Supply Chain and Procurement

Supply Chain and Procurement
Responsible Supply Chain

Oracle is committed to ethical business conduct and the responsible sourcing of materials throughout our global hardware supply chain. On issues ranging from factory safety to conflict minerals, we work within our own hardware supply chain and across our industry to advance responsible practices.

Compliance

Compliance

Oracle’s Supplier Code of Ethics and Business Conduct requires our suppliers to observe the law and conduct business in an ethical and responsible manner. Where local laws are less restrictive than Oracle’s Code, suppliers must comply with the Code, even if their conduct would otherwise be legal. Where local laws are more restrictive than Oracle’s Code, suppliers must always, at a minimum, comply with the law. Where permitted by law, we enable the anonymous reporting of noncompliance incidents through the Oracle Integrity Helpline.

In addition, Oracle has adopted the Electronic Industry Citizenship Coalition (EICC) Code of Conduct and actively participates with other industry groups to leverage industrywide approaches aimed at reducing duplicative efforts and promoting continuous improvement in factory working conditions across the electronics industry.

Environmental Footprint

Several of our direct hardware suppliers are located in resource-constrained areas that have emerging regulations around the use of natural resources, including energy, waste, and water. For this reason, we include these topics in our annual hardware supply chain surveys. Oracle also participates in the EICC Energy Saving Opportunity Scheme (ESOS) ICT industry report, leveraging best practices identified in the United Kingdom to improve energy efficiency across our direct hardware supply chain globally.

Responsible Sourcing

Through Oracle’s Supplier Social and Environmental Responsibility programs, we manage and monitor our direct hardware supply chain, leveraging the EICC Code of Conduct. Our responsible sourcing approach addresses a range of issues, including factory audits, conflict minerals, energy, water and waste footprints, and anti-human trafficking.

Assessment and Auditing

Oracle evaluates risks within its direct hardware supply chain based on several factors, including geography and self-assessment questionnaires. As part of our commitment to reducing audit fatigue in the information and communication technology (ICT) industry, Oracle may accept EICC-validated audit reports in lieu of onsite audits.

In FY17, we completed 13 audits and 5 re-audits based on the EICC Code of Conduct at direct hardware supplier factory locations.

Conflict Minerals

Oracle is committed to responsible sourcing of the tin, tantalum, tungsten, and gold (3TG) incorporated into the hardware products used in our cloud services and data centers globally. In 2016, we established a goal to survey our direct hardware suppliers and manufacturers that collectively represented at least 85 percent of our total direct hardware supply chain expenditure. We exceeded this goal, ultimately receiving responses from first-tier suppliers representing approximately 90 percent of our direct hardware supply chain expenditures in 2016.

Oracle continues to be an active member of the Conflict-Free Smelter Initiative (CFSI) established by the EICC.

Read our statement on conflict minerals

Anti-Human Trafficking

Oracle has a zero-tolerance policy for child labor and human trafficking in its global supply chain. In 2015, the EICC strengthened its stance on this issue, banning the payment of employers’ or agents’ recruitment and related fees by workers. As a result, and in an effort to identify any vulnerable groups within a factory workforce, our direct hardware supplier audits include interviews with factory employees to understand recruitment processes.

As part of our commitment to increase awareness and transparency regarding human trafficking, Oracle provides training pursuant to the California Transparency in Supply Chains Act and the United Kingdom’s Modern Slavery Act of 2015.

Read our policy against trafficking in persons and slavery (PDF)


Procurement

Sustainable Procurement Practices

Oracle’s commitment to sustainability extends to the products and services we purchase. We recognize that purchasing decisions present an opportunity to have both a social and an environmental impact and promote doing business in a responsible and sustainable manner. We employ a supplier qualification program that requires our suppliers to demonstrate socially and environmentally responsible business practices.


Procurement Achievements

  • ISO 14001 certified

    100% of Oracle’s technology recyclers are ISO 14001 certified.

  • Laptops are ENERGY STAR and EPEAT certified

    100% of the standard laptops we purchase are ENERGY STAR and EPEAT certified.

  • 4.1 million installations of software

    More than 4.1 million installations of software in FY15 and FY16 were performed electronically, eliminating all the physical media previously necessary.

  • 4.2 million pounds of technology assets were collected for recycling

    4.2 million pounds of technology assets were collected for recycling or reuse in FY16 and FY17.

  • 41,000 pounds of batteries were recycled

    41,000 pounds of batteries were recycled by Oracle’s asset management team in FY16 and FY17.

Leveraging Technology to Reduce Travel

In FY16 and FY17, we continued our work to reduce travel by leveraging Oracle products and updating our travel-related business practices.

We ask employees to travel only when necessary and employ web conferencing and Cisco TelePresence across our enterprise to ensure that virtual meetings are highly effective. Many internal meetings that were previously conducted face-to-face have been replaced by teleconferences.

Recycling and Recovering Assets
  • Office equipment: Oracle’s Asset Sale, Donation, and Disposal policy outlines what employees should do with technology assets that are not being fully utilized or have reached the end of their useful life. Computers, monitors, computer accessories, printers, projectors, and more are collected and managed by Oracle’s Technology Recovery and E-Waste Recycling program. Surplus equipment from one Oracle department is given to another for immediate use, and assets that must be retired are mined for their useful parts before being recycled.
  • Phones: Oracle and its mobile phone providers—AT&T, Sprint, and Verizon—offer trade-in programs for employee cell phones and handheld devices. Traded-in phones are refurbished and made available to customers seeking to purchase preowned equipment at a reduced rate.

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