Hisense Supplier Code of Ethics
This Supplier Code of Ethics (hereinafter, the “Code”), subject to updates from time to time by Hisense, defines the standards that apply in all circumstances within the supply chain of Hisense Group. Supplier of Hisense USA and its subsidiaries undertakes that itself, its suppliers at all levels and contractors to disseminate and follow the latest version of the principles and requirements of the Code.
A. GENERAL PRINCIPLES
For the purpose of securing the global supply chain of Hisense, each supplier of Hisense (“Supplier”) shall only provide products and services that comply with the principles set out herein, all agreements signed with Hisense, and the local law, law of destined country of Hisense products and international laws applicable to the conduct of Supplier’s business and the international rules listed in this Code.
B. LABOR
The Supplier must uphold the basic rights of workers, and to treat them with dignity and respect. This shall apply to all workers including temporary, migrant, student, contract, direct employees, and any other type of workers.
1) No Forced Labor
Forced, bonded (including debt bondage), indentured labor, involuntary or exploitative prison labor, slavery or trafficking of persons shall not be used. This includes transporting, harboring, recruiting, transferring, organizing or receiving persons by means of threat, force, coercion, abduction or fraud for labor or services. There shall be no unreasonable restrictions on workers’ freedom of movement in the facility and no unreasonable restrictions on entering or exiting the Supplier-provided facilities. All work must be done by workers voluntarily and workers shall be free to leave work at any time or terminate their employment. The Supplier and its agents may not hold or otherwise destroy, conceal, confiscate or deny access by workers to their identity or immigration documents, such as government-issued identification, passports or work permits, unless such holdings are required by law. Workers shall not be required to pay the Supplier’s or its agents’ recruitment fees or other related fees for their employment. If any such fees are found to have been paid by workers, such fees shall be repaid to the workers.
2) Young Workers
Child labor is not to be used in any stage of manufacturing. The term “child” refers to any person under the age of 16, or under the age for completing compulsory education, or under the minimum age for employment in the country, whichever is greatest. The use of legitimate workplace learning programs which comply with all laws and regulations, such as student workers is supported, provided such workers will be no younger than 14 years old. Workers under the age of 18 (hereinafter, the “Young Workers”) shall not perform work that is likely to jeopardize their health or safety, including night shifts and overtime. The Supplier shall ensure proper management of student workers through proper maintenance of student records, rigorous due diligence of educational partners, and protection of students’ rights in accordance with applicable law and regulations. The Supplier shall provide appropriate support and training to all student workers. In the absence of local law, the wage rate for student workers, interns and apprentices shall be at least the same wage rate as other entry-level workers performing equal or similar tasks.
3) Working Hours
Studies of business practices clearly link worker strain to reduced productivity, increased turnover and increased injury and illness. Working hours are not to exceed the maximum allowed by local law.
4) Wages and Benefits
Compensation paid to workers shall comply with all applicable wage laws, including those relating to minimum wages, overtime hours and legally mandated benefits. In compliance with local laws, workers shall be compensated for overtime at pay rates no less than regular hourly rates. For each pay period, workers shall be provided with a timely and understandable wage statement that includes sufficient information to verify accurate compensation for work performed. All use of temporary, dispatch and outsourced labor shall be in compliance with the local law.
5) Humane Treatment
The Supplier shall not abuse or apply any inhumane treatments on workers, including but not limited to any sexual harassment, sexual abuse, corporal punishment, mental or physical coercion or verbal abuse of workers; nor shall there be any threat of such treatments at workplace. The Supplier shall clearly define and communicate to works the disciplinary policies and procedures in support of aforementioned requirements.
6) Non-Discrimination
The Supplier shall commit to a workforce free of harassment and unlawful discrimination. The Supplier shall not engage in discrimination based on race, color, age, gender, sexual orientation, gender identity and expression, ethnicity or national origin, disability, pregnancy, religion, political affiliation, union membership, covered veteran status, protected genetic information or marital status in hiring and employment practices such as wages, promotions, rewards, and access to training. In addition, workers or potential workers should not be subjected to medical tests or physical exams that could be used in a discriminatory way.
7) Freedom of Association
In conformance with local law, the Supplier shall respect the right of all workers to form and join trade unions of their own choosing, to bargain collectively and to engage in peaceful assembly as well as respect the right of workers to refrain from such activities. Workers and/or their representatives shall be able to openly communicate and share ideas and concerns with management regarding working conditions and management practices without fear of discrimination, reprisal, intimidation or harassment.
C. HEALTH AND SAFETY
The Supplier shall commit to provide a safe and healthy working environment for workers by minimizing the incidence and risk of work-related injury and illness. The Supplier shall follow the Code and any applicable safety and health laws and regulations. The Supplier shall recognize that ongoing worker input and education is essential to identify and solve health and safety issues in the workplace.
1) Occupational Safety
The Supplier shall identify and manage workers who expose to or potentially will expose to safety hazards (e.g., chemical, electrical and other energy sources, fire, vehicles, and fall hazards) through properly designed, engineered and administrated controls, preventative measurements and safety procedures (including lockout/tagout), and ongoing safety training. Where hazards cannot be adequately controlled by the Supplier through aforementioned means, the Supplier shall provide workers appropriate, well-maintained, personal protective equipment and educational materials about the risks associated with these hazards. The Supplier shall use reasonable steps to remove pregnant women/nursing mothers from workplace with high health or safety hazards properly, and remove or reduce any workplace health or safety risks to pregnant women and nursing mothers by providing reasonable accommodations to them.
2) Emergency Preparedness
The Supplier shall identify and assess all potential emergency situations and events, and minimize the impact resulted from such emergency situations and events by implementing emergency plans and response procedures including: emergency reporting, employee notification and evacuation procedures, worker training and drills, appropriate fire detection and suppression equipment, clear and unobstructed egress adequate exit facilities and recovery plans. Such plans and procedures shall focus on minimizing harm to life, the environment, and property.
3) Occupational Injury and Illness
The Supplier shall implement procedures and systems to prevent, manage, track, and report occupational injury and illness including provisions to: encourage worker reporting; classify and record injury and illness cases; provide necessary medical treatment; investigate cases and implement corrective actions to eliminate their causes; and facilitate return of workers to work.
4) Hygiene at Work
The Supplier shall identify workers who are exposed to hazardous chemicals, and evaluate and manage them according to the hierarchy of controls. Potential hazards are to be eliminated or controlled through proper design, engineering and administrative controls. When hazards cannot be adequately controlled or completely removed by such means, workers are to be provided with and use appropriate, well-maintained, personal protective equipment. Protective programs shall include educational materials about the risks associated with these hazards.
5) Physically Demanding Work
Worker exposure to the hazards of physically demanding tasks, including manual material handling and heavy or repetitive lifting, prolonged standing and highly repetitive or forceful assembly tasks is to be identified, evaluated, managed and protected.
6) Machine Safeguarding
Production and other machinery shall be evaluated for safety hazards. Physical guards, interlocks and barriers are to be provided and properly maintained where machinery presents an injury hazard to workers.
7) Sanitation, Food, and Housing
Workers are to be provided with ready access to and clean toilet facilities, potable water and sanitary food preparation and storage facilities. Worker dormitories provided by the Supplier or a labor agent are to be maintained clean and safe. The Supplier shall provide workers appropriate emergency exits, hot water for bathing and showering, adequate lighting and ventilation, and reasonable personal space along with adequate privacy.
8) Training & Warning
The Supplier shall provide workers with appropriate workplace health and safety information and training for all identified workplace hazards in the language the worker can understand, including but not limited to mechanical, electrical, chemical, fire, and physical hazards. Health and safety related information shall be clearly posted in the facility or placed in a location identifiable and accessible by workers. Training shall be provided to all workers prior to the beginning of work and regularly thereafter. Workers shall be encouraged to raise safety concerns.
D. ENVIRONMENTAL RESPONSIBILITY
Environmental responsibility is integral to manufacture products. In manufacturing operations, Supplier shall follow the Code and safety and environmental protection regulations and laws. Adverse effects on the community, environment and natural resources are to be minimized while safeguarding the health and safety of the public.
1) Environmental Permits and Reporting
All required environmental permits (e.g. discharge monitoring), approvals and registrations are to be obtained, maintained and kept current and their operational and reporting requirements are to be followed.
2) Pollution Prevention and Resource Reduction
Emissions and discharges of pollutants and generation of waste are to be minimized at the source or by practices such as adding pollution control equipment; modifying production, maintenance and facility processes; or by other means. The use of natural resources, including water, fossil fuels, minerals and virgin forest products, is to be conserved or by practices such as modifying production, maintenance and facility processes, materials substitution, re-use, conservation, recycling or other means.
3) Hazardous Substances
Chemicals and other materials posing a hazard to humans or the environment are to be identified, labelled and managed to ensure their safe handling, movement, storage, use, recycling or reuse and disposal.
4) Solid Waste
The Supplier shall implement a systematic approach to identify, manage, reduce, and responsibly dispose of or recycle solid waste (non-hazardous).
5) Air Emissions
Air emissions of volatile organic chemicals, aerosols, corrosives, particulates, ozone depleting chemicals and combustion by-products generated from operations must be characterized, routinely monitored, controlled and properly treated as required by local laws and regulations prior to discharge. Supplier shall monitor the performance of its air emission control systems regularly.
6) Materials Restrictions
The Supplier undertakes to adhere to all applicable laws, regulations and Hisense requirements regarding prohibition or restriction of using specific substances in products and manufacturing process, including labeling for recycling and disposal.
7) Water Management
The Supplier shall implement a water management program that documents, characterizes, and monitors water sources, use and discharge; seeks opportunities to conserve water; and controls channels of contamination. All wastewater is to be characterized, monitored, controlled, and treated as required by local laws and regulations prior to discharge or disposal. The Supplier shall monitor the performance of its wastewater treatment and containment systems to ensure regulatory compliance.
8) Energy Consumption and Greenhouse Gas Emissions
Energy consumption and all relevant greenhouse gas emissions are to be tracked and documented, at the facility and/or corporate level. The Supplier undertakes to look for cost- effective methods to improve energy efficiency and to minimize their energy consumption and greenhouse gas emissions.
E. ETHICS & SOCIAL RESPONSIBILITY
The Supplier undertakes to meet social responsibilities. The Supplier is to uphold and comply with Business Interaction Guideline for Hisense Partner, integrity and anti-bribery commitment, as well as other related agreement signed with Hisense and following standards of ethics including:
1) Business Integrity
The highest standards of integrity are to be upheld in all business interactions. The Supplier shall have a zero-tolerance policy to prohibit any and all forms of bribery, corruption, extortion and embezzlement. The Supplier shall monitor and enforce its policies and procedures to ensure compliance with relevant anti-corruption laws and regulations.
2) No Improper Advantage
Bribes or other means of obtaining undue or improper advantage shall not be promised, offered, authorized, given or accepted by the Supplier. This prohibition covers promising, offering, authorizing, giving or accepting anything of value, either directly or indirectly through a third party, in order to obtain or retain business, direct business to any person, or otherwise gain an improper advantage. The Supplier shall implement monitoring and enforcement procedures to ensure compliance with anti-corruption laws.
3) Record of Information
All business dealings should be transparently performed and accurately reflected on the Supplier’s business books and records. Information regarding Supplier labor, health and safety, environmental practices, business activities, structure, financial situation and performance should be truthfully recorded and well maintained. Falsification of records or misrepresentation of conditions or practices in the supply chain are unacceptable.
4) Intellectual Property& Confidentiality
Intellectual property rights of Hisense and third parties should be respected. Supplier shall refrain from infringing the intellectual property right, commercial secret or technology secret during the development and supply of goods provided to Hisense. Management of technology and intellectual property rights should be done in a manner that protects intellectual property rights and Hisense confidential information and honors the non-disclosure agreement executed with Hisense.
5) Fair Business, Advertising and Competition
Supplier shall establish standards for fair business, advertising and competition to be upheld.
6) Protection of Identity and Non-Retaliation
The Supplier shall maintain programs that ensure the confidentiality, anonymity and protection of any worker who makes a disclosure about improper conduct by an employee or officer of the Supplier, or by a public official or official body, unless such programs are prohibited by law. The Supplier should have a communicated process for their workers to raise any concerns without fear of retaliation.
7) Responsible Sourcing of Materials
The Supplier shall have a policy to reasonably assure that the raw materials and parts procured and their respective supplier for the products they manufacture are not, directly or indirectly,: 1) from companies listed on Hisense supplier “blacklist”; 2) from forced labor or area may be involved in forced labor; or 3) finance or benefit armed groups that are perpetrators of serious human rights abuses. The Supplier shall exercise due diligence on the source and chain of custody of these materials and make sure that the use of force labor is prohibited. The Supplier shall provide its due diligence measures and evidence of manufacturing to Hisense upon request.
8) Privacy
The Supplier shall commit to protect the reasonable privacy expectations of personal information of everyone the Supplier does business with, including suppliers, Hisense, consumers and employees. The Supplier shall comply with applicable privacy and information security laws and regulatory requirements when personal information is collected, stored, processed, transmitted, and shared.
F. COMPLIANCE MANAGEMENT SYSTEMS
The Supplier agrees to adopt or establish a management system based on the content of this Code. The management system shall be designed to ensure: (a) compliance with applicable laws, regulations and customer requirements related to Supplier’s operations and products; (b) compliance with this Code; and (c) identification and mitigation of operational risks related to this Code. It should also facilitate continual improvement.
The management system should contain the following elements:
1) Company Commitment
A corporate social and environmental responsibility policy statements affirming commitment to compliance and continual improvement and open or published in the facility in the local language.
2) Management Accountability
The Supplier clearly establish management systems, programs and procedures to ensure the implementation of applicable laws and Hisense requirements (including this Code) and identify the responsible department and persons. Such systems, programs, and procedures shall be reviewed and updated on a regular basis.
3) Risk Assessment and Risk Management
A process to identify risks in legal compliance, environmental, health and safety and labor and ethics risks associated with Supplier’s operations. Determination of the relative significance for each risk and implementation of appropriate procedural and physical controls to control the identified risks and ensure regulatory compliance.
4) Training
Programs for training managers and workers to implement Supplier’s policies, procedures and improvement objectives and to meet applicable legal and regulatory requirements.
5) Communication
A process of communicating clear and accurate information about Supplier’s policies, systems and requirements to workers, suppliers and customers.
6) Worker Feedback, Participation and Grievance
Ongoing processes, including an effective grievance mechanism, to assess employees’ understanding of and obtain feedback on or violations against practices and conditions covered by this Code and to foster continuous improvement.
7) Audits and Assessments
Periodic self-evaluations to ensure conformity to legal and regulatory requirements, the content of the Code and Hisense contractual requirements related to social and environmental responsibility.
8) Corrective Action Process
A process for timely correction of deficiencies identified by internal or external assessments, inspections, investigations and reviews.
9) Documentation and Records
Creation and maintenance of documents and records to ensure regulatory compliance and conformity to company requirements along with appropriate confidentiality to protect privacy. Supplier's activities in compliance with this Code shall be ramped down in writing and provided immediately upon Hisense's request.
G. Hisense Inspection and Corrective Measures
Hisense reserves the right to inspect the Supplier’s implementation of this Code from time to time, nevertheless, such inspection shall not be deemed as any reason for the exemption or reduction of responsibilities of the Supplier. The Supplier should provide detailed remedial plans and take corrective measures for each deviation against this Code. Hisense may track and investigate the remedies of Supplier. Hisense has the right to terminate the business relationship at any time with Supplier who violates this Code or refuses to be inspected or audited in a timely manner with no liability to Hisense.
H. Validity period
This Code shall be valid and binding to Supplier until three years from the date Hisense ceased cooperation with the Supplier or the date when the quality guarantee period for the products provided by the Supplier expires, whichever is the later.