THE SUPPLIER CODE OF CONDUCT

JSC ‘Asmodas’ has high standards for conducting business ethically and in accordance with all governmental and construction industry standards, laws and regulations.

JSC ‘Asmodas’ expects the same commitment from its suppliers. This Supplier Code of Conduct (Code, CoC) documents principles and expectations to suppliers for establishing and maintaining a responsible business relationship with JSC ‘Asmodas’.

An important part of the responsible construction business is to ensure that the products are produced without any negative impact on:

–  environment

–  human rights, child rights and labour rights

–  anti-bribery and anti-corruption policies.

With this Code, JSC ‘Asmodas’ acknowledges its business commitment to the following international standards:

– The United Nations Universal Declaration on Human Rights (1948)

– The United Nations Guiding Principles on Business and Human Rights

– The Eight Fundamental Conventions of the International Labour Organisation,

No. 29,  87, 98, 100, 105, 111, 138 and 182

– The United Nations Convention on the Rights of the Child (Article 32)

– The Rio Declaration on Environment and Development

– The United Nations Convention Against Corruption

– The 10 principles of the UN Global Compact

This CoC stipulates the minimum requirements. JSC ‘Asmodas’ suppliers are encouraged to take relevant measures in order for the content of this Code to be implemented in their own operations, as well as in the supply chain.

JSC ‘Asmodas’ recognizes that implementation of the principles established in this CoC is a continuous process and encourages suppliers to continuously improve their business operations and develop ethical dialogue with JSC ‘Asmodas’.

  1. COMPLIANCE WITH LEGAL REQUIREMENTS

JSC ‘Asmodas’ expects the suppliers to comply with all applicable national laws and regulations, industry minimum standards and any other relevant legal requirements of the countries in which they operate. In case there is conflict between this CoC and national legislation, it is recommended that the highest standard shall apply.

  1. RESPECT FOR HUMAN RIGHTS

The supplier has a responsibility to respect and support human rights both within its own operations and in the supply chain. The supplier shall ensure that it does not contribute to violation of these rights. The supplier shall have routines in place to evaluate risks of participating in violations of human rights through its operations as well as supply chains.

  1. FAIR AND EQUAL EMPLOYEE TREATMENT

JSC ‘Asmodas’supplier employees shall be treated with respect and dignity, based on their individual ability and qualifications. Diversity and equal opportunities shall be supported in employment. Any form of discrimination in hiring and employment practices, on the ground of race, gender, age, religion, caste, national origin, disability, political affiliation, sexual orientation, pregnancy, family responsibilities, marital status or union membership, must not be tolerated. Employees shall not be subject to any physical, sexual, psychological or verbal harassment or inhuman treatment nor is there to be the threat of any such treatment.

  1. FAIR SALARY AND BENEFITS PAYMENT

JSC ‘Asmodas’ supplier employees shall be timely paid at least the national legal minimum wages. Details about wages and benefits shall be clear and provided in language understood by employees before starting the employment. All employees shall also be provided legally mandated benefits, including holidays, vacation, leaves such as sick leave and parental leave and statutory severance when employment ends.

  1. DECENT WORKING HOURS

JSC ‘Asmodas’ supplier working hours shall comply with the national laws and/or collective bargaining agreements. It is recommended that regular working hours do not exceed 48 hours per week and maximum overtime is 12 hours per week. Overtime shall be voluntary, and always be compensated as defined by national law. At least one day of rest per week shall be provided. A transparent and reliable system for records of working hours and wages for all employees shall be in place.

  1. SAFE AND HEALTHY WORKING CONDITIONS

JSC ‘Asmodas’ supplier shall provide its employees with a working environment which is safe, hygienic and conducive to good health. Supplier shall regularly identify, evaluate and eliminate health and safety risks whenever possible. The supplier shall establish and follow clear instructions on occupational health and safety and take effective steps to prevent potential accidents and injury. This include e.g. providing employees with information, safety training, protective equipment and first aid. The supplier shall have procedures in place for fire protection and safety in accordance with national legislation and/or international guidelines. In the event that the supplier provides its employees with housing, the same safe and healthy working conditions apply.

  1. FREEDOM OF ASSOCIATION AND RIGHT TO COLLECTIVE BARGAINING

JSC ‘Asmodas’ supplier employees shall have the right to form, join and organize trade unions of their choice and to bargain collectively on their behalf with the supplier. In situations where the right to freedom of association and collective bargaining is restricted by applicable laws and regulations, JSC ‘Asmodas’ expects suppliers to support instances where employees may meet management in order to discuss wage and labour conditions without the risk of negative sanctions.

  1. PROHIBITION OF SLAVERY AND FORCED LABOUR

JSC ‘Asmodas’ supplier shall not use any form of slavery, forced labour nor involuntary prison labour. All work must be conducted on a voluntary basis, and not under threat of any penalty or sanctions. All documents relating to employment relationships shall be available to employees in a language they understand or explained verbally in a language they understand. Supplier must ensure that employees are not required to make deposits, financial guarantees or other kind of payments to employers or labour providers to obtain work. Employees have the right to leave the premises of the supplier after completing a standard workday and are free to terminate their employment provided that they give reasonable legal notice to the supplier.

  1. PROHIBITION OF CHILD LABOUR

Child labour shall be prohibited. Suppliers must not recruit child labor nor exploit children in any way. JSC ‘Asmodas’ supplier shall adhere to minimum age provisions of national labor laws and regulations and, where national law is insufficient, take account of international standards. Supplier shall have reliable age verification checks as part of the recruitment process and keep records, to ensure that no underage persons work in supplier operations. In any case, supplier must not employ a person under the age of 15. Young workers between the ages of 15 and 18 may work with non-hazardous operations, under the preconditions that they have reached the legal age of employment and have completed compulsory national education. Young workers may only work outside school hours but not at night and no overtime. All work of persons under the age of 18 must be subject to an appropriate risk assessment and regular monitoring of health, working conditions, and hours of work. If child labour is detected, the supplier shall act based upon the best interest of the child and find suitable solutions in consultation with the child and the family of the child.

  1. ENVIRONMENTAL PROTECTION

JSC ‘Asmodas’ supplier shall comply with all applicable national requirements of environmental legislation and regulation procedures. JSC ‘Asmodas’ supplier shall systemically strive to reduce negative environmental impacts of its business operations and control its supply chain with regard to the following issues:

  • obtain and regularly renew environmental permits
  • ensure safe handling, storage and disposal of hazardous materials and chemicals
  • reduce the use of hazardous chemicals
  • optimise consumption of natural resources including energy and water
  • minimise the production of waste
  • prevent pollution of solid waste, wastewater and air emissions
  • reduce the use fossil fuels and non-renewable resources
  • minimize negative impact on biodiversity, deforestation and climate change
  • promote safe and environmentally sound development, manufacturing, transport, use and disposal of products.
  1. PROHIBITION OF BRIBERY AND CORRUPTION
  2. DISCLOSURE GUARANTEE

JSC ‘Asmodas’ suppliers shall create a transparent and safe working environment where employees are able to anonymously report any violation of the employee rights or other principles of this CoC.

 

IMPLEMENTATION OF THE CODE

JSC ‘Asmodas’ supports its suppliers’ efforts in meeting the CoC standards.

JSC ‘Asmodas’ supplier shall establish a system to implement and communicate the CoC principles within its supply chain.

Any supplier who does not meet the minimum requirements provided in this CoC needs to take full responsibility, initiate open dialogue with JSC ‘Asmodas’ and demonstrate adequate corrective actions.

If the supplier is unwilling or unable to carry out corrective actions through the reasonable period of time, JSC ‘Asmodas’ is entitled to terminate any business relationship with such supplier.

EVALUATION OF PERFORMANCE AND PROGRESS

In addition to this CoC, JSC ‘Asmodas’ will periodically proceed supplier’s risk assessment reviews, sustainability audits and develop dialogues on business ethics in achieving sustainable partnership.

JSC ‘Asmodas’ reviews and audits could be done by JSC ‘Asmodas’ or an external party.

JSC ‘Asmodas’ supplier shall inform and obtain JSC ‘Asmodas’ written consent prior to out-sourcing production to a sub-supplier or changing the supplier of raw material and/or the country of origin.

 

LIST OF REFERENCES TO INTERNATIONAL CONVENTIONS AND DECLARATIONS

The United Nations Universal Declaration on Human Rights (1948)

The United Nations Guiding Principles on Business and Human Rights

The Eight Fundamental Conventions of the International Labour Organisation:

Elimination of all forms of forced and compulsory labour,

No. 29 and 105

Freedom of association and the effective recognition of the right to collective bargaining,

No. 87 and 98

Effective abolition of child labour UN Convention on the Rights of the Child,

No. 138 and 182

Elimination of discrimination in respect of employment and occupation,

No. 100 and 111

The United Nations Convention of the Rights of the Child, Article 32

The Rio Declaration on Environment and Development

The United Nations Convention Against Corruption

The 10 principles of the UN Global Compact

THE JSC ASMODAS SUPPLIER CODE OF CONDUCT