Huawei Technologies (North America Region) Corporate Social Responsibility Report Enriching Life Through Communication

Huawei Technologies (North America Region) Corporate Social Responsibility Report 2010-2011 Enriching Life Through Communication ABOUT THIS REPORT ...
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Huawei Technologies (North America Region) Corporate Social Responsibility Report 2010-2011

Enriching Life Through Communication

ABOUT THIS REPORT This 2010-2011 Corporate Social Responsibility (CSR) report is the second North American (NA) annual CSR report released by Huawei Technologies USA (hereinafter referred to as Huawei, the Company, or We).

The aim of this report is to strengthen the mutual understanding and communication between stakeholders and Huawei, and provide information about Huawei’s socially responsible initiatives and activities with regard to environmental sustainability, social contributions, extending relief, education, our people, and business code of conduct. Unless otherwise stated, this report includes activities undertaken during the period from June, 2010 to the second quarter of 2011. As Huawei’s commitment to CSR evolves, we will continuously optimize and enhance the level of detail in each annual CSR report.

CONTENTS 3

Message from the President of Huawei North America

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Huawei Vision, Mission, and Core Values

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Huawei’s Focus in 2010-2011

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Social Contributions

10 Bridging the Digital Divide 11 Environmental Sustainability 12 Local Economy Contributor 14 People 16 Education 17 Business Code of Conduct

ABOUT HUAWEI TEC HNOLOGIES Huawei is a leader in providing next generation telecommunications networks, and now serves 45 of the world’s top 50 operators, along with over one billion users worldwide. The company is committed to providing innovative and customized products, services and solutions to create long-term value and growth potential for its customers. Working with our customers, we are committed to enriching people’s lives through communication.

MESSAGE FROM THE PRESIDENT OF HUAWEI NORTH AMERICA Telecommunications is a dynamic, innovative, and fast paced industry that affects every aspect of our lives. It is a key driving force that improves communications, enabling a better quality of life and increasing efficiency. Communication is intrinsic to life and drives progress in societies. Expanding and enhancing telecommunications networks and services around the world has become a top priority of the telecommunications industry. As one of the world’s leading providers of telecommunications network solutions, Huawei’s vision is to enrich life through communication. It is with this vision that we leverage our experience in telecommunications to help people become a part of the information society regardless of their geographic origin and to deliver social, economic and environmental benefits to the local communities in which we operate. Our commitment to helping communities in need and carrying out greater corporate social responsibilities are top priorities for Huawei. Our Huawei Employee Business

Code of Conduct requires all of our employees to demonstrate the utmost integrity in everything they do. Whether it’s helping those affected by natural disasters or responding to the needs of communities and organizations, Huawei is continuously working to improve the lives of people and communities in North America and beyond. We believe sustainable business growth is the foundation for carrying out greater corporate social responsibilities. 2010 was a strong year of growth for Huawei and also a year of significant expansion in Corporate Social Responsibility (CSR) initiatives in North America. Year-toyear, we will grow upon our promise to improve people’s lives through corporate social responsibility. By working with our valued partners, we look forward to even greater contributions to society and to further enriching people’s lives through communication.

—Charles Ding, President of Huawei North America

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HUAWEI VISION, MISSION AND CORE VALUES Vision

and requirements. We measure our work against how much value we bring to customers because we can only succeed through our customers’ success.

To enrich life through communication.

Mission To focus on our customers’ market challenges and needs by providing excellent communications network solutions and services in order to consistently create maximum value for customers.

Dedication We win customers’ respect and trust primarily through dedication. It includes every effort we make to create value for customers and to improve our capabilities. We value employees’ contributions and reward them accordingly.

Core Values Customers First Huawei exists to serve customers whose demand is the driving force behind our development. We continuously create long term value for customers by being responsive to their needs

Continuous Improvement Continuous improvement is required for us to become better partners for our customers, improve our company and grow as individuals. This process requires that we actively listen and learn in order to improve.

Core

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Customers First

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C Im ontin pro uo ve us me nt

Values

Openness & Initiative

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Openness & Initiative Driven by customer needs, we passionately pursue customer-centric innovations in an open manner. We believe that business success is the ultimate measure of the value of any technology, product, solution or process improvement. Integrity Integrity is our most valuable asset. It drives us to behave honestly and keep our promises, and, thus, win our customers’ trust and respect. Teamwork We can only succeed through teamwork. By working closely in both good times and bad, we lay the foundation for successful cross-cultural collaboration, streamlined inter-departmental cooperation and efficient processes.

HUAWEI’S FOCUS IN 2010-11 Throughout 2010, Huawei launched

Social Contributions

Local Economy Contributor

a series of Corporate Social

Huawei is emerging into new markets and has a growing footprint in North America. The company firmly believes in localization, from hiring locally to collaborating with local partners.

being a good corporate citizen to

Huawei’s top priority is to reinforce social contribution activities. As an integral part of the society in which we operate, Huawei firmly believes in contributing back to the local communities in which we operate, and strongly encourages our employees to do likewise.

contribute to the harmonious and

Bridging the Digital Divide

sustained development of our society,

Huawei applies its global scale, scope and intellectual property in the IT field so that people can enjoy communications services anytime, anywhere through any terminal. In the U.S., Huawei is committed to working with U.S. operators to further connect the unconnected in rural areas with leadingedge, affordable solutions.

Dedicated and passionate employees are Huawei’s most valuable asset. Our goal is to provide Huawei employees with unique development opportunities as well as to promote the development of a wide variety of talents. Huawei strives to ensure that its diversity remains a competitive advantage by fostering a workplace that leverages, respects, and values individual differences.

Responsibility (CSR) initiatives in North America with the goal of

the economy, and the environment.

People

Education Environmental Sustainability Environmental sustainability is the wave of the future—and how to get there is the task of the present. Issues like increased energy costs, Greenhouse Gas emissions, and other green issues dominate the global stage and are leading companies to explore alternatives to business as usual, with an emphasis on energy efficiency. In an effort to address these issues, Huawei enhanced its CSR policy, which stems from the 10 principles of the UN Global Compact to promote corporate citizenship worldwide by developing an environmental sustainability strategy that starts with products and holds suppliers to CSR requirements.

Huawei highly emphasizes its contribution to the local community and has been sponsoring, funding, and collaborating with universities across North America. Huawei has endowed education networks at many of the top-rated colleges and universities in North America. .

Business Code of Conduct Adherence to laws and ethical standards by each Huawei employee is one of the fundamentals that ensure our company’s long-term and sound development. Huawei firmly abides by the principle of integrity and strictly adheres to ethical standards and to the laws that govern society.

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SOCIAL CONTRIBUTIONS Seeking to contribute toward a prosperous society and its sustainable development, Huawei has been engaged in various social contribution activities nationwide with the goal of being a good corporate citizen. Huawei’s top priority is to reinforce social contribution activities and integrate corporate social responsibility functions into its local and



It’s great to see our corporate partners doing their part to make a difference in the lives of our patients and their families.

global strategy. Huawei works to actively promote corporate social

Helping to Heal Sick Children and Their Families

contribution using its technology and expertise in response to societal needs in areas, such as technology, telecommunications, environmental issues, education, disaster relief, and local community activities. Huawei combines its concern for profitable growth with its responsibility to promote a sustainable society by reconciling the best interests of society as a whole.

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—Pete Kline, President of Children’s Medical Center Foundation

Children’s Medical Center at Legacy provides world-class service to the growing number of families north of Dallas and beyond. Located in Plano, the campus sits on 155

acres with “green space” preserved to provide an environment of healing and tranquility for patients and families. To support this healing environment for members of our community, Huawei made a $50,000 donation to the hospital in April, 2011. To commemorate this donation,

Children’s named a patient room in Huawei’s honor, in a formal ceremony that included Huawei executives and city officials. Children’s Medical Center is private, notfor-profit, and is one of the largest pediatric healthcare providers in the nation. As the only academic healthcare facility in North Texas dedicated exclusively to the comprehensive care of children from birth to age 18, Children’s provides patient care ranging from simple eye exams to specialized treatment in areas such as heart disease, hematology-oncology and cystic fibrosis.



Huawei Technologies can feel confident that its gifts are being leveraged to reach many hungry people across North Texas.



—Jan Pruitt, President and CEO of the North Texas Food Bank.

Pursuing a Hunger-Free Community More than 40 local Huawei employees helped fight hunger at the North Texas Food Bank (NTFB) in November, 2010. Throughout the day, employees sorted, bagged, boxed and stacked pallets of canned items, preparing an estimated 15,000 meals for needy families. But our support did not stop there: In 2010-2011, Huawei donated a total of $30,000 to the Food Bank, providing 120,000 meals to North Texans. “Huawei Technologies can feel confident that its gifts are being leveraged to reach many hungry people across North Texas,” said Jan Pruitt, president and CEO of the North Texas Food Bank. “Ninety four cents out of every dollar donated goes

to feeding hungry men, women and children. And, the impact of your dollar is great, as each dollar provides four meals for hungry North Texas families.” NTFB is a non-profit hunger relief organization that distributes donated, purchased and prepared foods through a network of 1,184 feeding programs in 13 North Texas counties. The NTFB supports the nutritional needs of children, families and seniors through education, advocacy and strategic partnerships. Close the Gap is the NTFB’s 3-year initiative to unite the community to narrow the food gap by providing access to 50 million meals annually by 2011.

Huawei employees also helped fight hunger by feeding the homeless in Dallas. On March 18, employees from various departments joined the SoupMobile, a non-profit mobile soup kitchen, on their daily rounds throughout downtown Dallas, helping to feed hearty lunches to approximately 600 people. Established in 2003, SoupMobile helps care for the homeless community by serving an estimated 200,000 meals every year.

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Supporting Worthy Causes Through Sponsorships

Bell Celebrity Gala

SENSational Ride & Glide

In Canada, Huawei and Bell partnered with The SENS Foundation for the SENSational Ride & Glide in February, 2011 to support charities that provide mental health services to children and youth. Founded in 1998, the SENS Foundation utilizes the unique resources of the Ottawa Senators Hockey Club to make a positive and lasting difference in the lives of children and youth in eastern Ontario and western Quebec. The Foundation leverages and provides both financial and in-kind support to registered charitable organizations whose programs focus on improving the quality of life for children and youth in eastern Ontario and western Quebec.

Huawei was a proud sponsor of the Fall, 2010 Bell Celebrity Gala, which raised $1.16 million for the Center for Addiction and Mental Health (CAMH), a world leader in mental health care, research and education. Every year, CAMH treats tens of thousands of people through an extensive range of inpatient, outpatient and communitybased initiatives uniquely tailored to meet the needs of clients in various stages of their lives and illnesses. The CAMH team of doctors, researchers, nurses, therapists, educators, staff, volunteers and students demonstrate a compassion and commitment to care that has earned them recognition and respect for their work in addiction and mental health issues across Canada and around the globe.

SkiTAM Habitat for Humanity Huawei was a proud sponsor of 2011’s SkiTAM, a cable and telecommunications initiative benefiting the US Adaptive Ski Team. Due to the outstanding support of the Cable & Telecommunications Industry, SkiTAM is the single largest source of support for the team. Funds raised by the annual SkiTAM event allow USAST athletes to train and compete throughout the ski season, giving them the opportunity to achieve their dreams. RCMP 6th Annual Golden Spur Gala In November, 2010, Huawei sponsored the Royal Canadian Mounted Police (RCMP) Foundation’s annual gala, which celebrates Community groups who work to support Canada’s at-risk youth. The foundation presented Golden Spur Awards to some very dedicated officers across the country that have done incredible work with children in high risk communities.

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As part of the Huawei Gives Back volunteer campaign, employees participated in the Habitat for Humanity build on Saturday, November 13th. Huawei volunteers used their Saturday morning to help a family

build a new a home and new life. Our 11 volunteers stretched their skill set by learning to apply trim, painting, caulking and using high powered tools. Habitat for Humanity is a non-profit organization that builds affordable housing for families in the South Collin County area in North Texas. Thank you to all the volunteers for all their hard work and efforts as we continue to build our support of the community. Huawei Goes Pink! Huawei employees showed their support for breast cancer research by wearing pink on October 15, 2010. Additionally, 18 employees participated in the 5k fun walk/run on October 16. Over 26 thousand people participated in the race, which helped raise over $1 million for the cause!

Employees Rock ‘n’ Roll for Susan G. Komen for the Cure Huawei was well represented at the second annual Rock ‘n’ Roll Half Marathon, benefiting Susan G. Komen for the Cure. On March 25, Huawei employees worked the Health & Fitness Expo, greeting participants, assisting with registration and handing out t-shirts and goodie bags. With global headquarters in Dallas, Komen for the Cure is the world’s largest grassroots network of breast cancer survivors and advocates dedicated to discovering and delivering the cure. Funds raised through the program support groundbreaking research and community outreach in the more than 18,000 communities Komen and its affiliates serve in the U.S. and around the world. Huawei Employees Across the Country Celebrate National Volunteer Week April 10-16, 2011 was designated National Volunteer Week in the United States, a week about inspiring, recognizing and encouraging people to seek out imaginative ways to engage their community. Huawei employees across the country met this challenge in the true Huawei spirit, by donating time or materials to several local charities.

And in Santa Clara, CA, employees combined their volunteer efforts into a unique team-building activity. On April 7, 79 teams of 4-6 employees were given the task of building a child’s bike using limited tools. What the employees thought was a simple team-building, In the Rolling Meadows, IL office, problem-solving activity turned employees donated over 100 new or used out to be much more. Each finished books for the United Way Book Drive, bike was then donated to 79 to support literacy programs for adults low-income children from and children in the Chicago area. In Bridgewater, NJ, supplies such as shampoos, the Boys and Girls Club of Silicon Valley, a non-profit organization soaps and toothpaste were donated to providing after-school programs the local Somerset Shelter for Temporarily Displaced Youth – a safe haven for children. for San Jose youth. In Atlanta, employees donated their time by sorting over 8,000 pounds of food supplies at the Atlanta Community Food Bank, resulting in over 5,000 meals.

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BRIDGING THE DIGITAL DIVIDE Huawei applies its global scale, scope and technology leadership in the IT field so that people can enjoy communications services anytime, anywhere through any terminal. As a result, affordable broadband is accessible to more people, including those in underserved regions.  In the U.S., Huawei has partnered with operators to deliver 3G CDMA mobile broadband technology to rural regions of New Mexico, Arizona, Texas, Kentucky, Illinois, and Tennessee. Huawei remains committed to working with U.S. operators to further connect the unconnected with leading-edge, affordable solutions.

Our Vast Intellectual Property Enables CustomerCentric Innovation As Huawei continues its development of innovative solutions, our Intellectual

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Property has also expanded with the meteoric growth of our R&D centers, which have increased from one to eight in North America in the last 10 years.  During this time, our patent applications and grants have increased significantly, with over 600 patents granted to Huawei in the U.S. as of February 2011.  Globally, Huawei is recognized throughout the industry for its contributions, including: • Named as a “top 10” filer of international patent applications through the Patent Cooperation Treaty (“PCT”) for each of the past 7 years; top 5 status in each of the prior 3 years • Leadership in international telecommunications standards – widely regarded as a “top 5” IP contributor to 3GPP LTE standards

development; participation in, and leadership positions of, global telecommunications standards bodies and IEEE committees. Additionally, Huawei actively participates in over 120 international standardization organizations including ITU, ATIS, 3GPP2, OMA, ETSI and IETF. Through our active participation in these groups, Huawei is committed to providing anytime, anywhere, connectivity to enable people to communicate with one another, wherever they may be.

ENVIRONMENTAL SUSTAINABILITY Environmental deterioration and accelerated global warming have posted great challenges to the sustainable development of the world economy. The telecom industry consumes a huge quantity of energy annually and the consumption tends to increase year on year. In such a context, energy saving and emissions reduction measures become imperative. Taking “environmental protection” as one of our fundamental strategies for corporate development, Huawei actively communicates with customers about energy saving and environmental protection measures and closely collaborates with enterprises across the industry chain to build energy-efficient telecom networks. Leading the telecom industry towards an era of ‘green communications’, Huawei promotes the sustainable development of the industry towards the eventual achievement of its “Green Communications, Green Huawei and Green World” objectives.

energy saving and emission reduction requirements. In 2010, a total of 8,000 hybrid-energy powered stations (including those running on diesel-electricity and recyclable resources) were deployed.

Case: Green Production and Operation Huawei has attached great importance to environmental protection and energy savings and emission reductions, and has taken technological and management measures to reduce energy consumption during its

production and operation. Additionally, Huawei promotes environmental protection measures within the company so that energy efficiency and environmental protection are integrated into corporate operations and employees’ activities. By launching energy saving and consumption reduction programs, Huawei saved CNY 7.93 million (USD 1.21 million) in the production phase last year, equivalent to saving 9.75 million kWh or reducing CO2 emissions by 9295.5 tons.

Case: Alternative Energy Solutions Huawei’s alternative energy solutions include: solar power, solar and diesel hybrid power, wind and solar hybrid power, and a wind, solar and diesel hybrid solution. Because these solutions can be tailored to meet customers’ diversified demands and local climates, they can help reduce costs as well as meet

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LOCAL ECONOMY CONTRIBUTOR

Huawei firmly believes in localizing its global operations. Since establishing our first U.S. office in 2001, we have expanded to 13 regional offices throughout North America, including Dallas, Chicago, Atlanta and San Diego. Huawei also has 8 R&D centers in North America, including facilities in Santa Clara and Ottawa. Since 2006, Huawei has grown from 180 employees to more than 1300 in 2011. We have

consistently achieved a local hiring rate of 75 percent amongst our employees, and local employees are increasingly taking on key technical and executive roles, including senior management positions. On April 5, 2011, we celebrated these milestones with a 10-year anniversary ceremony and ribbon-cutting at our newest R&D facility in Santa Clara, California.

Huawei Deputy Chairman Ken Hu and Mayor of Santa Clara Jamie Matthews at Huawei’s 10-year celebration in Santa Clara.

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Each year, Huawei invests approximately 10 percent of its total revenue in R&D globally. Since 2005, Huawei has continued to invest more than 20 percent of the revenue into R&D in the U.S. to ensure that it can recruit and retain the best talents in the industry. In 2010, Huawei invested a total of $264 million in North America to build our local R&D capability and provide North American customers with customized solutions.

U.S. Congressman Mike Honda, who represents Silicon Valley, congratulated Huawei on its 10-year anniversary.

Huawei has long-term cooperation with more than 390 vendors in North America, of which 18 vendors are Huawei’s strategic partners. In 2010, Huawei made more than $6.1 billion in purchases in the U.S., equivalent to creating 32,000 jobs. Huawei extensively purchases software, products, components, chipsets and services from world-class companies, including IBM, Oracle, Hewlett-Packard, Qualcomm, Dell, Texas Instruments, Microsoft, Motorola, Emerson, Sun Microsystems and ADI to name a few. In addition, Huawei has 38 certified service partners in North America including Bechtel and LCC. As we look ahead to the next ten years, we will expand our collaborations with partners and stakeholders, including federal, state and local governments. We will continue to strengthen our brand, enhance corporate transparency, and position Huawei as a respected and trusted company in the U.S.

Huawei Deputy Chairman Ken Hu joined Canadian government officials and executives to celebrate the opening of the Toronto office.

Texas Governor Rick Perry cuts the ribbon at the opening of Huawei’s Plano, TX office.

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PEOPLE Huawei is a global operation, with a growing footprint in North America. At Huawei, we believe that a mix of backgrounds, values and perspectives is vital to the success of the company and its employees. Dedicated and passionate employees are Huawei’s most valuable asset and strongest resource. Huawei strives to ensure that its diversity remains a competitive advantage by fostering a workplace that leverages, respects and values individual differences. Our goal is to provide Huawei employees with unique development opportunities as well as promote the development of a wide variety of talents. In recognition of their contributions, Huawei has established policies to ensure that dedicated employees are given meaningful benefits in areas such as growth opportunities and remuneration, among others.

New Hire Programs Training is an essential element of employee development at Huawei. Our holistic management and technical training programs were developed with

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the professional growth of every employee in mind. To help ease newcomers into their roles, offices in both the United States and Canada have implemented programs (based on the HQ Huawei University practices) such as a threeday New Employee Orientation Program covering a wide range of topics, including corporate culture, product knowledge, and application skills. In an effort to help new employees familiarize themselves with the company, a “Buddy Program” was introduced to partner new hires with experienced mentors who provide useful knowledge and advice to help newcomers overcome any initial challenges in their new roles as well as inform new hires of expected criteria to achieve career goals.

Training Huawei has local training centers to educate our customers and local employees on advanced management, technologies, products and processes. To help our customers remain competitive, Huawei provides a wide range of predefined and customized training services for all supported product lines.

Huawei’s North American Training Center includes two classrooms, a technical training lab with remote access capabilities, as well as an eLearning studio to support distance learning. At Huawei, many training opportunities exist, from informal to very structured. On the informal side, iShow brown bag sessions are usually held on a weekly basis covering topics of general interest to a broad cross-section of employees. Since there are select employees from China, language and cultural awareness are important. Special language assessment and speaking acquisition/proficiency classes are offered regularly. For topics like Cultural Awareness, seminars are led by business leaders for their respective groups giving them an opportunity to hear directly from members of their organization and share their perspectives. Structured training is provided to specific target audiences. As an example, training is delivered to the Technical Sales population covering topics like Capability Improvement, Opportunity Management, Contract Quality, Bidding, etc.

Employee Recognition The purpose of the Recognition Awards are to encourage excellence in Huawei by recognizing and rewarding exemplary individual and team achievements. Presented at the annual holiday party celebration ceremony by department heads, the Presidents’ Award goes to employees with the highest contribution. Individual awards, such as the Most Valuable Player, illustrate exemplary accomplishments, outstanding customer service, quality of work, or extraordinary support of work goals and objectives. Huawei also presents employees with Team Awards for excellence in team performance, presented in team building events, as well as sales recognition awards, presented on a monthly basis.

employees on various company initiatives and strategies. The company produces a monthly employee newsletter to inform employees about company news, events, new employee spotlights, and other relevant company information.

Team Building Teamwork is about creating a work culture that values collaboration. Huawei fosters an environment with better and open communication between employees and higher management. Huawei’s executive management team hosts all-hands meetings to help open communication lines between employees. During these meetings, individuals

play team building games to build camaraderie. Games include blind-folding an individual and entrusting a colleague to talk him through an obstacle course. In pursuit of managerial improvement and work/life balance, we arrange various social activities outside of work, including sport clubs, such as basketball, weekly soccer games and badminton competitions to help foster team building and strengthen employee relations. We cultivate our employee community with events, such as family days, year-end holiday party celebrations with employee recognition, and other social programs. Successful team building often translates into success for everyone.

Open Communication Channels A wide range of channels have been established to ensure that employees feel a strong connection with the company. Every month, we have a special gathering to recognize and welcome new employees and celebrate birthdays. Huawei holds regular town hall meetings as a way for senior leadership to keep employees informed, engaged, and in sync with business goals and objectives. Executive dialogues are also held on a quarterly basis as a way for executives to engage

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EDUCATION Huawei highly emphasizes its contribution to the local community and has been sponsoring, funding, and collaborating with universities across the nation, investing around $5-7 million USD each year. Huawei has endowed education networks to many of the top-rated colleges and universities in North America, including Stanford University, MIT, Georgetown University, UCLA, Columbia University, to name a few.

middle-school and high-school students. The Foundation funds priority programs for which tax dollars are not available. Programs funded by the Foundation enhance student learning; recruit, retain and recognize the very best teachers; or address critical needs of students and families so that all students can succeed.

In 2011, Huawei also sponsored the Fund for Education Abroad (FEA) scholarship, which was established to recognize dedicated American students who seek to participate in high quality, rigorous education-abroad programs. This year’s winning student, Eda Xian from University of Illinois at Urbana-Champaign, will go to China to learn the language and study Chinese medicine. We congratulate Eda and wish her much success in her studies.

In April 2011, as part of our continuing commitment to education, Huawei announced our partnership with America’s Promise Alliance, a leading organization focused on community and non-partisan advocacy. With more than 400 national partner organizations and their local affiliates, the Alliance has made a top priority of ensuring that all young people graduate from high school ready for college, work and life through their Grad Nation movement. This work involves raising awareness, encouraging action and engaging in advocacy to provide children the key supports needed at critical times.

In addition to university-level support, Huawei strongly believes in cultivating learning at the primary school level. In 2011, we will donate $25,000 to the Plano Independent School District (ISD) Foundation to support math, science and technology-related programs for

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Huawei Announces Partnership with America’s Promise Alliance

Eda Xian, winner of the Huawei FEA Scholarship. Through our engagement with America’s Promise, Huawei will donate $100,000 for programs that better prepare children across the country for work, school and life.

Supplying Schools in Need Huawei employees sponsored a supply drive for E.A. Sigler Elementary, a Plano, TX school with a large number of economically disadvantaged students. As a result of the drive, more than 100 students in grades K-6 received critical supplies such as pencils, notebook paper, glue, crayons and tissues.

BUSINESS CODE OF CONDUCT Huawei became a member of the United Nations Global Compact in 2004, and has since incorporated the basic principles it advocates into the company’s culture and business activities. In conducting business, Huawei firmly abides by the principle of integrity and strictly obeys the laws of the countries and regions in which we operate. We also require all our employees to adhere to those laws and our own ethical standards in their daily actions.

Huawei Employee Business Conduct Guidelines Adherence to laws and ethical standards by each Huawei employee is one of the fundamentals that ensure our company’s long-term and sound development. In 2008, Huawei issued the Huawei Employee Business Conduct Guidelines (BCGs), a mandatory regulation that requires the entire workforce to demonstrate integrity as they carry out their duties.

4. Protect Huawei’s interests, and appropriately deal with conflicts between corporate and individual interests; 5. Treat with respect and impartiality the differences in culture, religion and belief of customers, suppliers, business partners, and employees. The guidelines further elaborate the company’s requirements of its employees in 18 areas, including internal business conduct, respecting the intellectual property rights of others, gifts and amenities, compliance with laws, conflicts of interests, and personal conduct.

Compliance with the National and International Export Control Regulations Full compliance with all national and international export control laws and regulations is a fundamental policy of Huawei.

The company has established an internal control program (ICP) on exports that is in line with industry standards. We have also published the Statement of Compliance with Export Control Regulations signed by our CEO, and we have formed a Trade Compliance Committee and a Trade Compliance Office under the supervision of our Chief Legal Officer. In addition, a globally consistent process on export audits has been defined and implemented, in which all projects involving export controls are required to undergo an export control audit that includes a thorough investigation on the customer, the end-user of the product, and other issues such as risk factors. These multi-fold arrangements on policy, organization, process and execution, ensure maximum legal and regulatory compliance on all projects.

The guidelines require that each employee should: 1. Be honest and reliable when dealing with all business activities and relationships of the company; 2. Comply with laws and regulations that are applicable to Huawei’s business activities; 3. Protect and appropriately use Huawei’s assets, and respect the intellectual property rights of others;

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HUAWEI TECHNOLOGIES (USA) 5700 Tennyson Parkway Plano, Texas 75024 www.huawei.com/na/en Copyright©Huawei Technologies Co., Ltd. 2011 All Rights Reserved. The information contained in this document is for reference purpose only, and is subject to change or withdrawal according to specific customer requirements and conditions.

Trademarks and Permissions and other Huawei trademarks are trademarks of Huawei Technologies Co., Ltd. All other trademarks and trade names mentioned in this document are the property of their respective holders.

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