UNIVERSITY OF PITTSBURGH POLICY 05-02-18

CATEGORY:              FINANCIAL AFFAIRS
SECTION:                  Purchasing
SUBJECT:                 Supplier Code of Conduct
EFFECTIVE DATE:   November 1, 2011 Revised
PAGE(S):                   4

I.    SCOPE

      This policy establishes a code of conduct for current and potential University suppliers.

II.   INTENT

      The University of Pittsburgh is committed to conducting its business in an ethical, legal and

      socially responsible manner.  The University expects its suppliers to share this commitment
      and, therefore, has established this Supplier Code of Conduct.  Although there may be

      different legal and cultural environments applicable to its suppliers, University suppliers

      must meet the following minimum requirements in order to do business with the University.

III.  SUPPLIER CODE OF CONDUCT

      Compliance with Laws, Regulations and Published Standards

      University suppliers must comply with all applicable laws, codes or regulations of the

      countries, states and localities in which they operate.  This includes, but is not limited to,

      laws and regulations relating to environmental, occupational health and safety, and labor

      practices.  In addition, University suppliers must require their suppliers (including

      temporary labor agencies) to do the same.  University suppliers must conform their

      practices to any published standards for their industry.

      Environmental Practices

      University suppliers shall comply with all environmental laws and regulations applicable to

      their operations worldwide.  Such compliance shall include, among other things, the

      following items:

      -     Obtaining and maintaining environmental permits and timely filing of required reports

      -     Proper handling and disposition of hazardous materials

      -     Monitoring, controlling and treating discharges generated from operations

      Occupational Health and Safety Practices

      University suppliers shall provide their employees with a safe and healthy working

      environment in order to prevent accidents and injury to health arising out of, linked with,

      or occurring in the course of work or as a result of the operation of the supplier.  Suppliers

      shall, among other things, provide:

      -     Occupational health and safety training

      -     A system for injury and illness reporting

      -     Medical treatment and/or compensation to injured/ill workers arising as a result of

            working for supplier

      -     Machine safeguarding and other protective measures to prevent injuries/illnesses

            to workers

      -     Clean and safe facilities

      Labor Practices

      The University expects its suppliers to adopt sound labor practices and treat their workers

      fairly in accordance with local laws and regulations.  In addition, suppliers must comply

      with the following standards:

      -     Freely Chosen Employment. Suppliers shall not use any forced labor, whether in the

            form of prison labor, indentured labor, bonded labor or otherwise.

      -     No Child Labor. Suppliers shall comply with local minimum working age laws and

            requirements and not employ child labor.

      -     Minimum Wages. Suppliers shall provide wages for regular and overtime work and

            benefits that meet or exceed legal requirements.

      -     Working Hours. Suppliers shall not require workers to work more than the maximum

            hours of daily labor set by local laws.

      -     No Harsh, Inhumane Treatment or Abuse. Suppliers shall treat each employee with

            dignity and respect.  In no event shall Supplier’s workers be subject to threats of

            violence, physical punishment, confinement or other form of physical, sexual,

            psychological or verbal harassment or abuse.

      -     No Discrimination. Suppliers shall not discriminate in its employment practices on the

            basis of race, color, religion, sex, age, physical disability, national origin, creed or any

            other basis prohibited by law.

      -     Freedom of Association. Suppliers shall recognize and respect the rights of its workers

            to organize in labor unions in accordance with local labor laws and established practices.

      Ethical Business Practices

      Suppliers shall conduct their businesses in accordance with the highest standards of

      ethical behavior and in accordance with applicable laws and regulations. Suppliers are

      expected to conform to these requirements in each of the following areas:

      -     Fair Trade Practices. Suppliers shall not engage in collusive bidding, price fixing, price

            discrimination or other unfair trade practices in violation of antitrust laws.

      -     Bribery, Kickbacks and Fraud. No funds or assets of the supplier shall be paid, loaned

            or otherwise disbursed as bribes, "kickbacks", or other payments designed to influence

            or compromise the conduct of the University.

      -     Foreign Corrupt Practices Act. While laws and customs vary throughout the world, all

            suppliers must comply with foreign legal requirements and United States laws that apply

            to foreign operations, including the Foreign Corrupt Practices Act.  The Foreign

            Corrupt Practices Act generally makes it unlawful to give anything of value to foreign

            government officials, foreign political parties, party officials, or candidates for public

            office for the purposes of obtaining or retaining business.  See Policy Attachment A for

            definitions, scope, and detailed policy requirements related to compliance with the Foreign

            Corrupt Practices Act.

      -     University Policies and Procedures. Suppliers must comply with the University’s

            published policies and procedures, including, but not limited to, the University’s Conflict

            of interest and Procurement Relationships and Code of Ethics policies

            (http://www.cfo.pitt.edu/policies/).

      -     Intellectual Property Rights. Suppliers shall respect the intellectual property rights of

            others, especially the University, its affiliates and business partners.  Suppliers shall

            take appropriate steps to safeguard and maintain confidential and proprietary

            information of the University and shall use such information only for the purposes

            specified for use by the University.  Suppliers shall observe and respect all University

            patents, trademarks and copyrights and comply with all requirements as to their use
            as established by the University. Suppliers shall not transmit confidential or proprietary

            information of the University via the internet unless such information is encrypted in

            accordance with minimum standards established by the University.

      Export Sanctions/Terrorism Activities

      University suppliers must abide by all economic sanctions or trade embargoes that the

      United States has adopted, whether they apply to foreign countries, political organizations

      or particular foreign individuals and entities.

      Suppliers should not directly or indirectly engage in or support any terrorist activity.  Neither

      suppliers nor any of their affiliates, nor any officer or director of the supplier or any of its

      affiliates, should be included on any lists of terrorists or terrorist organizations compiled by

      the United States government or any other national or international body, including but not

      limited to: (i) the U.S. Treasury Department’s Specially Designated Nationals List, (ii) the

      U.S. State Department’s Terrorist Exclusion List, (iii) the United Nations List Pursuant to

      Security Council Resolution 1390 (2002) and Paragraphs 4(B) or Resolution 1267(1999)

      and 8(C) of Resolution 1333 (2000), and (iv) the European Union List Implementing

      Article (2)(3) of Regulation (EC) No. 2580/2001 on Specific Restrictive Measures Directed

      Against Certain Persons and Entities with a View to Combating Terrorism.

      Solicitations by Suppliers

      All suppliers shall comply with all guidelines issued by the University relating to access to

      University facilities, offices and departments, and employees.  No Supplier shall use the

      University’s computer system, including its electronic mail system and internet site, for the

      purpose of sending unsolicited electronic mail messages to the University community.

      Suppliers must receive prior written authorization from the University’s Purchasing

      Department to hold trade shows, demonstrate products, utilize University resources (i.e.,

      bulletin boards), or make unsolicited calls on University departments.

      Monitoring and Compliance

      Suppliers shall conduct audits and inspections to insure their compliance with this Supplier

      Code of Conduct and applicable legal requirements.  If a supplier identifies areas of non-

      compliance, the supplier agrees to notify the Purchasing Department as to its plans to

      remedy any such non-compliance.

      The University or its representatives may engage in monitoring activities to confirm

      Supplier’s compliance to this Supplier Code of Conduct, including on-site inspections of

      facilities, use of questionnaires, review of publicly available information, or other measures

      necessary to assess supplier’s performance.

      Any University supplier or University employee that becomes aware of violations of this

      policy is obligated to notify the Purchasing Department.  Based on the assessment of

      information made available to the University, the University of Pittsburgh reserves the

      right (in addition to all other legal and contractual rights) to disqualify any potential supplier

      or terminate any relationship with any current supplier found to be in violation of this

      Supplier Code of Conduct without liability to the University.

IV.  APPLICATION/EXCLUSIONS

      This Supplier Code of Conduct is a general statement of the University’s expectations with

      respect to suppliers.  This Policy should not be read in lieu of but in addition to any supplier

      obligations as set forth in any (i) request for proposal or other solicitation, or (ii) agreements

      by and between the University of Pittsburgh and the Supplier.  In the event of a conflict

      between this Policy and any University solicitation document or applicable agreement, the

      terms of the University solicitation or agreement shall control.

      No exclusions are applicable to this policy.

V.   REFERENCES

      Policy 05-02-02 Conflict of Interest and Procurement Relationships

      Policy 05-02-03, Code of Ethics

      Policy 05-02-18 Attachment A