Code of conduct

A crucial success factor for PMC Hydraulics Group is that each and everyone of us acts in such a way that we are perceived as economically, socially and ethically responsible.

This is the only way to ensure a lasting positive and acceptable financial and social development.

PMC Hydraulics Group has defined four areas of responsibility:

Responsibility to customers and suppliers

Attracting and retaining customers through continuous development and by delivering products, services and solutions that meet our customers’ expectations while maintaining the highest standard of business ethics at all levels.

Responsibility to employees

Showing respect for employees and their rights, offering safe and good working conditions, offering non-discriminatory terms and conditions, and enabling employees to continually develop their professional skills and expertise to ensure job satisfaction and opportunities to develop.

Responsibility to owners

Safeguarding our owners’ investments and striving to increase returns.

Responsibility to society

Managing our operations as a responsible member of society, complying with laws and customs in the countries where we are active, expressing our support and showing respect for the protection of internationally accepted human rights, and safeguarding the environment.

Responsibility to customers and suppliers – Business ethics

We expect honesty and integrity in all our operations and expect the same from all partners that we have a business relationship with – our customers, suppliers, business partners, agents and distributors.

We support free and fair trade, and strive for competition and ethical standards within the existing legal framework.

We also support openness, provided that trade secrets that could adversely affect the Group’s competitiveness and relations with customers/suppliers and other partners are not disclosed. Our ethical guidelines also state that:

  • bribes are forbidden; all compensation paid to agents, suppliers and partnersmust be based exclusively on confirmed products and services
  • gifts and other benefits as part of expected hospitality must not exceed what iscustomary for local custom and must comply with local laws
  • all employees must avoid conflicts between private economic interests and thecompany’s commercial activities
  • all commercial transactions performed in a PMC company must be clearlyaccounted for in the company’s financial statements in compliance with rules ofthe Group

PMC presumes its suppliers to apply similar ethical guidelines, and their behaviour influences our choice of suppliers to a large extent. Suppliers that do not live up to our requirements and expectations may become subject to review.

Responsibility to employees – Work ethics

Leadership and relations between employees in the Group are based on the following values:

  • all employees must be treated equally, fairly and with respect regardless ofethnic origin, sex, age, nationality, disability, religion, social background, sexualpreference, trade union membership or political affiliation
  • the Group does not use or tolerate the use of child labour. Anyone under the ageof 15 is defined as a child, unless applicable minimum age laws specify a higherage for work and compulsory schooling, in which case the higher age shall apply.If local laws prescribe a minimum age of 14 years in compliance with theexemptions for developing countries contained in ILO Convention 138, the lowerage shall apply
  • the Group does not use or support the use of forced labour
  • the Group respects all employees’ right to form and join a trade union of theirchoice and to participate in collective bargaining. The Group seeks to ensure thatofficial representatives of such trade unions are not subject to discrimination andthat they have access to the union’s members and their workplaces
  • the Group shall ensure that salaries and benefits meet or exceed the minimumstatutory or industry levels in each country
  • the Group complies with legislation and industry standards on working hours inthe countries in which it operates
  • the Group undertakes to offer all employees secure and sound workplaces, and isaiming to ensure that all units are certified according to the ISO 14001 standard
  • the Group strives to offer employees good opportunities to develop their skills,enabling them to perform a wider variety of tasks and take on greaterresponsibility
  • the Group strives to give all employees a fair chance to compete for vacantpositions. Appointments to positions should be made exclusively on the basis ofrelevant professional skills and expertise, unless national laws and rules prescribe otherwise
  • the Group seeks to ensure that registration, archiving and use of data aboutemployees are treated in strict confidentiality and in compliance with local laws

Responsibility to owners – Financial ethics

Profitability and returns on the owners’ invested money must always be taken into account when decisions are made on key strategies and alternative economic courses of action. PMC keeps its owners up-to-date on the Group’s activities, results and strategies using agreed reporting methods.

Responsibility to society – Social ethics

Communication

Our policy is to be open and accessible, providing factual and continuous information on the Group’s products, services and development.

Information that is important for the company’s stakeholders must always be disclosed as soon as circumstances permit.

Environment, health and safety

The Group works to promote an ecologically sustainable development. This means that we constantly seek to improve the care of the environment and promote the health and safety of people who depend on the Group’s activities.

Responsibility and care for the environment is shared by the whole Group, and all employees play an important role.

Relations to society

We operate in a socially responsible manner and within the framework of national legislation in all countries where we are established.

The best contribution we can make to social and economic development is to manage our business professionally and profitably, which enables us to create new jobs and support our customers.

Political issues

The Group does not comment on political issues in the countries where we operate.

Consequently, companies in the Group are not permitted to provide financial assistance to political parties and politicians. Nor are they permitted to participate in party politics.

In relations with government agencies and international organisations the Group sometimes has the right, or a duty, to present its views on matters affecting the Group, its employees, customers and owners. The Chief Executive Officer - personally or through a person appointed by him – is the only person who has the right to express political views on behalf of the Group.

Implementation and follow-up of the ethical guidelines

All employees are required to apply to these rules.

Each manager in the PMC Hydraulics Group is responsible for ensuring that his or her employees are fully informed about the Group’s ethical rules and that these rules are implemented and adhered to. Managers should behave in such a way that their behaviour serves as a model for the implementation of the rules.

Serious breaches of this policy must always be reported to your immediate manager and to VP Human Resources.

Any revision of this document is subject to the approval of senior management. This version was established of the Board of Directors.

These ethical guidelines are based on the UN Global Compact Principles, OECD’s guidelines for multinational corporations and the applicable conventions and recommendations of the International Labour Organisation (ILO).