Observing the Casino Group s ethical commitments. Suppliers Charter of Ethics

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1 Observing the Casino Group s ethical commitments Suppliers Charter of Ethics

2 Established in France in 1898, the Casino Group is now present in Brazil, Colombia, Argentina, Thailand, Vietnam, Uruguay and in the Indian Ocean, with over 12,000 stores. The Group seeks to promote a responsible retailing throughout its supply chain in order to provide its customers with quality products that respect the working conditions of the men and women who produce them. édito To formalise this goal, in the early 2000s the Group drafted a Charter of Ethics that recalls the primacy of the Universal Declaration of Human Rights and identifies eight requirement criteria that every supplier must comply with. In order to ensure compliance with practices and improve them, the Casino Group s Corporate Social Responsibility Department independently monitors the social ethics of the suppliers that work for the Group s own brands. Every year, whithin the framework of ICS (Social Clause Initiative) it carries out more than 100 social audits with the help of Group-approved outside specialists and follows up on every corrective action plan that have been drawn up. This process is part of a progressive, supportive approach. The aim of this document is to remind you of Casino Group policy and commitments. It is essential that you adhere to this Charter of Ethics in order to create an environment of trust that will enable you to develop a long-term relationship with the Casino Group.

3 A Group that is committed to promote a responsible retailing Through the nine commitments in its Groupe Ethical Charter and its adhesion of the United Nations Global Compact, the Casino Group and its subsidiaries have solemnly reaffirmed their commitment to: - the high ideals enshrined in the Universal Declaration of Human Rights, - the principles contained in the Declaration of the International Labour Organisation on Fundamental Principles and Rights at Work, Through its Ethical Charter, it undertakes: - to comply with national and international laws, principles, standards and regulations - to uphold human dignity in the workplace - and to pay special attention to applying international standards aimed at eliminating forced labour and child labour, both in the Group s own business and among contractual suppliers. The Group also does not tolerate any form of discrimination, for any reason. A commitment strengthened through the 10 principles of the United Nations Global Compact, which the Casino Group joined in October Human Rights Principle N 1 Businesses should support and respect the protection of internationally proclaimed human rights; and Principle N 2 make sure that they are not complicit in human rights abuses. Labour Principle N 3 Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; Principle N 4 the elimination of all forms of compulsory labour; Principle N 5 the effective abolition of child labour; and Principle N 6 the elimination of discrimination in respect of employment and occupation. Environment Principle N 7 Businesses should support a precautionary approach to environmental challenges; Principle N 8 Undertake initiatives to promote greater environmental responsibility; and Principle N 9 Encourage the development and diffusion of environmentally friendly technologies. Anti-corruption Principle N 10 Businesses should work against corruption in all its forms, including extortion and bribery. The Groupe Casino Ethical Charter

4 An initiative which commits our suppliers In order to promote, respect and uphold the Group s ethical commitments in its dealings with its suppliers and subcontractors, the Casino Group has set up a Suppliers Charter of Ethics in the early 2000s. It is the Group s intention to ensure that its entire supply chain complies with human rights provisions and to participate in the improvement of working conditions in the factories that produce goods on its behalf, especially for the Group s own-brand products. Mindful of the issues at stake, the Casino Group joined the French Social Clause Initiative (ICS) as soon as it was established, working with other member banners to reinforce the effectiveness of the actions taken. The aim is to provide support to the banners suppliers in the developing countries: China, Bangladesh, Pakistan, Vietnam, Thailand, Morocco, Turkey, etc. This collective approach, conducted in accordance with the framework established by the International Labour Organisation (ILO), aims to ensure that production sites comply with universal human rights values and principles and local labour regulations. The Casino Group also supports the work of the Global Social Compliance Programme (GSCP), which it joined in The Social Clause Initiative (ICS) was established in 1998 under the aegis of the French Commerce and Retailing Federation (FCD). It currently has 19 member banners, including Casino Group, which has been a member since Under the ICS, the Casino Group is committed to arrange on-site checks on actual working conditions in production sites by carrying out social audits based on eight chapters of a common audit scheme. It is also committed to share the results of its audits when a supplier has been identified as working for one or more banners, as well as any relevant information that might help to improve factory working conditions. ICS members work with dedicated approved auditors. They may also maintain relations with NGOs and local unions to improve local social standards. ICS members: Auchan / Carrefour / Groupe Casino / Cora / Système U / Monoprix / Bizzbee / Jules / Brice / Oxybul éveil et Jeux / Okaïdi / Jacadi / Pimkie / Groupe Adeo /Conforama / 3 Suisses / Casaque / Conad / Colruyt. Global Social Compliance Programme Established in 2006, the Global Social Compliance Programme (GSCP) aims to secure convergence of social audit standards within the supply chain, share best practice and thus help to improve working conditions. This platform intends to provide all suppliers with a single, coherent and shared message, based on the ILO and the UN standards. Current members of the GSCP Advisory Board include representatives of the International Federation for Human Rights (FIDH), CSR Asia, the Harvard Kennedy School, the Interfaith Center on Corporate Responsibility (ICCR), and the UN Global Partnerships Forum.

5 Complying with the 8 requirement criteria Under the Casino Group Suppliers Charter of Ethics, every supplier commits to the principles contained in the Universal Declaration of Human Rights and the Declaration of the International Labour Organisation (ILO) on Fundamental Principles and Rights at Work, in addition to 8 (eight) requirement criteria. All suppliers must read the full text of the Charter appended to this document before signing. Unless formally agreed in writing, sub-contracting is not permitted. Suppliers undertake to (Excerpts taken from the Casino Group Suppliers Charter of Ethics) 1 Prohibit work of minors: The minimum age for admission to employment is that established by the regulations of the country and must in any case be at least consistent with the ILO Convention 138. Attention is drawn in particular to the terms of Article 3 (1), which states that: The minimum age for admission to any type of employment or work which by its nature or the circumstances in which it is carried out is likely to jeopardise the health, safety or morals of young persons shall not be less than 18 (eighteen) years. 2 Prohibit forced labour: The Casino Group prohibits forced or compulsory labour, for any reason whatever. 3 Prohibit harsh discipline and harassment: The Casino Group prohibits the use of corporal punishment or any other form of physical or mental coercion, just as it prohibits verbal or physical abuse and the threat of physical abuse and sexual or other harassment. 4 Prohibit discrimination: Suppliers shall not engage or support discrimination in respect of hiring, remuneration (according to the principle «equal pay for equal work»), access to training, promotion or union membership, made on the basis of race, colour, sex, religion, political opinion, national extraction, social origin or sexual orientation. 5 Freedom of association and the right to collective bargaining: The Casino Group acknowledges for workers and employers, without previous authorisation, the right to establish organisations of their choice, and that of joining them and of bargaining collectively freely and independently, and undertakes to respect the free exercise of the right to organise, in compliance with the regulations of the law of the land. 6 Working time: The working time (daily, weekly, monthly and annually) acceptable by the Casino Group will be determined by the law of the land. In any event, workers shall enjoy at least 1 (one) day of 24 (twenty-four) consecutive hours of rest in every 7 (seven) day period, and one annual paid leave period in addition to national and local holidays. 7 Remuneration: Every worker shall be compensated at least the legal minimum reference wage, whether national or local, and/or according to the prevailing industry rate, whichever is the higher, including cases where no contractual remuneration has been agreed, and shall be provided with legally mandated benefits including holidays and paid leave. Overtime shall be paid according to existing legal or contractual pay scales and in any case at a premium rate. 8 Hygiene, health and safety: The Casino Group expects its suppliers to take any measures needed with a view to guaranteeing a safe and healthy working environment for the personnel, corresponding to best professional practice, bearing in mind the state-of-the-art of the industry and any specific dangers.

6 Monitoring and participating in the improvement of working conditions Any supplier wishing to work for the Casino Group must read the Suppliers Charter of Ethics and sign it without altering any of its clauses. The Casino Group conducts social audits within the scope of ICS to ensure that production sites comply with the eight requirement criteria contained in its Charter of Ethics. In case of non-compliance with the Charter, the Casino Group is authorised to terminate all relations with the supplier. The current audit cycle involves 3 stages: 1. The initial audit 2. The implementation of the corrective actions that has been approved within a specific plan by the production site, if necessary 3. The follow-up audit These audits are conducted by independent specialist firms that have been trained to the ICS standards. The results are shared with any other ICS members that work with the same audited factory. In case of a breach with the Charter of Ethics or failure to implement the corrective action plan, suppliers or their subcontractors can be removed. The Casino Group is mindful of its responsibility to help to improve practice in this area and given its desire to develop a loyal and, as far as possible, long-term relationship with its suppliers, the Group is committed to supporting the latter in their efforts to improve the working conditions. Social compliance audit Follow-up audit Checking the implementation of the corrective actions Corrective actions If necessary Initial audit Identifying non-conformities or good practices The Casino Group has conducted over 780 social audits since 2002 Audits can be both announced or unannounced.

7 Graphic Design: Communications Department - September 2012 Printed on paper originated from sustainably managed forests

8 For further information: Contact : Corporate Social Responsibility Department Casino Group 1, Esplanade de France - F Saint-étienne cedex 2 Tel : +33 (0) Fax : +33 (0) Non-contractual document

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