BIC - 2018 Registration document

RISKS

Extra financial risks [NFPS]

RISKS RELATED TO NON-RESPECT OF HUMAN RIGHTS (CHILD LABOR, INTERNATIONAL CONVENTIONS, ILO)

Risk Identification

Risk Mitigation

Non-compliance with fundamental human rights such as child labor, discrimination or forced labor may result in legal action against the BIC Group and major consequences in terms of reputation and attractiveness.

To ensure respect for Human Rights at work, the BIC Group has adopted a Code of Conduct, consisting of a set of professional and social principles derived from the standards of the International Labor Organization (ILO). The BIC Group is committed to a socially responsible behavior in all its activities. This document applies to BIC factories as well as contract manufacturers and its implementation is regularly monitored by the BIC Group through audits. Moreover, the BIC Group reliance on contract manufacturing is relatively low. Overall, 92% of its net sales are generated by products made in its own factories. 87% of its factories are located in countries with no Human Risk according to Freedom House  (a) . The BIC Group works with subcontractors primarily for Stationery products in the Consumer business and for Advertising and Promotional Products. Subcontracting gives the BIC Group greater flexibility. More information is available in section 3.5 of Chapter 3 Our environmental, social and societal responsibility (§ 3.5.1.2 Ensuring respect Human Rights in the workplace).

Source: “Freedom in the World”, a study by the non-governmental organization Freedom House. (a)

RISKS RELATED TO UNFAIR PRACTICES (CORRUPTION)

Risk Identification

Risk Mitigation

The risk of corruption and unfair practices can lead to legal actions against the BIC Group and major consequences in terms of reputation and attractiveness.

Compliance with ethical principles and the fight against all forms of corruption, active or passive, are stipulated among the standards of the BIC Group Code of Ethics and BIC Group Anti-Corruption Policy. Since 2007, the BIC Group Code of Ethics has defined the fundamental ethical principles that the Group asks all of its team members to follow under all circumstances and everywhere in the world. The objective is to build and sustain an authentic corporate culture of integrity, honesty and fairness. Since 2017, BIC has been developing and deploying tools (training, reporting system, etc.) to facilitate the identification, quantification and mitigation of the potential risks of corruption. More information on the fight against corruption is available in Chapter 3, section 3.5 (§ 3.5.1.3 Ethics and the fight against corruption).

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• BIC GROUP - 2018 REGISTRATION DOCUMENT •