We hold our suppliers to the highest standards 

We assess our suppliers against the industry standard formulated by the EICC (Electronic Industry Citizenship Coalition) and captured in the Philips Supplier Sustainability Declaration.

The Philips Supplier Sustainability Declaration (SSD)
covers, among other things, labor and human rights, worker health and safety, environmental impact, ethics, and management systems. In line with our General Business Principles, we have added requirements on freedom of association and collective bargaining. The Declaration also requires suppliers to cascade the EICC Code – as a total supply chain initiative – down to their next-tier suppliers.

Audit program

We monitor supplier compliance with the Declaration through a system of regular audits, which are performed by an independent audit firm. If non-conformances are identified, we require the supplier to draw up a corrective action plan. Philips sustainability experts support the supplier, for instance by providing training or sharing best practices, with a particular focus on health and safety in the workplace. We monitor the implementation of corrective action plans until all major non-conformances are resolved. Full-scope audits are conducted in a 3-year cycle.


If we notice a delay in the implementation of a corrective action plan, we apply a stratified approach for consequence management. In exceptional cases where a supplier is unwilling to improve, we end the business relationship.


To prevent audit fatigue and limit the burden of audit preparation and follow-up at a single supplier site, Philips has agreed with some of the other EICC members to share audit results. This eliminates the need for multiple audits and enables a stronger focus on corrective actions and their follow-up.