CoC - Code of Conduct

For us, f-tronic GmbH (hereinafter also "we", "us", "our" or "f-tronic"), ethical and responsible conduct is an important part of our business strategy. We align our own business activities with the principle of sustainability and place the highest value on environmentally and socially responsible conduct. We feel morally obliged to do so, particularly towards society and our environment, and we are also convinced that our commitment to these values and principles is part of our corporate success. Therefore, we expect not only our employees to act responsibly, but we have also integrated these principles into our procurement processes and expect environmentally and socially responsible business conduct from our suppliers as well.

Where, in this Code of Conduct, the masculine form is used for persons for reasons of readability, this is to be understood as gender-neutral and value-free.

This Code of Conduct is based on national legal provisions such as the German Supply Chain Due Diligence Act (LkSG) and internationally recognized conventions or documents such as the Universal Declaration of Human Rights (UDHR) of the United Nations, the conventions and guidelines of the United Nations (e.g. the International Covenant on Economic, Social and Cultural Rights and the International Covenant on Civil and Political Rights), the principles "Children’s Rights and Business Principles" developed jointly by UNICEF, the UN Global Compact and Save the Children, the conventions and guidelines of the Organisation for Economic Co-operation and Development (OECD), and the core labour standards of the International Labour Organization (ILO).

The parties to this Supplier Code of Conduct agree that for their future business relations the following provisions shall apply as essential obligations and minimum requirements. The parties agree that the provisions of this Code of Conduct form the basis of all future deliveries by the supplier to f-tronic GmbH and apply in addition to other contractual provisions (e.g. supply agreements) applicable to the respective delivery. The supplier is obliged to comply with the requirements of this Code of Conduct. The provisions of this Code of Conduct are not to be understood as exhaustive and neither replace applicable legal provisions nor affect their validity. In particular, the supplier’s legal obligations as well as our legal rights arising from a breach of this Code of Conduct and/or applicable laws remain unaffected. The supplier is further obliged to endeavour to oblige its own suppliers, through appropriate agreements, to comply with the principles and requirements of this Code of Conduct. If the supplier has its own code of conduct and its provisions are substantially in line with this Code of Conduct, the supplier may also fulfil this obligation by seeking to oblige its suppliers to comply with its own code of conduct.

In the event that the supplier breaches its obligations under this Code of Conduct, we reserve our rights arising from such breach. In particular, a breach may entitle us to suspend the performance of individual or all contracts concluded with the supplier that have not yet been fully performed until the breach is remedied, or as a last resort to terminate them. Without prejudice to our further statutory or contractual rights and unaffected by Section 3 of this Code of Conduct, the following applies: if the supplier breaches its obligations, we are entitled to suspend performance of a contract until the breach is remedied. Furthermore, we are entitled, at our discretion, to terminate such a contract without notice or to withdraw from it, provided that the supplier has been granted a reasonable deadline to remedy the breach and this deadline has expired without success. However, setting a deadline is not required in the case of a serious, repeated, or ongoing breach. The supplier shall indemnify us against third-party claims arising from a breach of its obligations under this Code of Conduct. This does not apply if the supplier is not responsible for the breach.

Child labour is strictly prohibited and must not be used or supported in any form. The supplier is obliged to comply with the core labour standards of the International Labour Organization (ILO) concerning minimum age for admission to employment (ILO Convention No. 138) and the prohibition and elimination of the worst forms of child labour (ILO Convention No. 182). The minimum age for employment must not be below the age at which compulsory schooling ends under the law of the place of employment. In any case, the employment age must not be below 15 years, unless one of the exceptions recognized by the International Labour Organization (ILO) applies and is also provided for under local law. Persons under 18 years must not perform work prohibited under Article 3 of ILO Convention No. 182, particularly work that is harmful to the health, safety, or morals of children. Where local law provides stricter provisions on child labour, these shall prevail. If the supplier identifies a breach of these obligations, it must take corrective action and document the measures taken.

No forced labour or slave labour may be used. Any comparable form of labour is also prohibited. This includes, for example, debt bondage or human trafficking. All work must be voluntary. Employees must be able to terminate their employment at any time in compliance with applicable contractual or statutory notice periods. Employees must not be subjected to unacceptable treatment, such as psychological hardship or economic or sexual exploitation or humiliation.

A safe and healthy working environment is the responsibility of the supplier. The supplier must implement effective preventive measures against occupational accidents and work-related health hazards by establishing and applying an appropriate health and safety management system for its business (particularly considering its risk profile). To prevent occupational accidents and health risks, the supplier must ensure adequate training and instruction of employees. Sufficient drinking water and sanitary facilities must be provided or access to them must be granted. Furthermore, the supplier must ensure that the working environment provides adequate lighting, ventilation, and appropriate room temperature.

The supplier shall respect the right of employees to form or join trade unions, engage in collective bargaining, and exercise the right to strike, including the right not to do so. Employees must be able to exercise these rights without fear of discrimination or retaliation. Employee representatives must not be unlawfully denied access to employees. Where restrictions exist under applicable law, the supplier shall seek alternative means of engaging with its employees to address working conditions.

Any form of discrimination against employees is prohibited. In particular, unequal treatment based on national or ethnic origin, skin colour, social origin, health status, disability, sexual orientation, pregnancy, age, gender, political opinion, religion or belief is prohibited unless justified by the requirements of the job. Unequal treatment exists in particular where equal work is paid unequally. This also applies to recruitment, promotion, and training. The dignity and personal rights of every individual must be respected.

Employees must be informed in a clear and regular manner, and in the legally required form (at least in text form), about the composition of their remuneration. Employees must be paid an appropriate wage. Remuneration must at least comply with applicable legal provisions (in particular statutory minimum wage laws) and industry standards, whichever is higher. Where no statutory minimum wage applies, remuneration must be set in a way that ensures it meets the basic needs defined in International Labour Organization (ILO) Convention No. 131. Statutory social benefits must be granted. Deductions from remuneration as disciplinary measures are not permitted unless otherwise provided by law.

Working hours must always comply with applicable legal requirements. Where stricter industry standards exist, these shall prevail. The supplier is obliged to take measures to prevent excessive physical and mental fatigue and must ensure appropriate work organisation regarding working hours and rest periods.

The supplier commits to complying with the prohibition of causing harmful soil changes, water pollution, air pollution, harmful noise emissions, or excessive water consumption that may (i) significantly impair the natural basis for food production, (ii) deny access to safe drinking water, (iii) hinder or destroy access to sanitation, or (iv) harm human health.

The supplier commits to respecting international, national, local, and customary rights to land, forests, and waters, in particular the rights of indigenous communities. The supplier shall comply with the prohibition of unlawful eviction and unlawful deprivation of land, forests, or waters where such use affects a person’s livelihood.

The supplier undertakes to comply with the prohibition on engaging or using private or public security forces if, due to lack of instruction or control, violations occur, including torture, inhuman or degrading treatment, harm to life or limb, or impairment of freedom of association.

The supplier is encouraged to implement an environmental management system, such as EMAS (Regulation (EC) No. 1221/2009) or ISO 14001:2015. The supplier undertakes to comply with all applicable environmental laws and regulations, including international environmental standards.

The supplier shall avoid environmental risks from waste where possible and continuously minimise them. Waste must be identified, safely handled, transported, stored, reused, recycled, or disposed of in accordance with applicable regulations. This also applies to chemicals or other substances that may be released and pose environmental risks.

The supplier shall minimise environmental impacts from air emissions, noise, greenhouse gases and wastewater (including sanitary wastewater) and handle them safely and in compliance with applicable regulations. Where treatment is required, emissions and wastewater must be treated and disposed of accordingly.

The supplier shall act responsibly in the use of natural resources and energy, align its consumption with sustainability principles, and continuously seek to minimise resource and energy use.

The supplier shall comply with applicable competition and antitrust laws and refrain from anti-competitive agreements, price fixing, market or customer allocation, or unfair commercial practices.

The supplier shall comply with applicable data protection laws, protect confidential information using appropriate safeguards, and comply with applicable regulations regarding artificial intelligence.

The supplier shall respect and protect intellectual property rights of employees and business partners, including trade secrets, copyrights, trademarks, and patents.

The supplier shall comply with all applicable export control and sanctions regulations and refrain from delivering goods or services where such delivery is prohibited.

The supplier shall not tolerate any form of corruption, bribery, embezzlement, or extortion and shall comply with applicable laws. It must implement appropriate systems to prevent and detect violations.

The supplier shall avoid conflicts of interest that may influence business decisions and must disclose any actual or potential conflicts immediately.

The supplier shall comply with applicable laws on anti-money laundering and counter-terrorism financing.

The Supplier shall comply with the human rights and environmental expectations set out in Section 2 of this Code of Conduct and shall implement appropriate measures (in particular preventive measures) to ensure compliance. The Supplier shall appropriately address the human rights and environmental expectations set out in Section 2 of this Code of Conduct with its own suppliers throughout the supply chain.

The Supplier is expected to take appropriate measures to identify human rights and environmental risks within the supply chain, as well as violations of the human rights and environmental expectations set out in Section 2 of this Code of Conduct.

We encourage the Supplier to provide an effective grievance mechanism that enables individuals or groups of individuals to report legal violations and/or violations of the human rights and environmental expectations set out in Section 2 of this Code of Conduct, as well as suspected violations thereof. In any event, where the establishment of such grievance mechanisms or reporting channels is required by law, the Supplier shall comply with all applicable legal requirements in this regard.

To the extent that we are required to comply with regulatory obligations, in particular under the German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz – LkSG), because we have entered into a contract with a company that is subject to such obligations, the Supplier shall provide us with all information, data, and documentation necessary to enable compliance with such requirements. This obligation shall apply without prejudice to appropriate measures for the protection of trade and business secrets and compliance with mandatory data protection laws. In any case, the Supplier shall disclose trade and business secrets only to the extent necessary for us to comply with the aforementioned regulatory requirements, and such information may only be used for that purpose.

If a violation of the human rights and environmental expectations set out in Section 2 of this Code of Conduct exists, or if there are factual indications giving rise to a suspicion of such a violation, the Supplier shall immediately notify us and provide all relevant information available to it in this context. Furthermore, in such cases, the Supplier shall promptly implement appropriate remedial and preventive measures and inform us accordingly. If the violation cannot be remedied within the foreseeable future, the Supplier shall cooperate with us in developing and implementing a plan, including a timetable, to end or minimize such violations. In fulfilling the foregoing obligations, due consideration shall be given to the protection of trade and business secrets through appropriate measures, and all mandatory data protection laws shall be observed.

In the event of such a violation of, or suspicion regarding, the human rights and environmental expectations set out in Section 2 of this Code of Conduct, the Supplier shall further grant us the right, upon reasonable prior notice and during normal business hours, to conduct assessments and on-site inspections at the Supplier’s business premises and production facilities and to review relevant documentation. As part of such audits, we shall also be entitled, among other things, to conduct interviews with selected employees of the Supplier. Upon the Supplier’s request, we shall engage an independent external service provider to conduct such audits at the Supplier’s expense. We may also engage such a service provider without such a request; however, in that case, unless otherwise agreed and without prejudice to contractual or statutory rights, we shall bear the costs arising from the engagement of the audit service provider ourselves. In any event, such audits shall be limited exclusively to the assessment of compliance with human rights and environmental expectations.

The foregoing provisions relating to the audits described above shall apply without prejudice to appropriate measures for the protection of trade and business secrets and compliance with mandatory data protection laws. In any event, the Supplier shall disclose trade and business secrets in connection with such audits only to the extent necessary for the purposes of the audits, and such information may only be used for those purposes.

Furthermore, we encourage the Supplier to have its compliance with human rights and environmental expectations independently assessed and audited under a recognized certification scheme.