HERMES_REGISTRATION_DOCUMENT_2017

3

CORPORATE GOVERNANCE

ETHICS – COMPLIANCE

ETHICS – COMPLIANCE

3.2

COMMITMENTS

s relations between Hermès and its suppliers;

3.2.1

These relations entail adherence to the Company’s enduring stan- dards of excellence based on suppliers’ ability to follow the House’s fundamental principles. This chapter outlines the main principles of our relationships: trust and consideration, selectivity on quality criteria but also in terms of social and environmental issues, long- term and balanced relationships, fair treatment and impartiality, absolute respect of ethical and integrity criteria, transparency in the relationship. Hermès seeks to astonish its customers and take them into another world with exceptional creations, products, services and stores. This chapter stresses the need to give everyone the warmest possible welcome, with respect for diversity and culture, to be discreet and to respect the confidentiality of information about our customers, and ethics with our business partners. These relations are based on transparent disclosure and rigorous management. Hermès wishes to share with its shareholders, without distinction and in the respect of shareholder equality, its long-term strategy and its values as well as the results of the business. Hermès strives to harmoniously develop its business and results, protect the company’s assets, ensure governance in line with local best prac- tices, and transparently report on its activities. This is identifiable by the style, the savoir-faire and the quality of its objects: a highly demanding approach to raw materials, savoir-faire, attention to detail, applied internally and externally. The authenticity of raw materials (including their provenance), as well as manufactu- ring, guarantee the enduring nature of Hermès objects; • the House takes care to respect the environment and fit into it as seamlessly as possible. It complies with regulatory require- ments and aims to anticipate their development whenever pos- sible. It seeks to enhance its production processes by choosing the cleanest possible technologies and the most environmentally friendly products, respecting natural resources and minimising the use of energy resources. It keeps waste to a minimum, recy- cling it whenever possible. Hermès equips its manufacturing sites so as to blend them into the landscape, to prevent accidental pol- lution and to limit noise and other annoyances, Hermès is an attentive and concerned member of society committed to its natural, social, economic and cultural environment. This chapter notably sets out our values on the following issues:

Promotion of and compliance with conventions on human rights and fundamental freedoms

3.2.1.1

TheHermèsGroup’s ethics policy alignswith the universal framework set down by the major principles, standards and international agreements, and it notably adheres to:

s the Universal Declaration of Human Rights;

s relations between Hermès and its customers;

s the Charter of Fundamental Rights of the European Union; s the Charter of Fundamental Rights of the International Labour Organization, the principles of which are grouped under the fol- lowing themes: freedom of association, forced work, child labour, discrimination; s the OECD convention on combating the corruption of foreign public officials. The Hermès Group and its employees endeavour to comply with the laws and regulations applicable in all countries where they operate. These principles are clearly set out in the Group’s Ethics Charter and its Code of Business Conduct, available on the Group intranet and given to all employees since 2009. Ethics charter The House’s ethics are enshrined in a 40-page Ethics Charter, available in 10 languages and updated in 2016, distributed to all employees wor- ldwide. It serves to inform the corporate purpose and to reaffirm the Group’s determination to uphold certain fundamental principles in rela- tions with its stakeholders and society. Signed by the Management, it is sent to all new employees as soon as they enter the House. TheCharter reflects theunifying and founding values of the spirit that has characterisedHermès since 1837. It reaffirms our shared determination to respect certain fundamental principles and to facilitate both internal and external relationships. It aims to promote compliance and to ensure the proper application of applicable laws, regulations and key principles. It is intended as an instrument of progress and dialogue, and encou- rages employees to seek guidance fromtheir administrative or functional management in cases where the principles are difficult of apply or are open to misunderstanding. It is structured around the following points: These relations are based on humanistic and responsible manage- ment inspired notably by a desire to preserve the physical and emo- tional health of employees. This chapter sets out a number of the House’s unifying values: trust, exemplarity, excellence, uncompromi- sing standards, recognition, respect, enthusiasm, solidarity, discre- tion and the search for harmony. s the OECD guidelines; 3.2.1.2 s relations between Hermès and its employees;

s relations between Hermès and its shareholders;

s uncompromising principles of Hermès objects;

s relations between Hermès and society;

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2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL