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Hill-Rom Global Code of Conduct

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<strong>Hill</strong>-<strong>Rom</strong> <strong>Global</strong> <strong>Code</strong> <strong>of</strong> <strong>Conduct</strong> 36<br />

Bribery and Corruption Laws<br />

We receive government approval to manufacture, import and export,<br />

transport, and sell our products because we meet government<br />

requirements, not because we bribe or otherwise inappropriately<br />

influence regulators. Similarly, we receive commercial contracts<br />

with government and private customers because we <strong>of</strong>fer high quality<br />

products and services, not because we “pay <strong>of</strong>f” our customers.<br />

And we do not engage or permit others, like agents and distributors,<br />

to do what we cannot.<br />

All countries in which we do business have laws prohibiting companies<br />

and individuals from paying bribes or engaging in corrupt activities to<br />

influence business decisions. We comply with these laws, and we will<br />

not tolerate attempts to improperly influence business decisions to<br />

secure favorable treatment for our company.<br />

As a company subject to U.S. laws, <strong>Hill</strong>-<strong>Rom</strong> is prohibited from <strong>of</strong>fering<br />

or paying anything <strong>of</strong> value to a government <strong>of</strong>ficial in exchange for<br />

gaining an improper business advantage. In many countries, significant<br />

parts <strong>of</strong> the health care system are operated or funded by the<br />

government, and virtually all health care pr<strong>of</strong>essionals —<br />

including hospital administrators, doctors, nurses and hospital<br />

purchasing managers — may be employees <strong>of</strong> public institutions<br />

and may be considered government <strong>of</strong>ficials.<br />

Bribery <strong>of</strong> Government Officials<br />

We must never <strong>of</strong>fer, give or pay anything <strong>of</strong> value to a government<br />

<strong>of</strong>ficial to win or retain business or to improperly influence <strong>of</strong>ficial<br />

decision making. A “government <strong>of</strong>ficial” can include federal, state<br />

or local government employees, political candidates and even<br />

employees <strong>of</strong> government-owned businesses, such as doctors<br />

at state-run hospitals. It may not always be obvious that you<br />

are working with a government <strong>of</strong>ficial, so you should consult<br />

with your manager or the Compliance Office if you have<br />

any questions.<br />

Commercial Bribery<br />

Company employees and others working on our behalf also<br />

are prohibited from participating in any form <strong>of</strong> commercial<br />

bribery. We must never make any business decisions based<br />

on any personal benefit given or <strong>of</strong>fered to us. Likewise, we<br />

may never <strong>of</strong>fer a bribe to, or receive a kickback from, our<br />

customers, suppliers, patients, other commercial partners<br />

or anyone else working on their behalf.<br />

November 2011<br />

Engaging Third Parties<br />

We may never hire third parties, such as distributors, agents,<br />

lobbyists, and consultants, to make a bribe or enter into an<br />

arrangement where we believe the third party may be making<br />

illegal payments. We must screen appropriately any third parties<br />

who perform work on our behalf. If you suspect that a third party<br />

associated with our company is making illegal payments, notify<br />

your manager or the Compliance Office immediately.<br />

The consequences for violating anti-corruption laws can be serious.<br />

The payment <strong>of</strong> illegal bribes can subject both our company and<br />

individuals engaging in the illegal conduct to significant criminal<br />

and civil fines and possibly even imprisonment. In addition, bribing<br />

a government <strong>of</strong>ficial or other individual in one country may result<br />

in criminal or civil liability not only in that country but also in a<br />

different country.<br />

Please check with your manager, the Legal Department or the<br />

Compliance Office to determine whether a payment to a government<br />

<strong>of</strong>ficial or other individual is appropriate. If deemed appropriate,<br />

the payment must be properly recorded and accounted for so that<br />

<strong>Hill</strong>-<strong>Rom</strong> may comply with all applicable laws.<br />

For further guidance, please see our <strong>Global</strong> Anti-Corruption Policy,<br />

or consult with your manager or the Compliance Office.<br />

Q:<br />

Stefan would like to engage<br />

a consultant to assist in<br />

registering a new <strong>Hill</strong>-<strong>Rom</strong><br />

bed with the Ministry <strong>of</strong> Health. Stefan<br />

knows that it typically takes several<br />

months to complete registration with<br />

the government agency before a<br />

device is allowed on the market in<br />

his country. However, a consultant that<br />

Stefan is considering hiring told Stefan<br />

he can obtain approval in two weeks.<br />

Stefan really wants to register this<br />

new bed quickly—should he hire<br />

the consultant?<br />

A:<br />

Stefan must go through the<br />

review and due diligence<br />

process specified in the<br />

<strong>Global</strong> Anti-Corruption Policy before<br />

hiring a consultant. The consultant’s<br />

promise to register the product within<br />

a very short time period raises red flags<br />

that the consultant could be making<br />

illegal payments to shorten the<br />

registration time. Stefan should seek<br />

guidance from the Legal Department<br />

or the Compliance Office before<br />

proceeding. Offering or paying a bribe<br />

through a third party is a serious matter<br />

and can result in disciplinary action,<br />

up to and including termination.<br />

<strong>Hill</strong>-<strong>Rom</strong> <strong>Global</strong> <strong>Code</strong> <strong>of</strong> <strong>Conduct</strong> 37

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