Statement of ethical values / Code of conduct

As a family company in the seventh generation, Schöffel stands for tradition and enduring values. To ensure that all members of staff act together in line with the family company's ethical values, it has formulated the following principles of conduct.

Legal and lawful compliance

Compliance with legal regulations is a matter of course. In addition, Schöffel has the right to expect all its employees and business partners to behave correctly and fairly in all business activities.

Competition and anti-trust law

Schöffel stands for fair competition. Therefore, compliance with competition and antitrust rules is a matter of course for the company. Agreements with competitors that are contrary to the competition and antitrust laws are not permitted. Schöffel expects the same of its business partners and competitors.

Corruption

Schöffel rejects any and all forms of corruption, such as taking advantage, granting benefits, bribery and inducement. Staff and business partners may not be involved in any corrupt acts.

Loyalty to corporate and customer interests

As a family company in the seventh generation, Schöffel stands for values such as tradition and loyalty. The company appreciates and respects its employees. At the same time, Schöffel also expects its employees to carefully align their business activities when dealing with business partners to the company's interests and principles.

Protection of commercial confidentiality

Trust is a tremendous asset. Schöffel therefore expects its own employees and its contractual partners, customers, suppliers and producers to protect business and trade secrets as well as intellectual property.

Conflicts of interest

The basis of any business association is a professional business relationship. Private interests must not interfere with business decisions. The line manager is to be informed if a conflict of interest is suspected in order to reach a factually informed decision.

Environmental protection

For Schöffel as a family company in the seventh generation in particular, protecting the environment is both a task and an obligation not just for today, but also for future generations. As an integral part of the company basic values, compliance with environmental requirements and the responsible use of ecological resources is a matter of course. All employees contribute responsibly to their fulfilment. Schöffel also expects its partners to abide by the same principles.

Dealing with gifts and hospitality

Gifts and hospitality may be accepted to a very limited extent. Any gifts that are given or received must be strictly appropriate and disclosed immediately. No gifts are to be given to or received from public officials at all.

Rejection of illegal employment

As an employer, the Schöffel family company is responsible for its own employees and complies with all labour and social welfare laws. Illegal employment is unacceptable. We also expect our business partners to protect and assume responsibility for their employees. All contact with any business partners who violate these principles will immediately cease.

Donations

Donations are voluntary benefits for which nothing is received in return. Donations may only be made to organisations whose objectives are in line with Schöffel's corporate principles. All donations may only be approved by the management.

Responsibility

The company management and executives have an exemplary function, especially when it comes to adhering to the basic principles. Every single employee is responsible for ensuring that no laws or codes of conduct are violated. Schöffel expects all its business partners to provide an example for others to follow.

Deviations from the basic ethical values

Deviations from the Code of Conduct will not be tolerated. If in doubt, please consult the line manager.

Code of Labour Practices

(Code for fair working conditions in the production facilities)

We at Schöffel hereby declare that we are committed to the protection of human rights and fair working conditions within our supply chain. To underline this commitment, Schöffel is a proud member of the independent stakeholder initiative Fair Wear Foundation (FWF), which campaigns for better working conditions in textile production. Schöffel has adopted the Fair Wear Foundation (FWF) Code of Conduct and expects all business partners to comply with the resulting guidelines as well. The Fair Wear labour standards are based on the agreements of the International Labour Organisation (ILO) and on the UN's Declaration of Human Rights. In the following, reference is made to certain agreements. In addition, the Fair Wear Foundation (FWF) follows the ILO recommendations and the respective national jurisdiction.

1. The employment relationship is voluntary
No kind of forced labour will be tolerated, not prison labour or debt bondage, hard labour or anything else. (ILO Conventions 29 and 105)

2. No discrimination in the employment relationship
Recruitment, wage policy, access to continuing education, rules on promotion, termination of employment, retirement and all other aspects of an employment relationship must be based on the principle of equal opportunity and be independent of race, colour, gender, religion, political persuasion, trade union membership, nationality, social origin, weaknesses or disabilities. (ILO Conventions 100 and 111)

3. No child labour
Child labour is strictly prohibited. The minimum age for productive employment must not be lower than the national compulsory school age, and generally not below 15 years. (ILO Convention 138) There must be no form of slavery or conditions similar to slavery such as child selling and trafficking, debt bondage, serfdom or forced labour. Young people (between the ages of 15 and 18) may not carry out work that, by its nature or due to the circumstances under which it is carried out, is likely to be harmful to the health, safety or morality of children. (ILO Convention 182)

4. Freedom of association and the right to collective bargaining
The employer recognises the right of all workers to form and join trade unions and to negotiate collective agreements. (ILO Conventions 87 and 98) If the right to freedom of association and collective bargaining is restricted by law, the employer must not impede other forms of collective bargaining and workers' organisation. Employee representatives must not be hindered in their function, and must be allowed access to all workplaces in the performance of their representative functions. (ILO Conventions 135 and Recommendation 143)

5. Payment of a "living income"
Wages and supplements for a normal working week must at least correspond to the legal or industry minimum and must always be sufficient to meet the basic needs of workers and their families and to provide them with a certain disposable income above that (ILO Conventions 26 and 131). Wage deductions as a disciplinary measure are not permitted. 4 Nor are wage deductions permitted that are not justified by national legislation. The sum of any deductions must not result in the employee receiving less than the statutory minimum wage. All employees are to be adequately and accurately informed of the various wage components, including the rate of pay and the period for which they are paid

6. No excessive working hours
Working hours must comply with the legal regulations and usual industry standards. The core working hours must not exceed 48 hours per week. One day off must be granted within a period of seven days. Overtime may only be worked voluntarily, must not exceed 12 hours a week, and must not be a regular requirement. Overtime must be compensated with an overtime payment in addition to the usual wage. (ILO Convention 1).

7. Occupational health and safety
The working environment must be clean and safe. The employer undertakes to promote the optimum occupational health and safety based on the state of the art with regard to possible hazards. Particular attention is to be paid to the sector-specific occupational risks. Rules for the greatest possible accident prevention and minimisation of health risks are to be implemented. (Based on ILO Convention 155). Physical abuse, threats of physical abuse, unusual penalties or disciplinary measures, sexual and other harassment and threats by the employer are prohibited.

8. Legally binding employment relationship
The obligations under labour and social law towards employees and the regulations arising from the regular employment relationship must not be circumvented by the use of temporary working arrangements or training programmes that are not intended to impart skills or regular employment. Younger employees must be given the opportunity to participate in educational and further training programmes.

Consumer interests

Schöffel and its employees always act in the customer's interest.

Transparency / Disclosure

Schöffel publishes all its factories (Tier 1) in the annual Sustainability Report. Data release is obtained from the producer.

Responsible purchasing practices

Schöffel is committed to responsible purchasing practices (prevention and mitigation of negative effects) by implementing equal cooperation, forward-looking planning, fair payment terms and sustainable pricing.

Integration of the due diligence process in business practice / Obligation to comply with relevant international standards on sector and subsector risks

Due diligence is part of our business practices and onboarding process. The risk analysis is integrated in the producer strategy. Schöffel is committed to complying with the relevant international standards on sector and subsector risks.

Dealing with risks

Schöffel's risk analysis considers various social, environmental and corruption risks in the upstream supply chain (Tiers 1 to 4). The risk analysis includes risk assessments, indices and country studies based on a wide variety of reports and analyses by various stakeholder groups. In addition, audits that also include interviews with workers and complaints are taken into account in the analysis. Risks are mitigated by implementing training / courses, audits etc. When selecting new producers, Schöffel relies on a multi-stage onboarding process as well as a risk and SWOT analysis. Audits, training and personal visits etc. are also used as preventative measures. The results of the audits are processed together with the partners as part of an action plan. Additional protection for compliance with social standards in the production plants is ensured by the Fair Wear complaints system. The Code of Labour Practice (CoLP) and the Fair Wear complaints system are displayed on a noticeboard in a freely accessible place in each company.

Cooperation

Schöffel actively cooperates with other brands in the identification, minimisation, rectification and prevention of risks.

Social dialogue / Exchange

Freedom of association and collective bargaining ensure the basis for social dialogue with workers in order to further improve working conditions. Schöffel is in regular contact with its partners and supports exchanges between employee representatives, unions and partners.

Acknowledging the gender perspective

No discrimination in employment At Schöffel, recruitment, wage policy, access to continuing education, rules on promotion, termination of employment, retirement and all other aspects of an employment relationship must be based on the principle of equal opportunity and be independent of colour, gender, religion, political persuasion, trade union membership, nationality, social origin, weaknesses or disabilities. As part of the duty of care, Schöffel analyses the equal treatment of gender among the partners by means of Fair Wear country fact sheets and an evaluation, among other things.

Date: 29.10.2021

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