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. 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. For high risk suppliers we have an annual verification cycle, performed by our own Sustainability Experts.

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.