental policies: (1) Strengthen CSR-relatedrisk management, (2) promote activities aimed at creatingvalue for society, and (3) deepen CSR-related communication.Recognizing that one of the most importantpriorities for NEC is to avoid having a detrimentalimpact on society and the global environment, NEC hasidentified six priority risks (quality and safety, the environment,information security, fair trade, occupationalhealth & safety and human rights) in the area of CSRrelatedrisk management, and has been making effortsto reduce these risks."Akinobu KanasugiNEC PresidentNEC Corporation Annual CSR Report 2005 (page 4)26 D E L L S U S T A I N A B I L I T Y R E P O R T • F I S C A L Y E A R 2 0 0 6