Accountability

Corning takes steps to evaluate, assess, and verify potential risks in our supply chain through our supplier selection, onboarding, and ongoing management processes. Corning uses these processes to ensure that our supply base meets and exceeds internal and external customer expectations relative to performance, social responsibility, and risk management.

The selection and onboarding process is the best time to ensure that Corning Values and the values of our suppliers are aligned. As part of the selection process, suppliers are screened to identify potential risks early and ensure that suppliers meet Corning’s standards, including those related to supply chain responsibility.

In 2015, Corning established a single standard global process for supplier onboarding. As part of this centralized process, new suppliers must be approved by supply management professionals. One of the many benefits of this centralized process has been a decrease in the total number of suppliers added to our supplier base, which has allowed for more robust oversight of new suppliers. Additionally, Corning continues to improve existing processes and implement new ones to ensure a socially responsible supply chain.

All of Corning’s suppliers must agree to act in accordance with the principles and requirements of our Supplier Code of Conduct, which includes Corning’s right to audit suppliers for such compliance. Corning supply management professionals leverage a web-based tool, as well as on-site audits, to conduct internal assessments of the systems, products, and processes of strategic suppliers based on industry standards and the Corning quality framework. Corning uses a consolidated and consistent template for these assessments, which addresses a wide range of criteria, including social responsibility drivers (e.g., labor and human trafficking), environmental factors, sustainability, health and safety, quality, and performance.

Once Corning assesses the supplier’s performance as defined by the supplier performance assessment process, we share the results with participating suppliers, and schedule follow-up meetings to develop corrective action plans that include specific performance improvement goals. Supplier performance is reviewed periodically throughout the year to assess progress to plan, and remediation is pursued if appropriate.

In 2019, the scope of the supplier performance assessment process is being expanded to include additional corporate social responsibility questions in alignment with RBA standards. By the end of 2019, 100% of Corning’s strategic suppliers will have been evaluated through this assessment process.

Corning is committed to working with suppliers who share our standards for social responsibility. To ensure compliance and identify and mitigate social responsibility risks in the supply chain, Corning has developed a comprehensive audit program for its highest risk strategic suppliers. Contract manufacturers, a high-risk area for social responsibility, receive more focus and attention. Assessments are conducted by well-respected third-party auditors and aligned with industry standards, including RBA principles, with reassessments to follow on a two-year cycle. Based on results, improvement plans for mitigation and training are developed, and follow-ups are scheduled. Insufficient remediation may result in contract termination. 

In 2017, Corning conducted in depth third-party audits on 100% of our highest risk suppliers, and remediation of findings from these audits continued through 2018. We are expanding these audits in 2019 to encompass medium risk suppliers.

For more information, read the full Social Responsibility Audit document.

A key component of our supplier assessment and audit process is the development of corrective action plans to remedy non-compliance in the areas of social responsibility drivers (e.g., labor and human trafficking), environmental sustainability, health and safety, quality, and performance. These plans are designed to bring the supplier in compliance within a defined timeframe. While working within a corrective action plan, a supplier will be subject to frequent progress reviews. Corrective action plans for the highest risk suppliers are reviewed with senior corporate leadership, including the Corporate Risk Council. If a supplier does not make sufficient progress, outcomes can include: