Supplier Code of Conduct

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1 Samsung Telecommunications America, LLC Supplier Code of Conduct - Partners in Integrity STA Strategic SRM 10/1/2013 Rev. C

2 Samsung Telecommunications America, LLC ( STA or Samsung Telecommunications America ) is firmly committed to conducting business in compliance with not only the letter, but also with spirit of the law. The principles and guidelines outlined in this Supplier Code of Conduct ( Supplier Code of Conduct ) are an extension of Samsung Telecommunications America s values and reflect Samsung Telecommunications America s commitment to ethical business practices and legal and regulatory compliance in all of its dealings. Samsung Telecommunications America expects that all of its suppliers, vendors, and third party contractors, as well as, their employees, representatives, subcontractors, and agents (collectively Suppliers ) will also share and embrace the letter and spirit of our commitment to integrity. We understand that Suppliers are independent entities; however, the business practices and actions of a Supplier may impact and/or reflect upon STA. As a result, STA expects all Suppliers to know, understand, and adhere to STA s commitment to integrity and the guidelines outlined in this Supplier Code of Conduct, while conducting business with and/or on behalf of STA. All Suppliers to STA are expected to comply with this Supplier Code of Conduct, as well as, all applicable laws and regulations, as a critical element of their relationship with our Company. Violations of the Supplier Code of Conduct will be considered when STA awards any new business. Furthermore, STA reserves the right at its sole discretion to terminate conducting business with any Supplier that violates the Supplier Code of Conduct. This Supplier Code of Conduct, while not exhaustive, is established to provide a guideline of expectations, highlight key laws and regulations, as well as, outline additional requirements that STA expects its suppliers to meet or exceed. Suppliers must take measures to ensure that their suppliers and sub-contractors act in accordance with this Supplier Code of Conduct. A summary of STA s commitment to integrity and ethical business conduct is contained in the following Company business guidelines: Honesty - Be truthful in all our endeavors; to be honest and forthright with one another and with our customers, communities, suppliers, and shareholders. Integrity - Say what we mean, to deliver what we promise, to fulfill our commitments, and to stand for what is right. Respect - Treat one another with dignity and fairness, appreciating the diversity of our workforce and the uniqueness of each employee. Trust - Build confidence through teamwork and open, candid communications. Responsibility - Take responsibility for our actions, and to speak up - without fear of retribution - and report concerns in the workplace, including violations of laws, regulations and company policies, and seek clarification and guidance whenever there is doubt. Citizenship - Obey all the laws of the United States and the other countries in which we do business and to do our part to make the communities in which we live and work better. 2

3 While conducting business with and/or on behalf of STA, our Suppliers are expected to adhere to both the intent of our Company s commitment to integrity, as outlined above, and the core values of this Supplier Code of Conduct below: Legal and Regulatory Compliance All STA Suppliers and their representatives will conduct its business activities in full compliance with the applicable laws and regulations of its respective countries and states, while conducting business with and/or on behalf of STA. In addition to any specific obligations under Supplier s agreement with STA, all STA Suppliers will, without limitation: Comply with all applicable trade controls and laws, as well as, all export, re-export and import requirements. Conduct business in full compliance with antitrust and fair competition laws that govern the jurisdictions in which it conducts business. Comply with all applicable environmental laws and regulations regarding hazardous materials, air emissions, waste and wastewater discharges, including the manufacture, transportation, storage, disposal, and release to the environment of such materials. Be honest, direct, and truthful in discussions with regulatory agency representatives and government officials. Not participate in international boycotts that are not sanctioned by the U.S. government or applicable laws. Comply with the anti-corruption laws of the countries in which it does business, including the United States Foreign Corrupt Practices Act, and not make any direct or indirect payments or promises of payments to foreign government officials for the purpose of inducing the individual to misuse his/her position to obtain or retain business. General Business Practices All Suppliers to STA will conduct its business interactions and activities with integrity and in accordance with its obligations under the supplier s specific agreements with STA. In addition to any specific obligations under the Supplier s agreement with STA, all STA Suppliers will, without limitation: Honestly and accurately record and report all business information and comply with all applicable laws regarding its completion and accuracy. Create, retain, and dispose of business records in full compliance with all applicable legal and regulatory requirements. Protect and responsibly use both the physical and intellectual assets of STA including property, supplies, consumables, and equipment when authorized by STA to use such assets. Use STA provided information technology and systems (including ) only for authorized STA business-related purposes. STA prohibits Suppliers from using STA provided technology and 3

4 systems to create, access, store, print, solicit, or send any material that is intimidating, harassing, threatening, abusive, sexually explicit or otherwise unlawful, offensive or inappropriate and/or send any false, derogatory, or malicious communications using STA provided information assets and systems. Comply with the intellectual property ownership rights of STA and others including, but not limited to, patents, copyrights, trademarks, and trade secrets. Do not speak to the press or third parties on STA s behalf or concerning any business conducted with STA unless the Supplier is expressly authorized in writing to do so by STA. Do not represent to third parties that the Supplier has the authority or power to bind STA unless the Supplier is expressly authorized in writing to do so by STA. Must not use subcontractors without prior approval from STA. All STA Suppliers that have been approved to use any subcontractor must ensure that the subcontractor s ethical and business practices are in line with STA policies, and this Supplier Code of Conduct. Refrain from giving STA employees any gift because it will create a feeling or perception of obligations, compromised judgment, appearance of undue influence, or affect the recipients exercise of independent business judgment. It is never permissible, and may even be unlawful in certain circumstances, for an employee to provide, solicit, demand, or accept extravagant meals or entertainment with the intent of being influenced or rewarded in connection with any Samsung Telecommunications America business or transaction. In sum, STA employees are prohibited from accepting any gifts. No Supplier may ever offer or permit any forms of corruption, bribery, extortion, embezzlement, kickback, bartering arrangement for goods or services, and/or any other incentive to a STA employee in order to obtain or retain STA business. Suppliers must disclose all potential conflicts of interest, including those in which the Supplier may have been placed inadvertently in due to either business or personal relationships with customers, suppliers, business associates, competitors of STA, or with other STA employees. Avoid taking any action or engaging in any conduct that will create or result in an actual conflict of interest or even the appearance of a conflict of interest or other impropriety. Suppliers may not deal directly with any STA employee whose spouse, domestic partner, or other family member or relative holds a significant financial interest in the Supplier. Suppliers also may not deal directly in the course of negotiating the Supplier s agreement with STA or performing the Supplier s obligations with a spouse, domestic partner, or other family member or relative who is employed by STA. Recognize and respect the rights of employees to freely associate, organize and bargain collectively in accordance with local laws. Establish open communication and direct engagement between employees and management as a means by which to support positive employee relations. Act in an environmentally responsible manner. At a minimum, Suppliers must be in compliance with applicable environmental laws and regulations, and have the commitment and the ability to remedy any environmental problems they may cause. 4

5 Employment Practices STA expects its Suppliers to share its commitment to human rights and equal opportunity in the workplace. STA Suppliers will conduct their employment practices in full compliance with all applicable laws and regulations. All STA Suppliers will, without limitation: Cooperate with STA s commitment to a workforce free of harassment and unlawful discrimination. Suppliers may not engage in unlawful discrimination in hiring, compensation, access to training, promotion, termination or retirement based on race, caste, national origin, religion, age, disability, gender, marital status, sexual orientation, union membership, or political affiliation. Comply with all applicable foreign, federal, state and local laws, including wage and hour laws. Provide a safe and healthy work environment to include appropriate controls, safety procedures, and preventative maintenance, and fully comply with all applicable safety and health laws, regulations and practices. This is especially important when dealing with hazardous materials. Prohibit the use, possession, distribution, and/or sale of illegal drugs while on STA or Supplier owned or leased property. Use only voluntary labor. The use of forced labor whether in the form of indentured labor, bonded labor, or prison labor by a STA Supplier or its subcontractor is strictly prohibited. Comply with all local minimum working age laws and requirements and not utilize child labor. STA only supports the development of legitimate workplace apprenticeship programs for the educational benefit of minors and will not conduct business with Suppliers who abuse such programs. Only employ workers with a legal right to work, which must be validated by Suppliers prior to employment by reviewing all relevant documents. Procedures which demonstrate compliance with these validations must be implemented. Suppliers must regularly audit employment agencies from whom they obtain workers to monitor compliance. Keep employee records in accordance to local and/or national regulations. Not engage in physical discipline or abuse. Physical abuse or discipline, the threat of physical abuse, sexual or other harassment and verbal abuse or other forms of intimidation is strictly prohibited. Pay living wages based on humane conditions. Develop plans for emergency situations and events through identification and assessment, to minimize their impact by implementing emergency plans and response procedures, including: emergency reporting, employee notification and evacuation procedures, worker training and drills, appropriate fire detection and suppression equipment, and adequate exit facilities. 5

6 Monitoring and Record Keeping Suppliers must maintain necessary documentations to demonstrate their compliance with this Supplier Code of Conduct. STA and/or its designated agents maintain the right to take certain actions, such as, inspection of facilities or review of the applicable documentation, to ensure compliance with this Supplier Code of Conduct. Compliance with the STA Supplier Code of Conduct As noted earlier, it is the responsibility of the Supplier to ensure that the Supplier s employees, representatives, subcontractors, and agents know, understand, and comply with the STA Supplier Code of Conduct and to inform its STA contact (or a member of STA management) if, and when, any situation develops that causes or could cause the Supplier to operate in violation of the Supplier Code of Conduct. Suppliers are expected to self-monitor their compliance with this Supplier Code of Conduct. Suppliers are expected to take necessary corrective actions to promptly remedy any identified noncompliance. STA reserves the right to terminate its business relationship with any Supplier who is unwilling or unable to comply with Supplier Code of Conduct. Questions and Reporting of Suspected Violations If you have any questions regarding STA s Supplier Code of Conduct or wish to report any questionable behavior or possible violation of this Supplier Code of Conduct, please contact: David Mace Roberts Associate General Counsel Samsung Telecommunications America, LLC 1301 E. Lookout Drive Richardson, TX Telephone: (972) STA will not tolerate any retribution or retaliation taken by a Supplier against any individual who has, in good faith, sought out advice or has reported questionable behavior and/or a possible violation of this Supplier Code of Conduct. 6

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