Standex is committed to high standards of integrity, ethics, and sustainability throughout our supply chain. To this end, we have been evolving a robust responsible sourcing initiative. The critical components to this initiative include our Supplier Code of Conduct, our Conflict Minerals Program, and the work of our Responsible Sourcing Council.
Supplier Code of Conduct
We view our Suppliers as important business partners, and we expect all of our Suppliers to adhere to similar standards and conduct their business in accordance with our ethical principles. Through our Supplier Code of Conduct, Standex ensures that our business partners share our focus on ethical business practices. The Supplier Code of Conduct applies to all businesses that provide products or services for Standex and its subsidiaries, divisions, or affiliates. The Supplier Code of Conduct mandates ethical procedures in the areas of human rights and fair labor (including prohibitions against the use of slave and child labor and unsafe and unhealthy work environments); environmental practices; and business ethics. The Code also requires management systems to be in place to demonstrate compliance. Moreover, suppliers are expected to hold their supply chain, including subcontractors and third-party labor agencies, to the same standards contained in our Supplier Code of Conduct. Any supplier that is found to not be in compliance with the Code is subject to disqualification as a supplier.
Conflict Minerals Program
In central Africa, specifically the Democratic Republic of the Congo (DRC) and nine bordering countries, rebel groups have committed countless acts of violence and human rights violations. It is widely accepted that the reason for the ongoing violence is the region’s abundance in certain minerals, such as tin, tantalum, tungsten and gold, now referred to as “conflict minerals”. Armed groups seize control of the mineral mines, use forced labor to mine and sell the minerals and use the proceeds to perpetuate the cycle.
To break this cycle, we support the goals of the conflict minerals reporting obligations under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank”), the United States Securities and Exchange Commission (SEC) regulations promulgated pursuant to Dodd-Frank, and the work of the Responsible Minerals Initiative. To further this commitment, Standex complies with all reporting requirements adopted by the SEC regarding conflict minerals. Additionally, we actively endeavor to manage the risk that our products either contain conflict minerals or are made by processes that use conflict minerals. In this regard, we require that all suppliers of conflict minerals or components containing conflict minerals (i) maintain sufficient knowledge of input materials and components to ensure such materials and components were obtained from permissible sources; (ii) implement policies regarding conflict minerals; and (iii) exercise due diligence in the sourcing of these materials.
Standex is committed to the responsible sourcing of conflict minerals within its supply chain and continuous progress toward making all of its products “Conflict-Free”.
Responsible Sourcing Council
To further drive our responsible sourcing commitment, during our 2021 fiscal year, we formed a Responsible Sourcing Council comprised of key supply chain personnel from each of our Business Units. The initial mandate of the Responsible Sourcing Council is to develop procedures for (i) providing further education to our supply chain partners on the expectations of our Supplier Code of Conduct, (ii) ensuring we receive reasonable evidence of the commitment of each of our suppliers to these expectations, and (iii) implementing protocols for resolving supplier compliance issues. We expect to report on the success of these initiatives by the end of our 2022 fiscal year.