At Lexmark, we choose suppliers who share our vision of corporate citizenship and agree to conform to Lexmark’s expectations and standards. We monitor the performance and compliance of our suppliers by analyzing on a regular basis their social, environmental and economic data.
Our membership and participation since 2009 in the Responsible Business Alliance (RBA) has further strengthened our organizational efforts in support of human rights, labor standards, and other corporate social responsibility values. Lexmark has adopted and actively pursues conformance to the RBA Code of Conduct supplemented by the Lexmark Supplier Code of Conduct.
Lexmark’s Supplier Code of Conduct defines our expectations for suppliers regarding ethical behavior, sustainable environmental practices, and protection of the health, safety, dignity and fundamental rights of all workers. Lexmark contracted suppliers have committed to comply with a required supplier code of conduct. The Lexmark Supplier Code of Conduct is based on the following standards:
In accordance with RBA guidelines, Lexmark conducts third-party Validation Assessment Program (VAP) audits for each of the Tier 1 final Lexmark branded hardware assembly suppliers every two years with 100% being compliant.
Lexmark's Responsible Sourcing Team has had ESG training. ESG impacts are considered before entering into a supplier relationship. Lexmark procurement personnel have access to a database of supplier information that includes the suppliers' ESG commitments, as well as their performance metrics.
Sustainability is integrated with the Lexmark supplier selection and retention processes. Lexmark provides incentives for suppliers to adhere to RBA guidelines by offering long-term contracts, collaborating on production volumes, consolidating suppliers and partnering on development projects.
Lexmark sourcing teams are encouraged to select suppliers that are near the location where their products will be used—such as near a manufacturing location—when possible. Locally based suppliers are environmentally and financially preferable, resulting in positive local impacts.
Lexmark supplies are strategically produced in local economies near our customers. We produce supplies in Poland to meet the needs of our customers in Europe. Lexmark sources hardware and supplies for Asia Pacific from China, and our manufacturing plant in Mexico produces hardware and supplies for Latin America and North America. Manufacturing products regionally near our distribution centers not only allows our customers to receive needed supplies and hardware faster, but also provides an opportunity for our customers to recycle their end-of-life hardware and supplies closer to home.
Critical suppliers account for a significant percentage of Lexmark total procurement spending.1 The map below shows where our suppliers are located.
The RBA Code of Conduct sets forth performance, compliance, auditing and reporting guidelines across five areas of social responsibility:
To better understand corporate social responsibility (CSR) risks in the supply chain, Lexmark analyzes the spending behavior of that chain, evaluating basic information (total number of suppliers, geographic spread, and so on), as well as social and environmental aspects such as supplier diversity and environmental factors. Potential and new suppliers undergo a CSR assessment on sustainable procurement issues. These assessments are conducted with data-collection tools specializing in supply chain analyses.
| Tier I Final Assembly* - Certifications | ||
| ISO 9001:2015 | ISO 14001:2015 | ISO 45001:2018 |
| 100% | 100% | 80% |
| *Tier I Final Assembly is defined as the final production site for hardware devices and where the product is considered to be a finished good. | ||
Lexmark strives to encourage and afford opportunities to minority suppliers. The Lexmark Supplier Diversity Program is founded on Lexmark values of mutual respect, corporate citizenship, and integrity. Diverse businesses make up a vital segment of the economy, and, therefore, supporting diverse businesses is advantageous to our financial performance and our community.
Our global sourcing efforts with veteran-owned small businesses helped Lexmark earn the distinction of a Military Friendly Employer for the seventh year in a row and placement on the Military Friendly Supplier Diversity Program list. This recognition resulted from a leading survey by Victory Media that recognizes companies with the strongest job opportunities and best-in-class hiring and retention programs for transitioning service members and spouses seeking civilian employment. Click here to view our supplier diversity ratings based on our efforts to create sustainable and meaningful benefits for the military community.
1 Direct material critical suppliers are those which require more than three months for Lexmark to qualify and/or switch to a new supplier. Indirect material critical suppliers are those with whom Lexmark spent more than $1 million in the previous calendar year and, in addition, which require more than three months for Lexmark to qualify and/or switch to a new supplier.
Our vision is to forge impactful and enduring partnerships with our suppliers. We work together to ensure suppliers meet stringent requirements that fulfill our environmental, social, and governance commitments. By nurturing these relationships, we can innovate, ensure due diligence, and create a diverse, cost-effective supply base. By embracing a diverse network of suppliers, we harness a wealth of perspectives, experiences, and talents, fueling our capacity for groundbreaking solutions and ensuring resilience in the face of challenges. Working collaboratively, we’ll reduce our social and environmental impact, set clear goals, and enrich our company, customers, and community. Diversifying our supply base enhances our ability to serve customers and communities globally.
Tonya MacAvock
Vice President, Global Supply Chain
Lexmark
