In November 2016, the Thomson Reuters Foundation, the philanthropic arm of the world’s biggest news and information provider, awarded NXP with the Stop Slavery Award in the “Policy and Implementation” category. The award is the first global recognition for businesses that have excelled in efforts to eradicate forced labor from their supply chains.
NXP was chosen because of its deep commitment to the fight to end modern slavery. Since 2012, the company has made this a key corporate initiative through its own operations and across the supply chain. The company was first in its industry to adopt an “Employer Pays” policy and the first to require its foreign migrant workers not to release their government-issued documents to labor agents.
NXP pays for all related recruitment fees, including transportation, medical and other administrative costs, and provides lockers to keep government-issued and personal documents safe. The company also carefully selects its recruitment agencies, auditing them to verify they are not involved in practicing any forms of forced and bonded labor.
In addition, NXP has a dedicated team in place to ensure compliance to these policies, going well beyond the first-tier supply chain. This team diligently conducts annual risk assessments and audits of its factories and suppliers, managing corrective and preventative actions while working closely with external stakeholders.
“Modern slavery and debt bondage are serious violations of rights and NXP is determined to do what we can to end this,” said Richard Clemmer, CEO of NXP Semiconductors.
“As a technology provider working with hundreds of suppliers globally, we dug deeply into our supply chain to ensure our workers are not held hostage by labor suppliers, making sure that kickbacks and payment demands from employment agencies are eradicated. Working with our suppliers to do the right thing – train, audit, institute corrective action plans, re-audit and motivate – we’ve focused on cooperative improvement as a corporate strategy and I am very proud of what we have accomplished to date. We thank the Thomson Reuters Foundation for their work and for the opportunity to highlight the continuing efforts NXP is making to bring this abhorrent practice to an end once and for all.”
Companies from ten global industries were assessed by independent reviewers according to their policies and practices with regard to anti-modern slavery. The assessment criteria was developed using a combination of existing standards, including the UK Modern Slavery Act and the California Transparency in Supply Chains Act, as well as other global best practice standards. Based on overall scores, NXP demonstrated leading practices with evidence of implementation.
Monique Villa, former CEO of the Thomson Reuters Foundation and founder of TrustLaw and Trust Women, said: “NXP is a prime example of a large global company who is taking action, going above and beyond the current legal requirement to ensure their business is not tainted by slavery. Their commitment to transparency and the courage they have shown to speak openly of this issue sets the standard for others to ensure that the fight against slavery is perceived both as a rights priority and a business imperative.”
NXP’s goal is to go deeper into the supply chain. In 2017, we went to Indonesia to audit the second-tier labor agents and their sub-agents, who support in the recruitment of workers in the rural villages of Indonesia. The audit covered two labor agents in Indonesia that directly work with the labor agents in Malaysia, sub-agents that recruit from the rural villages, and three schools in Medan and Yogjakarta. The school visits provided training on labor practices and their human rights to potential candidates once they complete their mandatory education before joining the workforce. These actions were done to ensure that our audit covers the entire worker supply chain in Indonesia and meets the rigorous NXP standards. During this time, we also conducted several educational sessions to the labor brokers and the workers on NXP standards.
In 2018, the Senior Director of Sustainability and EHS was elected to the Responsible Business Association (RBA) board. Throughout 2018, board work consisted of working on the steering committee for the Responsible Minerals Initiative and more recently transitioned to the steering committee for the Responsible Labor Initiative. In addition to the steering committees, additional work was conducted on outreach, panels and initiatives to represent the RBA.
2018 was another productive year for NXP as we shared our best practices and worked cooperatively in the Global Business Coalition against Human Trafficking (GBCAT) association to address global human trafficking issues. We worked together across different sectors and regions to demonstrate our commitment to eradicating trafficking in supply chains, including forced labor and sex trafficking. 2018 was specifically focused on Trafficking Survivor Empowerment and Employment as well as subject matter expert capacity building.
As a signatory to the United Nations Global Compact, we reported on progress and highlighted our innovations and leadership in our supply chain. Our social responsibility program is another way we can offer ideas and solutions to society’s challenges.
The Social Responsibility team has been invited to numerous speaking engagements with our peers, authorities and industry association to talk about our activities, best practices and lessons learned. One highlight in 2018 was the invitation to speak at the United Nations Forum on Business and Human Rights where we discussed our human rights due diligence practices within a complex value chain. At the Forum, NXP shared our experience in tackling modern day slavery in the recruitment and hiring of foreign migrant workers and our due diligence work deep in the labor supply chain in Indonesia. NXP management has also recognized the program at quarterly town halls, highlighting the activities and leadership the team is taking to work with our supply chain.
NXP is setting standards within the semiconductor and electronics industry by being one of the first to set the No Fee Policy, to prohibit the withholding of passports, to control excessive working hours, to have at a minimum one rest day per every seven days worked.