Corporate Responsibility
SUPPLIERS

Supplier monitoring: Performance and goals

By the end of 2008, we obtained or requested self-assessment questionnaires from all of our preferred suppliers, meeting our participation target.

In 2008, we transitioned from our own web-based version of the questionnaire to E-TASC, the tool developed by the Global e-Sustainability Initiative / Electronics Industry Citizenship Coalition industry collaboration, leading efforts to expand the use of this new common tool for managing supplier CR information.

We conducted 80 on-site supplier audits, exceeding our goal to conduct 75 in 2008:

• 65 planned as part of our normal visits to suppliers
• 13 to follow-up on previous on-site audits
• 2 conducted in response to reports from internal or external parties

In 2008, we audited five Motorola-owned and joint-venture facilities in China, India, Japan and Mexico.

Through our detailed audits, we have gained a good understanding of key issues in certain regions. Therefore, we will reduce the target number of supplier audits in 2009 from 75 to 40. By decreasing the number of audits, we can focus on capability building activities that focus on the key issues we identified.

Audit findings in summary

When we identify issues during an on-site audit, we require the supplier to develop a corrective action plan. We ask the supplier to provide a date for completion and work with the supplier until all issues are resolved. As of 31 December 2008, our suppliers had resolved more than 1435 issues, or 77 percent of issues identified in 2008.