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Jun 22 2016

IRC Global Search (M) Sdn. Bhd. (hereinafter also called “IRC”) recognizes and is committed to social and environmental responsibility. The objective of IRC’s overall policy with regard to SER is to provide a reference point to guide all IRC facilities, including all management and employees, on the elements that drive the conduct of IRC’s business and relationships which it operates. The companies covered by this Code of Conduct (hereinafter, “CoC”) include IRC and Clientele who are members of the RBA Codes set out in this CoC policy were derived from three disciplined sources which are:

The clients obligations of the industrial associations and the RBA of which IRC is supplying manpower , and the international standard institutes to which IRC’s business is related; The laws covering legal and regulatory requirement where IRC deploys operations; and the internal management of IRC who determine voluntary upgrading of performance standards. Each source represents a different commitment level of IRC’s promised delivery to the diverse stakeholders, which include IRC’s employees, customers, suppliers, the community, investors, and non-governmental organizations.

In recognizing inherent discrepancies that may exist among the above three sources, IRC pledges to live up to the most stringent rules based on whichever source determines a higher standard. On the policy level, none of IRC’s documented codes should override legal requirements, and all the codes should defer substantially to any national and international organization whose provisions subsume IRC’s operational or product areas. In terms of policy implementation, IRC should on a continuous and constant basis compare its CoC policy with the provisions set by international organizations and local applicable laws. To ensure compliance with such provisions and laws, IRC should honor the above principle as paramount in any version of the CoC policy, and should work closely with local law enforcement entities to close any gap between the released CoC policy and the current law. Any nonconformance with laws should be notified to customers together with continuous improvement plans so as to achieve industrial collaboration, establish industrial benchmarking, and improve capability building programs.

IRC is hence committed to ensuring that our business is in all respects conducted in conformance with ethical, professional and legal standards. With the aim of becoming an SER compliant manpower supply partner with customers, IRC declares in its CoC policy to respect all industrial rules, applicable laws, human rights, environmental conservation, and safety of products and services in the countries and regions in which it operates, and to conduct its business activities in an honest and ethical manner.

Simultaneously, IRC’s downstream suppliers are required to comply with this CoC policy to the same level of standards which the supplychain partners and industrial associations set for the ICT industry.


This CoC policy, for internal purposes, is to make SER become part of the IRC's core competencies. For external purposes, this CoC is to demonstrate IRC’s practices of operation. Maintaining high standards for implementing the CoC policy is IRC’s goal, to ensure continued customer trust in us and to enhance IRC’s image as a competitive company in the industry in both business and SER respects.


3.1 Principal Process Owner: Managing Director
3.2 The ultimate responsibility of each Department lies with the Respective Head, who may delegate the task(s) to appropriate individual(s) or Group(s).


This CoC policy applies to all IRC’s facilities and site. The term “site” here refers to locations of hostels where IRC possesses and management operations. Failure to comply with this Code will be taken seriously and, depending upon the circumstances, could result in disciplinary action. To ensure that all staff conduct their activities in line with the CoC policy, all staff will determine how this CoC policy impacts on their operations and report periodically.


The CoC policy is founded on the basis of IRC’s SER philosophy and is composed of seven sections as follow:

Section 1 - Business Ethics To meet social responsibilities and to achieve sustainable development, IRC upholds the highest standards of ethics. IRC’s Ethic Codes includes:

1) Business Integrity
No corruption, extortion, or embezzlement: The highest standards of integrity are to be expected in all business interactions. Any and all forms of corruption, extortion and embezzlement are strictly prohibited, and result in immediate termination of services and legal action.

2) Disclosure of Information
Information regarding business activities, business structure, financial situation and performance is to be disclosed in accordance with applicable regulations and prevailing industry practices. Falsification of records, misrepresentation of conditions, or practices in the supply chain are unacceptable.

3) No Improper Advantage
Bribes, any means of undue or improper advantage, and gratuities of commercial value should not be offered or accepted.

4) Fair Business, Advertising and Competition
Standards of fair business, advertising and competition are to be upheld. Means for safeguarding customer information should be available.

5) Whistleblowers and Anonymous Complaints
Programs that ensure the confidentiality and protection of supplier and employee whistleblower are to be maintained. Anonymous complaints with clear and specific descriptions of person/time/place/event are to be accepted and protected.

6) Community Engagement
Community engagement is encouraged to help foster social and economic development.

7) Protection of Intellectual Property
Intellectual property rights are to be respected. Transfer of technology and knowhow is to be done in a manner that protects intellectual property rights.

8) Privacy
IRC is committed to protection the reasonable privacy expectations of personal information of everyone we do business with, including suppliers, customers, consumers and employees. Comply with privacy and information security laws and regulatory requirements when personal information is collected, stored, processed, transmitted, and shared.

9) NonRetaliation
IRC has a communicated process for our personnel to be able to raise any concerns without fear of retaliation.


Section 2 - Labor and Human Rights
Foxconn is committed to uphold the human rights of workers, and to treat them with dignity and respect as understood by the international community and applicable laws and regulations. This applies to all workers including direct, contract, student, temporary employees, and any other type of worker. The recognized standards such as the Universal Declaration of Human Rights (UDHR), the International Labor Organization (ILO) and the Ethical Trading Initiative (ETI) have been used as references in preparing this Code. Foxconn’s Labor and Human Rights Codes include:

1) Freely Chosen Employment
Forced, bonded (including debt bondage) or indentured labor, involuntary prison labor, slavery or human trafficking shall not to be used. This includes transporting, harboring, recruiting, transferring or receiving vulnerable persons by means of threat, force, coercion, abduction or fraud for the purposes of exploitation. All work must be voluntary and workers shall be free to leave upon work at any time or terminate their employment. Workers must not be required to surrender any government issued identification, passports or work permits as a condition of employment. Excessive fees are unacceptable and all fees charged to workers must be disclosed.

2) Child Labor Avoidance and Juvenile Workers Protection
Child labor is not to be used in any stage of manufacturing. The term “child” refers to any person under the age of 15 specified by the Electronic Industry Citizenship Coalition Code of Conduct (hereinafter, “EICC CoC”), or under the age for completing compulsory education, or under the minimum age for employment in the country, whichever is greatest. The use of legitimate workplace apprenticeship programs, which comply with all laws and regulations, is supported. Workers under the age of 18 should not perform hazardous work, and should be arranged to participate in periodical physical examinations in accordance with legal requirements. A worker may be restricted from a certain kind of job unfit for the worker’s condition.

3) Protection of Maternity and the Health of Female Workers
IRC is committed to protecting female workers’ rights and health. Health protection at work, maternity leave, social benefits, breastfeeding breaks, and protection against dismissal and discrimination based on maternity should be provided. It is unlawful to terminate the employment of a female worker during her pregnancy or absence on maternity leave. Female workers shall be entitled to have a period of maternity leave of no less than the legal requirement. A woman is guaranteed the right to return to the same or equivalent position paid at the same rate at the end of her maternity leave.

4) NonDiscrimination
IRC is committed to a workforce free of harassment and unlawful discrimination. IRC shall not engage in discrimination based on nationality, language, race, color, age, gender, sexual orientation, ethnicity, disability, pregnancy, religion, political affiliation, union membership or marital status in hiring and employment practices such as promotions, rewards, and access to training. In addition, workers or potential workers should not be subjected to medical/pregnancy tests that could be used in a discriminatory way.

5) Harsh or Inhumane Treatment
There is to be no harsh or inhumane treatment, including any sexual harassment, sexual abuse, corporal punishment, mental or physical coercion, or verbal abuse of workers; and there is to be no threat of any such treatment. Disciplinary policies and procedures in support of these requirements shall be clearly defined and communicated to workers.

6) Wages and Benefits
Compensation paid to workers shall comply with all applicable wage laws, including those relating to minimum wages, overtime hours and legally mandated benefits. In compliance with local laws, workers shall be compensated for overtime at pay rates greater than regular hourly rates. Deductions from wages as a disciplinary measure shall not be permitted. The basis on which workers are being paid is to be clearly conveyed to them in a timely manner via pay stubs or similar documentation.

7) Working Hours
IRC recognizes that unreasonable overtime for workers will result in reduced productivity, increased turnover, and increased injury and illness rates. Except in emergency under some unusual situations, a workweek shall be restricted to 60 hours including overtime, and workers shall be allowed at least one day off for every six days worked as stipulated in the EICC CoC. Based on that minimum requirement, IRC shall also comply with local laws in this regard and develop gap closing and improvement plans on a continuous basis that are made known to the business group management. IRC shall also conduct review/discussion sessions with key stakeholders including employees, law enforcement agencies and relevant customers to ensure legal observance globally and locally. In addition, overtime shall be voluntary, and vacation, leave periods, and holidays should be rendered consistently with applicable laws and regulations.

8) Freedom of Association
Open communication and direct engagement between workers and management are the most effective ways to resolve workplace and compensation issues. IRC respects the rights of workers to associate freely, join or not join labor unions, and seek representation from or join workers’ councils in accordance with local laws. Workers shall be able to communicate openly with management regarding working conditions without fear of harassment, intimidation, penalty, or reprisal.


Section 3 - Health and Safety
Recognized management systems such as OHSAS 18001 and ILO guidelines on occupational safety and health have been used as references in preparing this Code. IRC’s policy on health and safety includes:

1) Occupational Safety
Worker exposure to workplace safety hazards (e.g. electrical and other energy sources, fire, vehicles, and slip, trip and fall hazards) are to be controlled through proper design, engineering and administrative controls, preventative maintenance and safe work procedures, and ongoing safety training. Where hazards cannot be adequately controlled by these means, workers are to be provided with appropriate, well maintained personal protective equipment. Workers shall not be disciplined for raising safety concerns. It is required that continuous training and education be used rather than disciplinary action to raise workers’ safety consciousness.

2) Emergency Preparedness and Response
Emergency situations and events are to be identified and assessed, and their potential impact minimized by implementing emergency resources, plans and response procedures. These include appropriate fire detection and suppression equipment, adequate exit facilities, emergency reporting, employee notification and evacuation procedures, worker training and drills, and recovery plans.

3) Occupational Injury and Illness
Procedures and systems are to be put in place to manage, track and report occupational injury and illness, including provisions to: a) encourage worker reporting; b) classify and record injury and illness cases; c) provide necessary medical treatment; d) investigate cases and implement corrective action to eliminate their causes; and e) facilitate workers returning to work.

4) Ergonomics
Worker exposure to physically demanding tasks, including manual material handling and heavy lifting, prolonged standing, and highly repetitive or forceful assembly tasks is to be identified, evaluated and controlled. The integration of human factors via reasonable evaluation is to increase staff efficiency and reduce work accidents.

5) Hostels
Workers are to be provided with clean toilet facilities, access to potable water, and sanitary food preparation and storage facilities. The hostels should be clean, safe, and provided with emergency exits, hot water for showering, and adequate heat and ventilation, and reasonable personal space along with reasonable entry and exit privileges.


Section 4 - Environment
All activities of IRC shall be carried out with respect for the environment. Recognized management systems such as ISO14001 have been used as references in preparing this Code and may be a useful source of additional information. IRC’s environmental standards include:

1) Environmental Permits and Reporting
All required environmental permits (e.g. indah water, operating certificate) and registrations are to be obtained, maintained and kept current, and their operational and reporting requirements are to be followed.

2) Pollution Prevention and Resource Reduction
Waste of all types, including water and energy, is to be reduced or eliminated at the source, or by practices such as conservation and recycling.


Section 5 - Management systems
IRC has established management systems whose scopes are related to the content of this Code. The management systems shall be designed to ensure (a) compliance with applicable laws, regulations and customer requirements related to suppliers’ operations (b) conformance with this Code; and (c) identification and mitigation of operational risks related to this Code. The management systems should also facilitate continual improvement. IRC’s requirements on management systems include:

1) Company Commitment
Corporate social and environmental responsibility statements affirming commitment to compliance and continual improvement are endorsed by each company’s executive management.

2) Management Accountability and Responsibility
Clearly identify company representatives responsible for ensuring implementation and periodic review of the status of the SER management systems. Management review the status of the management systems on a annually basis.

3) Legal and Customer Requirements
Identification, monitoring and understanding of applicable laws, regulations and customer requirements

4) Risk Assessment and Risk Management
Processes to identify the environmental, health and safety, and labor practice risks associated with operations. Determination of the relative significance of each risk, and implementation of appropriate procedural and physical controls to ensure regulatory compliance to control the identified risks.

5) Performance Objectives with Implementation Plan and Measures
Written standards, performance objectives, targets and implementation plans, including a periodic assessment of performance against those objectives.

6) Training
Programs for training managers and workers to implement policies, procedures and improvement objectives. Core curriculums such as orientation training and SER CoC training should be arranged for new employees, and employees in service should take at least two hours of CoC training per year.

7) Communication
Processes for communicating clear and accurate information about performance, practices and expectations to workers, suppliers and customers.

8) Worker Feedback and Participation
Ongoing processes to assess employees’ understanding of practices and conditions covered by this CoC, to obtain employees’ feedback on the practices and conditions, and to foster continuous improvement.

9) Audits and Assessments
Periodic self-evaluations to ensure conformity to legal and regulatory requirements, the content of the CoC, and customer contractual requirements related to social and environmental responsibility.

10) Corrective Action Processes
Processes for timely correction of deficiencies identified by internal or external assessments, inspections, investigations and reviews.

11) Documentation and Records
Creation and maintenance of documents and records to ensure regulatory compliance and conformity to company requirements, along with appropriate confidentiality to protect privacy.

12) Supplier Responsibility
Process to communicate Code requirements to suppliers and to monitor supplier compliance to the Code.


Section 6 – Anti Collusion
IRC upholds a culture of honesty and trust, conducts itself with integrity, and is committed to full compliance with the national and international anticorruption and anti-bribery laws and regulations, and imposes a no tolerance policy on any unlawful activities. Any and all means of corruption, extortion, embezzlement, and undue or improper advantage are strictly prohibited in IRC. All employees should take at least two hours of anticorruption training per year. In addition, IRC assists downstream suppliers, manufacturers and customers in adhering to the highest anticorruption laws as a binding condition and an integral part of doing business.


The CoC policy approved by the IRC Managing Directors will be defined as an ethical commitment that includes basic principles and standards for the appropriate development of relations between IRC and its main stakeholders (employees, customers, shareholders, suppliers, the community, investors, and non-governmental organizations). The spirit and guidance embodied in the standards of business conduct policy must be followed by all our employees, in particular by our managers across our businesses to set an example for others to follow. Business groups must provide annual assurance that the CoC policy is being adhered to within their business operations.

The corporate and business group management also needs to roll out the approved CoC policy to our employees. This should take place in a variety of ways, reflecting the different cultures and sizes of our businesses around the world. Employees’ rights, the Code requirements, and expectations documented in this CoC policy should be communicated to all staff through employees’ labor contracts, employees’ handbooks, and other channels which convey the need for effective and exact implementation of and adherence to this CoC policy. IRC should also perform auditing and benchmarking, and design programs as validation instruments for ongoing training and awareness of candid execution of the CoC policy. The SER programs to substantiate SER policy should employ a comprehensive internal audit protocol, and yield a standardized scorecard system to establish a baseline for tracking improvements and making comparisons with peer companies.

Furthermore, it is considered that any deployed system should provide for complaints and suggestions from our ground operations, and therefore whistleblowing mechanisms and grievance channels must be established in order to seek improvements. By formally documenting and revising this CoC policy, IRC aims for continuous organizational improvement and innovative governance practices. IRC is devoted to sustainable development and an all win outcome for stakeholders with the following public statements and progress benchmarks:

• Commitment to corporate citizenship of sustainable business for all stakeholders;
• Integration of economic bottom line with social and environmental performance to protect corporate reputation and public image;
• Transparency of information and disclosure to interest holders;
• Alignment of communication with industrial partners for best SER practices, risk management, and media crisis handling;
• Incorporation of SER principles into IRC’s culture and daily business operations;
• To continue as IRC’s strategic driver and tactical mechanism for SER;
• To enforce IRC’s policy for establishments across customers, business units and suppliers; and
• To conduct periodic self-audit programs and implement corrective action plans, and timely feed back to customers about our improvements; and to establish a standard mechanism for better interacting with customers.