Supplier Relations

As a global company that spends approximately $10 billion a year to support our operations, Xerox recognizes the need to actively manage the supplier base with a strong, global team of purchasing professionals. We assess the quality, cost, delivery and sustainability of the supplier's products and services and ensure their business is run with high ethical standards and in alignment with social responsibility principles. Through activities such as sourcing, contracting and purchasing, our Global Procurement organization maintains a strong presence across the United States, Europe and Asia. We encourage direct interaction between buyers and suppliers within the regions in which we operate.
Xerox Supplier Relations in 2014 Based on Code of ConductXerox Supplier Relations in 2014 Based on Code of Conduct
Xerox Supplier Relations in 2014 Based on Code of Conduct

In 2013, we purchased the vast majority of our global technology needs through the following suppliers. Click on the links below to learn more about their sustainability efforts.

Name of CompanySustainability SiteSustainability Report

Fuji Xerox Co. Ltd. Fuji Xerox Sustainability2013 Sustainability Report

Flextronics International Flextronics Social Responsibility2010/2011 Sustainability Report

Samsung Electronics Samsung Sustainability2013 Sustainability Report



Current and potential vendors can learn about the latest procurement initiatives, as well as supplier diversity, procurement policies, supplier quality assurance and supplier ethics at www.xerox.com/suppliers.

Supplier Code of Conduct
Since 2006, Xerox has been a member of the Electronic Industry Citizenship Coalition (EICC), an organization dedicated to improving social, economic and environmental outcomes in the electronics industry. We serve on the EICC Senior Executive Advisory Council and have adopted its Code of Conduct on corporate social responsibility for our suppliers. The Code of Conduct provides standards in five critical areas of corporate social responsibility: labor, health and safety, environment, management systems and ethics.

We hold suppliers accountable to the Code of Conduct through the terms and conditions in standard purchase agreements and purchase order forms, and by requiring key suppliers and those identified in an initial risk assessment to complete questionnaires. We also reinforce the importance of following the Code of Conduct in an annual ethics communication to our global supplier base.

Based on results of the questionnaire, we administer periodic on-site audits to key suppliers and those identified by the initial risk assessment. Over time, we have implemented increasingly stringent audit criteria and increased the number of suppliers audited. By the end of 2013, we conducted over 275 first-time and follow-up Supplier Code of Conduct compliance reviews and audits, a 14 percent increase over the previous year.

Performance and Reviews
Our procurement staff routinely monitors current and potential suppliers for adherence to our requirements in regular business reviews. Document Technology suppliers must complete an assessment of their quality management system to appear on our Approved Vendors List (AVL), which includes about 1,000 active suppliers.

Xerox Supplier Relations in 2014 Based on Code of Conduct

Conflict Minerals
As an active member of EICC, we are committed to improving conditions associated with mining in conflict regions. In responding to the Dodd-Frank Act, which we have been working since 2011, we have established internal processes incorporating the Organization for Economic Cooperation and Development (OECD) framework. We are a member of the Conflict Mineral Sourcing Initiative (CFSI), and we are utilizing the EICC/GeSI template to survey our supply base regarding conflict mineral usage. Xerox also participates in the Conflict Free Smelter Program (CFSP), which independently audits smelters and refiners to determine if they have a system in place to assure sourcing of conflict-free minerals. In addition, we have incorporated a conflict mineral sourcing statement in our supplier contract template to assure responsible sourcing in our supply chain.

Learn more about our Conflict Mineral Policy at http://www.xerox.com/downloads/usa/en/x/Xerox_Conflict_Minerals_Policy.pdf.

Learn more about our Due Diligence activities in our Conflict Mineral Report at http://www.xerox.com/downloads/usa/en/x/Xerox_Conflict_Mineral_Report.pdf and current Form SD http://news.xerox.com/investors.

Chartered Institute of Purchasing and Supply Certification
In 2009, Xerox became the first organization to achieve global certification from the Chartered Institute of Purchasing and Supply (CIPS) in the area of procurement excellence through processes and procedures, now known as CIPS Silver. In 2012, we achieved CIPS Gold Certification globally – and again, we were the first organization to do so. Gold Certification recognizes our leadership in ethical, sustainable and strategic procurement and verifies our effectiveness in managing our global supplier base.

Supply Chain Security
We are committed to implementing security controls within our supply chain that enable the uninterrupted flow of products from the point of manufacture to the customer. We are a certified participant of the U.S. Customs and Border Protection Customs-Trade Partnership Against Terrorism (C-TPAT) and the E.U. Authorized Economic Operator (AEO) program in the Netherlands and Ireland. As part of these memberships, we’ve adopted specific criteria into both our Supplier Security Requirements and internal security policies and standards. An ongoing assessment program monitors compliance by high-risk suppliers and internal locations. Xerox also belongs to the Transported Asset Protection Association (TAPA).

Supplier Diversity
As part of our supplier diversity program, we identify, build relationships with and purchase from certified small businesses and enterprises owned by minorities, women, veterans, gays and lesbians, and disabled persons. During 2013, Xerox and our subsidiaries purchased goods and services from minority-owned ($175 million), woman-owned ($301 million), veteran-owned ($44 million) and small ($1 billion) Tier I businesses in the U.S.

In 2011, we joined the Inclusion Initiative, a group of companies committed to increasing engagement opportunities for minority- and women-owned (MWBE) law firms, as part of our efforts to support diversity in the practice of law. Each year, we help the Initiative set a new target for collective annual MWBE law firm spend, encouraging our attorneys to seek and consider MWBE law firms for matters requiring outside counsel, and provide resources to identify qualified MWBE firms that fit our needs. Since joining the Initiative and increasing focus on these practices, we have exceeded our annual goals and have continued to expand our engagements with MWBE law firms.

On April 3, 2014, AT&T awarded Xerox an AT&T 2013 Supplier Diversity Crystal Award, recognizing us as a Prime Supplier for attaining 21.5 percent diversity utilization in 2013.

We are an active corporate member of both the National Minority Supplier Development Council and the Women’s Business Enterprise National Council. In addition to all of the above, we participate in multiple small business and diverse supplier fairs and conferences throughout the year. More information about our supplier diversity is available at www.xerox.com/supplierdiversity.

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Our Progress in 2013

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Xerox Supplier Relations in 2014 Based on Code of Conduct

We’re one of the “Best of the Best” Top Supplier Diversity Programs in 2014.

Sustaining Business | Supplier Relations

We were named as one of DiversityComm Inc.’s “Best of the Best” Supplier Diversity Programs. The award recognizes employers with exceptional outreach and accessibility to individuals who are African-American, Hispanic/Latino, veterans and women.

The Xerox Board of Directors: Maintaining Independence

Sustaining Business

Based on standards for independence developed by the New York Stock Exchange, the Xerox Board of Directors is approximately 90 percent independent. It includes one non-independent director: Xerox Chairman and CEO Ursula M. Burns. Learn more about the Board's independence and our governance policies: www.xerox.com/governance.

2010201120122013
88%90%90%90%

Voice of employee survey

Evolving the Workplace

Our proprietary Voice of the Employee Survey allows managers to assess their employees' satisfaction with their job, work group, manager and Xerox as a whole.

Since 2009, we have surveyed 100% of our global population across 49 countries and in 26 languages. Each manager receives a personalized report to assist in developing action plans where needed. In addition, we capture global trend data and employee ideas.

We received 68,500 responses to our 2013 Voice of the Employee survey. We will administer the survey again in 2015.

See more detailed information on employee satisfaction surveys.

2010201120122013
72%74%75%*73%

*In 2012, the survey was distributed to around 14,000 employees in Europe, Canada and our developing markets. All other years reflect a larger global population.

Addressing employee inquiries

Evolving the Workplace

The Sentinel Customer Satisfaction Assurance Systemtm, a Xerox proprietary Web-based polling/routing/reporting system, links employee inquiries or comments through the intranet with appropriate Xerox contacts to identify and track any comment, suggestion or unresolved problem for action.

The chart below displays the number of employee inquiries we received and routed for resolution. The decline in inquiries in recent years is due to the overall resolution of systemic issues and the ability for employees to provide comments/suggestions or raise a technical issue.

2010201120122013
6,6983,2912,7452,185

Employee Diversity – Women Employees

Evolving the Workplace

We gain a competitive advantage as we continue to draw on the experience and creativity of a well-balanced, diverse workforce. That means we're better able to understand and meet the changing demands for our products and services. Simply stated, a balanced workforce makes good business sense.

In the U.S., 53.2 percent of employees are women, and women represent 27 percent of executive and senior-level managers. Diversity reporting is not tracked in most other countries.

The chart below displays the percentage of executive and senior-level managers who were women over the past four years in the U.S.

Learn more about diversity at Xerox.

2010201120122013
23.8%25.0% 26.0% 27.2%

Employee Diversity – Minority Employees

Evolving the Workplace

Employees with different ways of thinking – and different ways of perceiving our world – are employees who create innovative solutions. In a business like ours, whose lifeblood is fresh ideas, this variety of perspectives is a priceless resource – and a key to achieving critical business results.

Minorities represent 40.3 percent of employees and 12 percent of executive and senior-level managers in the U.S. Diversity reporting is not tracked in most other countries.

The chart below displays the percentage of minority employees in our U.S. workforce over the past four years.

Learn more about diversity at Xerox.

2010201120122013
37.5%37.5%39.4%40.3%

Monitoring the safety of our employees

Evolving the Workplace

The health of our business depends on the health and safety of our workforce. In 2013, an ongoing project to improve employee safety awareness and inspection of safe work practices resulted in a declining frequency of injuries.

See more detailed information on our recordable injury rates.

2010201120122013
Up 18% from 2009Down 1% from 2010Up 5% from 2011Down 3% from 2012

Preventing Injuries and Illnesses

Evolving the Workplace

The health of our business depends on the health and safety of our workforce. In 2013, an ongoing project to improve employee safety awareness and inspection of safe work practices resulted in a declining frequency of days away from work cases.

See more detailed information on work injury rates at Xerox.

2010201120122013
Up 4% from 2009Up 6% from 2010Up 13 % from 2011Down 12% from 2012

Topping the competition

Serving Customers

Xerox is the leader in equipment revenue market share*. We offer the industry's broadest portfolio of document technology and services for businesses of any size, in any industry, anywhere around the world.

*Equipment revenue (shipment value) in the hardcopy peripheral industry. Source: IDC WW Quarterly HCP Tracker, Final Historical 1Q14.

Learn more about Xerox products.

2010201120122013
#1#1#1#1

Innovating for the future

Serving Customers

Xerox was granted 1,168 U.S. patents in 2013, ranking the company as one of the world's top innovators. Our joint venture in Japan, Fuji Xerox Co. Ltd., received 800 U.S. patents. The Xerox group garnered 1,968 patents total.

Xerox and Fuji Xerox collectively invest about $1.3 billion annually in research, development and engineering.

*Total patents earned along with Fuji Xerox Group.

Learn more about innovation at Xerox.

See more information on our patent filings.

2010201120122013
1,6051,6181,9001,968

Measuring Customer Satisfaction

Serving Customers

Service and support for Xerox products earned five consecutive industry certifications from 2006-2010 under the J.D. Power and Associates Certified Technology Service and SupportSM program. All forms of customer support – phone, online, on-site – were evaluated by independent service industry experts who recognized our support services as among the best in class. These certification reviews have ensured we maintain process excellence in technical service delivery.

In 2011, we chose to invest in a new customer satisfaction process to ensure a stronger focus on understanding and fulfilling customer needs and expectations. The new process solicits feedback from our technology customers around the globe and provides detailed insights that help us identify systemic issues and make the necessary changes that ensure strong customer satisfaction. Improved closed-loop follow-up processes also enable faster responses to individual problems.

2010201120122013
Achieved certification in the J.D. Power and Associates program for Certified Technology Service and Support.In 2011, we chose to invest in a new customer satisfaction process to ensure a stronger focus on understanding and fulfilling customer needs and expectations. In 2012, we continued our investment in a new customer satisfaction process to ensure our award-winning service and customer-centric approach builds customer loyalty and trust. In 2013, we further developed our new customer satisfaction process and saw positive results, both in the feedback from our customers and in the internal measures we use to assess the quality of what we are delivering to the marketplace.

Industry Analysts Recognize Xerox As A Market Leader

Serving Customers

Our commitment to our customers has gained worldwide recognition.

Xerox has been named a leader in the Gartner Magic Quadrant for Managed Print Services for six consecutive years (most recently Oct. 21, 2013) and a leader in the Gartner Magic Quadrant for Customer Management Contact Center BPO for two consecutive years (most recently Dec. 24, 2013).1

Many independent industry analysts rate Xerox services and products as leaders in multiple categories. Selected awards are displayed in the chart.

1Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

2010201120122013
IDC: an IDC MarketScape leader for Worldwide Managed Print Services.

Quocirca: Market leader for MPS Landscape.
IDC: an IDC MarketScape leader for Worldwide Managed Print Services.

Quocirca: Market leader for MPS Landscape.

Everest Group: PEAK Matrix Assessment leader for Benefits Administration Outsourcing.
IDC: an IDC MarketScape leader for U.S. Shared, Networked MFPs for the Distributed Office; EMEA Managed Print Services.

Forrester Research, Inc.: cited as a leader in The Forrester Wave™: Managed Print Services, Q2 2012.

Quocirca: Market leader for MPS Landscape.
IDC: an IDC MarketScape leader for Worldwide Managed Print and Document Services; U.S. Smart Multifunction Peripherals.

Quocirca: Market leader for MPS Landscape.

HfS Research BluePrint: Winner's Circle for Healthcare Payer BPO Services.

Everest Group: PEAK Matrix Assessment leader for Benefits Administration Outsourcing; Contact Center Outsourcing.

NelsonHall NEAT: Leader in Benefits Administration Services.

Xerox Foundation

Caring for Communities

In 2013, more than 2,500 non-profit organizations, colleges and universities received direct financial support from the Xerox Foundation through grants, matching gifts or community involvement activities. We focus our investments in the following areas:

  • Education and workforce preparedness
  • Science and technology
  • Employee and community affairs
  • National and cultural affairs

Learn more about the Xerox Foundation.

See more detailed information on Xerox Foundation giving.

2010201120122013
$12.5 million$13.5 million$13.5 million$13.5 million

The Xerox Community Involvement Program

Caring for Communities

The Xerox Community Involvement Program links the voluntary spirit of our employees to get involved in the communities where we live and work. Since 1974 when the program began, more than 500,000 Xerox people have been involved in regional, community-focused projects.

Learn more about the Xerox Foundation.

See more detailed information on community involvement programs.

2010201120122013
10,000 Employees

700 Projects
12,000 Employees

750 Projects
12,500 Employees

700 Projects
13,000 Employees

800 Projects

Our goal: Zero waste to landfills

Preserving the Planet

To pave the way for our ultimate goal of zero waste to landfills, we aimed to achieve a 50 percent reduction in landfill rate between 2009 and 2015. We reached this target three years early, and in 2013 we surpassed it.

See more detailed information on Xerox recycling.

2010201120122013
Down 25%
from 2009
Down 25%
from 2009
Down 50%
from 2009
Down 60%
from 2009

Conserving water

Preserving the Planet

As part of our commitment to conserve resources, we monitor water consumption across our manufacturing, distribution and R&D facilities worldwide. Since 2009, water consumption has decreased by 35 percent.

See more detailed information on water consumption.

2010201120122013
Down 7% from 2009Down 21% from 2009Down 35% from 2009Down 35% from 2009

Reducing greenhouse gas emissions

Preserving the Planet

Since 2009, Scope 1 (direct) and 2 (indirect) greenhouse gas emissions are down 24 percent in our Document Technology business. The reductions are the result of improved energy efficiency, new technologies and improved energy management practices.

See more detailed information on greenhouse gas emissions.

2010201120122013
No change from 2009Down 8% from 2009Down 13% from 2009Down 24% from 2009

New products achieve the ENERGY STAR® rating

Preserving the Planet

In 2013, 100 percent of our new eligible products met the current ENERGY STAR (July 2009) requirements. We've continuously reduced power consumption of our laser-based printing products by adjusting fuser design, changing properties of toner, implementing more efficient electronic controls and improving the xerographic system as a whole.

See more detailed information on ENERGY STAR® ratings for Xerox Products.

2010201120122013
100%100%100%100%

End-of-Life Management

Preserving the Planet

Our approach to managing products at end-of-life translates into significant environmental and financial benefits. Globally, our combined returns programs (equipment remanufacture in conjunction with parts and consumables reuse and recycling) prevented over 33,000 metric tons of waste from entering landfills in 2013 alone.

Learn more about the Xerox Green World Alliance.

2010201120122013
97%98%99.3%99.1%

Reducing emissions by reducing employee air travel

Preserving the Planet

Business travel plays a big role in contributing to greenhouse gas emissions. In recent years, we've promoted videoconferencing and other technology as environmentally friendly alternatives to air travel. Thanks to these efforts, we've reduced emissions due to air travel by 20 percent per employee every year since 2010.

See more detailed information on carbon dioxide equivalents (C02e).

2010201120122013
Baseline yearDown 20% per employee from 2010Down 20% per employee from 2010Down 20% per employee from 2010

Energy Use Reduction

Preserving the Planet

Following achievement of our "Energy Challenge 2012," we adopted a new goal of reducing greenhouse gas emissions by 10 percent across all company operations by 2017. In 2013, we attained a 6 percent reduction – more than half of our five-year goal.

To allow for consistent reporting, the chart below depicts achievement against the original 2002 baseline.

See more detailed information on energy use reduction.

2010201120122013
Down 21% from 2002Down 27% from 2002Down 33% from 2002Down 39% from 2002