Tao, director of Huawei and director of the Sustainable Development Committee, mentioned Huawei's sustainable management at the scene. He said that in today's highly internationalized social division of labor, Huawei's procurement, manufacturing, logistics and global technical services inevitably depend on extensive cooperation with third-party manufacturers or professional organizations, and its business interruption will directly or indirectly adversely affect Huawei's business and operating performance. "Huawei's sustainable survival is the basic ability of a company's sustainable development."
Huawei's Sustainable Development Report 20 18 discloses Huawei's sustainable development management system and four sustainable development strategies focusing on digital inclusion, safety and credibility, environmental protection and harmonious ecology. In addition, there are Huawei's policies and plans on "supplier management" and "business continuity".
Details are as follows:
Huawei established CSD management system based on ISO 26000/SA 8000 and other international standards and guidelines, and formulated and published a series of management methods and tools such as policies, processes and baselines. Make full use of CSD management process system to plan, implement, monitor and improve sustainable development. In 20 18, based on the actual operation effect of the previous process, Huawei streamlined and optimized the process, making it more compatible with the business, adding value to the business and improving efficiency.
(1) supplier management
Huawei's "20 18 Sustainable Development Report" also mentioned "supply responsibility".
Huawei regards sustainable development as an important part of the procurement quality priority strategy, enhances the weight of sustainable development in supplier certification, performance evaluation and procurement decision-making, deepens cooperation with customers, suppliers and industry organizations, promotes the sustainable development of suppliers through procurement business, organizes supplier benchmarking learning, enhances the management ability of sustainable development, reduces supply risks, and enhances customer satisfaction and supply chain competitiveness.
-New supplier certification
According to the Code of Conduct for Responsible Business Alliance (RBA) and the Code of Joint Audit Cooperation (JAC), Huawei has formulated a supplier sustainable development agreement, which requires suppliers to sign. Huawei carries out sustainable development system certification for all new suppliers, and evaluates the ability and level of suppliers to abide by laws, regulations and sustainable development agreements. Suppliers that fail to pass the certification of sustainable development system cannot become qualified suppliers.
In 20 18, Huawei conducted a sustainable development audit on all 93 suppliers to be introduced, of which 16 suppliers were rejected due to unqualified audit.
For the problems found in the on-site audit, guide suppliers to adopt CRCPE five-step method (inspection, root cause, correction, prevention and evaluation), draw inferences from others, find out the * * * problems, trace the root causes, take targeted corrective and preventive measures, and continuously evaluate and improve the "Trinity Stability" benchmark. These issues will be incorporated into the supplier improvement action requirement system (SCAR) and will be followed up continuously.
-Supplier performance management
Huawei conducts supplier sustainable development performance evaluation every year. As a part of the comprehensive performance of suppliers, evaluate the performance, on-site audit results and improvement of suppliers in the past year. In 20 18, Huawei incorporated the management of second-tier suppliers into the performance evaluation of first-tier suppliers' sustainable development, urged first-tier suppliers to gradually establish a social responsibility management system with reference to IPC- 140 1 standard, and routinely evaluated the sustainable development performance of second-tier suppliers. Supplier performance is divided into four grades: A, B, C and D, which respectively represent excellent, good, qualified and unqualified. In 20 18, Huawei evaluated the sustainable development performance of 132 1 supplier.
Huawei links the supplier's sustainable development performance results with business, and uses them in supplier selection, bidding and portfolio management stages. The ratio of sustainable development performance to comprehensive performance is 5- 15%. For suppliers with good performance, increase the purchase share under the same conditions and give priority to providing business cooperation opportunities; For suppliers with poor performance, especially those who violate the red line of social responsibility, it is required to rectify within a time limit, reduce the purchase share or business cooperation opportunities, or even cancel the cooperation relationship. In 20 18, two suppliers were forbidden to cooperate in new business or reduce their share due to sustainable development.
-Supplier capacity building
In 20 18, Huawei successively selected topics such as fire prevention, environmental compliance, battery industry specification and secondary supplier management, and invited 293 people from 156 suppliers to participate in the empowerment training of benchmarking learning mode.
In addition, Huawei also cooperated with professional organizations to implement special upgrading projects for suppliers' environmental protection, fire safety and occupational health, benefiting 96 suppliers. Through these projects, suppliers have fully identified the potential risks, improved the internal management mechanism, trained a professional management team, and greatly improved their professional management capabilities in the fields of environmental protection, fire safety and occupational health.
-Deepen cooperation between customers and industry organizations.
Huawei regards sustainable development as the basic requirement, fully integrates into the procurement business strategies and processes, and enhances the transparency of the supply chain. Cooperate closely with customers in supplier management, invite customers to visit the site, and jointly carry out supplier audit, employee survey and supplier capacity improvement projects with customers to improve the management level of sustainable development of supply chain. In 20 18, Huawei cooperated with 7 customers to conduct on-site audit on 2 1 suppliers, and shared the audit results with customers.
(2) Establish BCM system in procurement, manufacturing and other fields.
In today's highly internationalized social division of labor, Huawei's procurement, manufacturing, logistics and global technical services inevitably rely on extensive cooperation with third-party manufacturers or professional organizations, and its business interruption will directly or indirectly adversely affect Huawei's business and operating performance.
After years of continuous construction, Huawei has established an end-to-end business continuity management (BCM) system from suppliers to Huawei and from Huawei to customers in the fields of procurement, manufacturing, logistics and global technical services. By establishing management organization, process and IT platform, making business continuity plan and emergency plan, carrying out BCM training and drills for employees, improving the organization's BCM awareness and emergency response ability, and ensuring effective management of daily business risks.
-R&D and key measures in the procurement stage
-Diversified solutions: In the design stage of new products, support multiple supply solutions from raw material level, veneer level and product level to avoid the risk of exclusive supply or single regional supply and ensure the availability of products.
Scenario storage: In the mass production stage, in order to cope with the fluctuation of demand and the change of supply market, a reasonable and safe inventory of raw materials, semi-finished products and finished products is established.
-Visualization of supply and demand capacity: In-depth collaboration with suppliers, visualization of demand forecast, purchase order and supplier inventory can be realized through IT system, thus ensuring rapid transfer of demand and rapid response of supply capacity.
-Strategic partnership: Establish strategic partnership with core suppliers and give priority to Huawei's supply; Sign long-term supply guarantee agreements with key suppliers, lock in production capacity and supply capacity, and ensure the safety of bottleneck materials supply. Promote suppliers to establish BCM management system, and organize special audit and improvement.
-Key measures in manufacturing, logistics and spare parts.
-Backup of manufacturing capacity: Establish strategic partnership with several electronic manufacturing service providers (EMS), and Huawei, EMS and EMS can backup each other's single board manufacturing supply capacity; Shenzhen supply center, Europe supply center, Latin America supply center and Dubai supply center have been established all over the world, and the four supply centers can mutually back up the whole machine manufacturing supply capacity.
-Backup of logistics transportation capacity: In cooperation with many mainstream logistics suppliers around the world, a logistics transportation network covering global delivery business has been established by designing diversified transportation routes, ensuring that backup transportation routes can be used in emergencies and ensuring the continuity of logistics transportation business.
-Life-cycle spare parts storage: spare parts are stored according to market demand and historical consumption before the product is discontinued; After the product is discontinued, spare parts should be fully reserved at one time according to the life cycle forecast to ensure the continuity of the customer's existing network equipment.
(3)188,000 employees
Huawei's Sustainable Development Report 20 18 also mentioned that by the end of 20 18 12 3 1 0, Huawei had a total of188,000 employees worldwide. Huawei employees come from nearly 160 countries and regions around the world. There are 4 1 nationality employees in China alone. Huawei sets and implements diversity goals from the perspectives of nationality, gender, age, race and religious belief of employees. Huawei strictly abides by relevant local laws and regulations and international conventions to ensure fair employment for male and female employees. In recent years, the proportion of female employees in Huawei has remained basically stable. Huawei pays attention to selecting female managers to help their career development. 20 18, and the proportion of female managers reached 7.05%.
As an international company, Huawei has been actively promoting the localization process of overseas employees. The localization of employees is conducive to the company's in-depth understanding of different cultures, promoting the employment of local population and helping local economic development. In 20 18, Huawei has more than 28,000 overseas employees, and the localization rate of overseas employees is about 70%.
The number of employees holding shares is 96,768.
Huawei is a private enterprise with employees holding 100%. Huawei implemented the employee stock ownership plan through trade unions, with 96,768 participants, only employees of the company, and no government department or institution holds Huawei's equity.
Huawei has a sound internal governance structure. Shareholders and employees elected 1 15 employee representatives, the employee representatives elected the chairman and other 16 directors, and the board of directors elected 4 vice-chairmen and 3 managing directors, with 3 vice-chairmen as the rotating chairman.
The rotating chairman takes turns to preside over the board of directors and the standing board of directors of the company. The board of directors exercises the decision-making power of the company's strategy and management, and is the highest responsible institution for the company's strategy, management and customer satisfaction.
The chairman presides over the workers' representative meeting. The workers' congress is the highest authority of the company, making decisions on major issues such as profit distribution, capital increase, election of directors and supervisors.
(4) Four updated development strategies
The report also released Huawei's new sustainable development strategy. There are two main changes in the new strategy: first, the extension of the strategy of "eliminating the digital divide" is "digital inclusion", and on the basis of connection, more emphasis is placed on "application and skills". The second is to deepen the strategy of "ensuring the stable and safe operation of the network and the privacy of users" to "safety and credibility".
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