Ethical and Social Governance

All decisions and actions undertaken by Billabong International Limited are aligned to a simple vision and values statement:

Respect the past but represent the future

Within this philosophy, the Company is committed to recognising and building on its strengths, challenging established boundaries and rewarding innovation. The Company recognises the value of teamwork, the need to think globally but act locally, the benefits of fostering a culture of growth and opportunity, the need to act responsibly and ethically and the need to maintain the flexibility to adapt to change.

Throughout the Company's global supply chain, a range of social and ethical initiatives have been adopted to ensure appropriate standards are being maintained. These include:

Supplier Agreements:

These hold the supplier and, in turn, each of their suppliers to a complex set of agreed certification and operational standards. These include commitments to quality, high moral and ethical standards, to obey local laws, to prohibit discrimination, abuse, under age workers and forced labour, to maintain health and safety standards, to meet agreed work and pay conditions, to meet acceptable environmental standards and to improve the communities in which they operate.

Supplier Code of Conduct:

This outlines the Company's expectations in relation to business conduct and general ethical principles. These include guiding principles in relation to respect in the workplace, discrimination, training, labour standards, freedom of association, honesty, health and safety, wages and benefits, working hours, community engagement, performance audits, legal compliance and environmental compliance.

SA8000:

This is the global standard by which the Company is measuring the performance of its supply chain. Social Accountability 8000 is an auditable certification standard based on international workplace norms of International Labour Organisation (ILO) conventions, the Universal Declaration of Human Rights and the UN Convention on the Rights of the Child. Areas it covers include under age workers, forced labour, health and safety, freedom of association, discrimination, discipline, working hours, compensation and management systems.

The Company also maintains its foundation objectives, which include a commitment to brand protection and enhancement, the manufacture of design-relevant and functional products, marketing in the core boardsports channels, the professional development of staff and ongoing customer service and relationships.