Supplier Accountability Approach and Standards

Supplier Accountability and Compliance
Dell is committed to responsible business practices and to high standards of ethical behavior. We also hold our suppliers to high standards of excellence defined in governing laws, recognized international standards and conventions, and global best practices such as these.
Meeting the Dell supplier principles is a condition of doing business with Dell. Dell implements these standards through three primary means:
  1. Reinforcing the general requirement that Suppliers meet or exceed all applicable laws and recognized international standards;
  2. Ensuring adoption of Dell’s core policy commitments by defining and enforcing Supplier requirements; and 
  3. Requiring active participation in Dell’s Supplier Engagement, Capability Building and Assessment Programs.
Supplier Responsibility
1. Compliance with Laws and International Standards

Compliance with all Laws and Regulations
Critical to ensuring a socially and environmentally responsible supply chain is our insistence that all persons, including Suppliers, Supplier employees and Supplier contractors, behave in a legal and ethical manner. Dell and Dell's Suppliers shall comply with all applicable laws and regulations where business is conducted.

All Suppliers that manufacture or assemble Dell-branded finished products shall achieve and maintain certification on the International Organization for Standardization (ISO) 14001 Environmental Management System Standards; the ISO 9001 Quality Management Standard; and the Occupational Health and Safety Assessment Series (OHSAS) 18001 Occupational Health and Safety Management System Standard. Suppliers who have certifications to similar standards or who are working to obtain initial certification must submit the alternate certificate or a certification schedule, respectively, to Dell for approval.

2. Dell’s Core Policy Commitments and Supplier Requirements

Dell imposes specific requirements on its Suppliers with respect to the following issue areas:

Supplier Diversity and Non-Discrimination
Dell believes an ethical, diverse supply chain is a vital part of our business. We partner with companies that share our vision of doing business the right way. Also, just as we promote a diverse workforce, we believe that Suppliers from various backgrounds help us to best serve our global customer base. Learn more about this aspect of our standards on our Supplier Diversity Standards Overview Page. Each Supplier must meet the following diversity requirements: (1) comply with any applicable law and regulation targeted towards suppliers to governmental entities; (2) use reasonable efforts to engage minority owned businesses and women owned businesses if Supplier engages subcontractors to provide any deliverables or to support the Supplier’s overall business operations; (3) use commercially reasonable efforts to engage small businesses as defined by the United States Small Business Administration (including small business sub-categories such as small disadvantaged businesses, small women-owned businesses, veteran owned businesses, service disabled veteran owned businesses and HUB zone businesses) if Supplier engages subcontractors in the United States to provide any deliverables or to support the Supplier’s general business operations; (4) maintain accurate records of Supplier’s efforts under this provision; and (5) report to Dell, on Dell’s request, Supplier’s spend with minority owned businesses, women owned businesses and small businesses.

Federal Acquisition Regulations
If Dell is providing Supplier’s products or services under a United States government prime contract or subcontract, Supplier shall comply with the following provisions of the Federal Acquisition Regulations, published in Title 48 of the United States Code of Federal Regulations (CFR) at 52.244-6: 52.203-13, Contractor Code of Business Ethics and Conduct; 52.203-15, Whistleblower Protections Under the American Recovery and Reinvestment Act of 2009; 52.204-21, Basic Safeguarding of Covered Contractor Information Systems; 52.219-8, Utilization of Small Business Concerns; 52.222-21, Prohibition of Segregated Facilities; 52.222-26, Equal Opportunity; 52.222-35, Equal Opportunity for Veterans; 52.222-36, Affirmative Action for Workers with Disabilities; 52.222-37, Employment Reports on Veterans; 52.222-40, Notification of Employee Rights Under the National Labor Relations Act; 52.222-50, Combating Trafficking in Persons; 52.222-55, Minimum Wages under Executive Order 13658; 52.225-26, Contractors Performing Private Security Functions Outside the United States; 52.232-40, Providing Accelerated Payments to Small Business Subcontractors and 52.247-64, Preference for Privately Owned U.S.-Flag Commercial Vessels. Supplier shall also comply with the requirements of 41 CFR §§ 60-l.4(a), 60-300.5(a) and 60- 741.5(a), which prohibit discrimination against qualified individuals based on their status as protected veterans or individuals with disabilities, and prohibit discrimination against all individuals based on their race, color, religion, sex, or national origin.

Counterfeit Mitigation and Supply Chain Security 
Dell is committed to addressing present and emergent threats to its supply chain by focusing on counterfeit mitigation and avoidance. As part of this commitment, Dell relies on constructive engagement with our Suppliers. Suppliers to Dell must (a) implement and maintain counterfeit mitigation measures that substantially meet the system criteria specified in 48 CFR 252.246-7007 (Contractor Counterfeit Electronic Part Detection and Avoidance System); (b) provide to Dell, on Dell’s request, information concerning such counterfeit mitigation measures; and (c) address any material deficiencies in such mitigation measures that may be identified by Dell or by Supplier.

Customs-Trade Partnership Against Terrorism (C-TPAT)
Supplier agrees to ensure that it has in place a verifiable, documented, security program that describes Supplier’s procedural security, physical security, access controls, personnel security, education and training awareness, manifest procedures and conveyance security. Supplier security program must be consistent with the U.S. Customs Service C-TPAT Security Recommendations or an equivalent security program accredited by the World Customs Organization (WCO) and administered by a foreign customs authority. Supplier shall identify the program and Supplier’s member identification upon Dell’s request.

Working Conditions, Forced Labor and Human Trafficking
Dell is committed to upholding the human rights of workers at any tier of its supply chain, and to treating them with dignity and respect. Workers include direct employees, temporary workers, migrant workers, student workers, contract workers, and any other person(s) providing labor and employment services to Supplier. Dell is working with leading electronics companies and nongovernment organizations (NGOs) as part of the Dutch Sustainable Trade Initiative, a program designed to improve working conditions at the Supplier level by finding innovative ways to address nonconformance issues and focused initially on the half a million workers at more than 100 Suppliers in China. For additional details on Dell’s labor policies, please review our Vulnerable Workers’ Policy.

Prohibited Practices -- Forced, bonded (including debt bondage) or indentured labor, involuntary prison labor, slavery or trafficking of persons of any age shall not be used at any tier of the supply chain. This includes transporting, harboring, recruiting, transferring or receiving persons by means of threat, force, coercion, abduction or fraud for labor or services. Employers or agents may not hold or destroy employees’ identification or immigration documents, such as government-issued identification, passports or work permits, unless the holding of work permits is required by law. Employers may not restrict workers’ freedom of movement in the facility or entering or exiting company-provided facilities. All work must be voluntary and workers shall be free to terminate their employment and leave work at any time.

Employment Practices -- Employers and agents may not use misleading or fraudulent practices during the recruitment of employees. As part of the hiring process, workers must be provided with a written employment agreement in their native language that contains a description of terms and conditions of employment and the hazardous nature of the work, prior to the worker departing from his or her country of origin. Any employer-provided housing must meet the host country housing and safety standards.

Employer must pay return transportation costs upon the end of employment for an employee who is not a national of the country in which the work is taking place and who was brought into that country for the purpose of working on a U.S. Government contract or subcontract, unless an employee who is legally permitted to remain in the country of employment chooses to do so; or an employee who is a victim of trafficking is seeking victim services or legal redress in the country of employment, or an employee is a witness in a trafficking-related enforcement action. 

Child labor -- Child labor may not be used in any tier of the supply chain. The FAR defines "child" as any person under the age of 18, under the age for completing compulsory education, or under the minimum age for employment in the country, whichever is greatest. Employers may, however, implement a fully compliant workplace learning program for workers between the ages of 15 and 18. Workers under the age of 18 (Young Workers) shall not perform work that is likely to jeopardize their health or safety, including night shifts or overtime. In the absence of local law, the wage rate for Young Workers shall be at least the same wage rate as other entry-level workers performing equal or similar tasks. To enforce the policy prohibiting the utilization of forced or indentured child labor, Dell will conduct all due diligence to determine whether forced or indentured child labor is utilized at any tier of its supply chain. 

Human Trafficking -- Dell joins the United States Government in its zero tolerance policy regarding trafficking in persons. In addition to the above, Dell’s suppliers at any tier in the supply chain shall not procure commercial sex acts during the period of performance of the contract All Dell suppliers, contractors and subcontractors shall include the substance of this policy in all subcontracts in support of Dell business. Suppliers shall have a compliance plan in place to ensure that human trafficking and forced labor are not used and that risks of worker exploitation are mitigated. Supplier shall comply with 48 CFR 22.1705 and 52.222-50 regarding human trafficking. Suppliers shall provide details relating to their compliance programs and their action plans to Dell upon request.

Additional information about Trafficking in Persons and examples of awareness programs can be found at the website for the United States Department of State’s Office to Monitor and Combat Trafficking in Persons.

Dell reserves the right to take any and all available actions against suppliers for violations of its Vulnerable Worker Policy including without limitation the termination or reduction of business, frequent required onsite compliance auditing at suppliers expense, employee compensation at supplier’s expense, and/or termination of Dell’s contract with the supplier.

Minerals and Extractives
Dell is focused on multi-industry processes that help ensure that the minerals tungsten, tantalum, tin and gold that we use in our products are obtained from responsible global sources. The Democratic Republic of Congo has been a global mineral provider for years, but human rights violations have been reported in its mining industry. It is Dell policy to refrain from purchasing minerals from the Suppliers that support these violations, and we advocate that our Suppliers adhere to the same standards, which are more specifically set out on our Addressing Conflict Minerals page. Suppliers must meet the conflict minerals reporting requirements established by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Public Law 111-203 Section 1502) and by the Securities and Exchange Commission (SEC) at 17 CFR 240 and 249b.Regardless of whether or not Supplier is subject to SEC Rules (independent of this section), Suppliers must also upload its data accurately into the Electronics Industry Citizens Coalition (EICC) Conflict Minerals Reporting Tool, and ensure smelter information is updated within one month if there is a change in a sub-tier Supplier supporting Dell’s business. Suppliers must notify the Dell Social and Environmental Responsibility Director within 72 hours of discovering that a smelter used by Supplier is known to utilize gold, tantalum, tin, or tungsten from a conflict mine in the Democratic Republic of Congo. Suppliers must also develop a remediation plan if conflict minerals are discovered in its supply chain, and such plan will require the approval of Dell’s Chief Procurement Officer and Corporate Responsibility Vice President within two weeks of discovery.

Sustainability Reporting
Unless exempted by Dell, each Supplier shall publish, at its own expense, (a) a Global Reporting Initiative (GRI)-based sustainability reports on its corporate website and update the report annually and (b) a 5-year responsible water risk mitigation plan on its corporate website and update the report annually. Suppliers must also provide information about social and environmental responsibility, including compliance with Dell policies. 

Suppliers shall adhere to the Foreign Corrupt Practices Act (15 U.S.C. et seq.), the United Kingdom Bribery Act of 2010, and all applicable local laws relating to anti-corruption or anti-bribery ("Anti-Corruption Laws") . Each Supplier agrees not to violate the Anti-Corruption Laws with respect to sourcing, licensing or delivery of products to Dell. Suppliers shall maintain anti-corruption policies and procedures that are adequate to ensure that Supplier and any person to whom Supplier subcontracts the provision of any element of this Agreement, or who provides any services or receives any payment in connection with Supplier’s performance of the Agreement comply with the Anti-corruption Laws. 

3. Supplier Engagement, Capability Building and Assessment Program
To help ensure that global standards and Dell policy commitments are implemented and reinforced, Dell requires that Suppliers participate in several programs in which we work with Suppliers to build capability to exceed applicable international standards, and also to train Suppliers and remedy areas of concern that may be revealed in our audits.

Dell focuses on capability building and hosts multiple Supplier workshops each year that address relevant areas affecting our Suppliers. Our Social and Environmental Responsibility (SER) workshops offer those in our supply chain the opportunity to learn and share best practices. Key topics include the Carbon Disclosure Project, management of working hours and corporate responsibility performance evaluation tools.

Continuous Improvement
Dell is committed to responsible sourcing. We invest our company’s resources and time to drive improvements throughout our supply base. Suppliers must meet the standards specified in this section, but we encourage Suppliers to view social and environmental responsibility as a journey of continuous improvement. With a focus on self-assessment, internal ownership and self-accountability, Dell Suppliers can make changes that will bring long-lasting, sustainable impact not only to their own facilities and operations, but also to those of their own providers.

Quarterly Business Reviews
To embed socially responsible behavior into business activities, key Suppliers must undergo a Dell review of requirements and principles in quarterly business reviews. Dell Suppliers are and shall be evaluated quarterly and our purchasing decisions consider their scores. The reviews include specific implementation plans for Suppliers’ own social and environmental responsibility programs for compliance and environmental stewardship.

Suppliers are subject to audits by Dell or by third parties designated by Dell. Through our audits, our team identifies suppliers that may present a higher risk of non-conformance to the Electronic Industry Code of Conduct (EICC) or to other applicable standards, and engages with these higher-risk Suppliers to address gaps identified in their conformance to the EICC. This engagement includes development of sustainable corrective action plans as well as on-site monitoring to establish that the Supplier has systems in place to facilitate continued conformance.

Transparency and Reporting
Transparency is important to our relationship with stakeholders. We continue to publicly disclose our list of top suppliers. In addition, we provide our greenhouse gas (GHG) emissions on the Carbon Disclosure Project website. We expect that all suppliers must provide GHG emissions as well.