Corporate Governance

Section 1

Three external factors that have influenced HP to shift towards a more environmentally and socially responsible practice are Technological, Political and Ecological factors.

The Technological factors consist of the tools that are used to produce HP products, such as the machines and materials. This factor is very important as today’s society has become more tech savvy and the technological change has led management to be in a more competitive cost position.

HP holds quarterly discussions with Ceres, a network of investors, environmental organizations, and other public interest groups working to address sustainability challenges. We seek their input on HP's efforts in environmental sustainability and their advice on furthering employee engagement in this area. HP communicates with Greenpeace on a regular basis regarding topics such as forestry, climate, and ongoing efforts to phase out substances of concern from their products. By participating in the Greenpeace Cool IT Challenge, it evaluates global companies on their leadership in addressing climate change. HP was included in the April 2010 leaderboard, receiving high marks for commitment to reduce the GHG emissions of HP-owned and HP-leased facilities. In January 2011, HP products were featured in five categories in the Greenpeace annual Green Electronics Survey and the HP Compaq 6005 Pro Ultra-slim Desktop PC ranked first in the desktop category.

The Political factors of HP include the government and laws. HP decisions are affected by these groups as every company would be. The government has a vast amount of power in controlling a business thus management must ensure regulations and rules are met. HP is supporting the policies by providing customers with the required information of the chemicals and materials being used in their final products. By working with the government to enable a workable system HP can satisfy regulations regarding hazardous substances and ensure policies are not broken....