Ethical Guidelines

Kruse Smith works to promote good occupational and environmental conditions in our supply chains. We wish to do this in close collaboration with our suppliers and collaborators. In order to clarify what we expect from our suppliers, Kruse Smith has prepared guidelines for ethical trade.

Guidelines for ethical trading

Introduction

Kruse Smith Entreprenør AS and Kruse Smith Eiendom AS strive to promote good working and environmental conditions in our supply chains. We want to do this in a close partnership with our suppliers and business partners. To clarify our expectations of our suppliers, Kruse Smith Entreprenør AS and Kruse Smith Eiendom AS have prepared guidelines for ethical trading. These guidelines cover the fundamental requirements concerning human rights, employee rights and the environment.

Kruse Smith Entreprenør AS and Kruse Smith Eiendom AS are members of the Ethical Trading Initiative Norway (IEH). IEH is a member organisation for organisations and public and private enterprises, and is a driving force and resource centre for ethical trading. Kruse Smith Entreprenør AS and Kruse Smith Eiendom AS report to IEH on the status of our work relating to ethical trading and this report is made publicly available.

Principles

Our suppliers must supply Kruse Smith Entreprenør AS and Kruse Smith Eiendom AS with goods and services that have been produced in accordance with the guidelines. Suppliers must also communicate and follow up the guidelines amongst their subcontractors.

At the request of Kruse Smith Entreprenør AS and Kruse Smith Eiendom AS, suppliers must be capable of documenting the work to verify compliance with our guidelines. As a general rule, this documentation obligation also applies to the production facility for the product concerned or the part of the supply chain that Kruse Smith Entreprenør AS and Kruse Smith Eiendom AS defines as being relevant to what is required for the delivery in question.

In cases where Kruse Smith Entreprenør AS and Kruse Smith Eiendom AS wish to carry out an assessment of a subcontractor for the purposes of verifying compliance with the guidelines for ethical trading, the supplier shall be obliged to permit such an assessment and provide the name and contact details of the subcontractor. In the event of a breach of the ethical guidelines, Kruse Smith Entreprenør AS and Kruse Smith Eiendom AS will prepare a plan for the rectification of any deficiencies in cooperation with the supplier. Rectification shall take place within a reasonable period of time. Contract cancellation will only occur in cases where a supplier fails to demonstrate a willingness to address the circumstances following repeated requests to do so.

Social and environmental standards will be emphasised in connection with the selection of new suppliers.

Requirements concerning our own operations

Kruse Smith Entreprenør AS and Kruse Smith Eiendom AS will continually strive to improve their own policy and practice in order to help suppliers follow our ethical trading guidelines.

Kruse Smith Entreprenør AS and Kruse Smith Eiendom AS, including all employees, shall never offer or receive unlawful or improper monetary gifts or other reimbursements in return for commercial or personal benefits for themselves or benefits for customers, agents or suppliers.

Kruse Smith Entreprenør AS and Kruse Smith Eiendom AS and Kruse Smith Entreprenør AS and Kruse Smith Eiendom AS’ suppliers shall avoid trading partners which operate in countries in which a trade embargo has been imposed by the UN or the Norwegian authorities or which is otherwise the subject of international consensus regarding trading sanctions.

Requirements concerning the supply chain

Kruse Smith Entreprenør AS and Kruse Smith Eiendom AS’ ethical trading guidelines are based on internationally recognised UN and ILO Conventions and refer to minimum and not maximum standards. The legislation applicable at the production facility shall be respected. The highest standard shall apply in cases where national laws and regulations address the same topic as these guidelines.

1. Forced/slave labour (ILO Convention no. 29 and 105)

1.1. There shall be no form of forced labour, slave labour or involuntary labour.

1.2. Employees shall not be forced to hand over deposit or identity papers to an employer, and shall be free to terminate their employment following a reasonable period of notice.

2. Trade unions and collective bargaining (ILO Conventions nos. 87, 98, 135 and 154)

2.1. Workers shall, without exception, have the right to join or establish trade unions of their own choosing and to participate in collective bargaining. Employers shall not become involved with,
prevent or counteract trade unions or collective bargaining.

2.2. Trade union representatives shall not be discriminated against or be prevented from performing their trade union work.

2.3. If the right to freedom of association and/or collective bargaining is restricted by law, employers shall enable and not prevent alternative mechanisms for free and independent organisation and
bargaining.

3. Child labour (UN Convention on the Rights of the Child, ILO Convention nos. 138, 182 and 79, ILO Recommendation no. 146)

3.1. The minimum age for workers shall not be less than 15 years of age and shall be in line With

        i) the national minimum age for employment; or

        ii) the minimum age for compulsory education, with the highest age being applicable. In cases where the local minimum age has been set at 14 in line with the exception of ILO Convention 138, this may be accepted.

3.2. The new recruitment of child workers in contravention of the aforementioned minimum ages shall not take place.

3.3. Children under the age of 18 shall not perform work that could jeopardise their health, safety or morals, including night work.

3.4. Action plans shall be established to eliminate child labour contravening ILO Conventions 138 and 182 as soon as possible. These action plans shall be documented and communicated to relevant personnel and other stakeholders. Arrangements shall be made for support schemes where children are given the opportunity for education until the child is no longer of school age.

4. Discrimination (ILO Convention nos. 100 and 111 and the UN’s Convention on the Elimination of all Forms of Discrimination Against Women)

4.1. No discrimination shall occur with regard to appointment, remuneration, training, promotion, termination or retirement based on ethnicity, caste, religion, age, disability, gender, marital status, sexual orientation, trade union work or political affiliation.

4.2. Protection shall be established against sexual advances, threats, abusive or exploitative behaviour and against discrimination or termination on unjustifiable grounds, e.g. marriage, pregnancy, parental status or HIV infection status.

5. Brutal treatment

5.1. Physical abuse or punishment or threats of physical abuse is prohibited. This also applies to sexual and other abuse, as well as other forms of humiliation.

6. Health, safety and the environment (ILO Convention no. 155 and Recommendation no. 164)

6.1. Efforts shall be made to ensure that the working environment is safe and healthy for workers. Dangerous chemicals and other substances shall be handled properly. Requisite measures shall be implemented to prevent and minimise accidents and occupational injuries as a result of or related to circumstances in the workplace.

6.2. Workers shall receive regular and documented training in health and safety. Health and safety training shall be repeated for new workers and workers who have been relocated.

6.3. Workers shall have access to clean sanitary facilities and clean drinking water. Where relevant, employers shall also ensure access to facilities for safe food storage.

6.4. In cases where employers provide lodging, such lodging shall be clean, safe, adequately ventilated and have access to clean sanitary facilities and clean drinking water.

7. Wages (ILO Convention no. 131)

7.1. Wages for workers for a normal working week shall at least be in line with national minimum wage provisions or the industry standard, with the highest rate being applicable. Wages shall always be sufficient to meet basic needs, including a certain level of saving.

7.2. Wage conditions and the payment of wages shall be contractually agreed in writing before the work commences. The employee must be able to understand the agreement.

7.3. Wage deductions, such as in the case of disciplinary responses, shall not be permitted.

8. Hours of work (ILO Convention nos. 1 and 14)

8.1. The hours of work shall be in line with national laws or industry standards, and shall not exceed the hours of work in accordance with applicable international conventions. The normal hours of work per week shall usually not exceed 48 hours.

8.2. Workers shall have at least one day off in every seven-day period.

8.3. Overtime shall be limited and be voluntary. The recommended maximum overtime is 12 hours per week, i.e. where the total hours of work is 60 hours per week. Exceptions from this may be acceptable, provided that this is regulated by a collective agreement or national law.

8.4. Workers shall always receive an overtime supplement for hours of work exceeding the normal hours of work (see Article 8.1 above), which shall at least be in line with applicable laws.

9. Regular employment

9.1. Obligations with respect to workers in line with international conventions, national laws and rules concerning regular employment shall not be circumnavigated through the use of short-term appointments (such as the use of contract workers, casual workers and day labourers), subcontractors or other working relationships.

9.2. All workers shall be entitled to an employment contract in a language they understand.

9.3. Trainee programmes shall be clearly defined in terms of their duration and content.

10. Marginalised population groups

10.1. The production and use of natural resources shall not contribute to the destruction of resource and income bases for marginalised population groups, such as through the confiscation of large areas of land and the inappropriate use of water or other natural resources that such population groups depend on.

11. Environment

11.1. Measures to reduce negative effects on health and the environment throughout the value chain shall be implemented by minimising emissions, promoting effective and sustainable resource use, including energy, water and minimising greenhouse gas emissions in production and transport. The local environment at the production facility shall not be subject to overexploitation or be damaged by pollution.

12. Corruption

12.1. All forms of bribery are unacceptable, such as the use of alternative channels to secure illegitimate private or work-related benefits for customers, agents, contractors, suppliers or their employees and public servicemen/women.

12.2. National and international environmental legislation and regulations shall be adhered to, and relevant discharge permits shall be obtained.