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QUALCOMM 42/100

(NASDAQ:QCOM) 11 of 20 (2016)

Qualcomm Inc. (Qualcomm) demonstrates average disclosure of its efforts to mitigate the risk of human trafficking and forced labor its supply chain. The company places eleventh on the benchmark overall. Among its strengths, Qualcomm demonstrates robust practices and disclosure in areas such its traceability activities and purchasing practices. To improve its ranking, Qualcomm is encouraged to adopt and publicly disclose its approach to the recruitment of workers in its supply chain. Furthermore, it has an opportunity to improve in the area of worker voice, supplier monitoring, and remedy programs.

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42 /100

2016 Ranking: 11 of 20

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42

Qualcomm was evaluated both in 2016, when it ranked 11th out of 20 companies, and in 2018, when it ranked 10th out of 40 companies. Despite a strengthened methodology which makes it harder to achieve the same score, the company has improved its score since 2016 from 42/100 to 49/100 by disclosing internal and supplier training, risk assessments that include forced labor in its supply chains, the percentage of suppliers audited, and information on the quality of auditors used. As a result, it now ranks in the top quartile.

METHODOLOGY

2016

42

Qualcomm was evaluated both in 2016, when it ranked 11th out of 20 companies, and in 2018, when it ranked 10th out of 40 companies. Despite a strengthened methodology which makes it harder to achieve the same score, the company has improved its score since 2016 from 42/100 to 49/100 by disclosing internal and supplier training, risk assessments that include forced labor in its supply chains, the percentage of suppliers audited, and information on the quality of auditors used. As a result, it now ranks in the top quartile.

METHODOLOGY

THEME AND INDICATOR SCORE

The benchmark methodology has seven themes, selected to capture the key areas where companies need to take action to eradicate forced labor from their supply chains. There are a total of 22 indicators across the seven themes. For each theme, a company can score a total of 100 points.

Commitment and Governance

The company's top-level commitments on forced labor, supply chain standards, management processes, training programs and stakeholder engagement

OVERALL 70
INDICATORS
Awareness and Commitment
100
Supply Chain Standards
100
Management and Accountability
100
Training
0
Stakeholder Engagement
50

Traceability and Risk Assessment

The extent to which the company traces its supply chain and conducts forced labor risk assessments, and discloses information about these processes.

OVERALL 75
Traceability and Risk Assessment
50
Transparency
100

Purchasing Practices

The company's awareness and action on purchasing practices that can exacerbate forced labor risks, and its process for selecting suppliers, integrating standards into contracts and cascading them down the supply chain.

OVERALL 81
Purchasing Practices
25
Supplier Selection
100
Integration into Supplier Contracts
100
Cascading Standards through the Supply Chain
100

Recruitment

The company's approach to reducing exploitation by recruitment agencies and eliminating workers' payment of fees for their jobs.

OVERALL 17
Recruitment Approach
0
Recruitment Fees
50
Recruitment Audits
0

Worker Voice

The extent to which the company proactively communicates with workers through the supply chain, enables freedom of association and ensures access to effective and trusted grievance mechanisms.

OVERALL 26
INDICATORS
Communication of Policies
25
Worker Voice
0
Worker Empowerment
0
Grievance Mechanism
80

Monitoring

The company's process for auditing (including whether it includes non-scheduled visits, document review, worker interviews) and disclosure about the audit process and findings.

OVERALL 13
Auditing Process
25
Audit Disclosure
0

Remedy

The extent to which the company has corrective action plans for non-compliant factories, as well as processes for remedying workers who are victims of forced labor, and reports on remedies provided.

OVERALL 13
Corrective Action Plans
25
Remedy Programs
0

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