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Kiviks Musteri AB (KMAB) Code of Conduct

In accordance with ILO conventions, the Universal Declaration of Human Rights, the United Nations Conventions on the Rights of the Child and the Elimination of All Forms of Discrimination Against Women,
the United Nations Global Compact and OECD Guidelines for Multinational Enterprises, as well as other relevant internationally recognised agreements, the aim of this Code of Conduct is to fulfil certain fundamental social and environmental standards.
The companies that sign up to the Code undertake, within the limits of their sphere of influence, to approve and comply with the fundamental social and environmental standards set out in the Code. The companies shall also take the necessary measures to implement and ensure compliance with the Code in their business activities.
The companies that deliver goods or services to KMAB shall ensure that the code is observed by any
subcontractors involved in the final manufacturing stages of a product intended for KMAB.
The companies that deliver goods or services to KMAB shall, to the best of their ability and in accordance with a development-oriented approach, aim to gradually implement the following criteria:

Legal Compliance

Companies shall comply with national statutory and regulatory requirements, industry standards, ILO and UN conventions , as well as other relevant legal regulation. Wherever these rules and regulations differ , the strictest rules and regulations should be applied (i.e. the rules and regulations containing the most far-reaching requirements). ILO Convention 110 shall be observed in agricultural undertakings.

Freedom of Association and the Right to Collective Bargaining

All employees shall be entitled to freely form, belong to and organise trade unions, as well as collectively bargain with the company. The company shall respect these rights and, in an appropriate way, inform the employees of their rightto join the labour organisation of their choice and that doing so will not involve any disadvantages for them or lead to any reprisals from the company.The company shall not in any way prevent the establishment, maintenance or administration of any
such labour organisations or collective bargaining. In situations where freedom of association and the right to collective bargaining are restricted by law, the companies shall allow the employees themselves to select their own representatives. The company shall ensure that employee representatives and other personnel who organise employees are not subjected to discrimination, reprisals , threats or harassment as a result of belonging to a trade union or participating in trade union activities, and that the representatives in question have access to their members at the workplace.

Prohibition of Discrimination

As far as hiring, wage-setting, access to training, promotion, termination of employment or retirement are concerned, all forms of discrimination on the grounds of gender, age, religion, ethnicity, social status, birth, social background, disability , nationality, membership of employee organisations (including trade unions) , political affiliation or political philosophy, sexual orientation, family responsibilities, marital status, or other circumstances that can give rise to discrimination , are forbidden.

Remuneration

Pay for normal working hours, overtime and other overtime compensation shall meet or exceed the minimum statutory and/or industry standard amounts. Unlawful, unauthorised or disciplinary deductions from wages are forbidden. In situations in which the statutory minimum wage and/or industry standards do not cover living expenses and leave some disposable income, companies are encouraged to provide their employees with a wage that meets these needs. Deductions from wages as a disciplinary measure will only be allowed if this type of deduction is lawful in the country in question and a freely negotiated collective agreement is in place.
The companies shall ensure that employees regularly receive clear and accurate information about pay and benefits. They shall also ensure that wages and benefits are paid out in accordance with the relevant legislation and in a way that is convenient for the employees.
In accordance with national legislation, the rate of pay for overtime shall be higher than the rate of pay for normal working hours.
In countries where a premium rate for overtime is not regulated by law or collective agreements,
employees shall receive a premium rate for overtime or a rate equivalent to current industry practice. Of these two alternatives, the one that is most favourable to the employees shall be used.

Working Hours

The companies shall comply with applicable national legislation and industry standards on working hours and public holidays.
The maximum allowable working hours per week should comply with national legislation, but working
hours shall not exceed 48 hours on a regular basis and the maximum allowable overtime per week shall not exceed 12 hours. Any overtime should preferably be worked on a voluntary basis and shall be paid at a premium rate. If overtime is necessary to enable the company to meet increased demand in the short term, and there is a freely negotiated collective agreement between the company and employee organisations (that meet
the above definition) that represent a significant section of the workforce, the company is allowed to require overtime work to be carried out in accordance with the relevant collective agreements . All collective agreements of this nature must comply with the above criteria.

All employees shall be entitled to at least one free day after working for six consecutive days. No exemption from this rule will be valid unless the following two conditions are met:
a) National law permits working hours to exceed this limit.
b) There shall be a freely negotiated collective agreement in force that allows averaging of working hours, including adequate rest periods.

Health & Safety at Work

The company shall provide a safe and healthy working environment. The company shall take effective action to prevent the risk of workplace accidents. As far as is reasonably practicable, the company shall minimise the dangers and risks present in the working environment and ensure that the employees’ health is not harmed because of, in connection with or during their work.
In this respect, the company shall take note of current industry knowledge about risks and dangers in
similar workplace s and take special note of knowledge about or insight into the specific risks or dangers that are present in the workplace.
The company shall establish and follow clear health and safety rules and procedures.
It is paramount that persona l safety equipment shall be provid ed and used.
There shall also be access to clean toilet facilities, drinking water and, where appropriate, hygienic and suitable food storage facilities.
The company shall ensure that any dormitory facilities provid ed for employees are clean, safe and meet
their basic needs.
All personnel shall be entitled to remove themselves from immediate danger or risk without seeking permission from the company.
Methods and conditions which violate basic human rights are forbidden in workplaces and dormitories.
It is particularly important to ensure young workers are not exposed to hazardous, unsafe or unhealthy situations.

The company shall ensure the appointment of a senior management representative responsible for the health and safety of all employees, and for compliance with the provisions of this Code in the workplace. All personnel shall regularly receive health and safety training, and this training shall be repeated for new and reassigned personnel.
The company shall keep a record to confirm this training has been given.
The company shall establish procedures that make it possible for the company to detect, avoid and react to health and safety risks that might affect employees.

Prohibition of Child Labour

Child labour is forbidden by ILO and United Nations Conventions and/or by national legislation.
If these standards or rules and regulations differ, the strictest rules and regulations should be applied,
i.e. the rules and regulations containing the most far-reaching requirements. All forms of child exploitation are forbidden. Working conditions resembling slavery or harmful to the health of the child are forbidden and the rights of young workers shall be protected.
If children are found working in situations which fall within the definition of child labour above, the
company shall establish a plan of action to help those children. The company shall keep a record of any such plan of action. The company shall also provide financial and other forms of support to enable those children to attend and remain in school until they are no longer children. The company is allowed to employ young workers, but if they are subject to compulsory education laws, they will only be entitled to work outside school hours.
Young workers’ school, work, and transportation time shall under no circumstances exceed a combined total of 10 hours per day, and under no circumstances shall young workers work more than 8 hours a day.
Young workers are not allowed to work at night.

Prohibition of Compulsory Labour and Disciplinary Measures

All forms of forced labour, such as deposits for workers’ accommodation or confiscation of an employee’s identity documents, are forbidden.
Prison labour may not be utilised if working conditions violate fundamental human rights.
Neither the company nor any third party supplying manpower to the company shall withhold any part of the employees’ wages, benefits, assets or documents in order to force them to continue working for the company.
Employees shall always be entitled to leave the workplace on completion of a normal working day and
are entitled to terminate their employment provided they give reasonable notice to their employer. Neither the company nor any third party supplying manpower to the company shall engage in or support human trafficking.
The company shall treat all employees with dignity and respect. The company shall not use or tolerate
corporal punishment, mental or physical coercion, or verbal abuse of employees.

Environmental and Safety Issues

Procedures and standards for waste management, the handling and disposal of chemicals and other hazardous materials, as well as the treatment of effluent or other waste products, shall meet or exceed minimum statutory requirements.

The Company’s Procedures and Processes

The company shall formulate and implement a corporate social responsibility policy, a management system to ensure that the criteria in the Code are met, and formulate and follow an anti-bribery/anti­ corruption policy.
The anti-bribery/anti-corruption policy shall cover all the company’s business activities.
The company’s senior management shall ensure that the Code is implemented in a correct way by the company.
The company’s senior management shall regularly review the company’s corporate social responsibility
based on the provision s of the Code and take any action necessary to remedy any shortcomings.The company shall inform all its employees about the provisions of the Code and, where appropria te, react to any information employees provide about non-compliance with the requirements set out in the Code.

Confirmation of Compliance with the Code of Conduct

The Supplier hereby confirms that:
-The Supplier has received, read and understood the following document: KMAB’s Code of Conduct, which in this agreement is referred to as ‘The Code’
-That the Supplier is aware of all relevant statutory and regulatory requirements in the country or countries in which the Supplier operates.
– The Supplier shall inform KMAB of situations in which the Code comes into conflict with relevant statutory or regulatory requirements in the countries in which the Supplier operates.
-The Supplier will observe and follow the Code in its entirety with the help of a development-oriented approach and with no changes or deviations.
– The Supplier will inform all of its subcontractors of the content and requirements of the Code and ensure that they comply with its provisions.
– KMAB and any third party acting on its behalf may at any time, with or without notice, conduct audits at the business premises of the Supplier or the Supplier’s subcontractors.

Furthermore:
– the Supplier agrees to evaluate its corporate social responsibility activities and those of its subcontractors at the request of KMAB and share the results of these evaluations with KMAB in a way that allows KMAB to assess the corporate social responsibility performance of the Supplier and the Supplier’s subcontractors.
– the Supplier undertakes to notify KMAB of the location of production facilities used to produce products and/or deliver services for KMAB. The Supplier guarantees that all production of products and/or delivery of services for KMAB is exclusively carried out at the locations specified.

The Supplier is fully aware that if the Supplier fails to inform KMAB of the location where work for the products and/or services to be delivered to KMAB is carried out, KMAB will be entitled to immediately terminate all business and contractual relationships with the Supplier.

Provisions Relating to Implementation

The Supplier has a duty to take the measures necessary to implement and ensure compliance with the Code. This means, inter alia, that the Supplier should ensure the following:

Senior management responsibilities:
– informing senior executives and suppliers about the content of the Code.
– establishing where in the company’s organisation responsibility for Code-related issues lies.
– appointing one or more company executives to be responsible for implementing the Code.
– ensuring that the Company complies with the Code and making any changes necessary at its facilities.

Information for employees:
– informing the company’s employees that the company is applying the principles in the Code, and informing and instructing both its own and its subcontractors’ employees about the content of the Code.
The Supplier shall translate the Code into the local language(s) spoken at the workplace.
The Supplier shall display the Code in a conspicuous and prominent position in any production facilities and other business premises.

Employees shall also receive verbal information about the Code in a language they understand, regular health and safety training, as well as information about the company’s social and environmenta l impact.

Records:
– keeping records of the names, ages, working hours and the wages paid to all employees and making these documents available to approved auditors on request.
– documenting the location of hazardous substances and other potential risks.
– ensuring that the necessary safety equipment/materials are available and making sure that the equipment/material is well-maintained.
– ensuring that documents relating to statutory and regulatory requirements are kept updated.

Complaints and corrective measures:
– appointing an employee to be responsible for handling Code-related complaints.
– documenting and investigating complaints from employees or third parties on Code-related issues, i.e. corporate social responsibility, and reporting those complaints and corrective measures taken as a result.
– ensuring that the necessary resources are available to correct any faults or shortcomings in relation to the standards set out in the Code.
– refraining from dismissing or taking other disciplinary measures against employees who pass on information about the company’s compliance with the Code.

Suppliers and subcontractors:
– including corporate social responsibility provisions and compliance with the provisions of the Code in all agreements with their suppliers and regularly asking suppliers to provide a status report on the work of implementing the Code.

Monitoring:
– providing KMAB with relevant information about their activities and production facilities .
– ensuring that at any time, with or without prior notice, third parties acting on behalf of KMAB are able to conduct an audit at the Supplier’s or their subcontractors’ business premises for the purpose of inspecting the Supplier’s or their subcontractors’ corporate social responsibility work.
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