Code of Conduct for Suppliers of Suprema

Suprema (including Suprema Inc., its domestic and overseas subsidiaries, sub-subsidiaries, and affiliates; together "Suprema") is committed to operating in a socially responsible way and to comply with applicable laws and regulations. In our vison to become a global leader in biometrics and security, Suprema has established the following standards to develop and provide the best products and services.

This Code of Conduct outlines Suprema’s expectations and guidelines with respect to responsible management including our commitments to human rights, health and safety, and business ethics. We require all suppliers and sub-tier suppliers to comply with this Code of Conduct.

1. Business Ethics and Human Rights

Suppliers shall exercise reasonable judgment and responsible management on the basis of rationality and conscience.
Suppliers must protect the human rights of workers, ensure their dignity, and prohibit any discrimination, to the standard recognized by the international community. Workers must be guaranteed legitimate work and protection of their rights pursuant to applicable laws and regulations. With respect to employment practices such as recruitment and promotion, compensation and access to training, etc., suppliers shall not engage in any form of discrimination based on race, color, religion, gender, sexual orientation, age, health situation, political affiliation, nationality, ethnicity, or marital status, etc.

2. Labor Rights

1) Working Hours

Suprema is certified as a “Best Family-Friendly Management”, that promote a good work-life balance among their employees, including proper implementation of leave entitlements and flexible workplace arrangements, by the government.
Suppliers shall comply with all applicable laws on working and resting hours, including overtime working hours, of the countries where they maintain business operations.

2) Wages and benefits

Suppliers shall compensate workers in accordance with the applicable wage laws, including those relating to minimum wages, overtime hours and legally mandated benefits.

3) Humane treatment

There should be no workplace harassment, including any act that may cause any sexual harassment, sexual abuse, corporal punishment, mental or physical coercion or verbal abuse of workers ; nor any threat of such treatment.

4) Child Labor

Suppliers shall comply with the International Labor Organization’s (ILO) Convention No.138 on Minimum Age, and with local minimum age laws and regulations. A "child" means a person under the age of 15, or younger than the minimum age allowed for employment as stipulated by local laws. Young workers under the age of 18 shall not be exposed to work that is likely to harm their safety and health, and nor shall they be assigned to do any overtime or night shifts. Students-in-training shall be managed separately from other workers and supported according to their training program.

5) Freedom of association

In compliance with local laws and regulations, suppliers shall respect the right of workers to associate freely and join a labor union of their own choice, to engage in collective bargaining and to engage in peaceful assembly as well as respect the right of workers to refrain from such activities. Suppliers shall commit to an open and constructive dialogue with their employees and workers’ representatives regarding working conditions and management practices.

3. Business Integrity

1) Transparency and Anti-Corruption

Suppliers shall uphold the highest standards of integrity throughout their operations and business relationships and comply with all applicable local and international laws and regulations. Suppliers shall have a zero-tolerance policy to prohibit any and all forms of corruption, extortion, embezzlement or money laundering. While doing business with Suprema, suppliers shall not offer bribes or other unlawful incentives to or from a third party with the purpose of obtaining or retaining business or any form of preferential treatment. Suppliers shall not offer to Suprema employees any kind of gifts or personal benefit which could be perceived as a bribe.
Suprema is committed to prevent any form of corruption, such as bribery, rebates, entertainment, and embezzlement, including but not limited to holiday gifts, based on the company's internal policy. Suprema continuously inspects and monitors for any such acts, and records and manages all transactions with transparency. In addition, Suprema transparently evaluates and selects new suppliers based on the internal procurement regulations.

2) Compliance with the Suprema Fair Transaction Agreement

Suppliers shall comply with the provisions of the Suprema Fair Transaction Agreement. If the Agreement is violated, Suprema will take appropriate action according to the relevant provision of the Agreement. Suppliers shall respect and comply with all applicable fair trade, competitions and anti-trust laws and regulations and shall not avoid any acts that may disturb the market order, such as unfair transaction practices.

3) Trust Building

Suppliers shall not engage in activities that would undermine trust in the Suprema's supply chain, such as defaming other people or other companies by publicly disclosing false information for the purpose of slandering stakeholders, including Suprema employees and competitors of Suprema.

4) Trade Secrets and Intellectual Property

Suppliers shall not disclose or provide to third parties any technical data, information, or intellectual property obtained in the process of supplying products and services to Suprema, without Suprema's prior written consent. In addition, in supplying products and services to Suprema, suppliers shall not infringe upon or make illegal use of the intellectual property rights of others, including but not limited to patents, software, designs, and trademarks.

5) Privacy and Data Protection

Suppliers shall commit to managing and protecting personal information of all stakeholders, including sub-tier suppliers, customers, and employees. All applicable data privacy laws and regulations shall be observed when collecting, storing, processing, transmitting, or sharing personal information. Suprema has been granted ISO 27001 for information security management and ISO 27701 for privacy management, and also complies with the EU General Data Protection Regulation (GDPR).

6) International Trade Controls

Suppliers shall comply with applicable international agreements and trade-related laws and regulations including the ones of the countries to which Suprema exports. Suppliers shall provide Suprema with all information and documents necessary for Suprema to comply with applicable import and export laws, and also implement policies and procedures to ensure the security of the supply chain in accordance with applicable regulations.

4. Health, Safety and Environment

1) Occupational Health and Safety

Suppliers shall take appropriate measures to provide workers with safe and healthy working conditions and protect them against potential safety hazards. Suppliers shall ensure that workers potential exposure to safety hazards, such as risks relating to electricity or other energy sources, fire, vehicles, falling, etc., are identified and controlled through proper design, engineering, and administrative controls, preventive maintenance, and safe working procedures. In addition, suppliers shall provide their workers with appropriate personal protective equipment.

2) Environmental protection

Suppliers shall comply with applicable environmental laws and regulations and recognize that protecting the environment is one of their fundamental corporate social responsibilities. Suppliers shall minimize negative impact on the environment and natural resources and protect public health and safety during manufacturing processes. Suppliers shall identify potentially hazardous chemicals and substances and ensure that they are handled, transported, stored, used, recycled and disposed of safely.

3) Product safety

Suppliers shall comply with product safety regulations, and ensure that all products and the raw materials meet all applicable regulatory requirements and quality and safety standards, including those relating to labeling and reports on hazardous substances. Suppliers shall proactively and transparently share information about hazardous substances and, when requested by Suprema, provide applicable documentation containing all necessary safety-relevant information. In addition, suppliers shall immediately inform Suprema about any problems or changes that may negatively affect the safety, compliance, quality, or public perception of products supplied to Suprema.

5. Quality Management, Shared Growth and Social Contribution

1) Quality management

Suppliers shall provide high-quality goods and services, so that Suprema can continue to manufacture and supply world-class products. Suprema has been certified for ISO 9001 for its quality management system. To provide quality products to our customers, we need all suppliers’ full commitment to support Suprema’s quality management policies.

2) Shared Growth and Social Contribution

Suppliers, together with Suprema, shall actively promote shared growth to create an ideal corporate ecosystem and shall do their best to achieve such growth together with sub-tier suppliers. Suprema is committed to creating jobs and developing the local economy and communities, and operates various social contribution programs.

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