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Electronics Production | May 09, 2008

Corporate Responsibility entails<br>cooperation throughout the supply chain

Minna Aila, Elcoteq’s Director Investor Relations and Corporate Responsibility explains the importance of corporate responsibility within Elcoteq.
Companies in the electronics sector have to ensure that operations meet corporate responsibility requirements throughout the entire supply chain. In practice, this means communicating environmental and ethical requirements to suppliers, including these requirements in supplier contracts, assessing and auditing suppliers to examine and demonstrate that their operations comply with these requirements, and collecting and analyzing information concerning individual suppliers.

Corporate responsibility means taking responsibility for the impact of the company’s operations on both the local community and the company’s stakeholders. In an extended global supply chain, corporate responsibility entails knowledge of international environmental and ethical requirements as well as local legislation in each country. Careful monitoring of the outsourcing arrangements can protect the original equipment manufacturer’s (OEM’s) reputation and brand value by ensuring that suppliers operate in a totally ethical manner.

Corporate responsibility covers three dimensions: economic, social and environmental. In Elcoteq, responsibility for addressing these three dimensions is integrated in the company’s strategy, management systems, corporate governance, and the principles and guidelines that are derived from them. The company and its customers expect all the partners in the supply chain to comply with international standards and agreements. In other words, these requirements extend beyond the company to the supply chain and other business partners.

Elcoteq is an international company operating in emerging markets which makes it particularly important for Elcoteq to manage corporate responsibility issues flawlessly. Most of Elcoteq’s net sales are generated by customers that market consumer products globally. For these OEMs, responsible operations throughout the entire supply chain are of paramount importance for safeguarding their brands and reputation. Elcoteq seeks to deliver on its value proposition by supporting its customers’ businesses as a reliable and responsible partner.

During 2006, Elcoteq’s environmental management emphasis focused on preparations for the RoHS directive, communicating the requirements and monitoring and making sure that suppliers were developing their capabilities to meet these requirements. The main priorities were investigating the compatibility of Elcoteq’s lead-free manufacturing processes and components and ensuring the availability of components that complied with RoHS requirements.

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