Committed to ensuring modern day slavery and human trafficking do not take place in our business or supply chain.
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Social Responsibility
NXP’s Social Responsibility program builds on the recognition that everything we do must reflect the highest possible standards of ethical business conduct and the respect for human rights.
Engage. Protect. Respect.
Engaging to protect and respect human life and the environment we live in.
Labor and Human Rights
Our program is committed to the fundamental rights, freedoms and standards of treatment to which all people are entitled.
Supplier Engagement
Engaging with our supply chain to drive resilient and responsible business partnerships.
NXP Social Responsibility Goals
Human rights and health and safety are key pillars in our Sustainability Policy and a prominent part of our strategy and goal setting.
| Goals | 2021 Results |
|---|---|
| No priority or major nonconformances from internal/customer audits | We completed two RBA Validated Assessment Program (VAP) audits at our Tianjin, China, and Kaohsiung, Taiwan manufacturing sites. Both locations did not receive any priority violations nor major nonconformances. |
| Internal NXP audit scores >95% | We conducted RBA VAP audits for two of our manufacturing sites. Our >95% goal is based on NXP's audit scoring criteria. Since the RBS VAP audit scoring methodology is different than NXP's methodology, we are currently mapping the two for a thorough representation of results. |
| Self-assessment score >90% | All NXP sites achieved self-assessment scores above >90%. |
| <60-hour work week and one rest day per six days worked | At one site, the 60-hour working limit was exceeded for approximately 180 team members, representing 6% of the site's direct-labor workforce for a period of 14 weeks. This was due to the regional labor shortage, challenges in hiring foreign-migrant workers, and border closures. Additionally, team members continued to receive one rest day per six days worked. |
Nominating, Governance and Sustainability Committee (BoD)
Integrating a governance structure for continuous improvement and accountability. Roles and Responsibilities
Assessments
The Social Responsibility team conducts operational reviews to identify potential adverse social responsibility impacts arising from our policies and business practices and engage with the responsible departments to rectify issues if identified.
RBA SAQ Scores per Site
We use the Responsible Business Alliance (RBA) Self-Assessment Questionnaire (SAQ) as a tool to help NXP monitor our Social Responsibility program on an annual basis.
NXP's RBA SAQ Average Scores
Two areas are classified as medium risk: Environmental Risk and Health and Safety Risk. As a semiconductor manufacturer, we use certain equipment and controlled substances which affect the Environmental and Health and Safety Risk elements. However, our scores are high across the Environmental and Health and Safety Control and Management elements, indicating that NXP has proper controls, protocols and management systems in place to minimize the risks identified in the risk section.
Audits
Monitoring compliance with the principles of corporate social responsibility through the performance of our audits. Our Auditable Standards on Social Responsibility have shown to be more comprehensive than the industry equivalent and are effective in driving improvements.
Auditable Standards on Social Responsibility
NXP Internal Third Party Audits
The number of NXP internal third-party audits was higher when the social responsibility program began, but has remained at a steady rate since 2017.
NXP Customer Audits
Now that our Social Responsibility program has matured, and we have our own internal evidence and data from historical customer audits to show that we are a low-risk supplier, fewer customer audits are conducted each year.
Validation
Each month, the Social Responsibility team reports key performance indicators to the Sustainability office on topics such as internal audits and self-assessment scores, working hours and rest days.
The Senior Director of Sustainability and the Social Responsibility team are tasked with the delivery of programs across the business with defined targets and is part of a performance-appraisal system that links pay to performance.
Capacity Building
Our detailed capacity-building program is to make sure our factories can recognize and intervene in the early stages, if potential negative social impacts may arise.
| Stakeholders | Scope |
|---|---|
| Executive Management Team | Requirements and expectations |
| Manufacturing Management Team | Requirements of facilitating the implementation of the standards |
| Site Social Responsibility Team | In-depth specifics to implement the program at the facility |
| Manufacturing Subject Matter Experts | Intensive labor and ethics RBA lead auditor training |
Worker Voice
We encourage everyone to voice concerns and to report potential violations by using any of our reporting channels.
Information about our reporting channels is easily accessible and visible, via the external website, our intranet, grievance boxes, posters, blogs, or email. We have a strict non-retaliation policy to protect those who report potential violations.
Open-Door Process
Allows team members to voice their concerns through increasingly higher levels of management in order to make sure their concerns are heard and resolved in a fair manner.
Local Ethics Liaison
Offers team members support, advice, guidance and assistance that lead to the best decision for the parties involved.
Ethics Committee
Assures the completeness of the recorded allegations and the appropriate actions has been taken.
3rd Party SpeakUp Line
A phone or web option, hosted by an independent third party, that facilitates anonymous reporting in multiple languages.
The Ethics webpage provides additional information.
NXP in Action
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UN Forum on Business and Human Rights
For the fourth consecutive year, NXP was a featured panelist at the Annual UN Forum on Business and Human Rights. We shared our insights and best practices with the group and, in a special session on lessons learned from the pandemic, we discussed how we handled foreign migrant workers, the most vulnerable in the company’s workforce, who were unable to return home due to travel restrictions.
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Supporting Foreign Migrant Workers
In 2021, NXP hired 16 Nepalese workers, from a different industry, in which they had to pay recruitment fees. NXP repaid their previous employer's recruitment fees.
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The Fight Against Modern Slavery
Impacting the lives of foreign migrant workers through our policies, standards and recruiting practices.
We Want to Hear from You
Contact NXP's Sustainability team at csr@nxp.com.
Supporting the UN SDGs
Aligning NXP’s products, operations and engagements with the UN Sustainable Development Goals to combat global challenges related to economic, social and environmental sustainability.
