Code of Conduct for KID Interior AS
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1 Code of Conduct for KID Interior AS Kid Interior AS (KID) is a responsible member of the global community and it is our obligation to ensure that our business is conducted in a socially responsible manner, with respect for human rights, worker s rights and the environment. It is important for us to take responsibility for our actions and we wish to use our influence to promote respect for Human & Labour Rights and environmental protection both within the company and towards our business partners. We are focused on improving man s quality of life that includes our costumers, employees and everyone involved in the production of our merchandise. Based on our commitment we have set up the Code of Conduct to make our position clear for all our suppliers, for our own staff and for other partners. The requirements of our Code of Conduct are non-negotiable and shall be complied with by our suppliers, and their subcontractors, through all their activities. Yet, we stress that we will not terminate business in case of non-compliances. If non-compliances occur, we expect corrective actions to be taken within a reasonable time frame agreed upon between the supplier and KID. However we regard our supplier s social responsibility as a competitive advantage and we shall make sure that they are aware of this. Only after repeated failure or unwillingness to carry out corrective actions, may business with the supplier be terminated. Also, when placing new orders, the level of compliance with our Code of Conduct and willingness to make improvements will be an important criterion for selection of suppliers. The principle aim of our Code of Conduct is to help improve the social and environmental conditions of our suppliers. The business relationship between KID and its suppliers shall be based on mutual respect, and all parties shall communicate in a good and constructive manner throughout the process. Supplier is the contractual partner responsible for the product, process or service supplied to Kid Interior AS. Subcontractor is a business entity in the supply chain directly or indirectly providing the supplier with goods and/or services integral to, and utilized in/for the production of the supplier s goods and/or services. Continuous evaluation and improvement of KID s internal policies and practices KID will continuously evaluate and, if applicable, improve our own policy and purchasing practices in order to facilitate suppliers and subcontractors compliance with this Code of Conduct. 1
2 Boycott of individual countries KID adheres to UN decisions regarding trade boycotts and embargoes and will avoid manufacturers from countries where there is broad international support for boycott, due to local human rights issues. Follow national law As a general rule, the KID s supplier shall comply with all relevant and applicable laws and regulations. In case of disparity between valid laws and regulations and KID s Code of conduct, the strictest rule shall prevail. Freely Chosen Employment There shall be no forced, bonded or involuntary prison labour. Workers shall not be required to lodge deposits or hand over original identity papers or copy of the original of their work permit. Workers shall be free to terminate the work relation with a reasonable period of notice. The employees shall be free to leave the factory premises when their work shift ends. No Discrimination There shall be no discrimination at the work place based on ethnic background, religion, age, disability, gender, marital status, sexual orientation, union membership or political affiliation. Measures shall be established to protect workers from sexually intrusive, threatening, insulting or exploitative behaviour, and from discrimination or termination of employment on unjustifiable grounds, e.g. marriage, pregnancy, parenthood or HIV status. Freedom of Association and the Right to Collective Bargaining Workers, without distinction, shall have the right to join or form trade unions of their own choosing and to bargain collectively. Should these rights be restricted under law, the employer shall facilitate, and not hinder, the development of parallel means for independent and free association and bargaining. Workers representatives shall not be discriminated and shall have access to carry out their representative functions in the workplace. No Child Labour The supplier must abide by the UN Convention on the Rights of the Child (1989) and ILO conventions no. 138 and 182. Children under the age of 15 or under the legal age for compulsory school attendance (whichever is greater) shall not be engaged in labour that is detrimental to their education. Young workers of legal working age, up until the age of 18 shall not be engaged in labour that is hazardous to their health or safety, including night work. 2
3 New recruitment of child labour in infringing of the above mentioned conventions is unacceptable. If child labour, as described above, is already in existence, sustained efforts shall be made to redress the situation as quickly as possible. However, the children concerned shall be given the possibility of earning a livelihood, as well as acquiring an education until they are no longer of compulsory school age. The supplier must maintain a Labour force register including the date of birth for all the workers. Adequate Wages All workers, including temporary workers, shall be provided with a written and comprehensible contract stating their wages, method of payments, working hours, overtime and compensation for such before entering employment. Wages and benefits paid for a standard working week shall meet, at a minimum, national legal standards or industry benchmark standards, whichever is higher. Wages should always be enough to meet basic needs. Deductions from wages as a disciplinary measure shall not be permitted. No Excessive Working Hours Working hours must not exceed the limit stated by national laws and industry standards, whichever affords greater protection. Overtime shall be limited. Recommended maximum overtime is 12 hours per week. Workers shall always receive overtime pay, minimum in accordance with current legislation. Workers shall be provided with at least one day 24 hours off for every 7 day period. Working Conditions Physical abuse or punishment, or threats of physical abuse, sexual or other harassment and verbal abuse, as well as other forms of intimidation, shall be prohibited. The working environment shall be safe and hygienic, bearing in mind the prevailing knowledge of the industry and of any specific hazards. Adequate steps shall be taken to prevent accidents and injury to health arising out of, associated with, or occurring in, the course of work, by minimising, so far as is reasonably practicable, the causes of hazards inherent in the working environment. Workers shall receive regular and documented health and safety training, and such training shall be repeated for new workers. The supplier shall provide and pay for all appropriate Personal Protective Equipment (PPE) to all workers in any harmful or potentially risky work area(s). The supplier must ensure that the PPE is maintained and worn when needed. Machines shall have satisfactory and functional safety devices which shall be maintained on a regular basis. 3
4 Employees shall be given the necessary and adequate safety training before operating machines and other equipment. First aid equipment are mandatory in all work areas, shall be adequately stocked and available to all co-workers. The factory shall have a sufficient number of exits, and these shall remain unlocked and free from obstruction in case of fire or other emergency situations. The supplier shall have an independent and functioning evacuation alarm. Evacuation plans shall be easily visible at the entrance of the production area. Fire extinguishers are mandatory in all work areas and shall be easily visible and accessible to all workers. The supplier must ensure that the fire fighting equipment is maintained regularly. All employees shall be informed and drilled about the evacuation plan. The supplier shall have an adequate number of employees trained to use fire fighting equipment in each work area, covering all production shifts. The lighting must be sufficient so as to ensure safe working. The factory shall be ventilated according to legal requirements. Access to clean toilet facilities and to clean drinking water and, if appropriate, sanitary facilities for food storage shall be provided. Chemicals The supplier shall ensure compliance with all applicable laws and regulations pertaining to procurement, storage, handling and use of chemicals. All chemicals must be properly labelled, with appropriate danger symbols and chemical names. The chemicals must be handled and stored securely. The storage facilities must be built in such a way that leakage into air, water and ground is prevented. Chemicals located at the production line shall be stored and handled in such a way that they cannot easily be spilled or cause accidents for workers. The volume stored shall not exceed the volume normally used during 24 hours. Housing Factories providing housing for their workers must ensure reasonable cleanliness, privacy, quietness, personal hygiene and access to clean drinking water. Dormitories shall comply with local laws pertaining to health and safety (also fire safety, sanitary equipment, general security, as well as electrical, mechanical and structural equipment). 4
5 No restrictions shall be applied which interfere with the employee s right to leave the housing facility during his / her free time. The living space provided per individual shall be according to the legal requirements, and if there are no such requirements, the area shall be a minimum two square meters per person. There shall be provided an individual bed / mattress or sleeping mat for each person. Separate accommodations, toilets and washing facilities shall be available for men and women respectively. Marginalize Population Production and extraction of raw materials for production shall not contribute to the destruction of the resources and income base for marginalized populations, such as in claiming large land areas or other natural resources on which these populations are dependent. Protection of the Environment Environmental measures shall be taken into consideration throughout the production and distribution chain ranging from the production of raw material to the consumer sale. Local, regional and global environmental aspects shall be considered. The local environment at the production site shall not be exploited or degraded by pollution. National and international environmental legislation and regulations shall be respected. Relevant discharge permits shall be obtained where required. Hazardous chemicals and other substances shall be carefully managed. Wood, bamboo and rattan The supplier shall for KID products, only use wood, bamboo and rattan that have been produced in compliance with existing laws and legislations and accepted forest practices within the country and/or region where the wood originates from. The supplier shall maintain records of the origin of all wood, bamboo and rattan sources. This must be defined to at least the specific region within the country. The supplier shall not utilise wood, bamboo and rattan from protected areas. If high value tropical tree species, like teak, meranti, rosewood and mahogany is used, the supplier must inform KID and the wood must be certified. Animal protection KID shall only use synthetic fur in their products. Leather products shall be manufactured only by using skins of utility animals such as pigs, sheep and cow, where the animals have originally been slaughtered for the meat market. 5
6 Execution and follow up The suppler shall take positive actions to implement the requirements of this code, to incorporate the code into all of its operations, and to make the code an integral part of its overall philosophy. The supplier shall assign responsibility for all matters pertaining to this Code of Conduct to a manager within its organisation. The supplier accepts responsibility for observing the requirements of this code with respect to all employees and workers that it supervises and agrees to: Assign responsibility for implementing this code at each place that it owns or controls to an employee Ensure that employees and workers are aware of this code by communicating its contents in a language understood by them Refrain from disciplining, dismissing or otherwise discriminating against any employee for providing information concerning observance of this code The supplier shall maintain appropriate records to demonstrate conformance to the requirements of this code, and shall be able to provide reasonable information and access to parties approved by KID seeking to verify conformance. The supplier will make observance of this Code of Conduct a condition of all agreements that it enters into with subcontractors. These agreements shall oblige these subcontractors to conform to all requirements of this code and participate in the supplier s monitoring activities as requested. Regarding the use of agents, or several factories or suppliers that have sub-contractors, all links shall be traceable concerning manufacturing location with respect to the manufactured goods delivered to KID. Auditing and Monitoring To evaluate the compliance of this Code of Conduct KID will make use of audits either by own personnel or by approved third parties. We reserve the right to monitor the compliance of this Code of Conduct by systematic, unannounced or announced inspections, conducted by KID personnel or independent auditors. Corrective Action and Non-Compliance KID s Code of Conduct sets the standard expected to be met by all our suppliers and partners during operation and manufacturing. We are fully aware that all expectations can t be met immediately, but these as well as non-compliances are to be settled by corrective actions by the supplier. If repeated violations are established without any effort by the supplier to take appropriate actions, it is our duty to terminate the cooperation with such suppliers. 6
7 Corruption and bribery KID, including all employees, do not accept bribe in any form, including kickbacks, on any portion of a contract payment, or the use of other routes or channels to provide improper benefits to customers, agents, contractors, suppliers, or employees of any such party or governmental officials). If you need more information regarding the above, please do not hesitate to contact us. It is important to us that you follow all above requirements, we therefore kindly ask you to sign this statement and return all pages to us. We (company stamp + signature) have understood and will follow all specifications above. 7
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