Renewal in October 18, 2019 

In order to ensure the safety of the working environment in the supply chain, the respect and dignity of employees, the promotion of environmental protection in business operations, and the observance of ethical conduct, Chin Teng has formulated this Supplier Code of Conduct ("Code"). Chin Teng Company requires suppliers to abide by this Code and at the same time comply with the laws and regulations of the countries and regions where they operate. Chin Teng Company also encourages suppliers to require their downstream suppliers, contractors and service providers to approve and adopt this Code.

 

Suppliers’ compliance with this Code will be one of the considerations of Chin Teng Company when making purchasing decisions. Chin Teng expects to promote continuous improvement through close cooperation, communication, audit and follow-up evaluation with suppliers. Suppliers that do not comply with this Code or are unwilling to cooperate with Chin Teng Company’s auditors may result in the termination of the business relationship with Chin Teng Company.

 

The provisions of this Code are based on the "Responsible Business Alliance (RBA, formerly EICC) Code of Conduct" and refer to the "UN Guiding Principles on Business and Human Rights" (the UN Guiding Principles on Business and Human Rights) and other international Commonly adopted human rights regulations include the "ILO Declaration on Fundamental Principles and Rights at Work" and the "UN Universal Declaration of Human Rights" (the UN Universal Declaration of Human Rights).

 

This code consists of five parts. Parts A, B, and C respectively outline labor, health and safety, and environmental standards. Part D provides standards for business ethics; Part E outlines the elements required for an appropriate management system that can implement this Code.

 

A. Labor

Suppliers shall undertake to safeguard the human rights of workers and respect them in accordance with internationally recognized standards. This applies to all workers, including temporary workers, migrant workers, students, contract workers, direct employees, and any other types of workers.

The guidelines were compiled with reference to the recognized standards listed in the appendix, and these standards are also a useful source of additional information.

 

Labor standards:

(1) Free choice of occupation

The use of forced, guaranteed (including debt repayment) or contracted labor, involuntary or exploitative prison labor, enslaved or trafficked humans (including North Korean citizens or US hostile national sanctions Act CAATSA) is prohibited. This includes the use of intimidation, coercion, threats, kidnapping or fraud to transport, harbour, recruit, deploy or receive labor or services obtained. In addition to prohibiting unreasonable restrictions on workers' access to the workplace, the freedom of movement of workers in the workplace should not be unreasonably restricted. In the recruitment process, workers must be provided with an employment agreement written in their native language before they leave the original country, and the terms and conditions of employment must be specified in the agreement; and after arriving in the receiving country, the employment agreement must not be replaced Or change, unless the change is made to comply with the requirements of local law and provide the same or better terms. All work should be voluntary, and workers have the right to resign or terminate the employment relationship at any time. Employers or intermediaries shall not detain or otherwise destroy, conceal, confiscate or deny employees the use of their ID cards or entry and exit documents, such as government-issued identity certificates, passports or work permits, but the law requires employers to hold their employees’ An exception is a work permit. Employers or intermediaries shall not require workers to pay recruitment fees or other fees related to their employment. If a worker is found to have to pay any such fees, such fees must be returned to the worker concerned.

(2) Young workers

Do not use child labor in any manufacturing process. "Child labor" refers to the employment of any person under the age of 15, or under the age of compulsory education, or the minimum age for employment in the country/region (whichever is the oldest of the three). Legal workplace study programs that comply with all laws and regulations are not included. Workers under the age of 18 (young workers) shall not perform work that may endanger their health or safety, including night duty or overtime. Suppliers shall ensure proper management of student labor by properly keeping student records, strictly reviewing education partners, and protecting the rights of students in accordance with applicable laws and regulations. Suppliers shall provide appropriate support and training to all student labor. If there are no local laws and regulations, the salary levels of student labor, interns and apprentices should be at least equal to other entry-level employees engaged in the same or similar jobs.

(3) Working hours

According to relevant business practice research, reduced productivity, increased staff turnover, and increased injuries and illnesses are significantly related to labor fatigue. Therefore, the number of working hours should not exceed the maximum set by local laws. In addition, the number of working hours per week should not exceed 60 hours (including overtime), except in emergency or special circumstances. Workers should be allowed at least one day off every seven days.

(4) Wages and benefits

Wages paid to workers should comply with all relevant wage laws, including laws on minimum wages, overtime and statutory benefits. According to local laws and regulations, workers’ overtime wages should be higher than regular hourly wages. It is forbidden to deduct wages as a disciplinary measure. In each pay cycle, workers should be provided with concise wage receipts in a timely manner, containing sufficient information to verify that the wages paid to workers are accurate. Hiring temporary workers, dispatchers and outsourced workers must comply with local laws.

(5) Humane treatment

Should avoid harsh and inhumane treatment of employees, including any form of sexual harassment, sexual assault, corporal punishment, mental or physical coercion, or verbal abuse; nor should they threaten to commit any such behavior. The relevant disciplinary policies and procedures must be clearly defined and clearly communicated to employees.

(6) Non-discrimination

Suppliers shall promise employees to avoid harassment and unlawful discrimination. The company must not be based on race, color, age, gender, sexual orientation, gender identity and performance, race or ethnicity, disability, pregnancy, beliefs, political positions, group background, veteran status, protected genetic data or marital status, etc. Discrimination against employees in recruitment and actual work, such as affecting wages, promotion, rewards, and training opportunities. Employees should be provided with suitable places for religious activities. In addition, employees or prospective employees shall not be subject to discriminatory medical tests or physical examinations.

(7) Free association

According to local laws, suppliers should respect the rights of all employees to organize and participate in the trade union of their choice, collective bargaining, and participate in peaceful assemblies, as well as the rights of employees to avoid such activities. Employees and/or their representatives should be able to communicate openly with management and share their thoughts and concerns on working conditions and management methods without fear of discrimination, retaliation, threats or harassment.

 

B. Health and safety

Suppliers should recognize that in addition to minimizing work-related injuries and illnesses, a safe and healthy working environment can help improve the quality of products and services, the stability of production, and the loyalty and morale of employees. Suppliers should also recognize that continuously collecting employee feedback and investing in employee education is the key to identifying and solving health and safety issues in the workplace.

This Code was drafted with reference to recognized management systems (such as OHSAS 18001 and the International Labor Organization’s Occupational Safety and Health Management System Guidelines), which are also useful sources of additional information.

 

Safety and health standards:

(1) Occupational safety

Appropriate design, engineering and administrative control, protective maintenance and safe operation procedures (including lockout and tagout procedures), and continuous safety knowledge training should be adopted to identify, assess and control the potential safety hazards (such as chemical, electrical and other Energy, fire, vehicles, and fall hazards or accidents) to avoid endangering employees. If the source of hazard cannot be fully and effectively controlled through the above methods, employees should be provided with appropriate and well-maintained personal protective equipment and teaching materials about these dangerous accidents and related risks. Reasonable measures must also be taken to keep pregnant women/breastfeeding women away from highly dangerous working environments, eliminate or reduce any occupational health and safety risks (including those related to their job assignments) to pregnant women and breastfeeding women. ), and provide reasonable breastfeeding places for breastfeeding women.

(2) Emergency preparedness

Potential emergency situations and events should be identified and evaluated, and the impact should be minimized by implementing emergency plans and response procedures, including: appropriate fire detection and fire suppression equipment, unobstructed escape exits, and adequate personnel evacuation facilities and Recovery plan, emergency notification, on-site personnel notification and evacuation procedures, staff training and exercises. These programs and procedures should focus on minimizing harm to life, the environment and property.

(3) Work injury and occupational disease

The prevention, management, tracking and reporting of work-related injuries and occupational diseases shall be carried out through appropriate design, engineering and administrative control systems, including the following provisions: identification and control of hazard factors, encourage employees to report; classify and record work-related injuries and occupational disease cases; provide necessary Treatment assistance; investigate cases and implement corrective measures to prevent similar situations; assist employees to return to work.

(4) Industrial hygiene

The impact of exposure to chemical, biological, and physical hazards to employees should be identified, evaluated, and controlled based on the control level. Eliminate or control potential hazards through appropriate design, engineering and administrative control. If these measures are not fully effective in preventing hazards, employees should be provided with appropriate and properly maintained personal protective equipment for their use. The protection plan must include teaching materials on the risks associated with these hazards.

(5) Manual work

The impact of manual work on employees should be identified, evaluated and controlled, including manual handling of materials or repeated lifting of heavy objects, standing for a long time, and highly repetitive or intensive assembly work.

(6) Machine protection

The safety hazards of production equipment or other types of machinery should be assessed. In order to prevent possible injuries to employees caused by machines, physical protective devices, interlocking devices and barriers should be provided and properly maintained.

(7) Public health and accommodation

Employees should be provided with clean toilet facilities, clean drinking water, and sanitary cooking utensils, food storage facilities and tableware. The employee dormitories provided by suppliers or labor intermediaries should be kept clean and safe, and provide legal fire protection facilities, appropriate emergency exits, hot water for bathing, adequate lighting, heating and ventilation equipment, and independent and safe places for storing personal and valuables Goods and appropriate and accessible private spaces.

(8) Health and safety communication

Suppliers shall provide appropriate occupational health and safety information and training in the language used by employees or a language they can understand, and identify all workplace hazards faced by employees, including but not limited to mechanical, electrical, chemical, fire and physical harm. Post health and safety-related materials in conspicuous places in the workplace, or place relevant materials in locations that are identifiable and accessible to employees. Provide training to all employees on a regular basis before and after starting work. Employees should be encouraged to increase safety and hygiene awareness.

(9) Natural disaster risk reduction

It is necessary to understand the natural disasters that may be encountered in the factory location, such as earthquakes, droughts, floods, typhoons, etc., to assess the possibility and severity of personnel injuries, property losses, and operational interruptions. According to the assessment results, through the establishment of hardware protection, development of response procedures, Training and exercises, and implementation of emergency plans to reduce the risk of natural disasters.

 

C. Environment

Suppliers acknowledge that environmental protection responsibility is an indispensable part of producing world-class products. In the process of manufacturing operations, adverse effects on the community, environment and natural resources should be minimized, while protecting the health and safety of the public. The standard was drafted with reference to recognized management systems (such as ISO 14001 and EcoManagement and Audit System (EMAS)), which is also a useful source of additional information.

 

Environmental standards:

(1) Environmental permits and reports

All necessary environmental related permits (such as emission monitoring) should be obtained,approval and registration documents,carries on the maintenance to it and often renews , and comply with the operating and reporting requirements of the license.

(2) Prevent pollution and save resources

Should be at the source or through practice (such as adding pollution control equipment; improving production, maintenance and facility procedures; or other methods) to minimize or eliminate the discharge of pollutants and waste generation. The consumption of natural resources (including water, fossil fuels, minerals and primary forest products) should be saved or through practices (such as improved production, maintenance and facility procedures, replacement materials, conservation, recycling, reuse or other methods).

(3) Harmful substances

Chemical substances and other substances that are harmful to humans or the environment should be identified, labelled and managed to ensure that these substances can be safely handled, including production, transportation, storage, use, recycling, disposal or reuse and disposal.

(4) Solid waste

Suppliers shall implement systematic measures to identify, manage, reduce and responsibly handle or recycle solid waste (hazardous and non-hazardous).

(5) Waste gas emission

Before discharging volatile organic chemicals, aerosols, corrosive substances, particulates, ozone-depleting chemicals, and combustion by-products, they should be classified, routinely monitored, controlled and processed in accordance with requirements. Suppliers should also routinely monitor the performance of exhaust emission control systems.

(6) Material control

Suppliers shall comply with all applicable laws, regulations and customer requirements, and prohibit or restrict the inclusion of specific substances in products and manufacturing processes (including recycling and disposal labels).

(7) Water resources management

Suppliers should implement a water management plan to record, classify and monitor water resources, use and discharge; seek opportunities to conserve water; and control pollution channels. Before discharge or disposal, all sewage shall be classified, monitored, controlled and treated in accordance with requirements. Suppliers shall routinely monitor the performance of sewage treatment and control systems to ensure optimal performance and compliance with regulatory requirements.

 

(8) Energy consumption and greenhouse gas emissions

Energy consumption and all related Scope 1 and 2 greenhouse gas emissions should be tracked, recorded, and checked in the workplace and/or at the enterprise level. Suppliers should seek cost-effective ways to improve energy efficiency and minimize energy consumption and greenhouse gas emissions.

 

D. Ethics

In order to fulfill social responsibility and succeed in the market, suppliers and their agents must abide by the highest ethical standards, including:

(1) Integrity management

The highest standards of integrity should be observed in all business interactions. Participants should adopt a zero tolerance policy to prohibit any form of bribery, corruption, extortion and embezzlement of public funds.

(2) No illegitimate income

Do not promise, offer, approve, give or accept bribes or other forms of improper proceeds. This prohibition includes promising, offering, approving, giving or receiving anything of value (whether directly or indirectly through a third party) in order to obtain or retain business, transfer business to others, or obtain improper income. Monitoring and enforcement procedures should be implemented to ensure compliance with anti-corruption laws.

(3) Information disclosure

All business transactions should be transparent and accurately recorded in the supplier’s books and business records. Information about participation in labor, health and safety, environmental protection activities, business activities, organizational structure, financial status and performance shall be disclosed in accordance with applicable laws and general industry practices. Do not falsify records or falsely report the status or practices of the supply chain.

(4) Intellectual Property

Intellectual property rights should be respected; technology and production knowledge must be transmitted in a way to protect intellectual property rights; and customer and supplier information must be protected.

(5) Fair trade, advertising and competition

Standards of fair trade, advertising and competition should be observed.

(6) Identity protection and prevention of retaliation

Unless prohibited by law, suppliers should establish procedures to protect suppliers and employee whistleblowers (anyone who exposes improper conduct of company employees, supervisors or public servants and government agencies), and to ensure the confidentiality and anonymity of their identities. Suppliers should also develop communication procedures so that employees can express their concerns without fear of retaliation.

(7) Procurement of minerals responsibly

Suppliers should formulate policies to reasonably ensure that the minerals in their products do not directly or indirectly fund or benefit criminal armed groups that seriously violate human rights in the Democratic Republic of the Congo and its neighbors. Suppliers should conduct strict audits on the procurement and production and sales chain of custody of these minerals, and provide information on audit standards when customers inquire.

(8) Privacy

The supplier undertakes to reasonably protect the personal data and privacy of any person with whom it does business (including suppliers, customers, consumers and employees). Suppliers shall comply with privacy and data security laws and regulatory requirements when collecting, storing, processing, disseminating and sharing personal data.

(9) Avoid conflicts of interest

All possible conflicts of interest shall be avoided in the business dealings between suppliers and Chin Teng Company. Possible conflicts of interest situations include (but are not limited to) internal employees of Chin Teng Company or their close relatives (parents, children, spouses, or siblings) working for suppliers, or having important investment interests in suppliers (non-public offering companies). Unnecessary or excessively frequent social interactions between suppliers and their counterparts in the mine may also constitute concerns or appearances of conflicts of interest. Therefore, any contact between the supplier and the personnel of Chin Teng Company must observe the division of general business dealings, and any conflict of interest must be reported to Chin Teng Company immediately. If the supplier finds any potential conflict of interest, it must immediately notify the Chin Teng Company and take appropriate measures to prevent possible misconduct.

(10) Prohibition of unauthorized subcontracting

Without special authorization, employees of Chin Teng Company shall not require suppliers to subcontract products or services that should be provided in accordance with the contract to specific third parties, or specify that materials or purchases shall be made from specific third parties. Therefore, if the supplier receives a similar request, it should immediately notify Chin Teng Company.

(11) Observe the contract requirements

Regarding matters that Chin Teng Company expects the supplier to perform in person (including contracts or purchase orders), the supplier shall not subcontract or require a third party to perform it without the consent of Chin Teng Company. Suppliers shall not provide any products or services to Chin Teng Company without signing a valid contract or purchase order with Chin Teng Company.

(12) Follow relevant import and export regulations

Suppliers should understand and follow the relevant laws and regulations involved in importing, exporting and delivering goods to or on behalf of Chin Teng Company, including export control and customs regulations of the original exporting country, import and customs regulations of the destination country, and payment Customs duties and other taxes required by laws and regulations, as well as local transportation related laws and regulations. Suppliers shall provide their employees and outsourcers with operational procedures and education and training to ensure that they comply with the aforementioned regulations.

(13) The only business contact window of Chin Teng Company

Purchasing personnel of Chin Teng Company are the only business contact window for supplier business personnel. Without the consent, arrangement or participation of the procurement personnel of Chin Teng Company, the supplier business personnel shall not have business contact with the non-purchasing personnel of Chin Teng Company, nor shall they discuss any commercial terms with them, including but not limited to prices, payment terms, delivery dates, Rewards, compensation, free goods, tests or services, technical specifications or engineering improvements.

 

E. Management system

The supplier shall adopt or establish a management system whose scope is related to the content of this Code. When designing the management system, ensure:

(a) Comply with applicable laws, regulations and customer requirements related to supplier operations and products; (b) Comply with this standard; and (c) identify and mitigate the operating risks related to this standard. The management system should also promote continuous improvement.

The management system should include the following elements:

(1) Company commitment

The company’s social and environmental responsibility policy statement should determine the supplier’s commitment to compliance and continuous improvement,and posted in the local language in the workplace.

(2) Management responsibilities and responsibilities

The supplier should assign the senior manager and the company explicitly represents is responsible to guarantee the management system and the correlation plan implementation.Senior management should regularly check the operation of the management system.

(3) Laws and customer requirements

Develop procedures to identify, monitor and understand applicable laws and regulations and customer requirements (including the requirements of this Code).

(4) Risk assessment and risk management

Develop procedures to identify compliance, environment, health and safety, labor activity and moral risks related to supplier’s operations (production area, warehouse and storage facilities, plant/workplace support equipment, laboratory and testing area, sanitary facilities (bathroom), Kitchens/canteens and staff housing/dormitories should be included in the scope of environmental health and safety risk assessment). Assess the level of each risk, implement appropriate procedures and substantive controls to control the identified risks and ensure compliance with regulatory regulations.

(5) Improvement goals

Written performance goals, indicators, and implementation plans should be formulated to improve the supplier’s social and environmental responsibility performance, including regular reviews of the supplier’s effectiveness in achieving these goals.

(6) Training

A training plan should be developed for the management and employees to implement the supplier’s policies, procedures and improvement goals, while meeting the requirements of applicable laws and regulations.

(7) Communication

Develop procedures to clearly and accurately communicate supplier policies, practices, expectations and performance to employees, suppliers and customers.

(8) Employee opinions, participation and appeals

Develop sustainable and feasible procedures (including an effective grievance mechanism) to assess the staff's awareness of the practices or violations and conditions covered by this Code, and obtain their opinions in this regard, so as to promote continuous improvement.

(9) Audit and evaluation

Regular self-assessments are carried out to ensure compliance with the requirements of laws and regulations, the content of this Code, and the requirements related to social and environmental responsibility in customer contracts.

(10) Corrective measures

Develop procedures to ensure timely correction of deficiencies found in internal and external evaluations, inspections, investigations and audits.

(11) Documents and records

Establish and maintain documents and records to ensure compliance with regulatory regulations and company requirements, while ensuring the confidentiality of privacy.

(12) Supplier’s responsibilities

Develop procedures to communicate the requirements of this Code to upstream suppliers and monitor their compliance with this Code.