NXP® has earned the trust of our partners and customers by maintaining the highest standards of conduct and ethics. It's a proud tradition, founded in respect and dignity, that defines not only how we do business, but how we treat our people.
The importance we place on maintaining high ethical and corporate social responsibility is reflected in, among other things, our commitment to the labor and human rights of our employees. Our codes, standards, programs, and audit procedures are built around the recognition that everything we do in connection with our work must reflect the highest possible standards of ethical business conduct and respect for labor and human rights.
NXP is responsible for providing a work environment in which ethics, integrity, and trustworthiness are accepted and shared, not just among ourselves but with all our stakeholders, including the communities in which we operate and work. We support the aim of the International Labor Organization (ILO) to arrive at universally accepted labor standards and have therefore adopted internal policies, standards, procedures and guidelines with respect to the topics discussed below. NXP became an Electronic Industry Citizenship Coalition (EICC) member in April 2014. NXP fully supports the vision and goals of the EICC. The requirements from the EICC Code of Conduct are either part of NXP's own Code of Conduct or have been included in NXP policies, standards, and procedures. NXP also commits to apply similar requirements to its suppliers, through the NXP Supplier Code of Conduct, and to monitor application of the Supplier Code to the best of its ability.
Purchasing and Operations management are responsible for ensuring that our standards are cascaded and deployed to key suppliers, contractors, and distributors.
Human trafficking is a violation of human rights and is ethically intolerable. Modern slavery must be abolished and businesses must help end its existence. The business community has a role to play in efforts to end human trafficking, including all forms of forced labor and debt bondage, which are the 21st century's manifestation of slavery.
With this in mind, NXP joined the global battle against human trafficking by co-founding and actively supporting the Global Business Coalition Against Human Trafficking (gBCAT). Since 2012, gBCAT has mobilized the expertise, resources, and voice of its coalition members to help fight against human trafficking, which includes all forms of forced labor and sex trafficking, most notably child prostitution.
gBCAT is a thought leaders' forum to develop and share best practices for addressing the vulnerability of businesses to human trafficking in their operations. The coalition is an opportunity for the members to work together across different sectors and regions, each playing their own part, suited to their sector and comparative competencies. Member companies pursue collaborative initiatives such as training employees, raising awareness, sharing best-practices, and informing public policy.
As a responsible employer, NXP demands the highest standards from its facilities, locations, and organizations. We have specific standards in place regarding labor and human rights. These standards are to be to be strictly followed by all NXP suppliers, contractors, and external manufacturers, and are thoroughly tested during our yearly internal and external audits.
NXP's auditable standards on labor and human rights consist of the following categories:
We shall under no circumstance make use of any form of slave, forced, bonded, indentured, or prison labor. All work must be voluntary and workers shall be free to leave work or terminate their employment with reasonable notice. We will only employ, directly or through others, such as labor agents, people who are working of their own free will. Lodging of deposits is never required and no one shall be deprived of his or her identity papers upon starting work for NXP. Depending on local law requirements, everybody is free to terminate their employment with NXP upon reasonable notice. NXP has taken the extra step of setting a new standard regarding document retention, starting in Malaysia, and will include it in general NXP policy. Detailed information can be found in the side story.
NXP pays for all fees in the recruitment of workers. Such fees and expenses include application, recruitment, hiring, placement, and processing fees, of any kind, and at any stage, including agent, sub-agent, or employer operating, administrative, or overhead costs associated with the recruitment, selection, hiring, and placement of direct and contract workers. NXP has started a comprehensive audit program of all labor agents to ensure compliance and to mitigate the risk of bonded labor.
Child labor refers to a type and intensity of work that hampers a child's access to education, may damage the child's physical and or psychological health, and may impair their development within their families. It deprives children of their childhood and self-respect. NXP will under no circumstance use child labor.
We will always adhere to the legal minimum age requirements in all countries in which we operate and we will never employ children under the age of 16, under the age for completing compulsory education, or under the minimum age for employment in the country, whichever is greater. In order to make sure all our employees are age-qualified, NXP has a strong age-verification process for recruiting workers during the recruitment and selection process of the company. If workers between the ages of 16 and 18 are employed, we will ensure that this work does not affect or preclude their educational opportunities or obligations, nor jeopardize their health and safety, including restrictions on overtime and night work.
Our work weeks shall not exceed the maximum set by local law and shall, in any event, not be more than 60 hours, including overtime, except during emergencies or exceptional circumstances to meet short-term business demand. Workers will be entitled to have at least one day off per seven-day period. Overtime work is voluntary, unless agreed upon by a collective labor agreement or union contract, or during emergencies or exceptional circumstances, to meet short-term business demand. Adequate and effective policy and systems/procedures are established to determine, record, manage, and control working hours, including overtime.
Our remuneration shall be consistent with the provisions of all applicable wage laws, including those relating to minimum wage, overtime hours, and legally mandated benefits. In compliance with local laws, workers shall be compensated for overtime at pay rates greater than regular hourly rates. Deductions from wages as a disciplinary measure are not be permitted. Vacation time, leave periods, and holidays are consistent with applicable laws and regulations. The workers are also paid in a timely manner.
The employees shall always be aware of the composition of our pay and benefits, in a detailed and clear manner, prior to employment. Employees shall be able to communicate openly with management regarding working conditions without having to fear reprisal, intimidation, or harassment.
There is to be no harsh or inhumane treatment of workers, including any sexual harassment, sexual abuse, corporal punishment, mental or physical coercion, or verbal abuse; nor is there to be the threat of any such treatment. Disciplinary policies and procedures in support of these requirements shall be clearly defined and communicated to workers.
NXP is committed to diversity in its workforce and encourages equality of opportunity and fairness, therefore we do not tolerate any kind of harassment or discrimination based on, among other things, race, color, age, gender, sexual orientation, ethnicity, disability, pregnancy, religion, political affiliation, union membership, or marital status in hiring or employment practices such as promotions, rewards, or access to training. NXP is committed to providing an attractive working environment for employees and we will recruit, hire, and promote employees solely on the basis of suitability for the job. We will recruit, select, and promote on the basis of objective and non-discriminatory criteria. Results from medical tests may not be used in a discriminatory way.
NXP recognizes the freedom of employees to establish or join an organization of their choice and will respect this right. We will not make employment subject to the condition that a person must not join a union or must terminate membership in a trade union.
NXP respects the right to be represented by trade unions and other employee organizations. NXP will, whenever applicable, engage in the negotiation process either on its own behalf or through employers' associations. Local rights and co-determination will be fully respected with a view to reaching agreement on the terms and conditions presented by employees.
Workers shall be able to openly communicate and share grievances with management regarding working conditions and management practices without fear of reprisal, intimidation, or harassment. More information about grievance and whistleblower policies can be found in the Code of conduct chapter.
We started our specialized audit program in 2012, and then gave it a full rollout in 2013. The initial audits at NXP sites revealed no significant issues or violations relating to workers' rights, health and safety, or environmental compliance. The audits identified areas where further improvements can be made, particularly in having formalized and strengthening site-specific social responsibility processes and management systems. Subsequent annual re-audits of NXP sites have found major improvements and significant reduction/elimination in issues found in the baseline audits conducted in 2013.