MODERN SLAVERY ACT 2019, CHINA

Slavery and Human Trafficking Statement
STATEMENT
MODERN SLAVERY ACT 2019
Human Rights Act of the People's Republic of China

      In accordance with China's supply chain industry regulatory regulations and policies; made under the human rights act of the people's Republic of China. It covers all SME operations and subsidiaries around the world.
About SME

      SME is committed to the industrial fluid industry, the development of quick connectors, special valves, hose assemblies. Based on the company's strong practical technology, since 2004, the company has introduced advanced technology from Germany and France, and developed a series of special valves, quick connectors and hose assemblies for the nuclear industry, petroleum, chemical industry, fire protection, photovoltaic, food and medicine, tunnel engineering and other industries. Up to now, there are many national patents, 2 invention patents and 15 utility novel patents in the series of products. Successfully developed 2 series of international standard products. The structure, performance and quality of the products have reached the international level through continuous technical improvement and upgrading.
SME Supply Chain Overview
      Powerful Purpose – SME’s Policies and Governance Processes
At SME, we consider how we achieve our results an important measure of success. Doing Business Right is at the core of the SME brand. SME’s success as a high performance company is tied directly to our long-standing commitment to the highest ethical standards. An important part of this commitment is ensuring that SME’s suppliers and supply chain do not use slave labor or engage in human trafficking.  Several Key governance processes and supporting policies guide our actions accordingly.
 
SME’s Code of Ethics
      Establishes respect for human rights as a fundamental SME principle, and one that both SME employees and suppliers are required to honor.  SME’s Ethics Guide specifically prohibits SME suppliers from using forced labor of any kind. To demonstrate that SME’s ethics standards are both current and at the highest level, SME have established corporate systems to monitor and manage their ethics and compliance programs. The system is managed by the general manager of the company and supervised by the chairman of the board.


1. Supplier Audits


      Under the terms of SME’s Supplier Code of Conduct, SME is permitted to audit its suppliers’ compliance with the Code and standard terms and conditions. In cases in which serious risks are presented, this audit may be immediate and unannounced.  SME monitors its supply chains for compliance with the Supplier Code; however, such monitoring is typically not focused solely on human trafficking or slavery. And while SME regularly audits its suppliers for a variety of reasons, typically those audits are not performed solely to determine compliance with the prohibition against slave labor or human trafficking.  If necessary, SME may choose to engage third parties to evaluate compliance with human trafficking or slave labor laws. 

SME will promptly and thoroughly investigate any claims or indications that a supplier may be engaging in human trafficking or slave labor, or is otherwise not complying with SME’s Code of Ethics or Supplier Code of Conduct.


2. Certification


      SME’s Supplier Code of Conduct states that suppliers must uphold the human rights of workers and treat them with dignity and respect. Suppliers must not use or engage in any indentured or forced labor, slavery or servitude, or human trafficking.


      Under the Code, Suppliers’ personnel and operations are required to operate in full compliance with the laws of their respective countries and with all other applicable laws, rules, and regulations. Suppliers must ensure that products, services and shipments for SME adhere to all applicable international trade compliance laws, rules, and regulations, and SME Supplier Code of Conduct requirements. SME requires its suppliers to certify compliance with the Supplier Code.  In addition, Suppliers must contractually require their own suppliers and subcontractors to comply with standards of conduct equivalent to the provisions of SME’s Supplier Code of Conduct.
3. Internal Accountability


      Accountability related to human rights, modern slavery and human trafficking risks is established by SME’s Code of Ethics and Supplier Code of Conduct. In addition, SME has enacted rigorous governance and risk management processes in order to identify and mitigate a broad spectrum of supply chain risks.


      SME has established various mechanisms, including a global Help Line, for the reporting of any ethical concern or potential or actual legal violation. Any person, including employees and suppliers, may openly or anonymously ask a question or report through our Help Line or related means.


      If we learn of any allegations of slavery or trafficking through our Help Line or any other means, we will promptly investigate and act to remediate the situation, which could include necessary actions up to termination of involved parties. Claims made through our Help Line or Ethics Office are reported to the Governance Committee of SME’s Board of Directors, along with the resolution of the claim and/or the findings of the investigation.
4. Training


      As Ethics is a cornerstone of SME’s values-based culture, all SME employees globally are trained annually with respect to expectations in SME’s Code of Ethics. In addition, we provide ongoing training to Supply Chain Management and other key SME executives engaged with SME’s supply chain on Protecting Human Rights. This training includes specific content on recognizing and mitigating risks of slavery and human trafficking.




MS. YE XIAOXI
Approved by the Board of Directors on Nov 06, 2019.

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