Starting in 2013, Microsoft will require a cross section of its suppliers to provide reports on how well they’re adhering to standards on labor and human rights, environmental protection, intellectual property, and other areas set forth in the company’s Vendor Code of Conduct.
The code of conduct also sets standards for legal compliance and business ethics, according to a Microsoft news release.
Microsoft will begin informing a dozen of its key vendors about the new reporting process in the coming months, the news release says. Starting in 2013, Microsoft will include a summary of information from the vendor reports in its annual Citizenship Report and suppliers will also be encouraged to make their reports public.
Microsoft is taking the step in response to a shareholder proposal.