Accountability

All Corning suppliers must agree to act in accordance with the principles and requirements of our Supplier Code of Conduct, which includes Corning’s Human Rights Policy. To ensure compliance and identify and mitigate social responsibility risks in the supply chain, Corning has developed a comprehensive supplier management process. This process, which leverages a suite of technology platforms and internal processes, enables us to closely monitor operations, capture data and share supply chain information faster, more efficiently, and accurately. Corning takes steps to evaluate, assess, and verify potential risks in our supply chain through our supplier selection, onboarding, and ongoing management processes. Corning uses these processes to ensure that our supply base meets and exceeds internal and external customer expectations relative to performance, social responsibility, and risk management.

Corning conducts responsible and sustainable procurement practices to encourage good labor practices and reduce the risk of human trafficking and forced labor with the supply chain. 

1. Supplier Selection/Onboarding

Corning has a single, standard global process for supplier onboarding. As part of this centralized process, all new suppliers must be approved by our supply management professionals. One of the many benefits of this centralized process has been a decrease in the total number of suppliers added to our supplier base, which has allowed for more robust oversight of new suppliers. Additionally, Corning continues to improve existing processes and to implement new ones to ensure a socially responsible supply chain. Potential suppliers are screened to monitor corporate social responsibility areas, including adherence to Corning supplier code of conduct.

2. Supplier Assessments, On-site Audits and Social Responsibility Audits

All of Corning’s suppliers must agree to act in accordance with the principles and requirements of our Supplier Code of Conduct, which includes Corning’s right to assess and audit suppliers for such compliance. Corning supply management professionals leverage a variety of tools, including report cards, quarterly business reviews and supplier performance management to ensure Corning’s suppliers meet and exceed our customer and industry standards.

a) Responsible sourcing audits

Corning, in line with international laws and standards, works to ensure that our supply chain complies with the highest standards for ethical sourcing, responsible labor practices, and environmental stewardship. For this reason, our supply chain sustainability and compliance team is managing selected suppliers for sustainability risk and certifications through multiple programs.

Corning requires that suppliers, when requested, participate in sustainability assessment work with our procurement teams to create a timeline for the assessment and improvement plans that are completed on time.

Our three main sustainability supply chain assessment solutions are managed through the Responsible Business Alliance (RBA), EcoVadis, and Corning sustainability audit; other sustainability certifications are accessed individually and accepted by our experts working within the procurement organization.

Responsible Business Alliance: Corning suppliers fill out sustainability self assessment questionnaires and can choose RBA VAP audit to validate their sustainability achievements. Many industry peers are already participating in RBA audits as it is a well-recognized standard and provides sharing of audit assessments to many of their customers.

EcoVadis: Corning’s supply chain sustainability program through Ecovadis in 2024 has achieved 700 suppliers connecting on the platform providing a measurable comparable result on their sustainability activities. This solution with the desktop audit structure and global multi-purpose coverage helps our suppliers to go through assessment - especially if their customer base covers a wide range of industries.

If you are one of our suppliers and already have gone through the assessment, please make sure you share your scorecard through the platform proactively.

Corning sustainability audit: Our commitment to a sustainable supply chain also covers a supplier audit process specific to Corning but aligned with  the RBA Code. More than 100 corrective actions are identified every year and the completed programs help improve health and safety, environmental and social issues across the globe.

b) On-site Audits

A key component of our Supplier Relationship Management process is supplier on-site audits, which were expanded to include social responsibility in 2020.

Corning supply chain professionals conduct periodic on-site audits for strategic suppliers. These audits utilize standardized templates based on industry standards. A key component of our supplier assessment and audit process is the development of corrective action plans to remedy non-compliance. These plans are designed to bring the supplier in compliance within a defined timeframe. While working within a corrective action plan, a supplier will be subject to frequent progress reviews.

c) Social Responsibility Audit

Corning has a comprehensive audit program for its highest risk strategic Suppliers, which includes a specific focus on high-risk suppliers, where Corning has determined the risk of human trafficking in its supply chains to be the highest, given the nature of such operations.

Audits are conducted using Responsible Business Alliance (RBA) standard principles and performed by selected APSCA certified third-party auditors chosen from RBA’s approved audit firms, with reassessments to follow on a two-year cycle thereafter. Based on the results, improvement plans for mitigation and training are developed and follow-ups are scheduled. Insufficient remediation may result in contract termination.

In 2023, we began the process of harmonizing our approach to assessing supplier risks with the RBA process.

The on-site audit process includes:

1. Supplier Self-Assessments – Supplier completes a self-assessment questionnaire prior to an on-site visit.

2. On-site Visit from Corning Auditors – On-site meetings occur prior to the third-party audit and includes the development of an audit plan and audit onboarding. If a supplier score from the self-assessment and on-site visit does not meet expectations based on RBA standards, the supplier is notified, and corrective actions are taken by the supplier and tracked/verified by Corning prior to the third-party audit.

3. Third-Party Audit – Third party auditors conduct an extensive on-site audit that includes assessments related to social responsibility. The on-site audit consists of management interviews, site observations (facility walk-throughs) and document reviews (e.g. human rights, child labor, human trafficking, health and safety, working hours), as well as off-site employee interviews.

a. Employee Interviews (off-site): The number of employees interviewed is defined by RBA standards. The interviews are conducted privately, off-site, without the presence of managers, or other staff, and worker responses are confidential. Senior managers must agree to encourage workers to be open and honest during interviews. Managers are also required to actively protect any interviewed worker from retaliation.

b. Site Observations:  A review of “living facilities of workers” is required by auditors during the site observations. The related areas that are reviewed are: dormitories (including hostels and off-site housing, if company or labor agent owns/rents accommodation), canteens and kitchens, toilets and sanitation, and recreational facilities.

4. Corrective Action Plans – A key component of our supplier assessment and audit process is the development of corrective action plans to remedy non-compliance in the areas of social responsibility (e.g., labor and human trafficking), environmental sustainability, health and safety, quality, and performance. Based on the findings of the third-party audit, these plans are created by Corning, in collaboration with our third-party auditors and the supplier’s Corporate Social Responsibility lead and senior management, to ensure the supplier meets or exceeds Corning’s corporate social responsibility requirements. These plans are designed to bring the supplier into compliance within a defined timeframe. While working within a corrective action plan, a supplier will be subject to frequent progress reviews. Corrective action plans for the highest risk suppliers are reviewed with senior corporate leadership, including the Corporate Risk Council.

If a supplier does not make sufficient progress, outcomes can include:

• Special projects to remedy compliance problem

• Warning letter

• Third-party investigation

• Stop-work notices

• Termination of working agreements

5. Corporate Social Responsibility (CSR) Training – Corning and/or a third-party hold a training summit to present Corporate Social Responsibility to all identified suppliers to discuss the criteria and overall outcome of the Social Responsibility Audit. Best practices, strategies, and tactics to improve and mitigate social responsibility practices and risks (including the topics of forced labor, child labor and human trafficking) are shared and discussed to ensure alignment with Corning values and expectations.

6. Follow-up – Corning conducts regularly scheduled meetings (daily/weekly) with suppliers to assess progress against the remediation plans, and follow-up is managed by certified Corning auditors. Closure is completed by the third-party auditors to maintain consistency and fairness.

For more information, see Corning latest  global impact report  Corning | 2024 Global Impact Report

Corporate Social Responsibility on-site audit results: Data from RBA and other onsite audits. 

More information is available in Corning latest  global impact report Corning | 2024 Global Impact Report