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Code of Ethics and Compliance Policies

Code of Ethics and Compliance Policies

The MKM Automation Supplier Code of Conduct (“Code”) outlines the minimum non-negotiable standards we expect our suppliers and sub-suppliers to adhere to in their business relationship with MKM Automation, in accordance with our Supplier Management Policy. The standards outlined in this Code set clear expectations for our suppliers. The term “Supplier” refers to the main supplier, its affiliates, subsidiaries, employees, sub-suppliers, and subcontractors.

MKM Automation expects its suppliers to comply with all applicable laws and regulations and make a committed effort to adopt international standards and best practices.

The Supplier Code of Conduct contains general principles applicable to all suppliers, and no specific provisions in any written agreement shall override these principles.

Acceptance of this Code is a prerequisite for all MKM Automation supply contracts and orders. Suppliers guarantee that their activities will fully comply with the principles outlined in this document. Suppliers are expected to unconditionally adhere to the Code, inform their employees about its contents, ensure employees understand its importance, and make the Code accessible to all staff. While the standards in the Code do not constitute a formal legal agreement, they form an integral part of any agreement between MKM Automation and its suppliers.

Suppliers agree to comply with the following principles:

  1. Compliance with Laws: Suppliers must comply with all applicable laws and regulations.

  2. Environmental Sustainability: MKM Automation expects suppliers to understand the environmental risks, impacts, and responsibilities related to the products and services they provide:

    • Adherence to environmental protection laws and international standards.

    • Minimizing negative effects on people and the environment across all stages of development, production, and subsequent processes.

    • Focus on material reduction, substitution, maintenance, and recycling.

    • Continuous reduction of greenhouse gas emissions via renewable energy and energy efficiency improvements.

    • Protecting and improving air and water quality by reducing pollutants and water consumption.

    • Avoiding harmful substances to the environment and human health.

    Suppliers should have processes in place to ensure operations meet all environmental legislation. Necessary environmental permits, approvals, and registrations must be maintained in compliance with applicable regulations.

    Suppliers should minimize waste and ensure its proper management, reuse, and recycling. All waste handling and disposal must comply with applicable regulations.

  3. Human Rights and Social Sustainability: Suppliers must implement policies to uphold human rights and social sustainability, focusing on the following:

    3.1 Prevention of Forced Labor and Human Trafficking: Employment should be freely chosen, and workers must be able to leave employment at any time without coercion or restriction.

    3.2 Child Labor: Suppliers must refrain from employing children below the legal minimum age and ensure that young workers do not engage in harmful working conditions.

    3.3 Wages and Benefits: Suppliers must respect the minimum wage standards and provide clear wage information to employees, prohibiting unjustified wage deductions.

    3.4 Working Hours: Suppliers must adhere to national or local laws regarding working hours and provide voluntary, fairly compensated overtime.

    3.5 Freedom of Association: Employees must have the right to join unions and engage in collective bargaining without facing discrimination.

    3.6 Health, Safety, and Working Conditions: Suppliers must provide safe, healthy, and hygienic working conditions, meeting occupational health and safety standards.

    3.7 Regular Employment: All employees should be given a written contract outlining their terms of employment.

    3.8 No Harsh Treatment: Suppliers must ensure that there is no harassment or inhumane treatment in the workplace, offering employees a mechanism for anonymous complaints.

    3.9 Diversity and Inclusion: Suppliers should promote non-discrimination and equal opportunities in the workplace.

  4. Business Integrity and Corporate Ethics

    • Anti-Corruption: Suppliers must not engage in bribery or corruption.

    • Anti-Trust and Competition Laws: Suppliers must comply with competition laws and avoid any anti-competitive practices.

    • Conflicts of Interest: Suppliers should avoid conflicts of interest.

    • Intellectual Property: Suppliers must respect intellectual property rights.

    • Transparency: Suppliers should be transparent in their business activities.

    • Data Privacy and Security: Suppliers must ensure data privacy and security, complying with relevant laws regarding the protection of personal information.

  5. Supply Chain: Suppliers must ensure that their products meet quality and safety standards. MKM Automationexpects suppliers to encourage their own suppliers to adhere to this Code of Conduct.

  6. Monitoring and Compliance: Suppliers are subject to audits and assessments to ensure compliance with this Code. They are responsible for taking corrective actions if non-conformities are identified.

  7. Legal Consequences of Violations: Violations of this Code may result in legal action, including termination of the business relationship in cases of serious or repeated violations. Suppliers are expected to implement immediate corrective actions to prevent any violations.