If forced or bonded labor is identified, we provide the supplier an opportunity to rectify the problem and implement a corrective action plan (CAP). A (CAP) is a document that captures any issues discovered during an audit and the outcomes of the root cause analyses. The CAP acts as a tool for communication to NXP on how issues will be remediated. NXP is committed to collaborating with suppliers to design management systems that address the issues. An effective CAP includes remediation plans that fix the immediate issue and create management systems to prevent the issue from reoccurring. We work collaboratively with the supplier on the CAP to successfully address the findings. We monitor the progress of the supplier until the issues are satisfactorily resolved. This may involve repeat audits to close out the CAP. NXP measures our supplier’s improvement by monitoring and approving the CAP.10

Should a supplier continue to fail to meet our standards, NXP will limit new business or seek to eliminate the supplier from our supply chain.10