Xiaomi is a Chinese electronics company founded in 2010. It manufactures smartphones, TVs, wearable devices and smart speakers. In addition, the company provides internet services as part of its product ecosystem. Its products are increasingly sold outside of China, with overseas sales accounting for 34% of Xiaomi’s revenue in 2020.
Xiaomi demonstrates leading performance in enhancing accessibility for users with disabilities. Besides committing to developing accessibility features for its products, the company works closely with users with disabilities during product development. In addition, Xiaomi reports the number of employees with disabilities.
Xiaomi demonstrates a high-level responsibility for cybersecurity and follows industry practices for monitoring and responding to security incidents. The company also publishes a transparency report, detailing requests that the company receives from law enforcement.
Xiaomi has an opportunity to support an initiative focused on digital opportunities for women and girls, and to develop a sustained programme to support universal access to digital technologies. In addition, the company should disclose how the economic value it generates is distributed among its stakeholders.
The company has an opportunity to develop programmes for intermediate and technical digital skills. Moreover, the company can develop its current efforts in basic digital skills development and school connectivity into longer running, sustained programmes.
The company has an opportunity to demonstrate its support for open standards through open source projects. The company can support tech start-ups through incubation, acceleration and competitions. It can also report on its efforts relating to diverse and ethical innovation by detailing the number of women it employs in technical roles and how it incorporates ethical considerations in its research and development including AI.
Core social indicators
The core social indicators assess societal expectations of business conduct that companies should meet if they aspire to be part of a system transformation that leaves no one behind.
While Xiaomi states that it has incorporated the ten United Nations Global Compact principles into its business, it does not commit to respect human rights or the ILO core labour rights in a public policy statement. Furthermore, the company does not disclose a process to identify, assess, and take action on salient human rights risks its own operations and business relationships. However, Xiaomi does have a grievance mechanism that is accessible to both workers and external stakeholders to raise human rights concerns and complaints.
While Xiaomi has a health and safety management system, it does not formally commit to respect health and safety in a public policy statement. Similarly, while the company monitors the health and safety performance of its business relationships, it does not disclose a public policy statement where it sets out an expectation that its business relationships will respect health and safety. In relation to workforce diversity, while the company provides a breakdown of employees in different employee categories by gender, it does not disclose against any other indicators of diversity per employee category. Xiaomi lacks any relevant disclosure in relation to living wages, working hours and collective bargaining.
Xiaomi does not disclose any relevant information in relation to tax, such as a global tax strategy or income tax payments for its individual tax jurisdictions. Similarly, the company does not disclose any relevant information in reference to lobbying and political engagement, such as its lobbying expenditures. The company states that it has a zero tolerance policy regarding bribery and corruption, but it does not disclose, in a public policy statement, that it prohibits bribery and corruption. However, Xiaomi does describe how it identifies and takes action on bribery and corruption, and it has a grievance mechanism for stakeholders to raise concerns and complaints on the topic.