By the end of 2010, we obtained or requested self-assessment questionnaires from the majority of our preferred suppliers. We use E-TASC, the self-assessment tool developed by the Global e-Sustainability Initiative / Electronics Industry Citizenship Coalition industry collaboration.

In 2010, we conducted 30 site audits of Motorola Solutions suppliers:

• Twenty six planned as part of our normal visits to suppliers
• Four conducted in response to reports from internal or external parties

When combined with site audits of Motorola Mobility suppliers, we met our combined goal for 2010 of 40 audits.

In 2010, we conducted 40 percent of audits outside China to gain a greater understanding of the most common issues in individual countries. We conducted audits in China, Hungary, India, Japan, Malaysia, Philippines and Singapore.

As part of our focus on capability building, we are using the knowledge gained through auditing to develop training programs tailored to match the needs of individual countries.

Audit findings in summary

When we identify issues during an on-site audit, we require the supplier to develop a corrective action plan. We ask them to provide a date for completion and work with the supplier until all issues are resolved.

As of 31 December 2010, Motorola Solutions suppliers had resolved more than 271 issues, or 42 percent of issues identified in 2010.

Detailed audit findings

Audit findings analysis

Freely chosen employment

In 2010, we identified six issues related to freely chosen employment. The issues primarily related to: holding of foreign contract workers passports; restriction of workers’ mobility at work; lack of formal terms and conditions in worker contracts; and lack of policies or procedures for the management of foreign contract works by labor brokers. We are working with the suppliers to resolve these issues.

Child labor avoidance

The 15 issues relating to child labor avoidance related to lack of policies or procedures in place at a facility to verify the age of workers. No under aged workers were identified in audits.

Working hours

Similar to prior years, excessive or higher than legally permitted working hours was one of the most common findings of the onsite audits conducted in 2010, with 50 instances identified. We measure suppliers’ working hours against our supplier code, industry norms and applicable legal requirements. This means that a single supplier can have multiple working hours-related findings.

Corrective actions to reduce working hours continue to be a significant challenge for many factories in China that need to balance workers’ monetary needs, availability of labor and production requirements along with labor standards.

In 2010, Motorola continued its approach of monitoring suppliers’ progress in reducing working hours according to approved plans.

Wages/benefits

There were 29 in findings relating to incorrect payment of wages and benefits in 2010. The most common findings related to miscalculation of wages for overtime hours and the absence of a comprehensive pay statement to help workers understand their compensation. Motorola will continue to work with suppliers to resolve the outstanding issues.

Humane treatment

Ten audit findings related to humane treatment. The findings involved: lack of written rules and regulations regarding disciplinary procedures and lack of training for supervisors in this area; lack of procedures to investigate reports of inhumane treatment against workers; no written grievance procedures; and no policies and procedures for sick leave and maternity leave. We are working with the suppliers to resolve these issues.

Non-discrimination

The three non-discrimination findings related to a lack of written policies on non-discrimination and no written grievance procedure. We are working with the suppliers to resolve these issues.

Freedom of association

There were two findings in this area, which involved lack of written policies and procedures addressing freedom of association. We are working with the suppliers to resolve these issues.

Occupational safety

Of the 21 occupational safety findings, most involved an absence of, or improper use of personal protection equipment. Findings also related to lack of proper training in chemical handling and chemical exposure. Suppliers have completed or are implementing corrective actions.

Emergency preparedness

There were 63 findings relating to emergency preparedness, making it the most common finding. Deficiencies identified included insufficient fire or evacuation drills, blocked exits, blocked or missing fire extinguishers, lack of proper eyewash stations, and lack of fire exit signage and or exit lighting. Suppliers with these issues either have completed, or are implementing corrective actions.

Occupational injury and illness

Of the 44 occupational injury and illness findings, most related to general safety related issues including lack of programs, improper training, worker exposure, lack of personal protection equipment and chemical handling.

Suppliers with these issues either have completed or are implementing corrective actions.

Hazardous substances

The fifth most common finding with a total of 43 instances. The majority of these findings related to improper storage of chemicals and lack of proper chemical data sheets. Suppliers have completed or are implementing corrective actions.

Management accountability and responsibility

There were 52 findings relating to management accountability and responsibility, making it the second most common finding. These involved lack of formal management systems, goals, policies and procedures. We are working with the suppliers to resolve these issues.