ETHICS AND COMPLIANCE POLICY: SDG8 Decent Work and Economic Growth
As part of Sumitomo Corporation Group, Presperse Corporation conducts business according to high ethical standards. We comply with laws and regulations that are applicable to our business and industry in the countries that we operate in. Our commitment to ethical principles, based on the Sumitomo Group Compliance Policy key principles, include fair competition, conflict of interest, international trade regulations, laws related to our business, tax compliance, anti-bribery and anti-corruption, anti-money laundering, intellectual property, information management, environmental protection, insider trading, respect for human rights and prevention of discrimination and harassment as well as conflict of interest. Our ethics standard also includes the requirement of strong ethical principles from our suppliers, employees, customers and shareholders. Our ethical commitment is expressed in Presperse Corporation Code of Conduct and in the Sustainable Procurement Policy.
As a Sumitomo Corporation Group Company, Presperse complies with laws and regulations in our countries of operations, we support and respect the Ten Principles of the UN Global Compact, as well as the International Labor Organization’s core labor standards of the conventions in fiver areas: freedom of association and the effective recognitions of the right to collective bargaining, elimination of all forms of forced or compulsory labor, effective abolitions of child labor, elimination of discrimination in employment and occupation and occupational safety and health. No person should be discriminated against based on race, nationality, gender, religion, age, origin, physical or mental disability, or other reasons not related to business operations. As part of Sumitomo Corporation Group commitment to respect human rights, Presperse Corporation respects global standards pertaining to the rights of indigenous people, including the United Nations Declaration on the Rights of Indigenous People and the principle of “free, prior and informed consent (FPIC).” In business operations in areas where indigenous people reside, we recognize their unique culture and history and comply with applicable laws and regulations of each country or region as well as respect legal and customer land tenure and resources rights.
Presperse is committed to an ethical and fair workplace environment. We have a company-wide Ethics Point Hotline (www.scamericas.ethicspoint.com or by calling 1-888-279-1912). This tool allows employees to anonymously report suspected or actual misconduct or violation of any of our rules and policies. Our Responsible Procurement Policy (SDG12: Responsible Production and Consumption) also specifies a grievance mechanism for our partners to report any complaints related to ethics and compliance. As part of our continuing efforts to promote a strong culture of compliance and awareness, our company, along with other companies in Sumitomo Corporation Americas Group, have rolled out a “Speak Up” campaign in December 2024. The “Speak Up” campaign was to remind our employees and other stakeholders about the expectation to speak up and report violations or suspected violations of laws, company policies and Code of Conduct. There were no issues reported to the Ethics Point Hotline, by either employees or other stakeholders in 2023 and 2024.
In addition, we perform ongoing training on ethics to our personnel via automated training platform. The latest training was rolled out in Q2 of 2024, and training refreshers are provided annually. We have established a 100% target completion rate for Code of Conduct training, covering principles of conduct, anti-corruption and anti-bribery, fair trade, anti-competitive practices etc. This training serves as a key metric in our efforts to fight corruption, unethical behavior, fraud, money laundering and conflict of interest within our company. In 2024, 100% of employees completed the ethics training and we expect to maintain the completion rate at the same level in 2025.
At Presperse, we are committed to protecting and preserving Company’s and Stakeholders information assets as well as promoting effective IT systems operations in accordance with the regulations.
Presperse has migrated all our critical IT infrastructure from an on-prem environment to Azure cloud services. This enables us to scale up when needed and allows for a secure, integrated, backup and disaster recovery environment.
Our IT Director overviews the implementation of data protection programs and monitors the completion of monthly security awareness training for employees. The training was implemented in October 2024. The current completion rate of training is 100%, and we aim to achieve this target monthly. Our IT security measures allow for a safe working environment, resulting in zero information security incidents in 2023 and 2024.
Regulatory compliance and laws change frequently. To maintain expertise in laws and regulations, and to shape the regulatory landscape of our industry, Presperse employees are members of industry leading organizations such as Personal Care Product Council, Independent Beauty Association, Fragrance Creator Association, American Cleaning Institute, Cosmetic Executive Women and Society for Cosmetic Chemists.
To prevent corruption and bribery, Presperse has established guidance related to anti-bribery and corrupt practices. In addition to a third-party audit, our records are reviewed and audited by the parent company, the Internal Control Department. The auditing bodies check assets, risk management, and the status of our company and business processes to determine any problems and inherent anti-corruption risks. The Internal Control Department helps to raise the quality of organizational management by encouraging improvements and evaluating the effectiveness and validity of each process. There were no instances of corruption, bribery, fraud, money laundering or conflict of interest reported in 2023 and 2024. We aim to maintain this number of reported incidents at zero every year.
At Presperse, safety, physical and mental health, and wellbeing of employees are a core of our operations. 100% of our employees are covered by health insurance and other social benefits. It is our commitment to provide a safe and healthy work environment for employees, customers and visitors. We strive to improve safety and awareness through various measures, including training of our employees in health and safety in their homes, offices and laboratories. Our employees are encouraged to report incidents through designated channels described in the Employee Manual.
As reported to OSHA, the total number of days away from work or job transfer or restrictions related to workplace accidents in 2023 was zero.
Talent development does not happen overnight. There is a need to envision, develop and deploy talents required for the growth of each business in the medium to long term. To assign talent continuously and strategically in line with business strategies on a global basis, Presperse, as part of the Sumitomo Corporation Group, implemented job rotation strategy. This strategy includes a trainee program designed to develop talent who can play an active role on the global stage.
Presperse is committed to supporting career development and management for its employees by providing them with adequate training and resources. In addition, Presperse promotes career development by encouraging our employees to demonstrate high performance. Promotion, as a formal recognition of contribution and efforts, is a strong motivator for employee retention, gives employees a sense of growth and upward mobility, what can increase their job satisfaction and commitment to the company. Presperse is also a strong supporter of horizontal career shift that focuses on expanding skills, gaining new experience and broadening employee knowledge.
Presperse strives to be one of the best, cleanest providers of beauty ingredients while bettering the world through our UN Global Compact Commitments and creating a corporate culture of high standards. Presperse stands as a company of great values and cultivates the culture that empowers and develops its employees, provides meaningful and rewarding opportunities, and prioritizes social responsibility. As a result, for the last three years, Presperse has achieved GreatPlaceToWork® certification. In 2024, 100% of our employees said that Presperse is a great place to work, compared to 57% of employees at a typical U.S.-based company.
At Presperse, we are on a mission to leave the world more beautiful for people and planet. We are committed to moving towards naturalness, traceability, safety and transparency of products offered to the customers. To achieve this commitment, 100% of our ingredients are shipped with Safety Data Sheets to all our business partners.
Presperse has policies and procedures that apply to the selection of our suppliers, third party contract manufacturers and distributors. Our business partners are required to commit to Supplier Code of Conduct, developed based on international standards including Convention on International Trade in Endangered Species (CITES) and International Labor Organization (ILO)’s Declaration on Fundamental Principles and Rights at Work. Dedicated personnel manages and oversees our operations compliance risk under a Basic Elements project within Presperse and at the Parent Company level.
We are committed to continuing our business in an ethical manner matching the 2023 and 2024 metrics for insurance coverage, accidents rate and employee satisfaction as well as other above-mentioned metrices.
Policy Established: 04/04/2022
Reviewed Annually
Revision 07/14/2025
19 Schoolhouse Road, Somerset, NJ 08873