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Con duct
Cod e of




edding Aktiengesellschaft Code of Conduct
for Business Partners and Suppliers
C O N T E N T S
                                                                   Page
1.   Foreword                                                        3




2.   Observing the Law                                               4



3.   Human Rights
     3.1   Forced Labour & Human Trafficking                          4
     3.2   Child Labour & the Employment of Young People             4
     3.3   Discrimination                                            4
     3.4   Disciplinary Actions                                      4



4.   Employment Condit
     4.1   Hours of Work                                             5
     4.2   Pay                                                       5
     4.3   Health and Safety at Work                                 6
     4.4   Right of Association & Right to Collective Bargaining     6



5.   Environment & Sustainability
     5.1   Sustainability & Sustainable Development                  6
     5.2   Environmental Protection: Rights and Legislation          7
     5.3   Sustainable Production                                    7



6.   Illegitimate Payments, Gifts & Hospitality
     6.1   Bribery & Corruption                                      7
     6.2   Anti-bribery/ Anti-corruption Policy                      7
     6.3   Customs and Conventions in Other Nations                  7



7.   Confidentiality and Data Protection                              8



8.   Quality Management and Continuous Improvement                   9



9.   edding’s pledge                                                10
The edding Group doesn't simply jump on the latest
                                            bandwagon, which explains why corporate and social




1                                           responsibility has been enshrined in its company philosophy
                                            from the very outset - an acknowledgement of the strategic
                                            significance edding attaches to environmental ma-
                                            nagement and CSR. Indeed, our founders have always
                                            regarded corporate responsibility as an obvious and
                                            natural part of day-to-day business life. What's more,
                                            Mr. Volker D. Ledermann was presented with the B.A.U.M
                                            award for sustainable management back in 1995.


    Yet the edding Group has reached a number of significant milestones in more recent times too. In
    1997, the ISO 9001 quality-management system was successfully introduced at the Group's three
    German sites in Ahrensburg, Wunstorf and Bautzen, as well as at its Lochem site in the Nether-
    lands. Our three German locations then followed this up in October 2008 with the introduction of
    our ISO 14001 environment-management system and the OHSAS 18001 management system
    for occupational health and safety. In addition to our top goal of "customer satisfaction", these
    successful certifications demonstrate how much we champion the wellbeing and safety of our
    employees.


    We also give top priority to health and safety at work. The resources, supplies and equipment we
    use are assessed in accordance with established standard health-and-safety guidelines and are
    expertly maintained, allowing us to ensure that they are safe to use at all times throughout their
    deployment. We continually monitor for potential hazards. Where these are identified, we assess
    them and immediately look for possible improvements. It goes without saying that this also applies
    to our sites which are not currently certified.


    To ensure that we (our customers, our employees and future generations) can all feel good as we
    look to the future, the principles behind our environment-management system are incorporated
    into all aspects of our business. Our goal is consistently to practise economic, environmental and
    social responsibility and to harmonise our approach in these areas.


    That's why we have put together this Code of Conduct in order to bind our business partners
    and suppliers into these processes and to get them to sign up to common values, most notably
    sustainable business practices.


         Ahrensburg, October 2010




       ( Per Ledermann )                 ( Thorsten Streppelhoff )             ( Sönke Gooß )




                                                                                                          3
Observing
2                                                  the law
                                                   We require our business partners and suppliers
                                                   to observe national and international laws,
                                                   legal regulations and minimum standards in
                                                   industry, in particular in relation to:

          ■ observance of and respect for human rights             ■ employment rights
          ■ environmental protection and sustainability            ■ health and safety at work




             Human rights
3            Or business partners & suppliers
             undertake to protect and respect
             human rights:

             Forced labour & human trafficking
             ■ No form of forced labour or human trafficking
               (including any form of forced or compulsory labour, bonded labour,
               servitude, slave labour or slavery)
             ■ Employees should only be employed if they have voluntarily made
               themselves available for employment


    3.2      Child labour & the employment of young people
             ■ No child labour, nor exploitation of children and young people
             ■ Children and young people who are taken on must have reached the legal
               school-leaving age in their country and be at least 15 years of age
             ■ Hazardous, unsafe or harmful work must not be carried out by children
               and young people


    3.3      Discrimination
             ■ No discrimination on the basis of gender, religion, national, ethnic or social origin,
               nationality, race, caste, skin colour, physical or mental disabilities,
               sexual orientation or other personal attributes, political beliefs or membership
               of a workers' organisation


    3.4      Disciplinary measures
             ■ No use of violence- be it physical or mental. No sexual and or physical violence,
               coercion or harassment
             ■ All employees must be treated with respect and dignity
             ■ Sanctions and fines such as penalties and disciplinary measures may only be
               implemented within the scope of applicable national and international laws and
               regulations, and must be consistent with recognised human rights




4
4
      Employment conditions
      We expect our business partners & suppliers to undertake to ensure that
      working conditions, workplaces and working environments are in accordance
      with all relevant measures, valid laws and provisions in relation to workers'
      rights, health and safety at work and protection of the environment.

4.1     Hours of work
        ■ Employment provisions such as maximum daily working hours, hourly rates of pay,
          minimum ages, data protection, etc. must be observed
        ■ Working hours must be governed by current law and industrial standards
        ■ The maximum number of permitted weekly working hours must be in line with national
          legislation. It may not exceed 48 hours in a single week over a prolonged period.
          When additional work and overtime is included, this may not exceed 60 hours.
        ■ After a working week of six days in succession, the employee is entitled to at least
          one day off work
        ■ Additional work and overtime must be performed on a voluntary basis and must
          be remunerated in accordance with national legislation.




4.2     Pay
        ■ The agreed remuneration must at least be equal to the statutory minimum wage
          or the minimum wage normally paid in the sector of industry in question and is
          governed by national laws, tariffs, etc.
        ■ Overtime must be suitably remunerated. The minimum pay for overtime is the
          standard hourly rate
        ■ Paid wages and salaries must be enough to cover at least the basic requirements
          of the employee
        ■ Wages and salaries should be paid to employees in pragmatic fashion. Depending
          on normal practice, this will either be in cash, as a cheque or by bank transfer
        ■ Employees must be paid regularly
        ■ Illegal and unjustified deductions in pay, especially in the form of direct or indirect
          disciplinary measures, are not permitted




                                                                                                   5
4.3      Health and safety at work
             ■ Current safety standards and provisions emanating from national provisions, laws and
               regulations applicable to the activity in question, as well as from contractual regulations,
               must be observed
             ■ The supplier must also ensure a healthy, safe and clean (especially toilets and sleeping
               areas (where applicable), kitchens, etc.) working environment
             ■ We expect everything to be done to avoid potential accidents, injury, impairments to health
               and illness that might occur in connection with the type of work being performed
             ■ The employees must be kept regularly informed of all relevant health-protection measures
               and must be given training/instruction accordingly. Written evidence of any training or
               induction received must be kept and filed.
             ■ Injured or sick employees must be treated with respect
             ■ Medical treatment of injuries and illnesses in the workplace must be guaranteed
             ■ Risks to public health, possibly as a result of using their products and services,
               must be identified by suppliers
             ■ Corresponding measures must be taken to rule out such risks




    4.4      Right of association & right to
             collective bargaining
             ■ Employees must have the right to freedom of expression, as well as the right of
               association and a right to collective bargaining
             ■ Employees must be allowed found organisations or associations of their own choosing
               in order to promote and protect the interests of employees, as well as be allowed to join
               or to leave such organisations and associations, and to be involved in them insofar as
               this does not impact on their employment.




5
          Environment & sustainability
          "In the interests of the environment- for the world of tomorrow" - this is the
          strategy of edding AG. We expect our business partners & suppliers to give
          the best possible commitment to help make the world a place worth living in
          for future generations:

    5.1      Sustainability & sustainable development
             ■ Sustainability and sustainable development must form part of all business activities
               and operations performed by our suppliers and must occupy a fixed place in the
               day-to-day working life of all its employees




6
5.2      Environmental protection: rights and legislation
         ■ All legal requirements, environmental provisions and environmental-protection regulations
           must be observed
         ■ In addition, our business partners are required to work continually to avoid and reduce
           the burden on the environment. In particular, methods for handling chemicals and other
           toxic and hazardous substances and materials, as well as their disposal, must comply
           with current procedures, regulations and laws
         ■ This also applies to all waste management, most notably compliance with threshold
           values for emissions into the air, water and the ground


5.3      Sustainable production
         ■ In the longer term, the aim is to develop eco-friendly, socially compatible production
           processes




6
      illegitimate payments,
      gifts & hospitality
      We expect our business partners & suppliers to treat third parties properly and
      transparently in order to rule out any possibility of dependence, obligation or
      influence

6.1      Bribery & corruption
         ■ Bribes, backhanders or other illegitimate payments must not be made to third parties
           or to employees or executives of edding AG, its subsidiaries or its affiliated companies
           in an attempt to win or retain orders or otherwise gain advantage
         ■ This applies to all staff, including near relations or life partners


6.2      Anti-bribery/anti-corruption policy
         ■ It must be demonstrated that endeavours are under way in the medium term to introduce
           an anti-bribery and anti-corruption policy


6.3      Customs & conventions in other nations
         ■ If gifts are customary or considered polite in another country, it should be ensured that
           any such gifts offered in this way do not result in any dependences, and that local laws
           in force are observed




                                                                                                       7
7
    Confidentiality* & data protection
    Our business partners & suppliers undertake to handle all data about edding AG,
    its subsidiaries and affiliates that becomes known to them over the course of
    time in a responsible manner and in confidence.

        ■ Data such as product details, pricing, costs, customer data, staff information and other
          details about working practices and organisational matters must be handled in the strictest
          confidence and must, if at all, only be used and communicated with written consent.
          This also applies to information used for mutual business relations
        ■ When handling data about the services which others provide for us, we expect our
          suppliers to act with discretion and responsibility.
        ■ Confidentiality of such data must be guaranteed
        ■ Data of this type must be protected from unauthorised distribution




    Information about corrupt conduct, violations against the proper handling of confidential data and data
    protection must be reported to edding AG in writing immediately, as must complaints or tip-offs about
    violations against this code of conduct. The notifying company or individual must not be subject to
    adverse or disciplinary actions. Reports may also be submitted anonymously.


    In this regard please contact :
                  edding AG                                                Legamaster International B. V.
                  Patricia Siebel                                          Hans Wirds
                  Environmental Management & CSR                           Director Operations
                  psiebel@edding.de                                        HWirds@eddinglega.nl
                  Tel.: 0049-4102-808 242                                  Phone:0031- (0) 573-25 74 33


    "Confidential information" is all information that is not made public




8
8
    Quality management
    & continuous improvement
    A system for implementing, observing, che-
    cking and continually improving the above-
    mentioned points is to be developed and
    enhanced. Clear responsibilities, processes
    and appropriate documentation must all be
    part of this system. Annual checks and the
    derivation of any improvements are to be
    documented and made available to us on
    request. We reserve the right to check that
    this Code of Conduct is being observed.
    Such checks will either be carried out by us
    or by authorised third parties.



    In the event that this Code of Conduct is not
    observed or is deviated from, edding AG
    or one of its subsidiaries will demand that
    the business partner/supplier initiate cor-
    responding corrective measures at once.
    edding AG will work with the business
    partner / supplier by offering adequate time
    and support.




                                                    9
9
     edding’s pledge
     Legal security, efficiency and transparency are important aspects of any
     mutually profitable business relationship. We take our responsibilities towards
     our suppliers, customers, employees and the environment seriously:



        ■ Information from suppliers will be handled in the strictest confidence
          and not made accessible to competitors.
        ■ Illegitimate gifts, payments, invitations, etc. are not accepted by us,
          nor will such be offered
        ■ We receive others' opinions and views with respect and are open
          to alternative, new ideas
        ■ Every individual will be treated with respect and dignity - regardless
          of their status or role
        ■ Agreed conditions and payment terms are always observed




      Declaration of consent
     We have read the edding AG Code of Conduct for Business Partners and Suppliers and have
     noted its contents. We agree in full with all points and undertake to meet the requirements and
     observe the principles.




                    ( Date, company stamp and signature )




10

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edding code of conduct ENGLISH

  • 1. Con duct Cod e of edding Aktiengesellschaft Code of Conduct for Business Partners and Suppliers
  • 2. C O N T E N T S Page 1. Foreword 3 2. Observing the Law 4 3. Human Rights 3.1 Forced Labour & Human Trafficking 4 3.2 Child Labour & the Employment of Young People 4 3.3 Discrimination 4 3.4 Disciplinary Actions 4 4. Employment Condit 4.1 Hours of Work 5 4.2 Pay 5 4.3 Health and Safety at Work 6 4.4 Right of Association & Right to Collective Bargaining 6 5. Environment & Sustainability 5.1 Sustainability & Sustainable Development 6 5.2 Environmental Protection: Rights and Legislation 7 5.3 Sustainable Production 7 6. Illegitimate Payments, Gifts & Hospitality 6.1 Bribery & Corruption 7 6.2 Anti-bribery/ Anti-corruption Policy 7 6.3 Customs and Conventions in Other Nations 7 7. Confidentiality and Data Protection 8 8. Quality Management and Continuous Improvement 9 9. edding’s pledge 10
  • 3. The edding Group doesn't simply jump on the latest bandwagon, which explains why corporate and social 1 responsibility has been enshrined in its company philosophy from the very outset - an acknowledgement of the strategic significance edding attaches to environmental ma- nagement and CSR. Indeed, our founders have always regarded corporate responsibility as an obvious and natural part of day-to-day business life. What's more, Mr. Volker D. Ledermann was presented with the B.A.U.M award for sustainable management back in 1995. Yet the edding Group has reached a number of significant milestones in more recent times too. In 1997, the ISO 9001 quality-management system was successfully introduced at the Group's three German sites in Ahrensburg, Wunstorf and Bautzen, as well as at its Lochem site in the Nether- lands. Our three German locations then followed this up in October 2008 with the introduction of our ISO 14001 environment-management system and the OHSAS 18001 management system for occupational health and safety. In addition to our top goal of "customer satisfaction", these successful certifications demonstrate how much we champion the wellbeing and safety of our employees. We also give top priority to health and safety at work. The resources, supplies and equipment we use are assessed in accordance with established standard health-and-safety guidelines and are expertly maintained, allowing us to ensure that they are safe to use at all times throughout their deployment. We continually monitor for potential hazards. Where these are identified, we assess them and immediately look for possible improvements. It goes without saying that this also applies to our sites which are not currently certified. To ensure that we (our customers, our employees and future generations) can all feel good as we look to the future, the principles behind our environment-management system are incorporated into all aspects of our business. Our goal is consistently to practise economic, environmental and social responsibility and to harmonise our approach in these areas. That's why we have put together this Code of Conduct in order to bind our business partners and suppliers into these processes and to get them to sign up to common values, most notably sustainable business practices. Ahrensburg, October 2010 ( Per Ledermann ) ( Thorsten Streppelhoff ) ( Sönke Gooß ) 3
  • 4. Observing 2 the law We require our business partners and suppliers to observe national and international laws, legal regulations and minimum standards in industry, in particular in relation to: ■ observance of and respect for human rights ■ employment rights ■ environmental protection and sustainability ■ health and safety at work Human rights 3 Or business partners & suppliers undertake to protect and respect human rights: Forced labour & human trafficking ■ No form of forced labour or human trafficking (including any form of forced or compulsory labour, bonded labour, servitude, slave labour or slavery) ■ Employees should only be employed if they have voluntarily made themselves available for employment 3.2 Child labour & the employment of young people ■ No child labour, nor exploitation of children and young people ■ Children and young people who are taken on must have reached the legal school-leaving age in their country and be at least 15 years of age ■ Hazardous, unsafe or harmful work must not be carried out by children and young people 3.3 Discrimination ■ No discrimination on the basis of gender, religion, national, ethnic or social origin, nationality, race, caste, skin colour, physical or mental disabilities, sexual orientation or other personal attributes, political beliefs or membership of a workers' organisation 3.4 Disciplinary measures ■ No use of violence- be it physical or mental. No sexual and or physical violence, coercion or harassment ■ All employees must be treated with respect and dignity ■ Sanctions and fines such as penalties and disciplinary measures may only be implemented within the scope of applicable national and international laws and regulations, and must be consistent with recognised human rights 4
  • 5. 4 Employment conditions We expect our business partners & suppliers to undertake to ensure that working conditions, workplaces and working environments are in accordance with all relevant measures, valid laws and provisions in relation to workers' rights, health and safety at work and protection of the environment. 4.1 Hours of work ■ Employment provisions such as maximum daily working hours, hourly rates of pay, minimum ages, data protection, etc. must be observed ■ Working hours must be governed by current law and industrial standards ■ The maximum number of permitted weekly working hours must be in line with national legislation. It may not exceed 48 hours in a single week over a prolonged period. When additional work and overtime is included, this may not exceed 60 hours. ■ After a working week of six days in succession, the employee is entitled to at least one day off work ■ Additional work and overtime must be performed on a voluntary basis and must be remunerated in accordance with national legislation. 4.2 Pay ■ The agreed remuneration must at least be equal to the statutory minimum wage or the minimum wage normally paid in the sector of industry in question and is governed by national laws, tariffs, etc. ■ Overtime must be suitably remunerated. The minimum pay for overtime is the standard hourly rate ■ Paid wages and salaries must be enough to cover at least the basic requirements of the employee ■ Wages and salaries should be paid to employees in pragmatic fashion. Depending on normal practice, this will either be in cash, as a cheque or by bank transfer ■ Employees must be paid regularly ■ Illegal and unjustified deductions in pay, especially in the form of direct or indirect disciplinary measures, are not permitted 5
  • 6. 4.3 Health and safety at work ■ Current safety standards and provisions emanating from national provisions, laws and regulations applicable to the activity in question, as well as from contractual regulations, must be observed ■ The supplier must also ensure a healthy, safe and clean (especially toilets and sleeping areas (where applicable), kitchens, etc.) working environment ■ We expect everything to be done to avoid potential accidents, injury, impairments to health and illness that might occur in connection with the type of work being performed ■ The employees must be kept regularly informed of all relevant health-protection measures and must be given training/instruction accordingly. Written evidence of any training or induction received must be kept and filed. ■ Injured or sick employees must be treated with respect ■ Medical treatment of injuries and illnesses in the workplace must be guaranteed ■ Risks to public health, possibly as a result of using their products and services, must be identified by suppliers ■ Corresponding measures must be taken to rule out such risks 4.4 Right of association & right to collective bargaining ■ Employees must have the right to freedom of expression, as well as the right of association and a right to collective bargaining ■ Employees must be allowed found organisations or associations of their own choosing in order to promote and protect the interests of employees, as well as be allowed to join or to leave such organisations and associations, and to be involved in them insofar as this does not impact on their employment. 5 Environment & sustainability "In the interests of the environment- for the world of tomorrow" - this is the strategy of edding AG. We expect our business partners & suppliers to give the best possible commitment to help make the world a place worth living in for future generations: 5.1 Sustainability & sustainable development ■ Sustainability and sustainable development must form part of all business activities and operations performed by our suppliers and must occupy a fixed place in the day-to-day working life of all its employees 6
  • 7. 5.2 Environmental protection: rights and legislation ■ All legal requirements, environmental provisions and environmental-protection regulations must be observed ■ In addition, our business partners are required to work continually to avoid and reduce the burden on the environment. In particular, methods for handling chemicals and other toxic and hazardous substances and materials, as well as their disposal, must comply with current procedures, regulations and laws ■ This also applies to all waste management, most notably compliance with threshold values for emissions into the air, water and the ground 5.3 Sustainable production ■ In the longer term, the aim is to develop eco-friendly, socially compatible production processes 6 illegitimate payments, gifts & hospitality We expect our business partners & suppliers to treat third parties properly and transparently in order to rule out any possibility of dependence, obligation or influence 6.1 Bribery & corruption ■ Bribes, backhanders or other illegitimate payments must not be made to third parties or to employees or executives of edding AG, its subsidiaries or its affiliated companies in an attempt to win or retain orders or otherwise gain advantage ■ This applies to all staff, including near relations or life partners 6.2 Anti-bribery/anti-corruption policy ■ It must be demonstrated that endeavours are under way in the medium term to introduce an anti-bribery and anti-corruption policy 6.3 Customs & conventions in other nations ■ If gifts are customary or considered polite in another country, it should be ensured that any such gifts offered in this way do not result in any dependences, and that local laws in force are observed 7
  • 8. 7 Confidentiality* & data protection Our business partners & suppliers undertake to handle all data about edding AG, its subsidiaries and affiliates that becomes known to them over the course of time in a responsible manner and in confidence. ■ Data such as product details, pricing, costs, customer data, staff information and other details about working practices and organisational matters must be handled in the strictest confidence and must, if at all, only be used and communicated with written consent. This also applies to information used for mutual business relations ■ When handling data about the services which others provide for us, we expect our suppliers to act with discretion and responsibility. ■ Confidentiality of such data must be guaranteed ■ Data of this type must be protected from unauthorised distribution Information about corrupt conduct, violations against the proper handling of confidential data and data protection must be reported to edding AG in writing immediately, as must complaints or tip-offs about violations against this code of conduct. The notifying company or individual must not be subject to adverse or disciplinary actions. Reports may also be submitted anonymously. In this regard please contact : edding AG Legamaster International B. V. Patricia Siebel Hans Wirds Environmental Management & CSR Director Operations psiebel@edding.de HWirds@eddinglega.nl Tel.: 0049-4102-808 242 Phone:0031- (0) 573-25 74 33 "Confidential information" is all information that is not made public 8
  • 9. 8 Quality management & continuous improvement A system for implementing, observing, che- cking and continually improving the above- mentioned points is to be developed and enhanced. Clear responsibilities, processes and appropriate documentation must all be part of this system. Annual checks and the derivation of any improvements are to be documented and made available to us on request. We reserve the right to check that this Code of Conduct is being observed. Such checks will either be carried out by us or by authorised third parties. In the event that this Code of Conduct is not observed or is deviated from, edding AG or one of its subsidiaries will demand that the business partner/supplier initiate cor- responding corrective measures at once. edding AG will work with the business partner / supplier by offering adequate time and support. 9
  • 10. 9 edding’s pledge Legal security, efficiency and transparency are important aspects of any mutually profitable business relationship. We take our responsibilities towards our suppliers, customers, employees and the environment seriously: ■ Information from suppliers will be handled in the strictest confidence and not made accessible to competitors. ■ Illegitimate gifts, payments, invitations, etc. are not accepted by us, nor will such be offered ■ We receive others' opinions and views with respect and are open to alternative, new ideas ■ Every individual will be treated with respect and dignity - regardless of their status or role ■ Agreed conditions and payment terms are always observed Declaration of consent We have read the edding AG Code of Conduct for Business Partners and Suppliers and have noted its contents. We agree in full with all points and undertake to meet the requirements and observe the principles. ( Date, company stamp and signature ) 10