Dear Reader,

Our commitment to our mission statement goes together with compliance to the highest ethical standards and integrity.

In 2014, we changed our mission to:

Improving quality of life by reducing chemical in our homes.

Norwex continues to sell its products to radically reduce the amount of chemicals in our homes. By reducing chemicals, we improve the quality of life in relation to both an ecological point of view, specifically the environmental impact, and from a health point of view, both for the health of our generation and the health of future generations.

Our values, Integrity, Trust and Respect, stay the same and form the backbone for a healthy corporate culture within Norwex.

In order to ensure that the 10 principles of the United Nations Global Compact initiative are respected, Norwex China has incorporated them into the manufacturing agreement that must be signed by all suppliers. We are proud to say, that all actual suppliers have also done so.

Over the past 4 years, China has again seen great progress economically, but this still goes together with a heavy burden on the environment. The Chinese government however has taken a harsh stand on its position concerning the environment and is implementing stricter rules to ensure that the tide is reversed. With already minimal impact on the environment, Norwex China is even stricter imposing its policies to its own facility and that of its vendors.

As is the case for the environment, the Chinese government has also increased its effort against corruption and also here we can see a clear progress. Norwex continues to take a firm position against corruption of any kind.

Sincerely,

David Peeters
Chief executive Norwex China

Human Rights Principles

Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights:
Principle 2: Make sure that they are not complicit in human rights abuses.

Assessment, Policy and Goals

Norwex fully and passionately supports the Universal Declaration of Human Rights.

Norwex is an Equal Opportunity Employer committed to a work environment free from discrimination. We provide equal opportunities to all applicants and employees with regards to race, color, religion, sex, national origin, marital status, sexual orientation, physical or mental disabilities or other factors unrelated to a person’s job performance ability.

Norwex’s core values: Integrity, Trust and Respect.

All human beings deserve respect just because they are human beings. To receive respect confirms the individual’s worth as human being.

We have policies in our Executive Manual for the breach of core values:
If an employee is in breach of the company core values, this will regularly have formal consequences, and will also result in loss of annual performance bonus.
The UN Global Compact’s Human Rights principles are part of our company regulations and part of our Employee trainings. Staff and managers will adhere to the UN Global Compact Human Rights principles, promote the consciousness of upholding human rights, support and respect the Universal Declaration of Human Rights. Violations of regulations in our Employee Manual will have formal consequences.

Implementation

Our policies are implemented in our day to day operations. All of our staffs are treated fairly, we have a suggestion box, staffs are allowed to give suggestions and ask questions on company policy, working condition, food quality, working time etc.

We promote a work-life balance through providing entertainment facilities for staff that live in the dormitory. We organize a staff family day, which is a good occasion to let our staff get to know their coworkers and let their family see the work-environment.

We also encourage our staff to develop interesting charity events. All the raised money goes to children in need in China.

We have regularly informal conversations between General Manager and staff to promote a free and open communication between management and staff. We share company information and update all staff in regular newsletters and company Intranet.

On our local Intranet, there is a page exclusively for the UN Global Compact where information, training material and this COP are posted.

To protect each of our supplier’s staff, Human Rights are part of Norwex China’s Manufacturing Agreement and Norwex China will conduct supplier audits to ensure that we are not indirectly involved in human rights abuses.

Measurement of outcomes

Norwex undertakes regular surveys concerning company compensation, working time, working condition, benefits & company climate which is fed back to the Board as well. Score for 2010 company climate survey was (4.198 out of 5), score for 2011 company climate survey was 3.93, score for 2012 company climate survey was 4.0, score for 2013 company climate survey was 4.05. The 12 questions asked each quarter for this survey are below:

1. I know what is expected of me at work.
2. I have the materials and equipment to do my work right.
3. At work, do I have the opportunity to do what I do best every day.
4. In the last seven days, I have been given recognition or praise for doing good work.
5. My supervisor or someone at work seems to care about me as a person.
6. There is someone at work that encourages my development.
7. My opinions seem to count at work.
8. The mission/purpose of my company makes me feel my job is important.
9. My co-workers are committed to do quality work.
10. I have a best friend at work.
11. In the last six months, someone at work has talked to me about my progress.
12. This last year, I have had an opportunity to learn and grow.

Labor Principles

Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
Principle 4: The elimination of all forms of forced and compulsory labor;
Principle 5: The effective abolition of child labor;
Principle 6: The elimination of discrimination in respect of employment and occupation.

Assessment, Policy and Goals

Norwex China strictly adheres to the Chinese Labor Law.

Each individual in Norwex enjoys equal pay for equal work, and we ensure that the hiring procedure is objective, transparent and equal.

Norwex normal workweek: 40 hours, in emergency or unusual situations, Norwex workweek can be extended to 60 hours, including overtime. All workers take at least one day off every seven-days. All overtime is voluntary.

In addition to their compensation for regular hours of work, Norwex workers are compensated for overtime hours at the premium rate required by applicable laws and regulations. Norwex also offers vacation time, leave periods and holidays consistent with applicable laws and regulations. Employees are paid timely and clearly conveyed the basis on which they are being paid.

Norwex employees are also free to leave work or terminate their employment with reasonable notice.

Norwex does not use any forced and compulsory labor or uses child labor and we support the principle of freedom of association. Principles 3 through 6 are incorporated into Norwex China’s CSR Code of Conduct, which our suppliers are obliged to follow, and Norwex China will audit our suppliers to ensure we are not indirectly violating any of the 4 labor principles.

The UN Global Compact Labor Principles are part of our company regulations and explained during new hire orientation day. Violations of our Employee Manual will have formal consequences.

Implementation

The UN Global Compact Labor principles have been introduced in our monthly internal newsletter, and as part of our internal training and Intranet website.

Norwex has a human resource team in place to ensure the principles are implemented and supported, to be included in the new hire training for new employees and is available to assist and support staff and managers in questions regarding any of the 4 principles.

Norwex China labor union is there to ensure that the Global Compact’s principle number 3 is consistently followed.

Measurement of outcomes

The number of lost legal disputes with staff is zero and no labor disputes/strikes per calendar year. There have been neither disputes in relation to forced and compulsory labor or complaints about discrimination.

Environment Principles
Principle 7: Business should support a precautionary approach to environmental challenges;
Principle 8: Undertake initiatives to promote greater environmental responsibility;
Principle 9: Encourage the development and diffusion of environmentally friendly technologies.

Assessment, Policy and Goals

Norwex is committed to consider the environmental impact of the business and selling its “clean without chemicals” concept and state of the art “organic and other personal care products.

Norwex has an ecological approach to our mission and is considering the impact on humans, other animals and the environment and how these parts interact and impact each other. Norwex is as such striving to improve the quality of life rather than just improve the indoor environment or the well-being of a few individuals.

Implementation

Norwex is producing environment friendly products. Microfiber allows for the removal and or reduction in the use of cleaning products and chemicals, reducing their inherent pollution to our habitat. Norwex uses antibacterial technology in our own fiber to give our products an excellent cleaning function.

Norwex is continually seeking better technologies for producing products as well as the characteristics of the products itself.

In 2011 we have helped our client get Nordic Swan certification to ensure they are made with minimum impact to human health and the environment.

The UN Global Compact’s Environment principles are part of our company regulations and added to our Manufacturing Agreement.

The UN Global Compact’s environmental principles are part of Norwex China’s CSR Code of Conduct and we audit our suppliers to ensure Norwex China is not indirectly involved in the abuse of our environment and any unnecessary pollution.

Norwex China recycles industrial waste from the production of its products, and we have recycle programs for daily use items in the office.

Measurement of outcomes

We have certified in 2010 some product ranges according to the Nordic Swan Standards to ensure our products made with minimum impact to human health and the environment and will continue to certify products.

We send warning letters to our suppliers based on supplier audits for violating our CSR Code of Conduct with respect to environmental protection.

We have purchased a laser guided auto-cutting machine that also reduces the cutting waste.
The cutting waste is collected and recycled and re-used.
Our dyeing factories all have upgraded their water-purification systems.
Although our production output over the years has gone up considerably, the energy, gas and water cost were relatively stable thanks to saving initiatives and efficiency improvements.

Anti-corruption Principles

Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

Assessment, Policy and Goals

Norwex is against corruption and supports the UN convention against corruption, and we have anti-corruption policies, which are in the Integrity Statement that all staff and suppliers of/to Norwex China have signed.

Norwex’s Core Values are: Integrity, Trust and Respect.

Integrity is the quality of being honest and morally upright. Incorporating integrity into our core values means we must conduct our business in a strictly legal way, we do not do anything illegal.

The UN Global Compact Anti-corruption principle is part of our company rules and was added into our Executive & Employee Manual.

Implementation

Every Norwex staff is required to sign the Integrity Statement the first day they work for Norwex, which is a part of the employee contract.

Every Norwex supplier is required to sign the Supplier Integrity Statement together with the supplier contract the first day they work with Norwex.

Measurement of outcomes

Staffs who are working for Norwex now all have signed the Integrity Statement, and we didn’t find any corruption in our business in 2013.

We did not find any suppliers violating our CSR Code of Conduct with respect to graft and corruption in 2013. 100% of our suppliers have signed the Supplier Partnership Agreement and Manufacturing Agreement.