HERMES_REGISTRATION_DOCUMENT_2017

CORPORATE GOVERNANCE

ETHICS – COMPLIANCE

• as regards the broader community, Hermès also aims to ensure dialogue and consultation with all stakeholders in order to contri- bute to the economic and social development of the regions and employment areas where its manufacturing and commercial sites are located. Hermès invests in each of the company’s manufac- turing or commercial sites, using local resources as much as pos- sible, so as to contribute to local economic life and play a role of corporate citizen in the local economy, in a spirit of responsibility towards the community. Code of Business Conduct A 20-page Code of Business Conduct, available in 10 languages and updated in 2016, is distributed to all employees worldwide. It sets out the House’s guiding principles on a number of operational topics. It pro- vides a matrix alert system (by geography and by function), known as Parlons-en ! (“Speak Up!”). The Code is signed by the Management, and is given to all employees as soon as they enter the House. The purpose of the Code of Business Conduct is to raise employees’ awareness about certain risks and to instil behavioural and alert reflexes. It consists of factsheets, dealing with key issues. These sheets are elements of dialogue that complement Group-wide procedures (avai- lable on the intranet). They are not intended to be exhaustive, and are added to locally or on certain subjects by separate procedures. In case of conflict, local regulations are given priority. The code sets out alert mechanisms. If employees are confronted with situations that raise ethical issues, or if they identify behaviour that raises questions, the Code lays down the principle of accountability, thereby requiring people to report any difficulties, concerns or problems they become aware of. The first step of the dialogue is with the line, administrative or functional management. The manager’s duty is to listen, and to seek to resolve the issue objectively and clearly. Then, if necessary, the discussion can be continued as follows: locally with the Human Resources or Financial Department, or at Hermès Headquarters directly with the Group Human Resources Department, the Finance Department, the Legal Department, the Industrial Department or the Audit Department. Lastly, members of the Sustainable Development Committee (list available on the intranet) can also be contacted directly. Contact made within this framework is naturally understood to be confi- dential and to comply with the applicable legal framework. The Code addresses the following topics: extra-professional activities These must be exercised outside the framework of the company, not lay claim to belonging to the Hermès Group and not compete with our activities; 3.2.1.3 s

s acceptable perks and gifts This sheet outlines the principles regarding the offering and recei- ving of gifts, in accordance with local regulations, ethical rules and transparency; money laundering This sheet aims to make employees aware of this fraudulent prac- tice and its risks. It gives examples of concrete cases to monitor and refers readers to the Group’s mandatory procedures on the subject; corruption This sheet summarises the ley principles of business relationships, the main regulations on the subject, and potential impact for the company and for employees. It gives examples and emphasises the principle of zero tolerance in case of breaches of conduct on these issues; confidentiality This sheet defines the notion of confidential information, gives exa- mples concerning data security, the control of communication and specific prohibitions in view of our activity. Among other things, it deals with the subject of social networks, financial information and customer data; conflicts of interest This sheet explains the notion of conflict of interest, and specifies the types of behaviour to avoid. It emphasises the duty of transparency and fair trade practices; insider trading This sheet summarises the issues, risks and behaviour to avoid on this subject, in application of the law and French rules in this area; harassment (moral or sexual) Reaffirming the principle of zero tolerance on the subject, this sheet sets out elements serving to identify such issues, lays down a Group- wide information procedure (see also: “Speak Up!”), and the rules governing case management on this issue; terrorism This sheet aims to raise employees’ awareness and to increase their vigilance, particularly with regard to money laundering; use of Group resources ThissheethighlightstheobjectiveofprotectingtheGroup’sresources and their use for professional purposes. It lists certain prohibitions (notably from the Group’s IT charter). Echoing the Code of Ethics, the Code of Business Conduct states in its foreword that the men and women of Hermès share the unifying and founding values that have characterised the House since 1837. It states that employees must also act in strict compliance with the laws and regulations applicable in the countries were the Group operates, as well as within the framework of fundamental principles such as the Universal Declaration of Human Rights, the ILO conventions and the OECD guidelines. s s s s s s s s

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