Supply Chain Management

Supply Chain Management and Audits We expect our business partners to adhere to the same goals that Western Digital subscribes to in the manufacturing of our products. Accordingly, Western Digital Corporation works with its business partners to drive the goals set forth in the EICC Code of Conduct through our supply chain. We provide the training and necessary tools to our suppliers to enable them to comply with the EICC Code of Conduct, as well as to make sure they understand the goals of the EICC and why adherence to the Code of Conduct is important.

We perform audits of our suppliers on a regular basis to ensure that the Code is being enforced at the supplier level. We also request that our key suppliers use the EICC-validated Audit Process to ensure the effectiveness of the implementation of the EICC Code of Conduct at their sites. Western Digital Corporation will partner with its suppliers to address any gaps in compliance with the Code.

We have additionally provided capability training to our first-tier suppliers, performed supplier site audits, and tied adherence to the EICC Code of Conduct in our QBR measurement process. Our first-tier suppliers are responsible for the following tiers, with Western Digital Corporation involved as required to help resolve any issues.

Policy Regarding Conflict-Free Minerals Western Digital Corporation strongly disapproves of the violence in the Democratic Republic of Congo (DRC) and adjoining countries and is committed to supporting responsible sourcing of conflict minerals (gold, columbite-tantalite, also known as coltan, cassiterite, wolframite, or their derivatives tin, tantalum or tungsten (collectively the "3TGs")) from the region.  In furtherance of the goal of Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of the 2010 United States Congress, Western Digital Corporation expects its suppliers to supply materials to Western Digital Corporation that are “DRC conflict-free.”  This means (1) any conflict minerals necessary to the functionality and production of supplied materials do not directly or indirectly finance armed groups through mining or mineral trading in the DRC or an adjoining country, or (2) any 3TGs in supplied materials are from recycled or scrap sources.  We also expect our suppliers to adopt policies with respect to conflict minerals in support of this policy and, throughout the supply chain, to require their suppliers to adopt similar policies.

California Transparency in Supply Chains Act (SB 657) The California Transparency in Supply Chains Act (SB 657) requires many companies, including Western Digital, to disclose on their websites the efforts they take to eradicate slavery and human trafficking from their direct supply chains. SB 657 requires disclosures regarding verification, auditing, certification, internal accountability and training.

  1. Supply Chain Verification and Auditing

    Western Digital’s commitment to global citizenship is strengthened by its commitment to the Electronics Industry Citizenship Coalition (EICC) and its adherence to the EICC Code of Conduct. This Code of Conduct addresses supply chain performance expectations for labor, health and safety, environmental practices, ethics and management systems.

    Western Digital requires that its suppliers make a commitment to adhering to the EICC Code of Conduct and requires that suppliers perform periodic self-assessments. Western Digital also performs periodic audits of key suppliers. These audits are coordinated with these suppliers. While Western Digital does not engage third parties to conduct these audits, some suppliers have been audited by third parties retained by other EICC member companies.

    We believe that our suppliers' compliance with the EICC code reduces the risks of human trafficking and slavery in our supply chain. Western Digital and its subsidiaries expect suppliers to comply with the EICC code regardless of local business practices or social customs, and as may be requested by Western Digital, to demonstrate adherence to those codes.

    For more information on the EICC and to view the EICC Code of Conduct, visit http://www.eicc.info/.

  2. Compliance with Slavery and Human Trafficking Laws

    Suppliers contracted to Western Digital are required to comply with all laws applicable to their business operations. Suppliers are also required to make a commitment to the EICC Code of Conduct.

  3. Internal Accountability

    Western Digital requires employees to follow its Global Code of Conduct and Code of Business Ethics. Violations of the Code of Conduct or Code of Business Ethics may be the grounds for employee discipline, up to and including termination of employment. Contractors are also expected to conduct themselves in a manner consisted with these principles. Contractors who fail to comply may be dropped from Western Digital’s supply chain.

  4. Training

    Western Digital provides managers and its employees who have direct responsibility for supply chain management with knowledge and information regarding Western Digital’s requirements, including EICC compliance. Western Digital also regularly conducts training for suppliers on EICC related issues.

Other Supply Chain Initiatives Western Digital Corporation is working with its suppliers to support participation in the EICC Carbon reporting system survey.

We also work with business partners to prepare them for early ISO 14064 Certification and have partnered with local universities to further this goal.