Supplier/Licensee Code of Conduct

1. Prohibition of Forced Labor
   Suppliers/licensees must not use any forced or involuntary labor. Forced or involuntary labor includes work performed by any person who is under the threat of penalty or coercion or work that is not voluntarily offered by any person. Restrictions on movement and retention of employees' identity documents or work permits by suppliers/licensees are also forms of forced labor.
2. Prohibition of Child Labor
   Suppliers/licensees must not use child labor. Child labor refers to work by people under the age of 15, the local legal minimum age for employment, or the age for completing compulsory education, whichever is higher. No person under the age of 18 must be engaged in work that is dangerous or harmful, or that poses a risk to their health, safety or morals.
3. Offer of Appropriate Wages and Benefits
   Suppliers/licensees must comply with all applicable laws and regulations related to wages and benefits.
   Suppliers/licensees must ensure employees are compensated for overtime hours at legally prescribed premium rate or, if there is no legally prescribed premium rate, at a rate higher than the regular hourly compensation rate.
   Financial penalties and wage deductions in violation of labor-related laws and regulations are prohibited.
   Employee benefits must be provided in accordance with local laws and regulations.
4. Suppression of Long Working Hours
   Suppliers/licensees must manage working hours and holidays in compliance with applicable local laws and regulations and working hours must not exceed the limits established by local laws and regulations. In addition, employees must be granted the right to leave as established by applicable laws and regulations.
5. Ensuring employees' health and safety
   Suppliers/licensees must ensure a safe and healthy environment in all facilities, including offices, factories and dormitories provided, and take all necessary measures to prevent and mitigate injuries, accidents and disasters that may occur during work. Suppliers/licensees must properly manage and dispose of chemical substances.
   Procedures for various emergencies that may occur, such as fire, natural disasters, and security must be prepared and communicated to employees.
6. Prohibition of Discrimination
   Suppliers/licensees must not discriminate in hiring, wages, training, promotion, disciplinary action, or any other employment practice, on the basis of race, creed, religion, color, sex, sexual orientation, nationality, family origin, age, marital status, disability, pregnancy, union membership, political affiliation, etc.
7. Freedom of Association and Collective Bargaining
   Suppliers/licensees must respect the rights of employees to join, associate or organize unions and bargain collectively in a lawful and peaceful manner, without penalty, interference, discrimination, retaliation or harassment.
8. Prohibition of Harassment
   Suppliers/licensees must not subject workers to corporal punishment, threats of violence, or any form of physical, psychological or sexual harassment or abuse.
9. Communication to Employees
   Suppliers/licensees must communicate the provisions of the Supplier/Licensee Code of Conduct to employees, whether orally or in writing, and take appropriate measures to ensure that it is fully understood by employees.
10. Environmental Protection
    Suppliers/licensees are encouraged to engage in environmental considerations including the reduction and recycling of waste. Also, suppliers/licensees must comply with applicable environmental laws and regulations and dispose of chemical substances in controlled and safe manner.
11. Prohibition of Corruption and Bribery
    Suppliers/licensees must comply with all applicable anti-bribery and anti-corruption laws and regulations and must not engage in corruption, extortion, embezzlement or bribery in any form.
12. Retention of Inspection and Audit Rights
    Where Sanrio requires, suppliers/licensees must, upon prior notice, allow Sanrio and its designated agents (including third parties) to inspect and audit all facilities, including offices and factories, to ensure compliance with the Supplier/Licensee Code of Conduct.
13. Protection of Intellectual Property Rights
    Suppliers/licensees must not infringe any intellectual property rights of Sanrio and any third party, including unauthorized or improper use.
14. Information Management
    Suppliers/licensees must properly protect confidential information, including trade secrets they or Sanrio handle, as well as the personal information of customers, employees, etc., and must not misuse such information or disclose it to outside parties.