Design. Build. Ship. Service. Supplier Quality Systems Supply Chain CSER Program Overview

Design. Build. Ship. Service. What Is Corporate Social and Environmental Responsibility? Definition of CSER: “Corporate Social & Environmental Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community, environment and society at large." Businesses must be both “PROFITABLE & RESPONSIBLE.”

Design. Build. Ship. Service. Flextronics Corporate Social & Environmental Responsibility The Electronics Industry Code of Conduct (EICC) outlines standards to ensure that working conditions in the electronics industry are safe, that workers are treated with respect and dignity, and that design and manufacturing processes are environmentally responsible. As an active member of the EICC, Flextronics endorses the EICC Code of Conduct. Flextronics Corporate Social and Environmental Responsibility (CSER) includes all of the elements of the EICC as well as customer and legal requirements Flextronics CSER program is designed to fulfill our social, economic, and environmental responsibilities while simultaneously raising the value both to our corporation and to our stakeholders.

Design. Build. Ship. Service. The Electronic Industry Code of Conduct (EICC) The EICC consortia was created in 2004 to represent the Electronics Industry Members as a single electronics industry voice to facilitate the creation of mechanisms to demonstrate that this industry is: promoting responsible business practices to improve social and environmental conditions across the global electronic supply chain. paving the way for a standards- based approach for monitoring suppliers' performance across several areas of social responsibility, including labor practices, health and safety, ethics, and protection of the environment. reflecting on the participating companies' commitment to leadership in the area of corporate social responsibility that will potentially reduce inefficiency and duplication, and make performance easier to audit and verify.

Design. Build. Ship. Service. The Global e-Sustainability Initiative (GeSI) Alcatel Bell Canada British Telecommunications plc Deutsche Telekom AG Ericsson European Telecommunication Network Operators Association (ETNO) Hewlett-Packard Intel Lucent Technologies Motorola Orange Panasonic Mobile Communications Sun Microsystems Telefonica SA USTelecom Association Vodafone plc An initiative of Information and Communications Technology (ICT) service providers and suppliers, with the support of the United Nations Environment Programme and International Telecommunication Union. The GeSI group was integrated in 2001 as the collective voice of its members. GeSI aims to influence the sustainability debate, inform the public of its members' voluntary actions to improve their sustainability performance, and prompt information and communication technologies that foster sustainable development. The GeSI and EICC members work collaboratively to generate a common approach to the Corporate Responsibility solutions

Design. Build. Ship. Service. Global e-Sustainability Initiative Members Of Both Global e-Sustainability Initiative (GeSI) Coalition Members Electronic Industry Code of Conduct

Design. Build. Ship. Service. Major Industry Drivers The Electronic Industry Non-Governmental Organizations (NGO’s) Governments Regulators Socially Responsible Investment Entities Community Groups Industry Groups Customers Media Governments Businesses need to be responsible yet work toward competitive advantage.

Design. Build. Ship. Service. An industry-wide approach is simpler and more efficient for suppliers A management systems approach drives sustainable solutions Labor Health & Safety Environmental Ethics Management Systems Uphold the highest standards Evaluate and control exposure to hazards Treat employees with dignity & respect Protect the environment EICC Implementation Framework

Design. Build. Ship. Service. Labor and Human Rights Suppliers should be committed to uphold the human rights of workers, and to treat them with dignity and respect as understood by the international community. Suppliers should:  Provide Freely Chosen Employment and prohibit forced labor  Prohibit Child Labor  Regulate Working Hours  Pay and provide appropriate wages and Benefits  Prohibit inhumane treatment  Prohibit discrimination  Respect the right to freedom of association

Design. Build. Ship. Service. Environmental Health and Safety Suppliers must provide their employees with a safe and healthy workplace in compliance with all applicable laws and regulations. Suppliers should:  Minimize environmental pollution and resource reduction  Obtain environmental permit & reporting of requirements  Control and manage hazardous chemicals and substances in products and manufacturing  Promote waste reduction  Control and manage air emissions  Apply safety measures for equipment and instruments  Promote safe activities in the workplace  Apply appropriate measures for occupational injuries and illnesses  Promote industrial hygiene in the workplace  Identify, evaluate, and control physically demanding work  Properly manage disasters and accidents as well as manage emergency procedures  Provide clean, safe dormitories and canteens with emergency egress as well as personal space

Design. Build. Ship. Service. Ethics and Governance Suppliers are required to uphold the highest standards of ethics. Suppliers must comply with all laws and regulations on bribery, corruption, and prohibited business practices. Suppliers should:  Operate businesses with impeccable business integrity  Prohibit corruption and bribery  Prohibit the receiving and offering of improper advantage  Provide/disclose accurate information on products and services  Respect intellectual property  Prohibit impediment to fair, transparent, and free competition  Protect identity and confidentiality Ethics & Governance

Design. Build. Ship. Service. Management System The Supplier should adopt or establish a management system which is committed to supporting the principles of the EICC Code of Conduct.  Comply with applicable laws, regulations, and customer requirements related to the supplier’s operation and product;  Conformance with the EICC Code of Conduct;  Identification and mitigation of related operational risks;  Facilitation of continuous improvement. For information on the EICC, please click the following link:

Design. Build. Ship. Service. Flextronics’ Expectation Of Suppliers Flextronics expects suppliers to :  Promote positive CSR activities Suppliers must comprehend and comply with CSR ethical, health, safety and environmental standards and promote CSR activities with their respective supply chains.  Conform to EICC requirements Supplier must read and understand EICC requirements and conform to those requirements.  Contribute to society and community Suppliers are encouraged to proactively participate in activities that contribute to the development of global society and local community.

Design. Build. Ship. Service. Flextronics expects suppliers to additionally:  Comply with all national and other applicable laws and regulations and require their suppliers to do the same (including labor agencies)  Complete and submit the Flextronics Supplier Assessment Questionnaire within 10 business days of request.  Participate in Flextronics requested on-site audits as needed  Work with Flextronics to close any CSR corrective action items  Provide clear and accurate CSR reporting to Flextronics upon request Flextronics’ Expectation Of Suppliers

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