supplier code of conduct - vertex pharmaceuticals · they expect vertex to continually challenge...

Supplier Code of ConductFOR THIRD PARTIES SUPPORTING VERTEX

SUPPLIER CODE OF CONDUCT | 01

HONESTY, INTEGRITY AND TRUST• We will not mislead or make promises we know we cannot keep.

• Werespectyourconfidentialityandwillnotshareprices,termsorotherconfidentialinformationwithyourcompetitors.

• WewillmaintainconfidentialityasdefinedinourAgreements,includinglimitingaccesstosupplierinformationtoonlythoseemployeeswhohaveadirectneed-to-know.

• Wewilloperateourbusinessincompliancewithallapplicablelawsandregulations.

COLLABORATION AND COOPERATION• Wewillstrivetokeepyouabreastofanychangesthataffectyouroperations.

• Wearealwaysinterestedinnewideastoimproveourperformanceandprocesses.

• WewillrespectyourownpoliciesandrulesregardinginteractingwithbiotechnologycompanieslikeVertex,providedtheinformationisshared,understood,andacknowledgedaccordinglybyus.

Our Commitments

A MESSAGE FROM LEADERSHIP

At Vertex Pharmaceuticals Incorporated (Vertex), we recognize that now, more than ever, enabling strong business partnerships is critical to our success. The patients we serve rely on Vertex to ensure we can continually develop, produce, and distribute our medicines on a reliable and dependable basis. They expect Vertex to continually challenge itself to find new solutions and innovative approaches that will result in transformative therapies for unmet medical needs. In turn, we need the same drive and commitment from our suppliers.

As such, Vertex will select and engage with those third party providers who share our commitment to high ethical standards, who embrace diversity, exhibit a passion and sense of urgency to the patients we serve, strive for innovation as well as continuous improvement, support the communities they live in, and who operate in a socially and environmentally responsible manner.

Naturally, good relationships require commitment from both sides. These guidelines provide not only our expectations, but define our commitment to open communication, collaboration, and acting with integrity. Vertex sets high standards for ensuring we conduct our business ethically and in accordance with the law. We have the same expectations for our third party business partners.

Our mission is to transform the lives of people with serious diseases through innovative drug discovery. By working together, we are confident that we can achieve this goal, and at the same time build relationships that are mutually beneficial and long lasting.

JOEL SCHULMAN DAMIAN WILMOTVice President, Strategic Sourcing Senior Vice President, Chief Risk & Compliance Officer

02 | SUPPLIER CODE OF CONDUCT SUPPLIER CODE OF CONDUCT | 03

OBLIGATION AND RESPONSIBILITY• Wewilladviseyouassoonaspossibleofanyextenuatingcircumstancesthatpreventus

frommeetingourobligations.

• Wewilldocumentinwritingourbusinesscommitmentsandinstructions,includingpurchaseordersaswellaschangerequestsassoonasknown.Verbalinstructionswillbefollowed-upwithwrittencontractualdocumentationbyanauthorizedVertexemployeeinordertobeviewedasacommitment.

• Wewilloperateourbusinesstohighethicalstandards,infullcompliancewithlegalandregulatoryrequirements,withrespectanddignityforallindividualsbothinternallyandexternally,andinasociallyandenvironmentallyresponsiblemanner.

OPEN COMMUNICATION• We will communicate clearly and concisely.

• Allcommunicationswillbeconductedinaprofessionalmanner;wewillalwaysdemonstraterespectforallindividuals.

• Wewelcomeyourreviewofourperformanceaswellassuggestionsforimprovement.

SUPPLIER DIVERSITY • Ourcommitmenttodiversityisreflectedinourvaluesandacrossourorganization,

whichextendstooursupplybase.Assuch,wewillprovideanequitableopportunity forsmallanddiversesupplierstocompeteforoursourcingopportunities.

• WeembracethediversityofouremployeesandcelebratethecreativevaluethatindividualswithdifferentbackgroundsandtalentsbringtoVertex.

OUR COMMITMENTS

UNCOMPROMISING HONESTY AND INTEGRITY• Alwaysstandbehindyourcommitments(delivery,quality,cost,service,leadtime,

andcontinuousimprovement)andtakeresponsibilityforanynon-compliance.

• Nevermisleadormakepromisesyoucannotkeepinordertoobtainormaintain our business.

• Maintainaccuraterecords,includingfinancialstatements,andbewillingtoshare suchinformationtoVertexuponrequest.

TRANSPARENCY• ProactivelynotifyusofmajorchangesinyourbusinessthatmayhaveanimpacttoVertex

includingchangesinstrategicdirection,executivemanagement,significantacquisitionsdivestitures,pendingorpotentiallaborunrest/strikes,operational/manufacturing/disruptions,materialshortages,aswellasanyregulatoryorlegalnoticesorfines.

• ProactivelyinformVerteximmediatelyinwritingofanyactualorpotentialconflictsofinterestrelevanttosupplier’sperformanceinsupportofVertex;regulatoryand/orstatutorynon-complianceincident;orfailuretoabidebytherequirementssetforthin our Supplier Code of Conduct.

Our ExpectationsVALUES AND BUSINESS OPERATIONS

Wetakethesecommitmentsveryseriously.Pleaseinformusifweneglectanyoftheseprinciplesand,ifproblemspersist,pleasecontactourVicePresident,

StrategicSourcing.IfyoufeelthataVertexemployee,oranyoneactingonbehalfofVertex,hasengagedinbehaviorcontrarytoourCodeofConductorthatmaybeillegalorotherwiseinappropriate,pleasecontactourComplianceAlertLineat:

https://secure.ethicspoint.com/domain/media/en/gui/35748/index.html(allcountries) or1-888-507-5631(U.S.).


CONFIDENTIALITY AND INTELLECTUAL PROPERTY PROTECTION • Abidebyyourcommitmentstomaintainingconfidentialityandintellectualproperty

protectionasdefinedinourAgreementsincludinglimitingaccesstoVertexinformationtoonlythoseemployeeswhohaveadirectneed-to-know.Thisincludeshavingclearprocessesinplacetosafeguardsuchinformationincludingtrainingtoensureemployeesunderstandtheseexpectations.

ETHICS• Instillacultureofadherencetocomplianceandsafetyinallaspectsofyourbusiness

includingallapplicableinternational,country/federal/national,state/provincial,andlocallaws,regulations,industrycodes,standardsandgovernmentagencyrequirements.

• Ensureastrictzero-tolerancepolicyregardingtheacceptanceorofferingofbribesorotherformsofcorruption,includinganyactionsthatcouldbeconstruedasbribes,meanttoinfluencebusinessdecisions.Thisincludesgifts,money,hospitality,grants,scholarships,servicearrangements,orotherformsofpayment/incentive,whetherprovideddirectlyorindirectly,thatcouldbeseenasanattempttocompromiseorimproperlyinfluenceabusinessdecisionfortheirownorganizationorVertex.

• Conductyourbusinessconsistentwithfairandvigorouscompetitionandincompliancewithallantitrustlaws.Employfairbusinesspracticesthatincludeaccurate,transparent,andtruthfuladvertisingandpricing.

• Haveazero-tolerancepolicyregardingcriminalfacilitationoftaxevasionandimmediatelynotifyVertexofactualorsuspectedactivity.

• Complywithallapplicabletraderegulations,includinglicensingrequirements,embargoes,and/orothertraderestrictionsthathavebeenapprovedbynational andinternationalauthorities.

• Befamiliarwith,andfullycomplywith,allapplicableVertexpolicies,proceduresandguidance.Ifunsure,thenproactivelyinquire.

• OpenlyandwillinglycomplywithVertex’sriskassessmentandqualificationprocesses,includinganti-corruption/anti-briberyandreputationduediligence,whichmayoccurpriortoandthroughoutourbusinessrelationship.Thismayincludeon-siteaudits,includingqualityaudits,toassessandverifythatyoucanmeetourspecificproductorservicerequirements(whichmayincludereviewofcontrolsystems,qualityplans,specificcapabilities,operatingpoliciesandsupportingdocumentation).

• EnsurethatVertexisnotifiedoftheuseofallsubcontractorsprovidinggoodsand/orperformingservicesonourbehalf.Wherecontractuallyobligated,confirmVertexapprovalofsuchusepriortoanyengagement.

• Promptlyreportanyactualorsuspectedviolationsofthelaw,regulations,orVertexpoliciesandprocedurestoVertexassoonasidentified.

• Whereapplicable,befamiliarwithandfullymeetallapplicablePharmaceutical/Biotechnologyindustryregulationsandstandardsrelatedtoeachcountryofoperation.

OUR EXPECTATIONSOUR EXPECTATIONS

HUMAN RIGHTS AND WORKPLACE • Donotengageinanyformsofforcedslaveryincludingbonded,indenturedor

involuntaryprisonlabor.Employeesshouldbefreetoleavetheiremployerattheir own discretion.

• Treatyourpeoplefairly,equallyandwithrespect.Donottolerateabuseorharshtreatmentofanykindincludingsexualharassment,sexualabuse,mentalorphysicalcoercion,orverbalabuse,includingthethreatofsuchtreatment.

• Anydiscriminationinhiring,training,promotion,compensation,orothersuchareabasedonrace,color,age,sex,sexualorientation/identity,ethnicgroup,maritalstatus,handicap,religion,membershipofapoliticalparty,membershipinatradeunion,orotherclassificationmustbeprohibited.

• Undernocircumstancesshallchildlaborbeemployed.

• Workhoursmustbeincompliancewithcountryregulations.Furthermore,paymenttoemployeesshallbeincompliancewithapplicablewagelawsincludingminimumhourlyandovertimewagesaswellasmandatedbenefits.Suppliersshallcommunicatewiththeiremployeesthebasisonwhichtheyarecompensatedinatimelymanner,includingwhetherovertimeisrequiredandthecorrespondingovertimewages.


• Employeesshallbeabletofreelycommunicatewiththeirsupervisorsregardingtheirworkingconditions,compensation,orvoiceotherconcernswithoutthefearofretribution,intimidation,termination,orharassment.Suppliersshallrespecttherightsofworkers,assetforthinlocallaws,toassociatefreely.

• Embracediversity.Ensureyourhumanresourcepracticesreflecteffortstoincreasediversitywithintheworkplace.

ENVIRONMENTAL, HEALTH, AND SAFETY (EH&S) RESPONSIBILITY • Operateyourbusinessinaproactive,environmentallyresponsiblemannerthatis

intendedtoprotectthehealthandsafetyofallemployees.

• HaveawrittenandactiveEH&Sprogram,includingtrainingprograms,andensureofitsimplementation.Thisincludesintegratingenvironmentalsustainabilitypracticesintoyourbusinessactivitiesandplansaswellasdefiningemergencyresponseplansfor employees.

• Supplierswhoseoperationsincludehandlingand/orworkingwithhazardousmaterials,chemicals,orotherpotentiallyharmfulproductsmustensurethatemployeesareproperlytrainedandthatsafetyinformationmaterialrelatedtosuchproductsandtheirpotentialrisksarereadilyavailableforaffectedemployees.Inaddition,suppliersshallhaveprogramsinplacetopreventormitigateaccidentaland/orcatastrophicreleaseofhazardousmaterialsandchemicalsintotheenvironment.

• Ensureallemissionstoair,water,andlandareincompliancewithalllawsandregulations.Propermanagementofalleffluents,emissions,andsolidwasteare tobedocumentedinanEH&SPlan.

OUR EXPECTATIONSOUR EXPECTATIONS

INSIDER TRADING • GivenVertexisapublicly-tradedcompany,itisexpectedthatthirdpartyproviders

willprohibitemployeesfrominsidertradingbasedonconfidentialinformationsharedbyVertexthatreasonableinvestorswouldconsiderimportantforbuying orsellingofsecurities.Thisincludessharingofsuchinformationforpersonalgainand/orgainofothers.

FINANCIAL STABILITY AND HEALTH • Demonstratefinancialhealthbysharingyourauditedfinancialstatements,when

requestedaspartofournormalriskassessmentandduediligence,andimmediatelyinformingVertexofsignificantbusinesschanges.

• ProactivelyinformVertex,ofanycapitalinvestmentsyoudeemnecessarytosupportVertex’sbusiness,priortomakinganyfinancialcommitments.

DISASTER RECOVERY/BUSINESS CONTINUITY • Asbestpractice,ensureadisasterrecoveryplanisinplace.

• ForthosesupplierssupportingourproductmanufacturingneedsorothersuppliersdeemedcriticalbyVertexreviewandupdatethedisasterrecoveryplanatleastannually.

DATA PRIVACY• Complywithallregulationsrelatedtodataprivacy.OnlyuseVertexpersonaldataas

necessarytoprovideservicestoVertexandconsistentwithyouragreementwithus.Onlysharesuchdatawiththirdparties,suchassubcontractors,aspartofprovidingyourservicesoratourdirection.Similarly,youshouldnotshareanythirdpartydatawithVertexwhichhasnotbeenexpresslypermittedbythatpartyorisnotalreadyinthepublicdomain.Ifyouaccidentallyuseorsharedataforanyotherpurposethanwhatispermittedunderouragreement,[email protected].

• Ensureeffectiveorganizationalandsecuritymeasuresareimplementedtosafeguardallsuchpersonaldatacoveredunderdataprivacyrulesandregulationsincludinganysubcontractors.Anysecurityincidentinvolvingasystemthathousesourpersonaldatamustbereportedtoprivacy@vrtx.comwithoutdelay.

• AllemployeeswhohaveaccesstoVertexpersonaldatamustbeappropriatelytrainedtoensuretheprotectionofthisdata.Also,accesstosuchdatamustbelimitedtoonlythosewithadirectneedtoknowtoperformtheirjobonbehalfofVertex.

• WhenpersonaldataisnolongernecessaryfordoingbusinesswithVertex,youshouldproactivelycontactustodeterminewhethertoreturnsuchinformationortocertify its destruction.

08 | SUPPLIER CODE OF CONDUCT

RESEARCH AND DEVELOPMENT PRACTICES (WHEREAPPLICABLE)

• EnsureallresearchanddevelopmentworkconductedonbehalfofVertexisperformedtothehighestethicalstandardsandpracticesandisfullycompliantwithallstatutorylaws,regulations,andinternationally-recognizedqualityandsafetystandardsapplicabletotheworkbeingperformed.

• Ahumaneapproachmustbeadoptedinthecareandtreatmentofallanimalsusedinresearchstudies,consistentwithmeetingthenecessaryscientificobjectives.Alternativestoanimaluseshouldbeusedwheneverscientificallyvalidandacceptabletoregulatoryagencies.

• ImmediatelyinformVertexofanyactualorpotentialnon-complianceissues.

PRODUCT PROTECTION AND SECURITY (WHEREAPPLICABLE)

• Workdiligentlytoensuretheintegrityofourproductsthroughoutallpointsinoursupplychain.

• ImmediatelycontactVertexintheeventofanyincidentrelatedtocounterfeit,tampered,mislabeled,and/orillegallytradedVertexproductsandsupportanyrelatedinvestigation.

• Ensureproceduresareinplace,andworkersareproperlytrained,tomonitorandtrackVertexproductswhenunderyourcontrol.

Theseguidelinesarenotintendedtoreplace,supersede,orconflictwithanycontractualobligationwithVertexnorwithanyapplicablelegaland/orregulatoryrequirement.Aspartofourthirdpartyevaluationprocess,VertexwillseektounderstandhowpotentialproviderscomplywiththeexpectationsdefinedinourSupplierCodeofConduct.Thisinputwillform a part of our supplier selection process.

Wewillexpectoursupplier-partnerstohavemanagementsystemsinplacethatdemonstratetheircommitmentandaccountabilitytotheseconcepts,withmechanismsinplacetoidentifyandmanagerisksforeachareaaddressedbythisdocument,andtomaintaindocumentationtodemonstrateconformance.Furthermorewelookforsupplier-partnerswhostriveforcontinuousimprovementinadherencetothisSupplierCodeofConduct.

Wehopethisdocumentprovidesyouwithabetterideaofwhoweareandhowwewanttoconductbusiness.Welookforwardtobuildingalastingandmutuallybeneficialrelationship.

OUR EXPECTATIONS

Vertex,theVertextrianglelogoandTheVertexFoundationlogoare registeredtrademarksofVertexPharmaceuticalsIncorporated.

©2019VertexPharmaceuticalsIncorporated|10/2019

supplier code of conduct - vertex pharmaceuticals · they expect vertex to continually challenge...

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