Forced Labor and Human Trafficking

The International Labor Organization describes the various forms of forced labor:

Forced labor refers to situations in which persons are coerced to work through the use of violence or intimidation, or by more subtle means such as accumulated debt, retention of identity papers or threats of denunciation to immigration authorities.

Forced labor, contemporary forms of slavery, debt bondage and human trafficking are closely related terms though not identical in a legal sense. Most situations of slavery or human trafficking are however covered by International Labor Organization’s (ILO) definition of forced labor.1

AMD is committed to respecting its employees’ human rights. AMD does not allow the use forced labor in providing its products or services, and prohibits physical abuse or harassment and retaliation against employees reporting harassment amongst its employees. The Company strictly forbids child labor and forced/compulsory labor practices in any AMD operation or our business partners and suppliers.

Learn more about AMD’s Value Chain here.

California Slavery and Human Trafficking Law & U.K. Modern Slavery Act

The California Transparency in Supply Chains Act of 2010 (SB 657) (the “Act”) requires manufacturers and retailers doing business in the State of California to disclose information regarding their efforts to address the issues of slavery and human trafficking in their supply chains. AMD requires certain suppliers providing materials incorporated into our products to certify that those materials were not manufactured utilizing forced labor or illegally trafficked workers. In accordance with the requirements of the Act, AMD offers the summary below of our activities to identify and prevent human trafficking and slavery activities by our vendors.

The U.K. Modern Slavery Act of 2015 created two new civil orders to prevent modern slavery, established an Anti-Slavery Commissioner and made provision for the protection of modern slavery victims. While the requirements of this Act are still being defined, AMD is supportive of these efforts to eradicate modern slavery and the summary below outlines our efforts to identify and prevent human trafficking and slavery in our supply chain.

AMD Policies and Actions

AMD strongly opposes the practice of forced labor or human trafficking. The company utilizes several approaches to communicate our expectations and verify the absence of such practices in our supply chain.

AMD is an active member and serves as the Chair Emeritus of the Electronic Industry Citizenship Coalition (EICC). The company has adopted the EICC’s Code of Conduct and requires conformance with this code from its suppliers. The EICC Code of Conduct is based on international labor, environmental and human rights standards that prohibit forced labor and human trafficking.

Risk-based supplier assessments: As a part of AMD’s supplier management process, we assess our suppliers to evaluate their conformance to the EICC Code of Conduct. This approach includes preliminary risk assessments as well as more detailed supplier self-assessment questionnaires. The results of each method are scored utilizing the EICC scoring system to verify the suppliers’ risk of non-conformance.

Supplier audits: Based on the results of the risk assessment, AMD may require a third-party on-site audit of supplier practices and management systems to evaluate supplier compliance with applicable laws and regulations as well as the EICC Code including avoiding human trafficking and forced labor in our supply chain. These audits may be announced or unannounced depending on the circumstances.

Supplier assurance: Each year, AMD communicates with suppliers in writing to ensure our expectations are clear and up-to-date with regard to responsible social, ethical and environmental conduct. This letter establishes AMD’s expectation that its suppliers comply with applicable laws and regulations as well as the EICC Code of Conduct. Additionally, AMD’s standard contractual terms and conditions for the procurement of goods and services require conformance to applicable laws and regulations, and reinforce our expectations regarding responsible social, ethical and environmental conduct.

Accountability: In addition to risk assessments and audits, AMD discusses conformance to the EICC Code of Conduct as well as related management systems with our suppliers during regular business reviews. Our supplier business reviews are the optimal venue for accountability with regard to responsible social, ethical and environmental conduct because senior management participates in these meetings and future business awards are at stake.

Training: AMD suppliers have access to information and training regarding conformance expectations through the EICC learning and capability activities.

AMD Standards of Business Conduct: AMD’s Worldwide Standards of Business Conduct establish mandatory rules and guidelines for AMD’s employees. These standards are substantially equivalent to the EICC Code of Conduct and specifically prohibit forced and compulsory labor practices. These standards apply to all AMD employees. Every AMD employee has access to and receives mandatory training on these standards. In the event an employee violates these standards, AMD will take immediate and appropriate action, which may include termination of employment.