Supplier Responsibility

Supplier Code of Conduct

Respecting personnel, protecting labor rights and protecting children’s rights are the responsibility of Tianjin Maolian Technology Co., Ltd.’s supply chain due diligence management. In order to fulfill the above-mentioned responsibilities, this code of conduct is specially formulated, and the company’s suppliers are required to abide by it. This Supplier Code of Conduct is modeled after the Electronic Industry Citizenship Coalition Code of Conduct (EICC) and references the Social Responsibility Standard (SA8000), the Universal Declaration of Human Rights, the Foreign Corrupt Practices Act (FCPA), the ISO 14001 and a series of standards promulgated by the International Labour Organization (ILO), which also serve as a source of supplier information.

1. Scope of application of the code of conduct

This Code applies to all of the Company’s suppliers, their subcontractors and their subordinate suppliers (hereinafter referred to as “Suppliers”), whose products are used by the Company or provide services related to the Company’s products or services.

2. Prohibition of child labor

1. Principles of the protection of children’s rights

The company supports the UN Convention on the Rights of the Child of 1989: Article 3: In all actions concerning children, the best interests of the child shall be the primary consideration. Article 32.1: Children have the right to be protected from economic exploitation and work that may interfere with or affect a child’s education or be harmful to a child’s health or physical, mental, spiritual, moral or social development.

2. Child employment age

The minimum age for employment under this Code is based on the International Labour Organization’s Minimum Age at Work Convention (No. 138, 1973). According to the Convention, a “child” is any person under the age of 15. If the legal minimum age for employment or completion of compulsory education under the law of the supplier’s location is higher, the higher legal age shall prevail. However, for some individual developing countries, where the legal minimum age for employment in the supplier’s location is 14, the lower legal age shall prevail. Supplier undertakes not to employ children in the supply of goods or services to the Company.

3.Employment Management Measures

The Company’s suppliers should always have written employment management practices with a clear minimum age for workers in their policies. Management methods must comply with applicable laws and regulations. Suppliers shall always follow their written employment management practices.

1. Anti-discrimination

In the recruitment and employment process, the Company’s suppliers shall not recruit, promote, Discrimination against workers in rewards, training opportunities, job placement, wages, benefits, discipline, termination and retirement.

2. Harsh treatment and harassment

Suppliers to the Company must commit to a workplace free of harassment.

Suppliers shall not threaten or subject workers to harsh or inhumane treatment, including sexual harassment, sexual abuse, corporal punishment, mental coercion, physical coercion or verbal abuse.

3. Involuntary labor

Our suppliers shall not use any form of forced, indentured, bonded or prison labor. All work is voluntary and workers are free to leave their jobs or terminate their employment with prior application. Employment must not be made conditional on requiring workers to pledge any government-issued identification, passport or work permit.

4. Salary

The Company’s suppliers are required to pay fair wages and provide benefits to all employees as required by applicable law, and shall not be less than the minimum legal wage or a relatively high local industry minimum wage. Suppliers are required to pay overtime and bonuses as required by law. Suppliers are required to pay all legally mandated benefits without unlawful deductions.

5. Working hours

Suppliers shall comply with all applicable international conventions and local country regulations regarding working hours and overtime.

  1. Grievance Mechanism Suppliers shall establish an effective grievance mechanism to ensure open communication between management and workers.

4.Health and Safety

1. The company’s suppliers must comply with all applicable laws related to workplace health and safety, and provide employees with training in safe workplace operations.

2. Suppliers must provide a safe and healthy working environment, properly manage the operation of dangerous goods and equipment, and provide systems and training that can help prevent accidents and injuries.

3. Appropriate measures should be taken to protect the health and safety of female employees, especially those during pregnancy and lactation.

4. Occupational Health

Suppliers shall establish procedures and systems to manage, track and report occupational injuries and diseases in the workplace. These procedures and systems should encourage workers to report accidents, classify and record work-related injuries and occupational diseases, investigate the cause of accidents and implement corrective programs to eradicate the underlying problems that led to the accident, provide necessary treatment, and assist workers in their recovery and return to work.

5. Living conditions

Suppliers shall provide workers with clean drinking water and toilet facilities and, where necessary, clean and hygienic food, storage and dining facilities. Staff quarters should be kept clean and safe with reasonable living space.

6. Emergency procedures

Suppliers shall identify and assess potential emergencies and emergencies, and implement contingency plans and procedures to minimize impact on people, the environment and property.

5.Environmental Protection

Environmental Permits and Reporting

Suppliers shall obtain, maintain and renew all required environmental permits (e.g. discharge monitoring), approvals and registration certificates, and comply with their operational and reporting requirements.

Prevent environmental pollution

Suppliers shall comply with all applicable laws and regulations on pollutants (including wastewater, exhaust gas, solid waste), including relevant manufacturing, transportation, storage, treatment and discharge requirements, and reduce or eliminate pollution at the source. Production and discharge, illegal discharge of toxic and harmful pollutants is prohibited, and noise pollution is prevented.

Save Resources

Suppliers shall take conservation and alternative measures to reduce consumption of energy, water, and natural resources to reduce greenhouse gas emissions.

Harmful Materials

Hazardous chemicals and other materials released into the environment should be identified and controlled to ensure their safe handling, transport, storage, use, recycling or reuse and disposal. A systematic approach should be taken to identify, manage, reduce and responsibly dispose of or recycle solid and liquid waste (hazardous waste). The emission of volatile organic chemicals, aerosols, corrosives, dust, ozone-depleting chemicals and combustion by-products generated in the operation process shall be identified, routinely monitored, controlled and treated as required before discharge. Suppliers shall routinely monitor the performance of their exhaust emission control systems.

  1. Suppliers shall protect employees, neighbors, and the public involved due to the inherent risks of your processes and products.

4、Business Ethics

1)Integrity management

Adhere to business integrity and put it first in business ethics. The Company prohibits any form of bribery, corruption, extortion and embezzlement, and all business transactions shall be transparent and accurately reflected in supplier business books and records. Monitoring and enhanced procedures should be implemented to ensure compliance with anti-corruption laws.

2)No illegitimate interests

Do not promise, offer, give, give or accept bribes or other forms of inappropriate or improper benefits. The prohibition covers promising, offering, conferring, giving or accepting anything of value, either directly or indirectly through a third party, for the purpose of obtaining or retaining business, assigning business to anyone, or otherwise obtaining an improper advantage.

3)Intellectual Property and Trade Secrets

Intellectual property and trade secrets should be respected; the transfer of technology or know-how should be done in a way that protects intellectual property; and customer information should be kept secure.

4)Fair dealing, advertising and competition

Standards of fair dealing, advertising and competition should be upheld. Customer information must be protected in an appropriate manner.

5)Identity Protection and Non-Retaliation Policy

Procedures should be in place to protect employee whistleblowers and ensure the confidentiality and anonymity of their identities, unless expressly prohibited by law. Suppliers shall have communication procedures in place and have reasonable and effective processes and measures in place to allow employees to raise concerns without fear of retaliation.

6)Responsible Raw Material Sourcing

Suppliers shall have policies in place to reasonably ensure that related materials such as tantalum, tin, tungsten, gold, and responsible minerals in their manufactured products do not originate in high-risk areas, including areas where the following activities or conditions exist: conflict, worst forms child labor, forced labor and human trafficking, serious human rights abuses (such as sexual violence), or other high-risk activities (including serious health and safety risks and adverse environmental impacts) that are reasonably and objectively determined. Party B shall conduct due diligence on the source and chain of custody of these raw materials, and provide Party A with the due diligence measures taken as required.

7)Privacy protection

Suppliers shall undertake to protect the reasonable privacy expectations of the personal information of all persons involved in the business, including the Supplier’s own, customers, consumers and employees. Suppliers shall comply with privacy and information security laws and regulatory requirements when collecting, storing, processing, transmitting and sharing personal information.

5.Management System

1)This Code applies to all of the Company’s suppliers, their subcontractors and their subordinate suppliers (hereinafter referred to as “Suppliers”) who manufacture products for the Company or provide services related to the Company’s products or services.

2)Supplier Warranties and Commitments

2.1Suppliers shall adopt or establish a management system whose scope is relevant to the content of this Code. When designing this management system, it shall ensure: compliance with applicable laws, regulations and customer requirements related to its own operations and products; compliance with this Code; identification and reduction of business risks associated with this Code;

Its established management system should drive continuous improvement.

2.2The supplier’s management system shall include the following elements:

A. The company’s public commitment: corporate social and environmental responsibility policy statement, issued in the local language and posted in the workplace;

B. Management Accountability and Responsibility: Clearly designate senior management and company representatives to be responsible for ensuring the implementation of the management system and related programs. Senior management should regularly review the status of the management system;

C. Legal requirements and customer requirements: procedures to identify, monitor and understand applicable laws and regulations and customer requirements (including the requirements of this Code);

D. Risk assessment and risk management: used to identify legal compliance, environment, health and safety, labor practice and moral hazard related to Party B’s operations;

E. Other requirements: including improvement goals, training of employees on the management system, employee feedback and participation, audits and evaluations, corrective action procedures, documentation and records, etc.

2.3 If our company (referring to suppliers) causes Tianjin Maolian to suffer any loss due to violation of this code, our company is willing to take all responsibilities for compensation.

3)The company’s rights

Upon reasonable notice, the Company reserves the right to conduct an audit of the Supplier’s site to assess the Supplier’s compliance with this Code. For suppliers with poor evaluation and violation of the requirements of this code, the company has the right to request rectification within a time limit. If the rectification is not completed within the agreed time limit, the company has the right to unilaterally suspend purchasing from the supplier until the supplier. Implement corrective measures; at the same time reduce the procurement share, terminate or limit business cooperation opportunities until the cooperation is stopped, unilaterally terminate the signed procurement contracts and agreements, and cancel their supplier qualifications. If losses are caused to the company, the company has to claim losses and liquidated damages from the supplier.

4)This standard is signed and agreed with the supplier in the form of an appendix to the contract, or it can be agreed in the form of a unilateral written commitment of the supplier to the company.

5)The validity period of this code is five years from the date of confirmation by the supplier’s seal or from the date of the supplier’s written commitment; the updated or revised version of this code by the company is automatically applicable to each supplier.

6)Tianjin Maolian reserves the right to interpret this code.

Related Articles

Grievance Mechanism

In terms of social responsibility, especially the due diligence management of the cobalt supply chain, if you have any suggestions,