FundStonePak® is committed to ensuring high-standard ethics and environmental protection trading practices, including providing safe working conditions and protecting workers' rights in its global business. FundStonePak® adheres to the provisions of Ethical Trade Policy Rules (hereinafter referred to as "Rules") in its global business, expects its suppliers to abide by the Rules and makes similar commitments in ongoing projects in order to improve their ethical behaviour and environmental practices when necessary. All principles set out in the Rules comply with the Base Code of Ethical Trading Initiative and reflect international standards in International Labour Organization (ILO) Convention.
Scope of Application
The rules are applicable to all business areas of FundStonePak® and direct suppliers and service providers of FundStonePak®. FundStonePak® requires all its direct suppliers to comply with the provisions of the Rules, and requires them to make the same requirements for their own suppliers to comply with the provisions of the Rules. The parties to the Rules must comply with relevant national laws and international regulations. If the scope of application of the Rules is beyond national law, the Rules shall prevail.
Purpose
The Rules aim to:
· Make a clear policy statement for FundStonePak®.
· Guide ethical trade practices and their improvement.
· Implement productive procedures that enhance ethical conduct.
Rules-Core Requirements (Major Nonconformance)
FundStonePak® will not cooperate with the suppliers that violate 10 core requirements of FundStonePak® and reserve the right to terminate the contract with the suppliers that do not meet any of the 10 core requirements (Major Nonconformance).
General Principles of the Rules
1. Recruit Right Worker
1.1 The suppliers shall confirm not to use forced, constrained or involuntary prison labour to produce part or all the products. During manufacturing of product, the suppliers shall not force workers to give their identity cards or pay deposit as an employment condition and shall not prohibit employees from leaving their jobs after reasonable notice period.
1.2 The suppliers shall not employ children or underage workers. The employee shall reach the age of 16 or the minimum age prescribed by local law, whichever is higher.
1.3 By signing the cooperation agreement with FundStonePak®, the suppliers shall accept the principle of child labour remedy to enable children and child workers to receive education, even if they have left the supplier's workplace.
1.4 If the suppliers are found to use child labour, the suppliers must work with FundStonePak® to establish and implement an appropriate remedy program. However, FundStonePak® has the right to terminate its cooperation according to the Rules.
1.5 The workers under the age of 18 are prohibited from night work or work in dangerous conditions. The suppliers must have the management programs for underage workers.
2. Working Environment
All the workers shall have a safe and healthy working environment. The suppliers must ensure that the working conditions meet the following standards:
2.1 The suppliers must abide by all national and local laws and regulations relating to health and safety.
2.2 The suppliers must establish a safety and health committee with the participation of workers' representatives, and the committee may put forward opinions and participate in safety investigation, must solicit and have the right to investigate health and safety issues.
2.3 The suppliers must formally appoint a senior manager who shall be responsible for health and safety issues, including compliance with relevant provisions of the Rules, establishment and communication of written health and safety policy.
2.4 In the case of no regular or adequate safety training and supervision, the suppliers shall not arrange workers to work in a potentially dangerous environment, including emergency evacuation training. (The suppliers) shall select appropriate staff for first aid training. (The suppliers) shall keep training records for inspection by FundStonePak®. All the workers must have access to first aid facilities.
2.5 The workplace must be well ventilated, comfortable and bright. The workers shall not work under unsafe or unhealthy working conditions (including dangerous machinery, unsafe building structure or layout, and dangerous chemicals and articles). The factory shall be responsible for providing all necessary safety equipment to its employees free of charge.
2.6 The plants and workplaces used by the suppliers must be safe and sanitary and have adequate and identifiable safety exits (including production plant, warehouse, office and staff dormitories).
2.7 If the suppliers provide accommodation, the dormitories must be located away from the working area and have adequate fire alarm facilities. In all cases, the suppliers must provide employees with clean toilets, drinking water and proper food storage facilities.
3. Hours, Wages and Benefits
3.1 The suppliers shall comply with local regulations regarding working hours and remuneration, including minimum wage, allowances and benefits. (Not limited to, but including, public holidays, sick leave, nursing leave, maternity leave and social insurance), the suppliers shall not evade their legal obligations in any form. In all cases, the suppliers shall pay adequate wages to meet the workers’ basic needs and provide reasonable allowances.
3.2 Before starting work, the suppliers must provide workers with a clear and easily understood written labour contract (including wages, working hours and working scope). The suppliers should have appropriate and accurate employment records.
3.3 The suppliers shall not compel workers to work overtime. The working hours per week should not regularly exceed 60 hours (including overtime). All the workers shall have at least one day off a week, and overtime must be fully voluntary and paid accordingly.
3.4 Deductions from wages must be reasonable, meet relevant matters, and be accepted by workers as a part of the employment relationship. Fines are not allowed.
3.5 The suppliers must abide by relevant laws regarding social insurance, health insurance, pension insurance and financial compensation, etc.
4. Respect Workers
4.1 The suppliers must respect personal dignity and treat workers fairly in management behaviour. The suppliers shall ensure that the workers have a workplace free from harassment, maltreatment, abuse, threats and intimidation.
4.2 Sanctions shall be fair and proportionate and must be clearly communicated to the workers. The workers have the right to raise an objection to a sanction.
4.3 The suppliers shall not discriminate against the workers on basis of sex, religion, ethnic group, class, age, disability, sexual orientation, labour union, nationality or race.
5. Labour Union
The suppliers must ensure that all the workers have the right to join or develop a labour union and bargain collectively in a legal and peaceful way. The suppliers shall not discriminate against the workers who participate in these organisations. If such activities are prohibited by law, the suppliers must allow the workers to carry them out independently by other legal means.
6. Moral Standard
The suppliers must operate in an ethical way and shall not gain competitive advantage in unethical way, including but not limited to bribery, embezzlement, kickbacks, gift giving, preferential treatment or services.
7. Environmental Standards
The suppliers must abide by applicable local environmental regulations and other additional environmental standards as notified by FundStonePak® in writing. In all cases, the suppliers must be environmentally conscious and committed to improving the environment (including but not limited to reducing waste, increasing recycling, reducing pollution, increasing use of sustainable resources and environment friendly products), and developing and implementing the environment action plans with measurable progress.
8.Document and Inspection
The suppliers must operate in an ethical way and shall not gain competitive advantage in unethical way, including but not limited to bribery, embezzlement, kickbacks, gift giving, preferential treatment or services.
8.1 The suppliers must take effective measures to enforce the Rules, (including appointing a responsible person to implement the Rules) and be responsible for monitoring and recording the progress. Similarly, the suppliers of FundStonePak® shall also be responsible for monitoring and recording the implementation status of their own suppliers.
8.2 The suppliers shall maintain documented records or implement the Rules directly or indirectly in other ways) that demonstrate their compliance with the provisions of the Rules, including individually check, each employee's accurate and complete wage and working hour records, and shall keep such records for three years. The suppliers must keep all original documents completely and provide them to FundStonePak® for inspection at any time upon request by FundStonePak®.
9. Non-conformance
9.1 The suppliers shall agree with and accept all the terms of the Rules before signing the agreement with FundStonePak®.
9.2 If any of the following situations occurs, FundStonePak® reserve the right to terminate the cooperation with the supplier:
9.2.1 The suppliers do not fully meet the core requirements of FundStonePak® at any time.
9.2.2 The suppliers fail to satisfy FundStonePak® within a reasonable period specified by FundStonePak® and is not genuinely willing to make improvements in accordance with the Rules.
9.2.3 FundStonePak® has good reason to believe that the suppliers fail to satisfy it and the factory audit is not open and transparent enough.
9.3 In the event that FundStonePak® considers that the suppliers fail to comply with its core requirements or the provisions of the Rules, the suppliers must take all appropriate remedial actions required by FundStonePak® to address their concerns.