Standards of Engagement

These are the core values of the addidas-Salomon group. We measure ourselves by these values, and we measure our business partners in the same way.

Consistent with these brand values, we expect our partners - contractors, subcontractors, suppliers and others - to conduct themselves with the utmost fairness, honesty and responsibility in all aspects of their business.

The SoE is a tool that helps us choose and retain business partners who follow workplace standards and business practices consistent with our policies and values. As a set of guiding principles, they also help identify potential problems so that we can work with our business partners to address issues of concern as they arise. Business partners will develop and implement action plans for continuous improvement in factory working conditions. Progress against these plans will be monitored by the business partners themselves, our internal monitoring team and external independent monitors. Specifically, we expect our business partners to operate workplaces where the following standards and practices are followed.

I. General Principle
Business partners shall comply fully with all legal requirements relevant to the conduct of their businesses.

II. Employment Standards
We will only do business with partners who treat their employees fairly and legally with regard to wages, benefits, and working conditions. In particular, the following guidelines apply:

1. Forced Labor:
Business partners shall not use forced labor, whether in the form of prison labor, indentured labor, bonded labor, or otherwise. No employee shall be compelled to work through force or intimidation of any form.

2. Child Labor:
Business partners shall not employ children who are less than 15 years old, or who are younger than the age for completing compulsory education in the country of manufacture where such age is higher than 15.

3. Discrimination:
While we recognize and respect cultural differences, we believe that workers should be employed on the basis of their ability to do the job, rather than on the basis of personal characteristics or beliefs. We will seek business partners that share this value and that do not discriminate in hiring and employment practices on grounds of race, national origin, gender, religion, age, disability, marital status, membership of associations, sexual orientation, or political opinion.

4. Wages and Benefits:
Business partners shall recognize that wages are essential to meeting employees' basic needs and some discretionary payments. In all cases, wages must equal or exceed the minimum wage or the prevailing industry wage, whichever is higher, and legally mandated benefits shall also be provided. Wages shall be paid directly to the employee in cash or check or the equivalent, and information relating to wages shall be provided to employees in a form they understand. Advances and deductions from wages shall be carefully monitored, and shall comply with law.

In addition to their compensation for regular working hours, employees shall be compensated for overtime hours at the premium rate legally required in the country of manufacture or, in those countries where such laws do not exist, at a rate exceeding their regular hourly compensation rate.

5. Hours of Work:
Employees shall not be required, except in extraordinary circumstances, to work more than sixty hours per week, including overtime, or the local legal requirement, whichever is less. Employees shall be allowed at least 24 consecutive hours off within every seven-day period, and shall receive paid annual leave.

Freedom of Association and Collective Bargaining: Business partners shall recognize and respect the right of workers to join and organize associations of their own choosing, and to bargain collectively. Where law specifically restricts the right to freedom of association and collective bargaining, the employer must not obstruct alternative and legal means for independent and free association and bargaining. In any case the employer shall implement systems to ensure good communication with employees.

6. Disciplinary Practices:
Every employee shall be treated with respect and dignity. No employee shall be subject to any physical, sexual, psychological or verbal harassment or abuse.

III. Health and Safety
A safe and hygienic working environment shall be provided, and occupational health and safety practices, which prevent accidents and injury in the course of work or as a result of the operation of employer facilities, shall be promoted. This includes protection from fire, accidents, and toxic substances. Lighting, heating and ventilation systems should be adequate. Employees should have access at all times to sanitary facilities, which should be adequate and clean. The factory must have safety and health policies that are clearly communicated to the workers. These should apply to employee residential facilities, where provided by employers.

IV. Environmental Requirements
Business partners should aim for progressive improvement in their environmental performance, not only in their own operations, but also in their operations with partners, suppliers and sub contractors. This includes: integrating principles of sustainability into business decisions; responsible use of natural resources, adoption of cleaner production and pollution prevention measures, and designing and developing products, materials and technologies according to the principles of sustainability.

V. Community Involvement
We will favor business partners who make efforts to contribute to improving conditions in the countries and communities in which they operate.