Man Looking Forward

“AMD’s leadership of the Responsible Business Alliance (RBA) helped convene a dialogue between industry and key  stakeholders which made progress on the policy protecting workers rights to Freedom of Association and Collective Bargaining. We are hopeful this policy will translate into concrete benefits for workers in the  electronics supply chain.”

– David M. Schilling, Senior Program Director, Interfaith Center on Corporate Responsibility (ICCR).

The Issue

As a company with outsourced manufacturing resources and suppliers around the globe, we recognize the potential for human rights abuses within our supply chain. We believe these risks to be minimal within AMD’s own operations and within the two semiconductor foundries that produce wafers for us on a contracting basis and account for 65% of our supply chain spend. 

Yet while our industry has made significant progress in understanding and addressing human rights issues across the value chain, we are keenly aware of the risks that persist, particularly for vulnerable populations employed by supply chain partners providing both direct and indirect materials and services to AMD1. Globally, the tech sector employs hundreds of thousands of workers who may find themselves subject to potential human rights abuses, including forced or bonded labor, recruitment fees, and the retention of identity papers among migrant laborers.

AMD and many of our peer companies rely on material made from tin, tantalum, tungsten, and gold (3TG) in the manufacturing our products. These materials became known as “conflict minerals” for being mined in areas rife with violence—first in the Democratic Republic of Congo and now in other regions under the control of armed groups.

We are also cognizant of the potential for human rights abuses once our products are in the hands of consumers. On the other hand, AMD technologies can help to enable the human rights of its end-users around the world.

Technology industry stakeholders are increasingly looking for greater transparency around human rights and labor risks within the supply chain, including results of audits and corrective actions taken to address any non-conformances.

An estimated 21 million workers worldwide denied human rights through forced or bonded labor2 

AMD’s Response

At AMD, we strive to source our materials ethically and manage our supply chain responsibly. We aim to create high-performance semiconductor solutions while helping ensure that working conditions throughout our supply chain are safe, that workers are treated with respect, and that manufacturing processes are environmentally responsible.

Our commitments extend to respecting the human rights of all individuals directly impacted by our company’s global operations and throughout our business relationships. We hold ourselves and our suppliers accountable for maintaining these high standards.

While our global supply chain model supports productivity and efficiency, we strive to ensure the breadth and complexity doesn’t obscure systemic issues regarding the organization and management of human workers. We have a vested stake in ensuring that our goods are produced in a humane manner—not just to meet consumers’ interest in responsible goods but also to help build sustainable economic models based on the values of human rights and global citizenship.

We work with our suppliers to focus on continuous improvement. Supplier business reviews provide a regular forum where senior leaders from both companies come together to discuss topics relevant to our business relationship. To ensure that our responsibility standards are being upheld, we ask our suppliers to extensively report on their performance, and review third-party audit information. Our base level expectation is that each supplier providing manufacturing materials and/or services to AMD will demonstrate conformance to the standards outlined in the Code of Conduct we adopted, as well as any local labor, environmental, or health and safety regulations. We further expect that each supplier will, in turn, communicate to their suppliers the same expectations and implement reasonable mechanisms to monitor their compliance. Read our Supplier Assurance Letter.

Our Supply Chain Spend

The graphic below highlights our supply chain spending. Learn more in the Value Chain page.

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Our Responsibility

Our values and approach to human rights issues are guided by our Worldwide Standards of Business Conduct, which are intended to align with the Universal Declaration of Human Rights, the United Nations (UN) Guiding Principles on Business and Human Rights and the UN Global Compact Principles. In addition to the information provided in this section, we have prepared a response to the UN Guiding Principles Reporting Framework.

Our membership in the Responsible Business Alliance (RBA) further augments our efforts. Our Corporate Responsibility and Supply Chain teams, which manage our supply chain responsibility program, meet regularly to review progress against goals and identify key concerns.

In late 2017, we identified freely chosen employment within our supply chain (e.g., no forced, involuntary or bonded labor) as a key human rights issue for focus with our suppliers in locations with a higher risk for these abuses, based on engagement with an external stakeholder advisory panel convened by the non-profit group Ceres. We recently began collecting data specific to freely chosen employment within our supply chain and plan to report on our findings.

As part of our overall business initiatives, AMD will continue to develop technologies that enable and improve more equitable access to education, digital inclusion, medical treatment, and advanced research, areas integral to the promotion and growth of human rights around the globe. Learn more in the Purpose section.

Learn more about Our Approach.

Footnotes
  1. We consider “direct” suppliers to be those companies that contribute materials that impact and become a part of AMD products, such as wafers, outsourced assembly and test (OSAT), materials (substrates, heat sinks, memory) and boards.
  2. http://www.responsiblebusiness.org/initiatives/rli/