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CODE OF CONDUCT

October 15, 2005
This document is intended to encourage and create commitment to responsible production principles around the world.

Introduction
This Love at First Sit Code of Conduct is intended to create and encourage commitment to responsible production principles around the world. Acceptance of, and compliance with, this Code of Conduct form an integral part of every Business Agreement with Love at First Sit. The Code of Conduct establishes a minimum requirement and Love at First Sit urges its Vendor to strive for continued improvement within all areas covered by this Code of Conduct, in furtherance of human rights, labor standards and to the protection of the environment.
In 1999 the Global Compact was announced by UN Secretary General Kofi Annan as an appeal to the business community to help promote sustainable development in the world. The Global Compact lays down 10 principles in four important areas: human rights, labor standards, environment and anti-corruption.


Human rights
• Support and respect the protection of international proclaimed human rights within their sphere of influence;
• Make sure their own corporations are not complicit in human rights abuses.

Labor standards
• Freedom of association and the effective recognition of the right to collective bargaining;
• The elimination of all forms of forced and compulsory labor;
• The effective abolition of child labor;
• The elimination of discrimination in respect of employment and occupation.

Environment
• Support a precautionary approach to environmental challenges;
• Undertake initiatives to promote greater environmental responsibility;
• Encourage the development and diffusion of environmentally friendly technologies.

Anti-Corruption
• Work against corruption in all its forms, including extortion and bribery.
Love at First Sit urges all vendors to support the Global Compact.

General Scope and Terminology
It is essential to Love at First Sit that the men and women, who take part in the production of LOVE AT FIRST SIT products are treated decently and with respect. The purpose of this Code of Conduct is to ensure that vendor and their subcontractors produce and supply products to Love at First Sit in a manner that respects the rights of their employees and the environment. Love at First Sit adheres to the principles of this Code of Conduct and will not conduct business with any vendor that does not comply with the principles set forth herein. Further, Love at First Sit requires that its vendor must ensure compliance with this Code of Conduct by any of their subcontractors. In the following, the term “Vendor” includes any subcontractor of any vendor.

Child Labor and Young Workers
Love at First Sit will not conduct business with any vendor that uses child labor. Child labor is defined as the employment of a person in a full-time position who is younger than 16 years of age, or, if lower, who is younger than the local legal minimum age for full time employment or the age for completing compulsory education in the country in question.
If child labor is discovered, then, in addition to other actions pursuant to this Code of Conduct, Love at First Sit reserves the right to involve local or international organizations with a view to securing the child’s future. Love at First Sit may from time to time co-operate with national and international organizations protecting the interests of children and youngsters in various ways.
If a Love at First Sit vendor is found to be in non-compliance with this Code of Conduct, such vendor shall co-operate with Love at First Sit and/or its national and international partner organizations to the fullest extent possible in order to avoid that such non-compliance may cause harm to children or youngsters, and to ensure that the children or youngsters in question are given appropriate, safe part-time work which permits completion of compulsory education as per local laws and regulations.
Young workers, defined as employees between 16 and 18 years of age, must undergo an annual health check. Further, vendor must comply with all local laws and regulations regarding the employment of young workers, i.e., with respect to permitted types of work, work schedules and labor intensity. For work at night or in hazardous conditions, workers must be older than 18 years of age. Love at First Sit generally encourages the creation of apprenticeship programs.


Coercion and Disciplinary Practices
Love at First Sit will not conduct business with Vendor that use corporal punishment, threats of violence or other forms of coercion or abuse in their operations.
Vendor must establish grievance procedures that provide employees with effective means to challenge disciplinary sanctions imposed upon the employees, and vendor must accept and abide by the decisions resulting from the use of such procedures.
If fining is used as a disciplinary sanction, such fines must be imposed based on objective criteria known to the employees. The aggregate fines imposed upon any individual employee may not exceed the lower of 10 % of the net compensation payable to the employee for any relevant payment period, or such percentage as may be determined by local laws and regulations. In no case, however, may fines imposed reduce the net compensation payable to the employee for any relevant payment period below the minimum wage level determined under local laws and regulations.


Wages and Benefits
Vendor shall pay employees at least the minimum wage required under local laws and regulations. Additionally, vendor must provide all benefits required by local laws and regulations. Wages must be paid in legal tender, and not less frequently than on a monthly basis.

Working Hours
Vendor must not force employees to work more than the lesser of: 48 hours per week and 12 hours’ overtime or the limits on regular and overtime hours allowed by local laws and regulations. Working hours exceeding 60 hours per week must be on a voluntary basis, and must be planned in a way that ensures safe and humane working conditions. Employees must be compensated for overtime consistent with local laws and regulations. Consecutive working days must be in accordance with local laws and regulations and, as a minimum; employees must be entitled to at least one weekly day off.

Discrimination
Love at First Sit will not conduct business with vendors who discriminate in hiring and employment practices on grounds of race, religion, age, national origin, sexual orientation, or gender.
Love at First Sit will not accept requirements by vendors that their female employees be subjected to mandatory pregnancy tests.
Love at First Sit will not accept requirements by vendors that their employees be subjected to mandatory HIV/AIDS tests.


Environment
Love at First Sit will only conduct business with vendors that comply with local laws and regulations regarding the protection of the environment. Love at First Sit Vendors must strive to reduce waste and emissions to air, ground and water, handle chemicals in an environmentally safe way, handle, store and dispose of hazardous waste in an environmentally safe manner, and contribute to the recycling and reuse of materials and products.

Forced Labor
Love at First Sit will not conduct business with any vendor that uses forced or involuntary labor. Nor may any vendor withhold any personal papers or compensation of its employees, thereby preventing the employees from ending their employment with the Vendor.

Freedom of Association
Love at First Sit will not conduct business with any vendor that interferes with or restricts the rights of its employees to choose to be a member of a trade union and to bargain collectively as permitted by local laws and regulations. Love at First Sit will not conduct business with vendors that use retaliation practices to prevent workers from expressing dissatisfaction with their working conditions openly and in a loyal manner.

Health and Safety
All vendors to Love at First Sit must provide a safe and healthy working environment, in compliance with all local laws and regulations.

As a minimum, vendors must ensure that:
• their facilities meet all local laws and regulations governing health, safety, environmental, and working conditions;
• one or more management representatives are responsible for health, safety, welfare and general facilities, and that written policies and procedures regarding these topics are established and adhered to;
• their facilities have an adequate written emergency preparedness plan that is well-known to managers and employees;
• emergency procedures are rehearsed with managers and employees, at least on an annual basis;
• fire protection equipment, including fire alarms and fire extinguishers, is installed, maintained and inspected in accordance with all local laws and regulations;
• all aisles are clear and that emergency exits are operative and accessible at all times;
• trash is stored in non-combustible containers and removed on a regular basis;
• all hazardous materials, including flammable liquids, are labeled, stored, used and disposed of in accordance with all local laws and regulations, and handled only by employees who are properly trained and properly protected;
• all necessary registrations and permits have been obtained from local authorities regarding hazardous materials, waste disposal, air discharges, sewage, and the like;
• electrical equipment and wiring is properly installed and maintained so as to prevent injuries to employees;
• all reported accidents and near misses are investigated, and that corrective actions are implemented to prevent similar accidents;
• all machinery is properly maintained and serviced, and equipped with proper protection measures;
• dormitories, where applicable, are safe and clean;
• adequate toilet and shower facilities, segregated between men and woman, are provided in close proximity to the dormitories;
• appropriate dormitory rules for residents and guests are established, and that appropriate actions are taken in cases of violations of these rules;
• employees are permitted to exit and re-enter the dormitory freely at all times;
• canteens, where applicable, are clean, hygienic and well lit;
• Food handling is safe and hygienic, that food handlers are properly trained in food preparation hygiene, and that meals provided meet generally recognized nutritional requirements.


Monitoring and Evaluation
Love at First Sit reserves the right to monitor and audit vendors at any time to verify compliance with this Code of Conduct.
All vendors are required to provide:
• Full access for on-site inspection, including unannounced visits, by Love at First Sit and/or its designated representatives;
• Access to all records that might enable determination of compliance with Love at First Sit Code of Conduct, including record such as General Admission Records, Wage and Hour Records, Health and Safety Records, and Maintenance Records.
• Access to randomly selected employees for confidential interviews during monitoring visits.
Failure to permit full access will be viewed as non-compliance with this Code of Conduct, and business relations with the vendors denying access will be subject to termination. The result of all monitoring visits will be documented in a monitoring report. If an on-site inspection reveals non-compliance with this Code of Conduct (other than by failure to permit access as set forth above), Love at First Sit will enter into a constructive dialogue with the vendor in question in order to improve conditions. Love at First Sit will request adequate action plans to correct issues of non-compliance and will undertake follow-up inspections to verify that improvements are made. If improvements do not progress in a manner acceptable to Love at First Sit, business relations with the vendor will be terminated.


Publication
All Love at First Sit vendors must take appropriate action to ensure that the provisions of Love at First Sit Code of Conduct are communicated to managers and supervisors in their own language.

References
The following standards may be a useful source of additional information.
ILO Code of Practice in Safety and Health
National Fire Protection Agency
ILO International Labor Standards
OECD Guidelines for Multinational Enterprises
United Nations Convention Against Corruption
United Nations Global Compact
Universal Declaration of Human Rights
ISO 14001
SA 8000
SAI
Ethical Trading Initiative
OHSAS 18001
Eco Management & Audit System