Quality In, Quality Out

We know that the quality of our products depends on the health of the supply chain. Our supplier relationships are governed by a strong set of business conduct and social responsibility codes; due diligence with respect to conflict minerals; and thoughtful materials disclosure requirements.

 

Supplier Code of Business Conduct

Our Supplier Code of Business Conduct, which includes our Supplier Corporate Social Responsibility Standards, is referenced in our supplier agreements as a requirement of all suppliers.

To view or print the Motorola Supplier Code of Conduct in a PDF file format, please select a language from the list below:

 

Supplier Corporate Social Responsibility

We take a multi-pronged approach to helping our suppliers improve their Corporate Social Responsibility performance. This includes assessing and monitoring suppliers to our CSR Standards as well as providing programs to help suppliers develop the capability to improve their own performance over the long term. CSR is a factor in every sourcing decision made for every new product we design.

Monitoring and Assessment

Audit Program

Our supplier CSR audits assess compliance with the CSR Standards within in our Supplier Code of Business Conduct and local legal requirements. In addition to highlighting violations of our code, audits also raise supplier awareness of the issues and enable us to target improvements. We use pre-qualified auditors from independent 3rd party auditing firms to carry out our onsite auditing programs. The audit firms use standard audit protocols and report results using a standardized Motorola-specific rating matrix. We have an ongoing goal to audit every direct materials and final assembly supplier every 3 years (goal expanded in 2014 to include every supplier location relevant to Motorola parts and products). We also audit select indirect suppliers (e.g., outsourced service providers) using a risk-based approach.

Audit Finding Remediation

When we identify issues during an on-site audit, our process requires the supplier to develop an effective corrective action plan that addresses the root cause of the issue. The plan must specify a timely schedule for implementation - our guidelines on timing depend on the severity of the issue. We then schedule a closure verification audit within 6 to 12 months of the initial audit to verify closure of the findings identified.

Working with suppliers to improve labor and environmental conditions is crucial to our program. In most cases, we do not simply terminate contracts when issues are identified, because we believe that this can result in deteriorating conditions for workers. However, if a supplier does not meet corrective action deadlines or develop appropriate corrective action plans, we apply an escalating series of enforcement penalties if a supplier does not respond by taking necessary corrective actions.

2014 Auditing

119 on-site audits of our suppliers were conducted in 2014. We are actively working with the supplier to verify closure of the findings identified. The most common issue we find in our audits relates to working hours. To help address this, we initiated a project in 2014 in partnership with select suppliers by bringing them together with 3rd party advisors who perform a deep dive root cause analysis on suppliers’ working hours issues. Based on the initial analysis, the advisors identify and help to implement opportunities that will increase efficiency, reduce working hours, and maintain/increase worker satisfaction, which leads to reduced turnover

2015 Audit Goal

Complete audits to support the ongoing goal of auditing every direct materials and final assembly supplier every 3 years (goal expanded in 2014 to include every supplier location relevant to Motorola parts and products). Select indirect suppliers will also be audited using a risk-based approach.

Training

We deliver CSR training both to our internal employees to ensure awareness about CSR, as well as to our suppliers to help build their awareness about CSR issues.

We have developed an Android application for our internal supplier-facing employees called Supplier Eyes and Ears for Corporate Social Responsibility (SEE CSR). This app acts as a resource for supplier-facing MM employees when visiting a supplier site and provides resources on potential areas of concern for each CSR category - Labor, Ethics, Health & Safety, Environment. It includes CSR Team contact info with link to call or email immediately and a reporting mechanism when areas of concern are identified when engaging with a supplier. In 2014, we developed an open source Android and iOS app as a training resource to our supplier.

Multi-Stakeholder Engagement

Electronic Industry Citizenship Coalition (EICC)

We are promoting higher standards across the industry. Our membership in the Electronic Industry Citizenship Coalition (EICC) has enabled us to align our approach with industry best practice and contribute to change at an industry level.

Global Business Initiative on Human Rights (GBI)

Motorola Mobility was recently selected as a member of the Global Business Initiative on Human Rights (GBI), a cross sector initiative with a mission to advance human rights in a business context around the world.

Conflict Minerals

We have implemented a due diligence program to identify and trace tantalum, tin, tungsten and gold, (3TG) minerals in our supply chain, based on the procedures and tools provided by the EICC and the Organization for Economic Co-operation and Development (OECD) to address concerns about conflicts in regions which source these minerals.

Background

Our products, like virtually all consumer electronics, contain various metals, including tantalum, tin, tungsten and gold, (3TG) which originate in mines around the world. The 3TG metals have become known as ‘conflict minerals’ because they are in part sourced from Eastern provinces of the Democratic Republic of Congo (DRC) where a decade-long civil war is continuing. Illegal armed groups control mines and transit routes to fund their violent operations.

In the U.S. the Dodd-Frank Act requires companies to file annual reports with the U.S. Securities and Exchange Commission (SEC) beginning 31st May 2014, indicating if they are using 3TG originating from the DRC or adjoining countries. A likely but unintended consequence of this regulation is a widespread withdrawal from trade with the DRC by U.S. companies.

Motorola Mobility believes it is essential to establish validated, conflict-free sources of 3TG within the DRC and elsewhere so that these minerals can be procured in a way that contributes to economic growth and development in the region rather than to conflict. We are willing to partner with governmental organizations, industry groups and NGOs to achieve a solution.

A more complete briefing on conflict minerals is available from the NGO The Enough Project. A useful training presentation is available from the Electronic Industry Citizenship Coalition (EICC).

Our Program

Motorola Mobility is implementing a due diligence program to identify and trace the 3TG minerals in our supply chain, based on the procedures and tools provided by the EICC and the Organization for Economic Co-operation and Development (OECD). We are members of the EICC Extractives Work Group and Due Diligence Work Group. The current status of our due diligence program is as follows:

Tracing 3TG in our supply chain using the EICC Mineral Reporting Template

We have adopted the EICC standardized reporting template and are requiring our suppliers to use this template as well. Currently, we have sent the template for completion to all of our production suppliers. We will integrate that data into an EICC tool documenting the overall progress of our supplier compliance program. We will continue to add supplier information to this database as they respond. To enhance accuracy and efficiency of the tracing process we have engaged Source Intelligence (formerly Source 44), a supply chain data management company, to facilitate supply chain tracking. Source Intelligence enables independent third-party mapping of selected suppliers and confirms which are using certified smelters.

Under the Motorola Mobility Supplier Code of Conduct and EICC code of conduct for responsible sourcing of minerals, suppliers shall exercise due diligence on the source and chain of custody of minerals used the manufacturing of their products, and make their due diligence measures available to customers upon request. See more details.

Identifying the smelters in our supply chain

Our suppliers should source only from certified conflict free smelters. To accomplish that objective, we are identifying the smelters in our supply chain based on the information gathered through the EICC reporting template. The Conflict Free Smelter Initiative maintains a list of smelters that have been certified as conflict free. We hope to see the process of certification proceed more quickly.

Motorola requires its suppliers to adhere to the OECD Due Diligence Guidance and we follow the guidance in our own due diligence program.

Dodd Frank compliance

Motorola Mobility is fully compliant with the SEC reporting requirements and as part of Google we published our first conflict minerals report on the SEC's EDGAR website in June 2014.

Solutions for Hope

In 2012, Motorola Mobility became a participant in the Solutions for Hope (SfH) Project, led by major capacitor manufacturer AVX Corporation. The SfH pilot project was launched in July of 2011 to test the feasibility of a closed-pipe supply line approach in the responsible sourcing of tantalum. The pilot project achieved the first validated source of conflict-free tantalum ore from the DRC and has been instrumental in proving that a conflict-free mineral supply chain is feasible in the country. SfH now works to promote the economic stability of the DRC through the continued expansion of conflict-free mineral supply chains throughout the region. Motorola Mobility continues to support the project and intends to purchase conflict-free tantalum capacitors for use in our products as they become available.

 

iTSCi

Motorola became an associate member of iTSCi in 2014. iTSCi is a joint industry program of traceability and due diligence designed to address conflict minerals sourcing concerns key to achieving a conflict free minerals supply from the DRC.

Goals for 2014

Summarize 3TG part and product compliance data for 2013. Comply with Dodd-Frank reporting requirements.

Obtain supplier level EICC declarations for suppliers whose annual spend is >10K and their products contain 3TG. Refresh any supplier declarations >1yr old.

Implement WPA M20 IT solution for conflict minerals in 1Q14. Transition to the use of the IPC 1755 Conflict Minerals Data Exchange Standard.

Actions in 2014

Summarized 3TG part and product compliance for 2013 and complied with Dodd-Frank reporting requirements.

Obtained supplier level EICC declarations for suppliers whose annual spend is >10K and their products contain 3TG. Refreshed supplier declarations >1yr old.

Implemented a WPA M20 IT solution for conflict minerals. Actively participated in creating the IPC 1755 Conflict Minerals Data Exchange Standard.

Goals for 2015

Summarize 3TG part and product compliance data for 2014. Comply with Dodd-Frank reporting requirements.

Obtain supplier level EICC declarations for suppliers whose annual spend is >10K and their products contain 3TG. Refresh any supplier declarations >1yr old.

Update WPA W20 IT conflict minerals solution in 1Q15 and complete business implementation of this automated environmental data management system (WPA) by 4Q15.

Motorola Mobility Goals

Tin Mining in Bangka, Indonesia

Motorola Mobility has a comprehensive and aggressive conflict minerals traceability program. Legitimate concerns have recently been raised regarding possible environmental and economic damage from tin mining on Bangka Island, Indonesia. Motorola Mobility understands and shares the goal of addressing such harm and is participating in efforts to address it.

Bangka is a major supplier of tin, which is widely used in the global consumer electronics industry. Motorola Mobility recognizes that suppliers in our global supply chain may potentially use Bangka tin. As a result we are working diligently with our suppliers to confirm the country of origin of tin used to produce our components. We are also working with the EICC, which has established a working group to address tin mining, and with other entities such as local governments, smelters and NGOs with the goal of reaching meaningful assurances that tin mining on Bangka Island is done in an environmentally and socially responsible manner. Further information on our supply chain policies can be found in our supplier code of conduct.

Ethics Hotline

Motorola Mobility encourages individuals or suppliers who wish to report possible violations of our conflict minerals policy to contact us via one of the following channels. Submissions are strictly confidential and multiple languages are supported. We investigate all allegations of ethical misconduct and take corrective action when claims are substantiated.

Web

Log concerns at motorolamobility.ethicspoint.com.

Phone

In the U.S., Canada or Puerto Rico: Call toll-free +1 866-839-5946

Outside the U.S. and Canada: Visit motorolamobility.ethicspoint.com for dialing instructions from your country.

Mail

Motorola Mobility
Office of Ethics and Compliance
222 W. Merchandise Mart Plaza, Suite 1800
Chicago, IL 60654
USA

 

Materials Disclosure and Legislation

We require our suppliers to disclose banned, controlled and reportable substances as well as recycled material content for each part supplied to Motorola Mobility. We do this to fully understand and track the material content of our products, so we can control and improve the environmental profile of our products.

Our reporting requirements help us to comply with current laws, assess the impacts of future requirements and identify better alternatives to hazardous substances in our products.

W18 Reporting

Compliance with our Controlled and Reportable Material Disclosure Specification (W18) is required to qualify parts supplied to Motorola Mobility.

Get Help With W18 Reporting

To help suppliers comply with the W18 specification, we provide additional resources and training.