In this document, HMD/our/we refer to HMD global Oy (“HMD”) and all its affiliates. The Code of Conduct is global and covers all HMD global Oy’s legal entities. This code outlines what HMD expects from our suppliers in relation to Human Rights & Labour, Business Ethics, Environmental, Health and Safety and Management practices.
This document has been made to comply with international laws and regulations as well as HMDs values. In addition, we have looked to International Standards including; the Electronic Industry Citizenship Coalition’s (EICC) Code of Conduct; United Nations Declaration of Human Rights; United Nations’ Guiding Principles on Business and Human Rights;
International Labor Organisation’s (ILO) Core Conventions; Environmental management standard ISO 14001; Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprise; Occupational health and safety management standard OHSAS18001 and the Social accountability standard SA 8000.
HMD is strongly committed to conducting ourselves in accordance with our commitment to the highest standards of ethical conduct. Our supplier shall operate by the same Ethical standards we set ourselves and comply by the related policies and procedures, and all applicable national and international laws.
3.1 Improper Payments
HMD believe in fairness and honesty; we obtain and retain our business relationships with these principles firmly in mind. Our supplier shall adhere to anti-corruption laws and shall not allow corrupt or inappropriate payments made by, or on behalf of, our supplier to HMD, our employees or customers, government officials or third parties.
These payments can occur in many forms and include among other things; bribes, gifts, entertainment, gratuities, favors, donations or facilitation payments. We extend our understanding of improper payments to include any transfer of value that is not consistent with HMD policies, procedures or applicable laws.
3.2 Fair Competition
Our supplier shall adhere to marketplace regulations and anti-trust laws. These laws protect the market from unethical agreements and collaborations among competitors which may affect competition. Our supplier shall uphold these standards of fair business, advertising and competition.
3.3 Privacy and Security
Privacy and security are key considerations in the creation and delivery of HMD’s products and services. Our supplier shall commit to respect privacy and to comply with applicable data protection and privacy laws. Our supplier shall have in place internal policies and guidelines through an appropriate selection of activities, including proactive and reactive risk management, security and privacy engineering, training and assessments.
Our supplier shall take appropriate steps to address online security, physical security, risk of data loss and other such risks; taking into consideration the risk represented by the processing and the nature of the data being protected. Our Supplier shall not transfer personal data without ensuring it is safe, responsible and legal to do so. When confidential data is no longer needed, it shall be destroyed securely.
3.4 Intellectual Property and Confidential Information
It is essential that Intellectual property rights are followed and respected. Whenever our supplier has a need to transfer technology and know-how they shall do so in a manner that protects intellectual property rights and any information regarding HMD or our affiliates should be safeguarded. In addition, our supplier shall have in place an ‘Incident Response Procedure’ (IRP) to manage breaches of confidential information.
3.5 Dealing with Officials
We prohibit the use of “facilitating payments” which refers to small payments, usually made in cash, which are typically provided to a government official to speed up or guarantee a routine action that the official is already obligated to perform.
Our supplier shall ensure that they disclose requested information related to aspects of this code, including; Human Rights & Labour, Business Ethics, Environmental, Health and Safety and Management as well as general practices such as business activities, financial situation/performance and company structure.
3.7 Responsible Sourcing of Minerals
Suppliers or partners who manufacture any aspect of our products (including components and parts) containing tin, tantalum, tungsten or gold, shall have a detailed policy or procedure in place to ensure that the products manufactured, do not directly or indirectly finance or benefit armed groups, that are perpetrators of serious human rights abuses in the Democratic Republic of the Congo, or an adjoining country.
These same suppliers shall maintain a Conflict Mineral Policy outlining their legal compliance, measures for implementation and commitment to responsible sourcing. This includes due diligence on the source and chain of custody of all related minerals. These documents shall be kept and made available for HMD to view upon request for a period of 5 years.
3.8 Confidential Reporting and Non-Retaliation
Our Supplier shall maintain programs that ensure their employees and suppliers have access to confidential and anonymous reporting channels, as well as protection in place for acts of whistleblowing. Our supplier shall have in place a clear, visible and communicated process for anyone working at their facility to be able to raise concerns without fear of retaliation.
Our supplier shall have a Code of Conduct in place, to showcase their values and commitment to; ethical; environmental; human rights; labour and health and safety topics related to their business operations. Procedures and physical controls that are put in place shall be in relative and adequate for the associated risk and in accordance with our supplier’s Code of Conduct.
This document will have a continuous improvement methodology and be based on Internationally recognised standards and management systems as well as comply with all relevant laws and regulations. A copy of the Code of Conduct shall be visible in the facility; written in the local language. In addition, we expect our supplier to have a process for setting requirements in their Code of Conduct on to their suppliers and monitoring their compliance.
Our supplier’s management shall ensure that the messages contained their Code of Conduct is transferred throughout their business and relevant employees are trained on its contents and related procedures, risks and policies. In addition, we expect our supplier to be able to show supporting documentation and/or evidence that such actions are taking place and training should be recorded as and when it is completed. Training shall be in accordance applicable laws and regulations.
7.1 Management Systems
Our supplier shall identify the senior executive and company representatives responsible for ensuring the management systems and associated programs are in place. Additionally, senior management will review the systems periodically with the focus on ensuring they are adequate.
7.2 Environmental and Social Objectives
Our supplier shall set performance objectives set to realistic timeframes with implementation plans. These objectives shall look to improve on their environmental and social performance and shall be available in written form if required. The objectives shall also have clear processes in place for reviewing the progress and amending expectations as appropriate.
7.3 Audits, Assessments and Corrective Actions
Our supplier shall conduct self-evaluations periodically and allow for external auditors to conduct similar audits of their facilities to ensure that they conform to legal and regulatory requirements. In cases where the contents of this code are more detailed and/or stricter than local laws and regulations audits shall check to ensure that they comply with the content of this Code of Conduct and our contractual requirements on ethical, environmental and societal responsibility.
Our supplier shall ensure that required corrective actions are taken in a timely manner and these activities are monitored and reported following the correct procedure, ensuring regulatory compliance whilst protecting privacy.
7.4 Communication and Worker Participation and Feedback
Our supplier shall make clearly available their policies and procedures as well as clearly defined expectations and practices they expect their workers to follow. Workers shall receive adequate training to mean these requirements and be given the right to participate in and give feedback on practices and conditions covered. This shall be an ongoing progress of continuous feedback and improvement measure.
7.5 Documentation and Records
Our Supplier shall create and maintain relevant documentation to assure their compliance and conformity on all the matters discussed in this Supplier Code of Conduct. This documentation shall be made available to HMD or external auditors working on behalf of ourselves or our customers. Appropriate measure shall be taken to protect privacy rights.
Supplier Management & Purchasing
Our supplier shall have adequate measures in place to set requirements and manage the compliance of their suppliers. The term supplier used in this section includes any company/person who, from HMD’s perspective, would be considered a sub-supplier such as vendors, subcontractors, service providers, partners, etc.
Our supplier’s supplier base strategy and supplier base management systems must ensure subsuppliers conform with HMD’s supplier requirements (including labour and environmental aspects) as well as all applicable laws and regulations. Our supplier shall take these conformance aspects into consideration when choosing their suppliers and they shall have a structure by which they identify, evaluate and select suppliers.
Purchase and Service agreements shall be used with all suppliers and shall include valid NonDisclosure Agreements (NDAs). These NDAs shall align and conform to the NDAs in place between HMD and the supplier.
Our supplier shall set environmental, labour (including health and safety, human rights and ethics) and management requirements on our sub-suppliers. This also includes aspects such as waste handling and recycling. In addition, sub-suppliers who are responsible for waste disposal shall be appropriately authorised and licenced to carry out these tasks and our supplier shall ensure this compliance.