H.E. Ban Ki-moon
Secretary-General
United Nations
New York, NY 10017
USA

January 29, 2015

Dear Mr. Secretary-General

I am pleased to confirm that Harman International Industries, Incorporated (“HARMAN”) supports the ten principles of the United Nations Global Compact with respect to human rights, labor, environment and anti-corruption. With this communication, we express our support for the advancement of these principles within HARMAN’s sphere of influence. We commit to making the United Nations Global Compact and its principles part of the strategy, culture and day-to-day operations at HARMAN and undertake to make a clear statement of this commitment to our stakeholders and to the general public.

We recognize that a key requirement for participation in the United Nations Global Compact is the annual submission of a Communication on Progress (COP) that describes our company’s efforts to implement the ten principles. We support public accountability and transparency and will make public our annual progress according to the Global Compact COP policy.

Sincerely,

Dinesh C. Paliwal
Chairman, President and Chief Executive Officer

As part of HARMAN’s Code of Business Conduct for Employees and Code of Ethics for Senior Management and the Board, each published on our website, it is the policy of HARMAN that each of our employees, including senior officers and Board shall be accountable for, among others, complying with federal, state, and local laws applicable to HARMAN as well as those of private and public regulatory agencies. HARMAN’s Code of Business Conduct for Employees further requires all employees to proactively promote ethical behavior among subordinates and peers, and to promptly report of any violations internally.

Furthermore, HARMAN’s Supplier Standard Terms and Conditions, published on our website, require HARMAN’s suppliers to agree to HARMAN’s Supplier Code of Conduct, also published on our website. HARMAN’s Supplier Code of Conduct requires that each supplier comply with applicable employment, health and safety standards and provide a safe and healthy working environment for its employees. Pursuant to HARMAN’s Supplier Standard Terms and Conditions, a material violation of HARMAN’s Supplier Code of Conduct constitutes an event of default, permitting HARMAN to cancel orders with the supplier in question.

HARMAN has implemented a Whistleblower Reporting Policy to prevent human rights violations at our operations. HARMAN continues to provide telephone hotline, Intranet and mailbox channels to employees for reporting of suspected violations of our company’s ethics, governance and Human Rights policies. All reports are kept confidential and are investigated by HARMAN’s Senior Management Ethics Team.

HARMAN’s Senior Management Ethics Team investigates all Whistleblower Policy program grievances. Depending on the grievance filed, the Audit Committee and/or the Nominating and Governance Committee of the Board of Directors is provided, at regular intervals, with a report on messages received and the results of any investigation.

All HARMAN suppliers are expected to meet the standards of conduct expressed in the Supplier Code of Conduct. All suppliers must sign the Compliance Certificate and are subject to audit by HARMAN to ensure compliance with these standards. Any failure to sign the Compliance Certificate or material non-compliance with the Supplier Code of Conduct will constitute a breach of any contract or agreement between HARMAN and the supplier, and may result in corrective action up to and including termination of the contract or agreement.

HARMAN is committed to ensuring our Responsible Business policies, which includes our Code of Business Conduct for Employees, Code of Ethics for Senior Management and the Board and the Supplier Code of Conduct (based on the SA8000 Standard from Social Accountability International), and Statement on Human Rights are upheld across our company. Our policies reflect the UNGC Labor Principles, and are available for public review on our corporate website, and discussed in our 2014 Sustainability Report (http://sustainability.harman.com/overview/).

Each employee benefits from an annual HARMAN “people cycle.” This ensures regular performance reviews, clear targets for the year ahead and compensation programs that link pay to measurable individual and business goals. Further detail on employee benefits and compensation are available on our corporate website and in our 2014 Sustainability Report.

HARMAN’s 2014 Sustainability Report outlines measures taken to implement labor practices. Examples of these measures are provided below – please visit our 2014 Sustainability Report for further information: http://sustainability.harman.com/overview/
• HARMAN has health and safety committees comprising site managers and plant operations personnel to support a positive and safe workplace.
• The "Safety Kaizen" suggestion program is designed to improve safety performance.
• HARMAN will continue to evolve our policies and practices, aiming to further improve our performance in health and safety. For example, a minimum standard of activities in the field of workplace health promotion is under development for release in FY2015.
• In 2013, HARMAN’s Executive Committee approved a formal strategy to improve diversity and inclusion across our global workforce.
• In FY2014, we formally launched an initiative focused on attracting and developing top female talent: the HARMAN Women’s Network. Our goal is to fill 25 percent of all openings at the manager level and above with women.
• Whistleblower Reporting Policy: HARMAN continues to provide a telephone hotline, Intranet and mailbox channels to employees for reporting of suspected violations of our company’s ethics, governance and Human Rights policies.

Performance on labor policies and goals, including employee diversity factors, is listed in the “People” section of our 2014 Sustainability Report (http://sustainability.harman.com/people/employees/).

HARMAN reserves the right to inspect suppliers’ facilities to, among others, verify compliance with the Supplier Code of Conduct.

At HARMAN, we strive for continual improvement in critical factors that impact the global environment, and our policies and actions are aligned with the UNGC Environmental Principles. In all of our manufacturing operations, we are actively engaged in ongoing efforts to reduce carbon emissions, conserve and protect water supplies, curb energy usage and lower the amount of waste we generate. Our environmental policy is available for public review on our corporate website. Further detail on HARMAN’s environmental policies, goals, and progress is available in the “Operations” section of our 2014 Sustainability Report: http://sustainability.harman.com/operations/

HARMAN is committed to continual improvement in environmental performance as prescribed in ISO 14001. These efforts include a worldwide Environmental Management System at HARMAN facilities. To date, HARMAN has achieved external certification under ISO 14001 at several key operating locations. Our corporate environmental policy also includes provisions that set worldwide standards for operations at all HARMAN facilities and suppliers.

Further detail on HARMAN’s environmental standards for operations and suppliers is available on our corporate website, and in the “Operations” section of our 2014 Sustainability Report: http://sustainability.harman.com/operations/

HARMAN is always looking for ways to reduce the environmental footprint of our products. By reducing waste and building products that require less energy, we help cut carbon emissions while improving the sustainability track record of our customers’ supply chains. Further information is available in the “Products and Technology” section of our 2014 Sustainability Report: http://sustainability.harman.com/products/

HARMAN’s environmental policy mandates that we:
• Ensure our activities, products and operations are in compliance with all applicable federal, state and local environmental laws, and other requirements to which we subscribe;
• Conduct our operations in a manner that is committed to prevention of pollution, conservation of resources, careful handling of hazardous substances and promotion of environmental responsibility;
• Review our environmental procedures periodically and set objectives and targets that minimize negative environmental impact and lead to continuous improvement; and
• Communicate our environmental commitments to all persons working for or on behalf of HARMAN and to our customers.

Through HARMAN’s annual risk inventory and assessment, environmental risks and opportunities are identified, and risk control measures are implemented (e.g., monitoring of key performance indicators). Additional information on HARMAN’s environmental policy and risk management are available in the “Compliance and Standards” and “GRI G4 Reporting” sections of our 2014 Sustainability Report: http://sustainability.harman.com/overview/

HARMAN supports the UNGC Principles on Anti-Corruption, as reflected in our Code of Business Conduct for Employees, published on our website. It is the policy of HARMAN that each of our employees, including senior officers and Board shall be accountable for, among others, complying with federal, state, and local laws applicable to HARMAN as well as those of private and public regulatory agencies. HARMAN’s Code of Business Conduct for Employees further requires all employees to proactively promote ethical behavior among subordinates and peers, and to promptly report of any violations internally.

HARMAN is committed to fostering an environment of compliance and has established outlets for employees to voice any concerns. HARMAN’s Whistleblower Policy, published on our corporate website, provides all the information necessary to report suspected violations of the Code of Business Conduct for Employees, including those violations associated with corruption.

HARMAN conducts regular employee ethics and compliance trainings which include awareness training on anti-corruption principles.

HARMAN’s Senior Management Ethics Team investigates all Whistleblower Policy program grievances. Depending on the grievance filed, the Audit Committee and/or the Nominating and Governance Committee of the Board of Directors is provided, at regular intervals, with a report on messages received and the results of any investigation.