14 DAY TRIAL // Microsoft’s auditing and assurance programs will move to the next stage in their evolution in 2013 when the company will start requiring annual sustainability reporting by vendors.
According to the software giant, the initiative was catalyzed a shareholder proposal from New York City Comptroller John C. Liu (from the New York City Pension Funds).
Essentially, company partners, including contract hardware manufacturers, will need to adhere to the Microsoft Vendor Code of Conduct.
“We appreciate and value the discussions we’ve had with Comptroller Liu’s office and the opportunity to continue our collaborative work with shareholders on initiatives that further demonstrate our commitment to corporate citizenship,” noted Brad Smith, general counsel and executive vice president of Legal and Corporate Affairs for Microsoft.
“This new reporting requirement will help shareholders, customers and others understand how Microsoft and its suppliers are meeting their expectations for social responsibility.”
The code of conduct is designed to provide a collection of standards designed to keep Microsoft vendors “in line,” so to speak.
Essentially, the code sets the bar high in a number of aspects, including legal compliance, business ethics, labor and human rights standards, environmental protection, and respect for intellectual property, according to Microsoft.
The Redmond company plans to include summaries of the sustainability reports from vendors into its own Citizenship Reports.
“Microsoft has taken an important step to promote sustainability and transparency among its global suppliers,” Liu added.
“If more firms showed such leadership it would hold more suppliers accountable for protecting human and workers’ rights, and reduce the legal and reputational risks that companies and their shareholders face. The New York City Pension Funds are taking this proposal to other companies and expect that they will follow the prudent path Microsoft has chosen.”