CODE OF CONDUCT

CSR Policy and Code of Conduct

Preamble

Nilit considers social responsibility to be of the utmost importance for the Company’s success, and for the protection of its employees, of the surrounding population and the environment in which it operates.

For Nilit, social responsibility includes safeguarding not only its employees’ health, safety and welfare, but also ensuring the protection of the environment and its surrounding population. Nilit works to create a safe and healthy work environment throughout the plant.

Nilit recognizes that natural resources are the property of the public, of the local and global communities, and of future generations. Therefore, Nilit is committed to protecting the environment, preventing damage and pollution on the one hand, and improving environmental efficiency and the wise use of natural resources on the other hand.

As a part of the textile and fashion industry, Nilit recognizes its responsibility within the   social, ecological and economic impact of the whole textile value chain, and rises to the  challenges of an increasingly interconnected and global economy.

This Code of Conduct is based on the internationally recognized principles for the protection of human rights and workers’ rights, as they are expressed in the United Nations Universal Declaration of Human Rights, the ILO core conventions, the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises. In addition, the Code draws upon relevant international agreements for environmental protection.

 

1. Basic Concept of Socially Responsible Corporate Governance

Compliance with the law and legislation

Nilit complies with the law and legislation of the countries in which Nilit conduct business operations. Nilit takes care – particularly in countries with weak civic structures – to ensure its own activity complies with the principles of this Code of Conduct and encourages business partners to do the same.

Where national statutory provisions run counter to the content of this Code, or the domestic situation makes it impossible to comply with Nilit’s responsibility with regards to human rights, the Company should find ways to maintain the principles of internationally recognized human rights and the content of this Code of Conduct nonetheless.

Nilit sees herself as part of the communities in which it does businesses, and through Nilit’s  corporate activity, contributes to the welfare, support, and sustainable development of these communities. Nilit takes into account the direct and indirect impact of the business activities on society and the environment and takes care to strike a reasonable balance of interests from an economic, social and ecological point of view.

Ethical Business and Integrity

Nilit complies with legal business practices, taking into consideration fair competition and the intellectual property rights of third parties, as well as antitrust and competition regulations. The company rejects all forms of corruption and bribery and acts appropriately to promote the principles of responsible corporate leadership such as transparency, accountability, responsibility, openness and integrity. Business partners are to be treated fairly. Contracts are to be observed insofar as the conditions do not change fundamentally. General ethical values and principles are respected, in particular concerning human dignity and internationally recognized human rights.

Confidentiality/non-disclosure:

All information related to the business of the company will be treated as confidential. This information includes, but is not limited to, names of clients and suppliers, as well as all information related to industrial and/or commercial products and/or processes.

All information contained in documents, archives and computer systems cannot be copied, reproduced or disclosed with formal consent of the company.

 

2. Respect for Human Rights

The protection of human rights is the duty of the relevant states in which Nilit carries out business activity. To support the statein enforcing human rights in its territory, companies should respect human rights. Companies should avoid compromising the human rights of others through their activities and counter any adverse impact on human rights by the activities in which they are involved.

Nilit is investigating, avoiding, mitigating and, where applicable, compensating for any potential negative impact on human rights and should cover any negative impact on human rights caused by the company itself or where they have contributed to it, or where they are directly linked to it as a consequence of their business partnerships, business activities, production or service provision.

 

3. Labor Rights and Conditions

Nilit complies with the core labor standards of the International Labor Organization and creates a secure and dignified working environment.

Freedom of Association and the Right to Collective Bargaining

Nilit complies with the rights of employees and employers to form organizations which aim to promote and protect the interests of employees or employers, without prior consent and at their own discretion. They have the right to join these organizations and freely elect their representatives. Nilit recognizes the right of employees and employers to collectively negotiate pay and conditions. Employees must not be disadvantaged with regards to their employment due to their membership of an employee organization.

Prohibition of Forced Labor

Nilit does not tolerate business activity carried out on the basis of forced or compulsory labor, bonded labor or serfdom. This includes any kind of labor or service provision which is carried out by a person under threat of punishment and for which they have not made themselves voluntarily available.

Prohibition of Child Labor and Protection of Young Employees

Nilit complies with the relevant legal minimum age for admission to employment or work, which, according to the regulations of the International Labor Organization, may not be below the age at which compulsory education ends, and not below 15 years.

With regards to recruitment processes, suitable mechanisms for determining age should be used to prevent child labor. Where Nilit discovers child labor, the company will ensure the necessary measures to take remedial action and initiate social reintegration, prioritizing the wellbeing and protection of the child.

Prohibition of Discrimination in Employment and Occupation

Nilit reject all forms of discrimination, exclusion or preferential treatment on the basis of ethnic origin, skin color, sex, religion, political persuasion, national origin and social background which leads to equality of opportunity or treatment in employment or occupation being negated or compromised. In addition, the principle of equal pay for male and female employees for work of the same value should be applied.

Working Hours

Insofar as applicable international laws or standard regulations do not set lower maximum working hours, regular working hours should not exceed 48 hours per week and a maximum of 12 hours’ overtime per week. Overtime shall be paid at the rate set by the respective legal or applicable regulations and should remain an exceptional measure.

Nilit grants the employees the right to breaks on each working day and complies with the applicable statutory holidays. After six consecutive working days, day employees should be granted a day off.

Wages

Wages are not lower than the statutory or standard minimum wage.

Wages are not withheld and are paid in a form appropriate for the employee. Wage deductions are only permitted within the statutory or negotiated framework and must be accounted for. Employees are regularly informed about the composition of their wages.

 Employment Relations

National labor rights regulations are observed. Employees are provided with clear information about basic working conditions, including working hours, remuneration, as well as payment procedures. Nilit protects the right of employees to end their employment relationship subject to the respective applicable notice period.

Health and Safety in the Workplace

Nilit has put in place appropriate measures to guarantee health and safety in the workplace by complying with national requirements, in order to avoid industrial accidents in the context of their activities and to protect the health of their employees. Applicable local requirements with regards to occupational safety, health and safety in the workplace, as well as building safety and fire protection are observed in order reduce the risk of accidents and work-related illness to a minimum. Where necessary and appropriate, employees are provided with personal protective equipment. In situations where there is a direct risk of danger, employees have the right and the duty to leave their workplace immediately and without permission. Vulnerable people such as young employees, young mothers and pregnant people as well as people with disabilities should receive special protection.

Humane Treatment

Nilit treats the employees with dignity and respect. Nilit rejects all forms of disrespectful treatment, abuse, harassment and intimidation as well as illegal punishment of employees. Disciplinary measures shall be recorded in writing and in a form that is clear to the employee.

 

4. Environmental Protection

Nilit complies with all applicable laws, regulations and management practices to ensure the protection of people and the environment in the countries in which they operate. Nilit carries out business activities in such a manner that they will contribute to sustainable development. For this purpose, Nilit has established systems appropriate to the company that allow Nilit to check operational activities for harmful effects to the environment and take measures to reduce stress and avoid damage to the environment, and take remedial action where possible in line with the existing regional laws and regulations.

 

5. Consumer Interests

Nilit takes appropriate measures to guarantee the quality of the products they offer. The company ensures that the products comply with all legal regulations with regards to health and safety, and are safe and do not pose a risk to health when used as intended. Nilit takes into account the interests of consumers in relation to information and sales activities by using fair business, marketing and advertising practices and promoting the education of consumers.

 

6. Communication

Nilit communicates the content of the Code of Conduct to employees, partners and, where applicable, to third parties. It should be made clear to contractual partners that the principles of this Code of Conduct are to be observed.

 

7.Implementation and Enforcement

Nilit observes this Code of Conduct in all its activities. Nilit encourages its business partners to apply this Code of Conduct in the same way. Nilit believes that companies supporting their business partners can ensure that their entire delivery chains protect human labor rights and allow working conditions to be continually improved.