Sustainability Report by Suppliers
|Company||Motorola Solutions, Inc.|
|Filer||New York City Office of the Comptroller|
|Subject(s)||Human Rights; Supply Chain; Sustainability Reporting; Worker Safety|
|Resolved Clause Summary||Suppliers to issue sustainability reports|
|Supporting Memo||Download PDF|
WHEREAS , increasingly, multinational companies are realizing that their suppliers’ impacts and sustainability are inextricably intertwined with their own; and
WHEREAS , the UN Global Compact-Accenture CEO Study 2010, “A New Era of Sustainability”, found that 93% of surveyed CEOs believe that sustainability issues will be critical to the future success of their business, and 88% believe that they should be integrating sustainability through their supply chain, where the most significant performance gap is seen; and
WHEREAS , a study by Aaron Bernstein and Christopher Greenwald, “Benchmarking Corporate Policies on Labor and Human Rights in Global Supply Chains,” (Pension and Capital Stewardship Project Labor and Work-Life Program Harvard Law School, Nov. 2009), found a significant gap between general policies against labor and human rights abuse and more detailed standards and enforcement mechanism required to carry them out; and
WHEREAS , in 2010, PUMA, the Sport lifestyle company, in cooperation with the Global Reporting Initiative’s (GRI’s) Global Action Network for Transparency in the Supply Chain, which provides GRI certified training on transparent measurement and reporting to supplier factories, expanded its strategic suppliers sustainability reporting project with commitments from 20 suppliers in South East Asia and other major sourcing regions that they will issue their own sustainability reports from 2011 on; and
WHEREAS , given the merit of the old adage, “What Gets Measured Gets Done”, the long-term interests of multinational companies and their shareholders would be enhanced if companies were to urge their suppliers to establish performance goals on human and worker rights, and to measure and publicly report on performance using internationally recognized standards and measurement protocols;
THEREFORE, BE IT RESOLVED: the shareholders request that the Board of Directors, using a phased, tiered approach that the Company deems reasonable and practical, take the necessary steps to help move the Company’s supplier(s) to begin publishing annual, independently verifiable, sustainability reports. Among other important disclosures, reports should include the suppliers’ objective assessments and measurements of performance on workplace safety, and human and worker rights, using internationally recognized standards, indicators and measurement protocols. In addition, reports should include incidents of non-compliance, actions taken to remedy those incidents, and measures taken to contribute to long-term prevention and mitigation.
Statement in Support
A company’s best opportunity for early identification and mitigation of the risks posed by the human and labor rights violations of its suppliers is the development and rigorous implementation of a risk-management framework to enable its monitoring and verification of its suppliers’ performance against internationally recognized standards of human and labor rights, using measurable and verifiable indicators of performance. Annual sustainability reporting by its supplier(s) would strengthen the company’s ability to assess its suppliers’ performance, to hold its suppliers accountable, help to drive performance improvements, and enable investors to better understand and assess potential reputational and/or operational risks.