CSR & ICT4D: The View from a TNC

1. CSR & ICT4D:The View from a TNC Sandy Johnstone (sandy.johnstone@hp.com) Director of Corporate Social Responsibility Hewlett-Packard Europe, Middle East, Africa

2. Today’s Agenda • What is Corporate Social Responsibility? • What does CSR mean for HP? • ICT4D – Crossing the Digital Divide • ICT4D – Opportunities from New Technology • The Search for Sustainability • Discussion

3. Today’s Agenda • What is Corporate Social Responsibility? • What does CSR mean for HP? • ICT4D – Crossing the Digital Divide • ICT4D – Opportunities from New Technology • The Search for Sustainability • Discussion

4. Differing views on CSR • That little bit extra “CSR is a concept whereby companies integrate social and environmental concerns in their business operations and in their interactions with stakeholders on a voluntary basis” (EU Multi-stakeholder Forum, June 2004) • All non-financial matters • Labour matters • Environmental matters • Ethics and Governance US Congress might focus on Sarbanes-Oxley etc. • “The tribute that capitalism pays to virtue” “The Economist”, 22 Jan. 2005 • Good holistic managementIn this day and age companies can’t gain a good image with markets, customers and (potential) employees if they only focus on finance Generally, CSR means, not “the business of business is business”, but, “companies are there to serve society by the profitable and responsible provision of goods and services” (Geoffrey Chandler, Sustainability) Trades Unions and NGOs see many of their issues as “CS(E)R”

5. Today’s Agenda • What is Corporate Social Responsibility? • What does CSR mean for HP? • ICT4D – Crossing the Digital Divide • ICT4D – Opportunities from New Technology • The Search for Sustainability • Discussion

6. Hewlett-Packard Co HP is a leading global provider of products, technologies, solutions and services to individual consumers and businesses. Our offerings span information technology infrastructure and storage, personal computing and other access devices, multi-vendor services including maintenance, consulting and integration and outsourcing, and imaging and printing. Our products and services are available worldwide. • For the fiscal year ending on Oct. 31, 2004, HP revenue totaled $79.9 billion. • Somewhere around 140 000 employees world-wide • Operating in about 140 countries • Of the order of 10 000 direct suppliers in our product supply chain (and around another 6 000 “indirect” suppliers)

7. HP Corporate Objectives • Customer Loyalty • Profit • Market Leadership • Growth • Employee Commitment • Leadership Capability • Global Citizenship HP’s CSR Report is entitled “Global Citizenship Report” and is available at www.hp.com/hpinfo/globalcitizenship/gcreport/index.html

8. HP Global Citizenship Objective Good citizenship is good business. We live up to our responsibility to society by being an economic, intellectual and social asset to each country and community in which we do business. Underlying beliefs supporting this objective: • The highest standards of honesty and integrity are critical to developing customer and stakeholder loyalty. • The betterment of our society is not a job to be left to a few; it is the responsibility to be shared by all. • This objective is essential to delivering on the brand promise.

9. CSR Management in HP Debra L Dunn, Senior Vice President of Corporate Affairs and Global Citizenship, has leadership responsibility for HP's global citizenship efforts. These include corporate social and environmental responsibility, government and public affairs, corporate philanthropy and HP initiatives aimed at providing appropriate, technology based services and solutions to emerging markets and underserved populations. See http://www.hp.com/hpinfo.com/execteam/ Debra L Dunn SVP Corporate Affairs and Global Citizenship Corporate Social & Environmental Responsibility Standards of Business Conduct Compliance Government & Public Affairs Philanthropy & Education Supply Chain e-Inclusion Environmental Affairs Emerging Market Solutions dual reporting to Public Sector Customer Solutions Privacy

10. Global citizenship framework privacy ethics & governance community engagement philanthropy communications e-inclusion & education environment policy leadership

11. Today’s Agenda • What is Corporate Social Responsibility? • What does CSR mean for HP? • ICT4D – Crossing the Digital Divide • ICT4D – Opportunities from New Technology • The Search for Sustainability • Discussion

12. Crossing the Digital Divide (1) Mogalakwena i-community, RSA Public-private partnership to enable economic development through the use of information and communication technology Mogalakwena • Community Engagement • ICT Infrastructure • Capacity Building • Economic Development • Cultural Preservation • E-Service Delivery • E-Healthcare Limpopo Province

13. The HP Multi-user 441 Desktop Solution • HP's 441 is a complete hardware, software and support solution for today's educator. • Linux-based system that allows 4 simultaneous, independent users on one standard PC • Includes over 70 office & educational apps • Carries full HP warranty & support

14. School, Dikhatole (east Jo’burg)

15. HP Multi-user 441

16. Crossing the Digital Divide (2)Digital Community Centres in EMEA Belfast, NI Dublin, Ireland Seine-St-Denis (Paris), France Fatick, Senegal Kumasi, Ghana Tula, Russia Slavutych, Ukraine Miskolc, Hungary Wadhwat, Jordan Dikhatole (Jo’burg) South Africa

17. DIGITAL COMMUNITY CENTRE A Digital Community Center(DCC) is a community where Information and Communication (ICT) infrastructure is strategically deployed to encourage the participation and inclusion of all appropriate parties in the economic and social development that technology enables and enhances. The HP DCC program is part of HP's broader efforts to bridge the digital divide through e-inclusion – HP's vision of the future in which all people have access to the social and economic opportunities of the digital age.

18. Digital Community Centre –an ecosystem for e-inclusion Our experience shows that making a significant grant of IT equipment into an underserved community catalyses local government, industry and community groups to joint action. DCCs are “holistic” in the sense that IT is the enabler for many interventions – not an end in itself. Content is key –what people want from their DCC may not be the first thing that occurs

19. Today’s Agenda • What is Corporate Social Responsibility? • What does CSR mean for HP? • ICT4D – Crossing the Digital Divide • ICT4D – Opportunities from New Technology • The Search for Sustainability • Discussion

20. Mission: to generate innovations targeted for • the world's emerging economies • by deeply understanding the confluence of relevant • social, cultural, economic and technological drivers. • Current research at HP Labs India includes: • Language technology • Appropriate access devices • Communication concepts and techniques • Understanding the socio-economic context • New models for human interaction with IT • Services (in local language) offer the opportunity for individuals to gain access, at very small cost, to the benefits of global information and communications. Provision of such services is a business opportunity. New ICT4DHP Labs India - Bangalore

21. USB / Parallel Printer Driver Applications Document Structure Decoding Error Correction Data Extractor TV Out • User experience trial underway • Education trial planned for next quarter • Looking at potential across several emerging markets Applications • Education • Public Information Dissemination • Edutainment • Entertainment - Lifestyle • Advertising Print Augmented TV content • In Emerging Markets TV & Radio broadcasting is pervasive, but Internet access is poor • Low cost decoder/printer with TV allows mass dissemination of information

22. Use handwriting input and appropriate technology to cost-effectively computerize a paper-based society Millions of forms…. Difficult to use keyboards 200M Passengers on Indian Railways with reserved accommodations in 2000 20M Income tax returns filed during 2001-2002 • Applications • Large scale data capture: census, medical information etc. • Online form filling such as railway reservations, etc. • Field workers – insurance agents, medical workers.. 3.5M New motor vehicle registrations in 2000 2.6M New passports issued in 2002 5.6M New telephone connections issued during 2001-2002 1M Driving licenses issued in the state of Tamil Nadu in 2002 Digital pen and paper – paper and handwriting input Digitizer packaged into a low cost device – allows handwriting input 1M Birth certificates issued in the state of Tamil Nadu in 1999 Online Form Filling/ Data Capture in Emerging Markets Low cost data capture

23. Keyboards are difficult to use

24. Today’s Agenda • What is Corporate Social Responsibility? • What does CSR mean for HP? • ICT4D – Crossing the Digital Divide • ICT4D – Opportunities from New Technology • The Search for Sustainability • Discussion

25. The Search for Sustainability– Digital Divide Questions • Pull from the Punters: will they come if you build it? (Content – that do they want to do?) • Commercial Reality: there must be a positive cash-flow (get away from a dependency culture) • Role of Government: funding of access centres (as opposed to them being commercial training centres) • Importance of Metrics: funding will still be important, how does the DCC justify itself (applies to NGO and EU/Govt funding)

26. The Search for Sustainability– New Technology Questions The Business Model will be the key to success. Technology may be the easier part. The challenge is to find cost-effective ways to bring the (presumably cheap) product to market, including • Marketing strategy and costs • Distribution strategy and costs • Maintenance/service/support strategy and costs There aren’t many good answers yet.

27. Today’s Agenda • What is Corporate Social Responsibility? • What does CSR mean for HP? • ICT4D – Crossing the Digital Divide • ICT4D – Opportunities from New Technology • The Search for Sustainability • Discussion