EICC Membership
In October 2006, Xerox became a coalition member of, and adopted, the Electronic Industry Code of Conduct (EICC), a standards-based approach for monitoring suppliers’ compliance across several areas of social responsibility, including labor, health, safety and environmental activity. Xerox has validated its compliance with all EICC guidelines and has committed to ensure compliance by our key vendors that contribute to the manufacturing of Xerox systems. We also participate in EICC quarterly conferences, where members share industry best practices for managing the supply chain.

We have also developed a process that measures suppliers’ compliance and incorporates EICC activities into our communication plans. And in 2007, in conjunction with the EICC coalition, we participated in third-party audits of 17 suppliers, five of which are current providers to Xerox. As the third-party audit program expands its coverage to more suppliers, we will continue to participate in its future phases.

Ethical Business Environment
To report concerns that suppliers feel may jeopardize otherwise constructive business relationships, we provide them with an ethics hotline and P.O. box address, and we promptly investigate all concerns. More information on the EICC Code of Conduct can be found online at www.eicc.info and click on the EICC Code link.

Supplier Diversity
Xerox is recognized as an industry leader in supplier diversity. We have established partnerships with minority- and women-owned business enterprises (MWBE), veterans/service disabled veterans, HUBZone programs and Protected Workshop Vendors. We are also establishing supplier relationships with gay and lesbian business enterprises. Over the past 20 years, Xerox has purchased more than $5.7 billion in goods and services from qualified companies owned by minorities, women and veterans/service disabled veterans. In 2006, Xerox purchased $326 million of goods and services from approximately 1,000 MWBE suppliers. That’s about 25% more than originally targeted and 27.6% of the qualified purchases.

More information about our supplier diversity is available at www.xerox.com/supplierdiversity.

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