Free enterprise and fair competition

3.3 Free enterprise and fair competition

 LCPL supports the principles of free enterprise and fair competition. The company aims to meet customers’ needs faster, better, and more distinctively than our competitors. To this end, LCPL will compete vigorously but fairly, and within the framework of applicable competition laws. LCPL insists on integrity and fairness in all aspects of its business operations. Bribery and any other forms of unethical business practice are prohibited. LCPL employees are expected to avoid all situations in which their personal or financial interests may conflict with the company’s interest. All business transactions shall be accurately and completely recorded in accordance with the company’s accounting principles and local laws and may be subject to audit.

3.3.1 Competition law compliance

 LCPL will compete for business. LCPL expects its employees to compete lawfully and ethically as well. LCPL operates a strict policy to ensure that its operations are in full compliance with all applicable competition laws and the LCPL competition law compliance policy.

3.3.2 Dealing with suppliers

 LCPL will endeavor to do business with business partners who endorse our ethical values and our social and environmental standards as formulated in our Business Principles. LCPL regards the application of its Business Principles of prime importance in decisions to enter into or to continue relationships with suppliers and contractors.

3.3.3 Payments

 Bribery

Bribery and any other forms of unethical business practice are prohibited. Under no circumstance shall any LCPL officer, employee, agent or representative make, offer, promise or authorize any payment or gift, in relation to the company’s operations:

• To gain any business advantage,
• To influence the policy of any government, or
• That is likely to bear the appearance of impropriety.

Please understand that an offer alone, without actual payment, still violates LCPL’s policy and the law.

Commission payments

The rule prohibiting bribes of any form may not be circumvented by commission payments. Any commission payment should be justified by a clear and traceable service rendered to LCPL. The remuneration of agents, distributors and commissioners cannot exceed normal business rates and practices. Government officials shall not be appointed by LCPL as agents, distributors or commissioners.

Facilitation payments

Facilitation payments are small payments made in money or in kind to officials, in accordance with publicly-known or widely followed local customs, to expedite performance of routine government actions (such as processing a required government license). LCPL promotes measures to eliminate such practices.

Recording of payments

All payments must be recorded in the appropriate ledgers in accordance with the company’s accounting principles and all applicable local laws. Secret accounts and/or book keeping outside company accounts is strictly forbidden. No payments will be channeled through an agent unless they form part of normal agency fees or reimbursement for incurred costs. Apart from petty cash transactions, cash payments to third parties are not permitted; all payments should be made to a bank account designated in writing. Payments to so-called numbered accounts are not permitted. A request by a contract partner to divert a payment to an entity or person offshore shall always be rejected. All payments will be subject to internal and external audit.

All financial transactions must be recorded in a timely and accurate manner. In addition, any information material to a transaction must be recorded. LCPL’s records should reflect transactions in conformity with accepted accounting standards and should be designed to prevent off-the-books transactions such as kickbacks and bribes. Accordingly, company employees must follow all applicable standards, principles and laws for accounting and financial reporting. No employee should establish an undisclosed or unrecorded account on behalf of the company for any purpose. In addition, false or artificial entries are not to be made in the books and records of LCPL for any reason.

3.3.4 Money laundering

 LCPL will not enter into nor tolerate any arrangement which facilitates (or which appears to or is suspected to be used to facilitate) any acquisition, retention, use or control of any property or money intended to disguise the proceeds of crime.

3.3.5 Gifts

 No personal gifts or favors of any material commercial value can be made to, or accepted from, a third party. A gift or favor of material value is defined as an object with such a value that it may influence a buying decision and/or may lead to a relation of dependency. In case of any doubt, a superior has to be consulted.

Corporate gifts, including gifts on social occasions may be acceptable. Any gift (given or received) with a value of more than US$ 100 must be reported to the Chief Financial Officer.

In every unit/department of the company, there must be full transparency between subordinates and superiors with respect to business gifts.