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HP's Political Strategy to Address Non Market Issue - Sumaya Shakir

HP's Political Strategy to Address Non Market Issue - Sumaya Shakir

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Published by Sumaya Shakir
HP's Political Strategy to address non market issues
HP's Political Strategy to address non market issues

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Categories:Types, Business/Law
Published by: Sumaya Shakir on Oct 16, 2012
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01/23/2013

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Sumaya Shakir Sumaya.shakir@gmail.co 10/3/2012 
 
Political Strategies to address nonmarket Issues 
 –
Hewlett Packard 
 
 
Introduction 
 
HP has been actively involved in political policies and civic engagements, numerous political processesand global public policy debate on a number of issues. HP believes getting involved in the politicalprocess and policy is important and appropriate for conducting its business. HP has a dedicated teamcalled
“HP
Government Affairs
” that is committed to
participate actively in any government public policyaccording to laws and its business conduct standards. HP reaches out and builds relationship with keyofficials and political leaders to discuss emerging issues and understand
the Government‟s stand and
 
offer HP‟s expert
ise. HP is also member of almost every national and regional trade/industry associationsin countries where it has a significant product and market presence.HP also forms partnerships with various standard bodies and other industries to develop industrystandards for various issues like energy utilization, carbon footprint, supply chain responsibility, etc.HP is committed to make a difference
in people‟s
lives, to foster innovation and to strengthen the globaleconomy for which it focuses on being part of political policies. More information about HP
‟s government
 
This paper will describe the political strategies HP is using to deal with the three main market issuesnamely Labor Issues in China, Privacy Issues and Free Trade.
 
Labor Issues in China 
 
Summary Background
HP
s main line of business is selling Information Technology hardware productsto consumers as well as businesses. Foxconn, one of HP's key suppliers came under fire for violatinghuman ethics and labor laws.
Issue
Fair Working conditions for Laborers in China
Interest Groups
Students and Scholars Against Corporate Misbehavior (SACOM)
China Labor Watch (CLW)
Fair Labor Association (FLA)
China Labour Bulletin (CLB)
Institutions
Chinese Government
International Labor Organization
 Information
Poor unethical Labor treatment and violation of labor law in Chinesefactories that make products for US companies
Students being exploited at Foxconn factories to make iphones
Issue Life Cycle
Issue is in late interest group formation and early legislative phase
Media Attention
This is going to be fully blown and will be covered by various media
 
 The various labor rights group both within China and internationally have criticized and called for actionagainst Foxconn and the major companies that source from it.
 
HP’s Business Strategic Political Actions
 
HP has a zero tolerance towards unethical humane treatment.HP being a large organization and operating in international scope follows a
proactive public policy shaping
approach. Even prior toFoxconn issue HP had described its code of business conduct while dealing with suppliers and vendors.HP has been very involved in shaping the policy about labor practices across its supply chain.HP always followed an integrated market strategy addressing its economic and political environment.
Forming Coalitions
 
Electronic Industry Citizenship Coalition (EICC)
 
HP formed coalition with other companies like Apple, Microsoft, Nokia, Ericson and other big techcompanies called the
Electronic Industry Citizenship Coalition (EICC).
The primary purpose of thisgroup is to set labour guidelines amongst other things.The EICC is established as a longstanding and formalized coalition and using this coalition HP canincrease the effectiveness of the individual stakeholders on an issue by combining their numbersand resources.
 
HP is working with EICC to establish standards to ensure that working conditions in the electronicsindustry supply chain are safe, that workers are treated with respect and dignity, and that businessoperations are environmentally responsible. The HP Suppliers Code of Conduct is based on the EICC.HP is collaborating with the EICC to continue to work with other industries and nongovernmentalorganizations to identify best practices and to collect key performance indicator (KPI) data in order toboth in China and rest of the world.
What’s next?
 
Issue will receive more widespread media attention and willeventually call for better working conditions for labor in China and will requirecompanies to mandate the code of labor ethics to its vendors/suppliers. TheChinese Government and various labor groups will pass a few labor legislations and put audits in place.
 
improve and simplify data collection methods of managing working hours within their supply chains. HPis
working with coalition on how to best implement reduced working hours initiative.
 
Details of each of the standards that HP has been working with EICC can be found at http://www.hp.com/hpinfo/globalcitizenship/environment/pdf/supcode.pd

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