CODE OF ETHICS FOR BANCO PICHINCHA SUPPLIERS 1
Content 1. Index Proposal 2
1. INDEX 1.1. Mission 1.2. Vision 1.3. Principles of 1.4. Welcome 1.5. Objective of the Code 1.6. Scope 1.7. Commitments of Suppliers 1.8. Commitments of 2. Content 2.1. Legal compliance 2.1.1. Current Laws and compliance of this Code 2.1.2. Health and Occupational Safety 2.1.3. Environment 2.1.4. Tax culture 2.2. Business relationship 2.2.1. Corruption 2.2.2. Gifts and presents 2.2.3. Conflict of Interests and contractual commitment 2.3. Information management 2.3.1. Confidentiality 2.3.2. Authenticity in Information and communication 2.3.3. Respect towards competitors 2.4. Human rights 2.4.1. Human rights 2.4.2. Harassment, abuse and use of force 2.4.3. Freedom of Association 2.4.4. Forced Labor 2.4.5. Child Labor 2.4.6. Nondiscrimination 2.4.7. Wages and benefits of law 2.5. Corporate responsibility 2.6. Sanctions and Complaints 2.6.1. Sanctions 2.6.2. Complaints 2.6.2.1. Contacts 3
Proposal Generalities Mission: We are a leading team that contributes to the development of Ecuador meeting the financial needs of people, their institutions and their companies. Vision: is the market leader in image, participation, quality products and services, focusing their efforts on the customer, anticipating the needs, developing its staff and providing sustainable returns to its shareholders. Principles of SOLIDARITY We believe we are part of a developing society with high levels of injustice, for which we must direct our actions, taking into account the needs of the poorest. HARD WORK All desirable result should be the result of a conscious effort to benefit the individual, institutional and collective progress. We believe first in justice, then in charity. COMPETITION We seek to do our best work, reducing costs, increasing productivity, getting maximum performance of the resources we have, considering the details, seeking always excellence. HONESTY We constantly examine ourselves and we know that every day we will find the opportunity to become better. We respect the law, morality and our as individual commitments as an institution. AUSTERITY We aspire to be more than to have. We work to live and not live to produce. We reject the superfluous or unnecessary. VOCATION OF SERVICE Our customers satisfaction is more than an aspiration. It is a must. The service to others is the reason for our development. OPTIMISM 4
We promote progress and reject conformism. The changes mean opportunities that allow our leadership. We believe the future will be better than the past and we can be the best at what we propose. ORDER We respect the organization and look for consensus on the decisions we make. We recognize the merit of specializations. PERMANENCE We look for relating among ourselves and with our customers for a long time. We analyze our goals in the long term. TRAINING We believe that every member of the organization may be better as far as acting, be empowered and strive oneself. COMMITMENT We accept that we can make mistakes and that we must constantly rectify. In cases of failure we committed ourselves with the support of the team. AUTHENTICITY We hope that others know and judge us as we are. We reject the banality and lack of modesty. Welcome " has been built within an ethical environment of values and principles, in the same way we expect our Suppliers to comply with the law, acting and living these same ethical and transparent parameters. That is why we present to you the Code of Ethics for Suppliers, which stems from a voluntary initiative of and seeks to formalize the existing good practices throughout the Bank's history during the relationship with its Suppliers. This document has been written taking into consideration in addition to laws and existing regulatory compliance in the country, principles of the ILO (International Labor Organization), the Universal Declaration of Human Rights, Fair Trade Practices (Ethical Trading Initiative), and the principles of the Global Compact of the United Nations to which joined since 2011. 5
From our institution we believe in sustainable development of society through responsible economic growth, so we support the growth of our stakeholders without affecting the environmental stability of the planet, its resources and society in general. This document must be completed and implemented by all employees of and its Suppliers, hoping that everyone acts in accordance with the views expressed herein. In we firmly believe that our suppliers are strategic allies with whom we grow together, and who allow us to channel through the best products and services of the highest quality and the most ethical way to our customers. in an effort to involve their suppliers and collaborators has made possible the creation of this document. Objective of the Code Introduce to the Friends of and its suppliers guidelines that we hope will always be in the business relationship, finding in this document an action guide aligned to ethics, transparency, values and principles of. Scope This Code of Ethics for Suppliers internally applies to: all employees of to be ambassadors thereof and co-responsible for compliance; and externally to suppliers who provide goods and services to. For the purpose of this Code we will refer to suppliers, whether natural or legal persons, and their collaborators, only as "Suppliers". Compliance with this must be respected while there is a business relationship with the institution. Commitments of Suppliers The Supplier in order to maintain a business relationship with and future suppliers, who wish to join us, must: * Know this document; * Comply with the provisions of this instrument fully; * Report on violations of this Code; * Introduce this document inside each supplier s company; 6
* Accept to be evaluated and monitored for compliance with this Code. Commitment of assumes to this document as its responsibility and commitment: * All employees of must know and comply with this Code; * Introduce to all providers the content and guidelines of this Code; * Do not engage in any business relationship with suppliers that do not comply with the principles established in this Code; * Update and modify the document as it sees fit; * Ensure compliance with this Code; * Take appropriate action against violations of this Code. Content LEGAL COMMITMENT Current Laws and compliance of this Code: complies with current regulations that govern the Supplier s institution. In the same way its Suppliers are expected to comply with current Ecuadorian legislation and laws and regulations of other countries, which carry out its operations, so that in this way safeguard their reputation and one. Suppliers are expected to maintain a behavior within the highest standards of compliance with current regulations. may audit, verify or monitor the performance of its suppliers under the Law and this Code of Ethics for Suppliers. Occupational Health and Safety: maintains an explicit policy on Occupational Health and Safety; in the same sense, encourages its suppliers to comply with existing rules and regulations on Occupational Safety and Health. Suppliers must comply with the laws and regulations, and have the necessary permits, licenses and authorizations to provide services. 7
Suppliers ensure a safe and healthy environment and that has the required equipment for all performing functions, both during the executed work on the premises of and in all activities of the company; thus ensuring that its employees, contractors and goods that are in charge of it, are outside risk in terms of safety and health. Environment: In terms of environment, framed its strategy on a policy and a management system developed based on local legislation and international standards. For this reason, it is a requirement that its suppliers comply with all environmental regulations applicable to their line of business and that motivate within their companies good practice of responsible use of natural resources in all their operations. Suppliers should look for and improve the efficiency and effectiveness of their processes in order to reduce their environmental impact. Tax Culture: is a complete entity characterized by fully complies with their tax and financial obligations. Suppliers are required to meet their tax obligations in a timely and transparent manner, ensuring the proper handling of a tax culture. Suppliers, whether natural or legal persons and their legal representatives, may not be kept closed checking accounts, found in a watch list 1, fall into arrears directly or through third parties with private and public agencies and / or keep fines paid by protested check and have record in punished portfolio. BUSINESS RELATIONSHIP Corruption Through Assets Laundering Prevention Policy, complies with laws and regulations due to a financial institution on corruption, bribery and assets laundering; likewise, Suppliers must at all times maintain an ethical, honest, upright and transparent behavior in their commercial activities. 1 Watch List Definition: Records of files where people internationally and nationally, have been involved in activities related to assets laundering, additionally for internal political activities C.A. has created its own lists, allowing the Bank to control customers who have been involved in credit defendants, punishment, forgiveness, as well as keeping track of customers who have been legally classified as insolvent. 8
If the Supplier detects acts that violate ethical behavior as set out in this code by its employees, the Supplier's company shall benefit from the application of internal sanctions of each company. will not tolerate any acts of bribery, extortion or corruption by their suppliers. Suppliers are obliged to report any illegal act that violates the rules described here concerning corruption provided for in this Code. Gifts and Presents 2 : Suppliers will not offer to any Employee of gifts, money, loans, guarantees, economic aid, discounts, presents, hospitality or benefits of any kind; in order to be benefited in bidding processes and procurement. Similarly employees must refrain from receiving such gifts. Excluded from the above categories are: promotional items, invitations, gifts or other amount not exceeding one hundred dollars. Conflict of interest and contractual commitment: maintains policies and procedures to avoid conflicts of interest and contractual commitment. All employees of are required to comply with the internal rules of the Institution. This applies regardless of the hierarchical level of the Coworker of. All Suppliers of must declare whether they and / or their spouse have a conflict of interest or relationship to the fourth degree of consanguinity and fourth affinity with or Bank officials who are responsible directly or indirectly from the acquisition of Goods and Services and contract administration. INFORMATION MANAGEMENT Confidentiality keeps strict control on its business and privileged information of actors with whom it relates. Suppliers are required to maintain the confidentiality of any information they know in their different fields of work. 2 Gift or presents definition: gifts or presents are anything that has a value which people would pay to acquire it. 9
Confidentiality agreements that maintains with its Suppliers are enforceable even for employees and managers of them; therefore, it is their obligation not to disclose information regarding even after the business relationship comes to end. If the inappropriate use of information by the suppliers is detected, will catalog this action as inappropriate as it is used to promote the particular interests of the Supplier, so the Bank may take legal action if it considers appropriate. Authenticity in Information and communication provides its suppliers clear and accurate information throughout all stages in the business relationship, including the pre-contractual stage. Communications issued by the Supplier to its customers and their suppliers should be clear and transparent, respecting consumer rights. Suppliers will not make misleading advertising in order to win awards. Suppliers must make a clear and real statement about the products and / or services sold, manufactured or marketed and the consequences of that use. Accordingly, suppliers must provide accurate and sufficient information about their goods and / or services, including details of guarantees so that can make a well thought-out decision, having the necessary information. Respect towards competitors Providers must refrain from all kinds of comments and / or actions that endanger the reputation of their competitors. Intellectual property, fair competition and good business practices will be respected, in accordance with the provisions of the regulations. HUMAN RIGHTS Human rights complies with the provisions of the Universal Declaration of Human Rights; and it requires its suppliers to meet her, respect her, do not miss compliance and promote it within their organization as well as its own 3 value chain. Harassment, abuse and use of force The Supplier within its organization and, meet the highest ethical standards and will ensure respect for human rights. 3 Concept of value chain: value chain describes how the actions and activities of a company are developed. Based on the definition of string, it is possible to find different links involved in an economic process: it starts with the raw material and comes to distribution of the finished product. 10
Harassment, physical abuse, sexual, psychological and / or verbal to their own employees and those of and other actors involved in the relationship with the supplier (Community, suppliers, customers) are not allowed. defends life and rejects all forms of physical or verbal violence, which encourages its suppliers to avoid actions that violate human rights. Freedom of Association is covered by the law on freedom of association; in the same way, it encourages its suppliers to comply with the provisions of the relevant legislation. Forced Labour 4 complies with current regulations regarding forced labor. The Supplier shall eradicate from his/her organization all kinds of forced labor, including slavery, prison labor, conditional or forced recruitment, work for debt, poor salaries or other methods that are considered as such. Child Labour 5 The Supplier will avoid any kind of child labor in his/her businesses. does not engage in any business relationship with institutions that support child labor. Throughout the value chain of child labor should not exist for any reason. So, Suppliers should support the eradication of child labor within their own value chain. Nondiscrimination In compliance with the law and practice of the own values is against discrimination. requires its suppliers to avoid any discrimination in their organization with partners and other direct actors in their relationship. No actor will be treated unfairly 4 Concept of forced labor: All work or service which is demanded from any person under the menace of any penalty and for which such person has not offered herself voluntarily. Forced labor is also a punishment in the form of forced labor applied to criminals or prisoners of war. In some cases it is presented as a work in which underage youth are forced. It also includes slavery. 5 Concept of Child Labor: Any work that exceeds a minimum number of hours, depending on the age of the child and the nature of work. This type of work is considered harmful to children and should therefore be eliminated. Between 5 and 11 years: at least one hour per week of paid work or 28 hours a week of housework. Between 12 and 14 years: at least 14 hours per week of paid work or 28 hours a week of housework. Between 15 and 17 years: at least 43 hours of paid work or housework weekly 11
because of their gender, ethnicity, religion, origin, age, physical characteristics or appearance, political affiliation, sexual preference, among others. It is encouraged to try to maintain a healthy and ideal work environment for its employees. Wages and benefits of law is imperative to comply with the laws and regulations of Labor, with special emphasis on its obligations as an employer and benefits employees are entitled. Suppliers must pay the salaries required by current regulations. They will recognize the payment of overtime, fringe benefits and other law legal and timely hours. CORPORATE RESPONSIBILITY Corporate responsibility lives its organizational culture under a model of Corporate Responsibility, which seeks a sustainable relationship with its stakeholders, using strategies that meet the expectations of its stakeholders. Suppliers of are encouraged to review their own Corporate Responsibility strategy for the Community authorities, Environment, Suppliers, Customers and Partners with the intention to actively participate in sustainable development of society. Sanctions and Complaints SANCTIONS Sanctions has the right to verify compliance with this document at any time, also have the right to punish its suppliers and partners for breach of this Code and follow the legal action it considers appropriate. Suppliers have the right to be heard before the Purchasing, Control and Internal Affairs and their internal user when the situation warrants. The sanctions that may impose on its suppliers be only about breaches in the legal framework required herein and contracts signed. reserves the right to establish them penalties according to the severity of them. Executable sanctions may be, but are not limited to: 1. Call of verbal attention 2. Call of written attention 3. Suspension of business relationship or work being performed 12
4. Permanent exclusion of the supplier base. The permanent exclusion from the Supplier base may also occur due to violations in the areas of: Assets Laundering, Watch List, Corruption, Bribery, Extortion, Conflict of Interest, Forced and Child Labour, harassment, abuse and use of force; and Confidentiality. COMPLAINTS Complaints: In case that any employee of or Supplier identifies an action or behavior that violates this Code or the usual questions, it is the responsibility of each one to report them immediately through the channels established by. guarantees confidentiality and reserve of the complaints received to the extent permitted by law. Suppliers are encouraged to give suggestions, comments and relevant reports through the various communication channels. will have no retaliation against the complainant. 13