Supplier Information

CALIFORNIA TRANSPARENCY IN SUPPLY CHAINS ACT

At KYOCERA-SENCO Industrial Tools, Inc. (KSIT), our core values of honesty, integrity, ethical behaviors, and respect are embedded in all of our business activities and relationships around the world with employees, customers, suppliers, contractors, agents, representatives, and governmental bodies. We believe in partnering only with those who share our values and who understand our focus on conducting business consistent with our core values.

We are fully committed to taking measures to identify situations involving any of our constituents where there may be some evidence of forced labor, whether in the form of slavery, human trafficking, indentured labor, prison labor, or any other use of human resources, that is inconsistent with our core values.

These measures apply to any business partner within our worldwide supply chain, and the goal is to eradicate any of these practices that are inconsistent with our vital, core values. These measures are implemented in the following series of steps to which KSIT has been, and is continually committed to, fulfilling:

1) VERIFICATION

Within KSIT, we hold our suppliers to the same, very high standards of human resource and social responsibility observed and practiced in our company owned facilities around the world. In our Supplier Code of Conduct, we very clearly state and verify our non-negotiable, minimum standards for all of our suppliers who produce our products and component materials. These sets of standards, found in our Supplier Code of Conduct, apply to issues surrounding the topics of Labor/Employment, the Environment, Product Safety, Intellectual Property, and Fair Trade/Ethics, with particular focus on not engaging in forced labor such as slavery or human trafficking. We conduct verifications on compliance using our own company supply chain employees who frequently visit our global suppliers. These principles apply, not only to our direct suppliers but also, to the suppliers’ subcontractors with whom they do business, as stated in our Supplier Code of Conduct.

2) AUDIT

KSIT reserves the right to conduct audits, without advance notice, to ensure compliance with the Supplier Code of Conduct. These audits are conducted by KSIT employees. Additionally, the Code of Conduct states that compliance is a condition of doing business with KSIT, and is a set of non-negotiable, minimum standards of conduct. In addition, all suppliers are required to report to KSIT any known instances of non-compliance with the Supplier Code of Conduct, which is clearly stated in the Verification that each supplier must sign.

3) CERTIFICATION

Our Supplier Code of Conduct makes it clear that the suppliers must conduct their business in full compliance with all applicable laws, rules and regulations, and must strictly adhere to the Supplier Code of Conduct, specifically in the areas of slavery and human trafficking. Each supplier that provides products and component materials to KSIT is required to sign a Certification acknowledging receiving and understanding their obligations under the Suppler Code of Conduct. These suppliers also agree to make these obligations applicable to their employees and sub-contractors.

4) ACCOUNTABILITY

All KSIT supply chain employees are required to sign an acknowledgment of receipt/understanding/compliance with the Supplier Code of Conduct, which is incorporated into the KSIT Employee Code of Conduct. This acknowledgement pertains particularly to the principles related to forced labor, slavery, and human trafficking. It is stated in the KSIT Employee Code of Conduct that any violation of the Employee Code of Conduct can result in disciplinary action, including termination.

5) TRAINING

All employees involved in supply chain management for KSIT have received a copy of the Supplier Code of Conduct, verbal instructions, and on-going training in the requirements under the KSIT Supplier Code of Conduct, particularly as it relates to compliance with forced labor rules, including slavery and human trafficking. It is required that any observed, or known, violations of the Supplier Code of Conduct, whether from firsthand information or otherwise, must be immediately reported to supply chain management for further, prompt investigation and resolution, as appropriate.

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