Luxottica Responsible Sourcing Principles

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1 Luxottica Responsible Sourcing Principles

2 Luxottica Responsible Sourcing Guideline Contents 1. Introduction Mission Luxottica Responsible Sourcing Principles Compliance with Legislation Child Labour Health and Safety Working Hours Wages & Benefits Freedom of Association & Collective Bargaining Freely Chosen Employment Discrimination Disciplinary practices Environmental Requirements... 5 Luxottica Responsible Sourcing Principles 2

3 1. Introduction Luxottica Responsible Sourcing (LRS) is the global program of Luxottica Group that aims at the continuous improvement of the supply base in terms of environment, health, safety and labour performance, also referred to as social responsibility. These Luxottica Responsible Sourcing Principles describe: the Mission of Luxottica in terms of social responsibility the Standard that Luxottica uses as its reference to select and evaluate its suppliers performance with respect to social responsibility 2. Mission As Luxottica, we believe that running our business activities according to social responsibility principles is an ethical obligation, that will contribute to continuing our economic success and sustaining the excellence of our products. We are committed to ensure at all levels, both internally and within the supply chain, safe and healthy working conditions, respect and dignity towards all workers and environmentally sustainable operations. All employees and suppliers are obliged to have an ethical behaviour in compliance with the law. The supply chain is an important partner in this achievement and we aim to work in this direction together with our suppliers. 3. Luxottica Responsible Sourcing Principles The reference principles for Luxottica activities are contained in the Code of Ethics that can be downloaded at Suppliers are required to conform to the principles indicated in the Code of Ethics and to operate in compliance with the law, in fair competition with honesty, integrity, correctness and good faith as well as to take actions against corruption and actions to prevent committing any other criminal offence. We also believe that Business should work against corruption in all its forms and we ask our suppliers to take, as we do as Luxottica, the stricter stance on this subject. Luxottica will terminate, adopting a zero tolerance criteria, any business relationship in case a supplier should be active part in a bribery action. In order to translate these principles into concrete facts, the following Luxottica Responsible Sourcing Principles explicitly define Luxottica requirements for suppliers in terms of social responsibility. The Luxottica Responsible Sourcing Principles are inspired by international standards and initiatives such as the SA 8000 and the UN Global Compact. Luxottica Responsible Sourcing Principles 3

4 1. Compliance with Legislation As clearly stated in the Code of Ethics, the supplier must operate in full compliance with the applicable laws, rules and regulations including those related to labour, workers health and safety and environment. The Luxottica Responsible Sourcing Standard shall be considered as reference in cases where these indicate stricter limits than the local legislation(the stricter limit applies). 2. Child Labour Suppliers must ensure that none of their workers is less than 16 years old, or less than the age for completing compulsory education and for working where these age limits are higher than 16 in their country. Young workers, between 16 and 18 years of age, may not work exceeding 8 hours per day nor during the night. 3. Health and Safety A safe and healthy working environment must be provided, and occupational health and safety practices which prevent accidents and injury must be promoted. This includes protection from mechanical hazard, chemical hazard and fire. Accidents and injuries must be reported, recorded and monitored. Lighting, heating and ventilation systems must be adequate. Employees must have access at all times to sanitary facilities which should be adequate and clean. Suppliers must have health and safety policies which are clearly communicated to employees. Where residential facilities are provided to employees, the same standards shall be applicable. 4. Working Hours The normal work week shall not exceed 48 hours. Overtime must be voluntary and shall not exceed 12 hours per week. Employees must be allowed at least 1 day of rest within every seven-day period and must receive paid annual leave. In case the limits here described are exceptionally exceeded, the company must put in place organisation measures to monitor overtime and redistribute working hours. 5. Wages & Benefits Wages must equal or exceed the minimum wage required by law or the prevailing industry wage, whichever is higher. Employees must be compensated for overtime hours at a premium rate. No labour-only contracting arrangements, consecutive short-term contracts and false apprenticeship schemes shall be used. 6. Freedom of Association & Collective Bargaining Suppliers must recognise and respect the right of employees to join and organise associations of their own choosing and to bargain collectively. Suppliers must ensure effective communication with employees and their representatives, including confidential means for all personnel to express their concerns about work, and workplace conditions. A system for resolving industrial disputes should be in place. Luxottica Responsible Sourcing Principles 4

5 7. Freely Chosen Employment Suppliers must not use forced labour, whether in the form of prison labour, indentured labour, bonded labour or any other form of forced labour. The company cannot require workers to pay deposits nor transfer their identification papers nor any other fundamental document (e.g. work or residence permit, travel documents) to the company. Personnel must have the right to leave the workplace premises after completing their workday as well as to terminate their employment provided that they give a notice to the employer (number of days of notice depending on the country s legislation). 8. Discrimination Suppliers must not discriminate in hiring, remuneration, training, promotions, bonuses and termination on the basis of elements such as race, national origin, caste, gender, religion, age, disability, marital status, parental status, association membership, sexual orientation, family responsibilities, marital status, union membership, political opinion. No behaviour that is threatening, abusive, exploitative or sexually coercive shall be tolerated. 9. Disciplinary practices All personnel must be treated with dignity and respect. The use of corporal punishment, mental or physical coercion, verbal abuse nor fines or penalties as disciplinary measures shall not be tolerated. 10. Environmental Requirements Suppliers must comply with legislation and progressively improvement in environmental performance in their operations. Luxottica Responsible Sourcing Principles 5

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