Smith & Wesson Brands, Inc. (the “Company”)
SUPPLIER CODE OF CONDUCT
CODE OF CONDUCT DISCLOSURE
On July 12, 2017, we established the following Supplier Code of Conduct for all suppliers to adhere to when conducting business with and/or on behalf of Smith & Wesson Brands, Inc. (“SWBI”) and its subsidiaries (each including SWBI a “Company”). Suppliers must be able to demonstrate compliance with the principles noted within the Supplier Code of Conduct at the request of and to the Company’s satisfaction. These requirements are a part of all agreements between the Company and its direct and authorized suppliers. We expect our Suppliers to develop and implement appropriate internal business processes to ensure compliance with the Company’s standards.
- LEGAL AND REGULATORY COMPLIANCE
All SWBI Suppliers must conduct their business activities in full compliance with the applicable laws and regulations while conducting business with and/or on behalf of the Company, and must, without limitation:
• Trade: Comply with all applicable trade controls, as well as all applicable export, re-export, and import laws and regulations, including but not limited to ITAR.
• Antitrust: Conduct business in full compliance with antitrust and fair competition laws that govern the jurisdictions in which they conduct business.
• Boycotts: Not participate in international boycotts that are not sanctioned by the United States (U.S.) government or applicable laws.
• Anti-Corruption: Not participate in bribes or kickbacks of any kind, whether in dealings with public officials or individuals in the private sector. SWBI is committed to observing the standards of conduct set forth in the U.S. Foreign Corrupt Practices Act (“FCPA”) and the anti-corruption and anti-money laundering laws of the countries in which the Company operates. Suppliers must comply with all applicable anti-corruption and anti-money laundering laws, including the FCPA, as well as laws governing lobbying, gifts, and payments to public officials, political campaign contribution laws, and other related regulations. Suppliers must not, directly or indirectly, offer or pay anything of value (including travel, gifts, hospitality expenses, and charitable donations) to any official or employee of any government, government agency, political party, public international organization, or any candidate for political office to (i) improperly influence any act or decision of the official, employee, or candidate for the purpose of promoting the business interests of the Company in any respect, or (ii) otherwise improperly promote the business interests of the Company in any respect.
Comply with applicable Company policies as well as the terms of any contract with the Company.
- BUSINESS PRACTICES AND ETHICS
SWBI Suppliers must conduct their business interactions and activities with integrity and must, without limitation:
• Business Records: Honestly and accurately record and report all business information and comply with all applicable laws regarding their completion and accuracy. Create, retain, and dispose of business records in full compliance with all applicable legal and regulatory requirements. Be honest, direct, and truthful in discussions with regulatory agency representatives and government officials.
• Press: Speak to the press on behalf of the Company only if the Supplier is expressly authorized in writing to do so by SWBI.
• Gifts: Avoid gifts to Company employees because even a well-intentioned gift might constitute a bribe under certain circumstances, or create conflicts of interest. Do not offer anything of value to obtain or retain a benefit or advantage for the giver, and do not offer anything that might appear to influence, compromise judgment, or obligate the SWBI employee. If offering a gift, meal, or entertainment to SWBI employees, always use good judgment, discretion, and moderation. Any gift from a Supplier must be permissible under the policy of the Company employee’s business unit, because the Company business and regional policies may prohibit gifts entirely or set maximum gift value limits at varying amounts. Any gifts, meals, or entertainment must comply with applicable law, must not violate the giver’s and/or recipient’s policies on the matter, and must be consistent with local custom and practice. Suppliers are not allowed to give gifts of any value to any member of the Procurement Department or its representatives.
• Conflicts of Interest: Avoid the appearance of or actual improprieties or conflicts of interests. Suppliers must not deal directly with any Company employee whose spouse, domestic partner, or other family member or relative holds a significant financial interest in the Supplier. In the course of negotiating the Supplier agreement or performing the Supplier’s obligations, dealing directly with a Supplier personnel’s spouse, domestic partner, or other family member or relative employed by the Company is also prohibited.
• Insider Trading: Avoid insider trading by not buying or selling SWBI or another company’s securities when in possession of information about the Company or another company that is not available to the investing public and that could influence an investor’s decision to buy or sell the security.
Suppliers are committed to uphold the human rights of workers, and to treat them with dignity and respect as understood by the international community. This applies to all workers including temporary, migrant, student, contract, direct employees, and any other type of worker.
The labor standards are:
• Freely Chosen Employment: Forced, bonded (including debt bondage) or indentured labor, involuntary prison labor, slavery or trafficking of persons shall not be used. This includes transporting, harboring, recruiting, transferring or receiving persons by means of threat, force, coercion, abduction or fraud for labor or services. There shall be no unreasonable restrictions on workers’ freedom of movement in the facility in addition to unreasonable restrictions on entering or exiting company-provided facilities. As part of the hiring process, workers must be provided with a written employment agreement in their native language that contains a description of terms and conditions of employment prior to the worker departing from his or her country of origin. All work must be voluntary and workers shall be free to leave work at any time or terminate their employment. Employers and agents may not hold or otherwise destroy, conceal, confiscate or deny access by employees to their identity or immigration documents, such as government-issued identification, passports or work permits, unless such holdings are required by law. Workers shall not be required to pay employers’ or agents’ recruitment fees or other related fees for their employment. If any such fees are found to have been paid by workers, such fees shall be repaid to the worker.
• Young Workers: Child labor is not to be used in any stage of manufacturing. The term “child” refers to any person under the age of 15, or under the age for completing compulsory education, or under the minimum age for employment in the country, whichever is greatest. The use of legitimate workplace learning programs, which comply with all laws and regulations, is supported. Workers under the age of 18 (Young Workers) shall not perform work that is likely to jeopardize their health or safety, including night shifts and overtime. Participant shall ensure proper management of student workers through proper maintenance of student records, rigorous due diligence of educational partners, and protection of students’ rights in accordance with applicable law and regulations. Participant shall provide appropriate support and training to all student workers. In the absence of local law, the wage rate for student workers, interns and apprentices shall be at least the same wage rate as other entry-level workers performing equal or similar tasks.
• Working Hours: Studies of business practices clearly link worker strain to reduced productivity, increased turnover and increased injury and illness. Workweeks are not to exceed the maximum set by local law. Further, a workweek should not be more than 60 hours per week, including overtime, except in emergency or unusual situations. Workers shall be allowed at least one day off every seven days.
• Wages and Benefits: Compensation paid to workers shall comply with all applicable wage laws, including those relating to minimum wages, overtime hours and legally mandated benefits. In compliance with local laws, workers shall be compensated for overtime at pay rates greater than regular hourly rates. Deductions from wages as a disciplinary measure shall not be permitted. For each pay period, workers shall be provided with a timely and understandable wage statement that includes sufficient information to verify accurate compensation for work performed. All use of temporary, dispatch and outsourced labor will be within the limits of the local law.
• Humane Treatment: There is to be no harsh and inhumane treatment including any sexual harassment, sexual abuse, corporal punishment, mental or physical coercion or verbal abuse of workers; nor is there to be the threat of any such treatment. Disciplinary policies and procedures in support of these requirements shall be clearly defined and communicated to workers.
• Non-Discrimination: Suppliers should be committed to a workforce free of harassment and unlawful discrimination. Companies shall not engage in discrimination based on race, color, age, gender, sexual orientation, gender identity and expression, ethnicity or national origin, disability, pregnancy, religion, political affiliation, union membership, covered veteran status, protected genetic information or marital status in hiring and employment practices such as wages, promotions, rewards, and access to training.
Workers shall be provided with reasonable accommodation for religious practices. In addition, workers or potential workers should not be subjected to medical tests or physical exams that could be used in a discriminatory way.
• Freedom of Association: In conformance with local law, Suppliers shall respect the right of all workers to form and join trade unions of their own choosing, to bargain collectively and to engage in peaceful assembly as well as respect the right of workers to refrain from such activities. Workers and/or their representatives shall be able to openly communicate and share ideas and concerns with management regarding working conditions and management practices without fear of discrimination, reprisal, intimidation or harassment.
- HEALTH and SAFETY
Suppliers recognize that in addition to minimizing the incidence of work-related injury and illness, a safe and healthy work environment enhances the quality of products and services, consistency of production and worker retention and morale. Suppliers also recognize that ongoing worker input and education is essential to identifying and solving health and safety issues in the workplace. Recognized management systems such as OHSAS 18001 and ILO Guidelines on Occupational Safety and Health were used as references in preparing the Code and may be a useful source of additional information.
The health and safety standards are:
• Occupational Safety: Worker exposure to potential safety hazards (e.g., electrical and other energy sources, fire, vehicles, and fall hazards) are to be controlled through proper design, engineering and administrative controls, preventative maintenance and safe work procedures (including lockout/tagout), and ongoing safety training. Where hazards cannot be adequately controlled by these means, workers are to be provided with appropriate, well-maintained, personal protective equipment and educational materials about risks to them associated with these hazards. Workers shall be encouraged to raise safety concerns.
• Emergency Preparedness: Potential emergency situations and events are to be identified and assessed, and their impact minimized by implementing emergency plans and response procedures including: emergency reporting, employee notification and evacuation procedures, worker training and drills, appropriate fire detection and suppression equipment, adequate exit facilities and recovery plans. Such plans and procedures shall focus on minimizing harm to life, the environment and property.
• Occupational Injury and Illness: Procedures and systems are to be in place to prevent, manage, track and report occupational injury and illness including provisions to: encourage worker reporting; classify and record injury and illness cases; provide necessary medical treatment; investigate cases and implement corrective actions to eliminate their causes; and facilitate return of workers to work.
• Industrial Hygiene: Worker exposure to chemical, biological and physical agents is to be identified, evaluated, and controlled. Engineering or administrative controls must be used to control overexposures. When hazards cannot be adequately controlled by such means, worker health is to be protected by appropriate personal protective equipment programs.
• Physically Demanding Work: Worker exposure to the hazards of physically demanding tasks, including manual material handling and heavy or repetitive lifting, prolonged standing and highly repetitive or forceful assembly tasks is to be identified, evaluated and controlled.
• Machine Safeguarding: Production and other machinery shall be evaluated for safety hazards. Physical guards, interlocks and barriers are to be provided and properly maintained where machinery presents an injury hazard to workers.
• Sanitation, Food, and Housing: Workers are to be provided with ready access to clean toilet facilities, potable water and sanitary food preparation, storage, and eating facilities. Worker dormitories provided by the Participant or a labor agent are to be maintained to be clean and safe, and provided with appropriate emergency egress, hot water for bathing and showering, adequate heat and ventilation, and reasonable personal space along with reasonable entry and exit privileges.
• Health and Safety Communication: Participant shall provide workers with appropriate workplace health and safety training in their primary language. Health and safety related information shall be clearly posted in the facility.
- ENVIRONMENTAL REGULATIONS AND PROTECTION
The Company recognizes its social responsibility to protect the environment and expects its Suppliers to share its commitment by working toward protecting the environment. As a part of this commitment, all SWBI Suppliers must, without limitation:
• Comply with all applicable environmental laws and regulations regarding hazardous materials, air emissions, waste, and wastewater discharges, including the manufacture, transportation, storage, disposal, and release to the environment of such materials.
• Endeavor to reduce or eliminate waste of all types, including water and energy, by implementing appropriate conservation measures in their facilities, through their maintenance and production processes, and by recycling, re-using, or substituting materials.
• Obtain, maintain, and keep current all required environmental permits and registrations and follow the operational and reporting requirements of such permits.
• If applicable, identify the chemicals or other materials being released that pose a threat to the environment and manage them appropriately to ensure their safe handling, movement, storage, use, recycling, or reuse and disposal.
- PROTECTION OF ASSETS AND INTELLECTUAL PROPERTY
Protection of intellectual property rights is vital for any company. The Company depends on intellectual property such as information, processes and technology. All SWBI Suppliers must, without limitation:
• Protect and responsibly use the physical and intellectual assets of the Company, including intellectual property, tangible property, supplies, consumables, and equipment, when authorized by the Company to use such assets.
• Use the Company-provided information technology and systems (including email) only for authorized SWBI business-related purposes. The Company strictly prohibits Suppliers from using SWBI-provided technology and systems to (i) create, access, store, print, solicit, or send any material that is intimidating, harassing, threatening, abusive, sexually explicit or otherwise offensive or inappropriate, or (ii) send any false, derogatory, or malicious communications.
• Comply with all Company requirements and procedures for maintaining passwords, confidentiality, security and privacy as a condition of providing the Company with goods or services or receiving access to the Company internal corporate network, systems, and buildings. All data stored or transmitted on SWBI-owned or -leased equipment is to be considered private and is the property of the Company. The Company may monitor all use of the corporate network and all systems (including email), and may access all data stored or transmitted using the Company network.
• Comply with the intellectual property ownership rights of the Company and others including but not limited to prints, copyrights, patents, trademarks, and trade secrets; and manage the transfer of technology and know-how in a manner that protects intellectual property rights.