Gifts Donations and Entertainment Procedure May ... - Anglo American

ANGLO AMERICAN SUPPLY CHAINPROCEDUREGIFTS, ENTERTAINMENT AND DONATIONSContents1.1 Background ................................................................................................................................ 21.2 Purpose...................................................................................................................................... 31.3 Application.................................................................................................................................. 31.4 Scope ......................................................................................................................................... 32.0 GIFTS, ENTERTAINMENT AND DONATIONS .......................................................................... 32.1 Principles.................................................................................................................................... 32.2 Generally Acceptable.................................................................................................................. 42.3 Unacceptable Practices:............................................................................................................. 53.0 PROCEDURE ............................................................................................................................ 63.1 Declaration Procedure................................................................................................................ 63.1.1 Recording of Gifts, Entertainment and Donations....................................................................... 63.1.2 Capturing and Verification of Declaration Procedure .................................................................. 63.1.3 Maintenance of Declaration Register.......................................................................................... 63.2 Transparency of Procedure ........................................................................................................ 73.3 Management of Unacceptable Gifts Received ............................................................................ 73.4 Consultation on Procedure ......................................................................................................... 74.0 CONTRAVENTION OF THE PROCEDURE ............................................................................... 74.1 Breach of this Procedure ............................................................................................................ 74.2 Speakup ..................................................................................................................................... 8

IntroductionThe Anglo Supply Chain Gifts, Entertainment and Donations Procedure applies to allemployees and contractors within the Anglo American Supply Chain which includes groupsupply chain staff and all supply chain staff in the Anglo American business units(“employees”).1.1 BackgroundAnglo American Supply Chain aims to have professional relationships with all its suppliers.Employees should therefore seek to maintain the highest standard of integrity in all businessrelationships, reject any business practice which might reasonably be deemed improper andfoster the highest standards of industry behaviour.This procedure is not intended to detract from the desirability of fostering good relations withbusiness partners and other stakeholders through legitimate, occasional social interactions.However, offering or providing inappropriate gifts or entertainment may cause embarrassmentto Anglo American and damage our reputation. Particular concerns arise when the offering ofgifts and entertainment may be connected in some way with an actual or potential businesstransaction or regulatory approval. Even if the intent is not corrupt, there is still a risk that arecipient or an objective third party may perceive the gift or entertainment to be an attempt togain an improper advantage.Any gift or entertainment is always unacceptable if it:• is offered or made in exchange for a contract, a permit or any other specific benefit• is offered to obtain an improper advantage in the conduct of business• is in breach of local or international bribery laws• would, if it became public, adversely affect our reputation• may create a sense of obligation• may influence, or be perceived to influence, business judgement• may create, or appear to create, a conflict of interest.• is obtained through solicitation (i.e. employees requesting favours or gifts fromsuppliers or potential suppliers)

1.2 PurposeThis procedure in not intended to replace the Anglo American Business Integrity Policy &Performance Standards (Business Integrity Policy) and the Business Integrity Policy willcontinue to be applicable. Rather, the purpose of this procedure is to set out specific standardsof conduct regarding the giving and receiving of gifts, entertainment and donations across theAnglo American Supply Chain. Should a Business Unit have a procedure on gifts,entertainment and donations in place, the more stringent of the two procedures will takeprecedence, subject to compliance at all times with the Business Integrity policy.1.3 Application1.3.1 This procedure expands on the principles of the Business Integrity Policy and providesmore definitive practices, appropriate to the nature of supply chain activities, on thegiving and receiving of gifts, entertainment and donations from a supplier or businesspartner; and the recordal thereof.1.3.2 It is the responsibility of all employees to read this procedure in conjunction with theBusiness Integrity Policy.1.4 ScopeThis procedure applies to all employees and contractors within the Anglo American SupplyChain which includes group supply chain staff and all supply chain staff in the Anglo Americanbusiness units (“employees”); whether directly or indirectly involved in purchasing activities.2.0 GIFTS, ENTERTAINMENT AND DONATIONS2.1 PrinciplesNo employee may accept or receive any gift, entertainment or other gratuity from any supplierto Anglo American or bidder for Anglo American business, including suppliers which are part ofthe Anglo American Group. Likewise, an employee should not offer any gift or gratuity to asupplier. This includes gifts given at annual celebrations (e.g. Christmas and the Chinese NewYear). Certain exceptions exist and these are detailed in point 2.2 Generally Acceptable.

Gifts that are received in cases where it would be disrespectful to decline, or where they arereceived by unsolicited mail or delivery, must be disclosed to a member of the Supply Chainleadership team (listed in Appendix 1) in writing (i.e. via email) and declared as per section 3.1.These gifts will be donated to charity or disposed of in accordance with the Business Unit’spractices.2.2 Generally AcceptableThe importance of building legitimate working relationships and constructive business networksis fundamental to our business. As such, certain exceptions come into play and are generallyacceptable:2.2.1 Modest, occasional meals that are business related (e.g. the meal takes place in thecourse of a meeting or another occasion, the purpose of which is to hold bona fidebusiness discussions).2.2.2 Corporate branded merchandise of modest value (not exceeding USD20 or itsequivalent in any other currency) may be occasionally accepted or given (e.g. pens,key fobs, lanyards, note pads) only if the items are legitimately part of an AngloAmerican or supplier organised event / conference.2.2.3 Occasional attendance at team-building or celebratory events (e.g., volleyball games,rock climbing) that include the team as a whole, not just the decision-makers. Suchevents should be of modest value and the related costs shared between Anglo andsuppliers.2.2.4 Attendance at no more than two events (e.g. sports, concerts) in any one calendar yearand no more than one with a particular supplier, and subject to the following criteria:• Prior approval must be obtained from a direct manager• The value of the ticket must not be extravagant• The supplier must be in attendance• The supplier must be an existing supplier• The funding of any travel and accommodation costs for the supplier andemployee must be born respectively by the supplier and AngloAmerican.

2.2.5 Attendance at supplier sponsored charity events if Anglo American makes a donation tothe charity:Even with the above exceptions, the following guidelines must be taken into account:• They are not lavish or disproportionate in the context in which the gift or entertainmentis provided.• The value is reasonable and appropriate to the recipient’s position and circumstancesand to the occasion.• The circumstances and value of the gift do not create an appearance of bad faith orimpropriety, and could not reasonably be misunderstood by the recipient or others as abribe, even in hindsight.• The frequency of gifts or hospitality provided to the same recipient would not create theappearance of impropriety.• Care should be exercised when accepting or using advertising or promotional / brandeditems and participating in activities that could give the appearance of promoting onesupplier over another.Note: During sourcing events (e.g. contract and price negotiations) no gift, entertainment orgratuity is acceptable.2.3 Unacceptable Practices:Certain types of gifts and entertainment are never permissible:2.3.1 Any gift of cash or cash equivalent (e.g. gift certificates, loans, stock, stock options etc).2.3.2 Offers of personal favours or other treatment of a preferential nature (for examplegoods or services free of charge or at artificially reduced prices) compared to thosecommonly available in the marketplace.2.3.3 Payment of expenses for shopping trips (e.g. offers to cover personal shoppingexpenses while travelling).2.3.4 Gifts to, or the provision of entertainment for, spouses, family members or otherindividuals having a close personal relationship with the recipient.2.3.5 Payment of accommodation or travel costs of any nature while travelling locally orabroad.2.3.6 Holiday or weekend accommodation of any nature

2.3.7 ‘Adult’ entertainment or any sort of event involving lewd behaviour2.3.8 Gifts of alcoholic beverages such as bottles of wine and spirits2.3.9 Supplier invitations to extravagant events (e.g. sports, either as participator orspectator, concerts, hunting trips etc.) may not be accepted, including free tickets tosuch events (excluding the exceptions documented above in point 2.2.) This appliesequally to business time as well as private time (i.e. leave should not be taken to avoidthis guideline).2.3.10 Product samples that are offered by suppliers or requested by the Supply Chainfunction for personal use.3.0 PROCEDURE3.1 Declaration Procedure3.1.1 Recording of Gifts, Entertainment and DonationsAll gifts, entertainment and donations both incoming and outgoing – whetheraccepted or declined and irrespective of value – must be disclosed andregistered in the gifts, entertainment and donations register. This must be doneon a monthly basis in the “Gifts, Entertainment & Donations Register” found inthe Supply Chain tab on theSource.3.1.2 Capturing and Verification of Declaration ProcedureIt remains the responsibility of the employee to ensure that, on a monthly basis,the relevant information is captured electronically in the Declaration Register.The Supply Chain leadership team (listed in Appendix 1) is responsible forreviewing the register on a monthly basis.3.1.3 Maintenance of Declaration RegisterThe management and maintenance of the Declaration Register is theresponsibility of the Compliance & Policies Manager from the Supply ChainStrategy and Performance Team.

3.2 Transparency of ProcedureTo ensure proper application of the Anglo Supply Chain Gifts, Entertainment andDonations procedure, a copy of this document will be available internally on ‘theSource’and on the external Anglo American group website.3.3 Management of Unacceptable Gifts ReceivedAny unacceptable gifts received (due to it being disrespectful to decline or through mail/ delivery) must be reported to a member of the Supply Chain leadership team (listed inAppendix 1) who will coordinate the distribution to an appropriate charity or disposal ofin accordance with the Business Unit’s practices.3.4 Consultation on ProcedureEmployees should consult with a member of the Supply Chain leadership team (or theirdesignated responsible person as detailed in Appendix 1) regarding any items thatextend beyond the scope of this procedure or where they are in doubt as to theappropriateness of this procedure.4.0 CONTRAVENTION OF THE PROCEDURE4.1 Breach of this ProcedureThis Procedure is introduced to ensure that employees are aware of the steps inaccepting or donating gifts and entertainment and appropriate governance is in place toreduce potential reputational risk introduced through accepting or making gifts,donations and entertainment and to safeguard both Anglo’s and the supplier’s interests.As such, breach of this procedure is considered a serious matter and may result indisciplinary action in accordance with disciplinary procedures including the Policy onBusiness Irregularities. Disciplinary actions may involve sanctions up to and includingsummary dismissal. We are committed to reporting all instances of corruption and otherforms of dishonesty to the relevant authorities and to facilitating criminal action againstthe individual(s) concerned and we will seek redress for any losses arising from suchactions.

If employees believe that their own or someone else’s actions have, or may havecontravened the procedure, they should advise their direct manager or fraud line (e.g.Speak Up) at the earliest opportunity.4.2 SpeakupThe Speakup facility provides a confidential and secure means for our employees,contractors, suppliers, business partners and other external stakeholders to report andraise concerns about conduct which is contrary to our values and standards. Speakupprovides telephone, email and website contact operated by independent companies inthe regions that Anglo American operates. The facility is available 24 hours a day,seven days a week and includes translation services. A link to the Speakup facility isprovided on theSource. Speakup can also be contacted via www.anglospeakup.com orby emailing anglocorp@anglospeakup.com. Anglo American will not tolerate any formof retaliation against employees or suppliers raising concerns in good faith. Allegationsof retaliation against or harassment or intimidation of an employee or supplier by othersas a result of a call to Speakup will be investigated and appropriate action taken,including disciplinary action up to and including dismissal of the employee responsiblefor reprisals.