Fraud is defined as intentional deception for personal gain. Fraudulent acts are always wrong, including but not limited to such things as:
· Embezzlement – the theft of company funds
· Forging or altering negotiable instruments such as checks
· Misuse of assets belonging to KEMET, an employee, customer, partner, or supplier
· Filing a false expense report
· Taking cash, securities, supplies, or any other company asset for personal use
· Establishing or maintaining an undisclosed or unrecorded bank account, fund, or asset of KEMET
· Unauthorized handling or reporting of company transactions
· Making false, artificial, or misleading entries into the company’s records or financial statements
KEMET will never engage in fraudulent acts and will take immediate action against anyone who engages in fraud at KEMET’s expense.
B. Bribery/Foreign Corrupt Practices Act (FCPA)
Many countries have bribery and other anti-corruption laws that are intended to prevent companies and individuals from gaining an unfair advantage by undermining the rule of law. KEMET will never offer or accept bribes or kickbacks, and will not participate in or facilitate corrupt activities of any kind. This prohibition on bribes and kickbacks also applies to third parties acting on KEMET’s behalf, such as agents, contractors, or consultants. We will never engage a third party who we believe may attempt to offer a bribe or kickback in the conduct of KEMET’s business.
The U.S. Foreign Corrupt Practices Act (FCPA) prohibits payment or offers of value to government officials, parties, or candidates in order to influence their acts or decisions as they relate to business opportunities. If your job requires you to have dealings with government officials, parties, or candidates in any country, you need to be familiar with this Act. If there is ever any question of propriety, contact the Chief Compliance Officer immediately.
KEMET strictly prohibits any payments to public officials made with the intention of influencing their decisions, including so-called "facilitating payments". Even token tips or minor payments to public officials that simply facilitate service, are traditional in the country or locality, and are nominal in amount are prohibited, unless permitted or required by the local written law applicable to the public official.
KEMET operates in many countries around the world, and customs regarding business gifts and favors vary greatly. There are times when it may be respectful or appropriate to offer or receive business gifts or favors, including entertainment, as gestures of mutual appreciation and gratitude. Offering or accepting properly recorded business meals, entertainment, or token gifts intended and understood as simple courtesies meant to foster understanding and communication with suppliers, customers, and public officials is allowed.
Acceptable business gifts, favors, or entertainment are generally those that:
· Are infrequent, non-cash, and not excessive in value (defined as no more than US $250 or local currency equivalent for entertainment and no more than US $100 or local currency equivalent for business gifts or favors.)
· Comply with all applicable U.S. and foreign laws.
· Would not embarrass the company, the person receiving the gift, or the person giving the gift.
In the event you receive a gift or other favor valued at more than US $100 or entertainment valued at more than US $250, you must notify your manager or HR Manager and explain the circumstances. In the event you elect to keep the gift or accept the favor or entertainment, you may be required to contribute an amount equal to the value of the gift, favor or entertainment to a charitable organization of your choosing. This contribution needs to be documented and a copy forwarded to the Chief Compliance Officer along with details of the circumstances.
If you ever have a question about a business gift, favor, or entertainment, contact your manager, HR Manager or the Chief Compliance Officer for assistance in determining the correct course of action.
D. Antitrust and Competition
Antitrust laws, sometimes also called competition laws, govern the way that companies interact with their competitors, customers, and suppliers in the market place. They are designed to encourage competition by prohibiting unreasonable restraints on trade. KEMET and its directors, officers, and employees are required to comply with the antitrust and unfair competition laws of the many countries in which the company does business. These laws are complex and vary considerably from country to country. They generally concern:
· Agreements with competitors that harm customers, including price fixing and allocations of customers or contractors,
· Agreements that unduly limit a customer’s ability to sell a product, including establishing the resale price of a product or service or conditioning the sale of products on an agreement to buy other company products and services, and/or
· Attempts to monopolize, including pricing a product below cost in order to eliminate competition.
KEMET is committed to competing vigorously but fairly for suppliers and customers in all regions and countries where we do business. Violating antitrust laws is a serious matter, and could place both the company and the individual at risk for substantial criminal penalties. If you ever have a question about compliance with antitrust laws, it is very important that you contact your manager, HR Manager, or the Chief Compliance Officer for guidance.
E. Export Control/Sanctions
Laws and regulations govern imports and exports in every country in which KEMET does business. In many cases, these laws require an export license or other appropriate government approvals before an item may be shipped or transferred.
As KEMET employees, each of us has a responsibility to comply with these laws and regulations. As a minimum:
· All goods must be cleared through customs, and
· We should not proceed with a transaction if we know or suspect that a violation has occurred or is about to occur.
Violations, even inadvertent ones, could result in significant fines and penalties, denied export licenses, loss of export privileges, or increased customs scrutiny and delays. If you ever have a question about the proper course of action in handling imports/exports, contact your manager, HR manager, or Chief Compliance Officer immediately.
F. Political Contributions
KEMET obeys all laws in promoting the company’s position to governmental authorities and in making political contributions. However, the company reserves the right to lobby for issues that impact our business within the letter and spirit of those laws.
No political contribution to any candidate, party, incumbent, or interest group may be made on behalf of the company by any KEMET employee without the express permission of the Board of Directors.
G. Conflicts of Interest
Employees have a duty to advance KEMET’s legitimate interests when the opportunity to do so arises. No director, officer, or employee of the company may have a personal, financial, or family interest that could in any way keep him/her from acting in the best interest of the company.
Specifically, directors, officers, and employees are prohibited from:
· Taking for themselves personally any opportunities that are discovered through the use of company property, information, or position
· Using corporate property, information, or position for personal gain, and/or
· Competing with the company.
Any actual or potential conflict of interest must be reported to your manager, HR manager, or Chief Compliance Officer as soon as it is recognized.
H. Corporate Sponsored Memberships
Employees may participate in corporate sponsored memberships that serve legitimate business needs. Sponsored memberships are appropriate only in organizations whose objectives and activities are lawful and ethical, and fit within the framework of broadly accepted social values.
Contact your manager, HR manager, or Chief Compliance Officer with any questions regarding corporate sponsored memberships.