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Ceridian is committed to uncompromising integrity in all that we do and how we relate to each other and to persons outside of the company. Ceridian has adopted the following Code of Conduct that applies to all of our employees worldwide and all of our non-employee directors.
Waivers of this Code involving any of our executive officers, senior financial officers or directors may be made only by our Board of Directors or a designated committee of the Board, and all waivers granted to such individuals will be disclosed in this section of our web site.
Principles / Introduction and Scope
Gift, Meal and Entertainment Limitations
Protecting Ceridian's Proprietary Information and Other Assets
Other Companies' Proprietary Information
Conflicts of Interest
Environmental, Health and Safety Laws and Regulations
Compliance With Government Investigations
Keeping Books and Records; Independent Auditors
Complete, Accurate and Timely Disclosure
Ceridian Core Employee Policies
Compliance and Discipline
Where to Go for Assistance
Ceridian is committed to uncompromising integrity in all that we do and how we relate to each other and to persons outside of our company. Each of us is personally responsible for making sure that our business decisions and actions comply at all times with the letter and spirit of this Code of Conduct. To that end:
Except where specifically noted, this Code of Conduct applies to all employees of Ceridian and its subsidiaries, worldwide, and all non-employee directors serving on Ceridian's Board of Directors.
Competition among Ceridian's suppliers is necessary to assure that we buy high-quality materials and services at the best possible prices. Be fair and impartial in your treatment of Ceridian's suppliers, and insist that they compete for business based on our requirements.
Do not suggest to suppliers that they cannot sell to Ceridian unless they buy our products or services in return. This may constitute reciprocal dealing, which can undermine our commitment to procure for Ceridian the best quality products and services at the best price. It may even be unlawful. This does not mean that a Ceridian customer cannot also be a supplier. It means that our decision to use customers as suppliers will be based on their merits as suppliers and Ceridian's requirements.
The manager responsible for a project must approve the use of consultants, and a written contract must define the relationship. These agreements must include a clear statement of the work the consultant is to perform and specifically address any conflicts of interest, disclosure rights, ownership rights, requirements for written reports of work performed, and compliance with all applicable laws. Your business unit may have additional policies and procedures that must be followed when hiring consultants. Obviously, consultants may not be hired to do anything that is illegal, of questionable propriety, or inconsistent with this Code of Conduct.
The Board of Directors of Ceridian and its committees have the authority to engage, retain and terminate any outside consultant it deems necessary in the performance of its duties. The terms and conditions relating to the engagement of such consultants must be in compliance with this Code of Conduct.
Sell Ceridian products and services on their capabilities and benefits to customers. Never disparage our competitors, their products or their employees.
Accurately represent our products and services in all marketing, advertising and sales contacts. If comparisons are made between Ceridian's products or services and those of a competitor, be very sure of the facts. Use information from knowledgeable and reputable third parties whenever possible.
Ceridian does not and will not directly or indirectly condone the payment of anything of value in order to improperly influence a decision maker. Examples of improper payments are those intended to influence customers, suppliers or governmental entities - including their officials or employees - to give or maintain business; to persuade any officials or employees of another company to fail to perform or improperly perform their duties; or to influence legislation.
The procurement processes of government involve rules and regulations that often are much more extensive than those Ceridian encounters in commercial business. For example, some of the laws and regulations governing doing business with the U.S. and other governments include the Truth in Negotiations Act, the Federal Government Procurement Integrity Act, the Byrd Amendment, the Anti-Kickback Act, and special rules concerning subcontracting, recording and charging of costs, the hiring of former government employees, prohibitions against gifts, meals or gratuities for government personnel, and design, manufacturing, testing and quality control. Whenever doing business with any government we must abide by that country's laws and requirements. If you are conducting business with any government on behalf of Ceridian, contact your legal counsel for further guidelines regarding the applicable laws and regulations of government procurement.
To ensure that business-related gifts, meals or entertainment are not subjects of abuse, Ceridian only permits them to be given or received if:
Many countries have prohibitions that exceed what may be acceptable behaviour in the private business world. Refer to the previous section - Doing Business with Governments - for information about rules and regulations Ceridian must follow when doing business with governments. In countries where local custom is so strong that to refuse a gift or to not reciprocate with a gift would be considered an insult, you may give and receive gifts of modest value if you obtain prior approval of a corporate or business unit lawyer. These gifts must be lawful and properly reported. You must decline or return excessive gifts, favours or offers of entertainment which violate these guidelines and inform the offerer of the Ceridian's policy.
The protection of Ceridian's proprietary information against loss, theft or misuse is a fundamental responsibility of each of us.
Proprietary information is information that is not generally known outside of Ceridian, and only Ceridian's executive officers or lawyers may determine which proprietary information, if any, may be released. Examples include:
For more complete information, see Ceridian's policy on disclosure of financial and other material information.
Ceridian is as open and candid with the media as possible, but there are times when we cannot or will not provide requested information. Proprietary information that cannot be released is addressed above. In addition, it is Ceridian's policy never to comment on rumours, because to respond to any one rumour may obligate us to respond to others or to update previous comments if circumstances change. It is mandatory that all contacts with the news media be handled only by our public relations specialists. Failure to observe this policy could inadvertently spread misinformation, causing tremendous damage to Ceridian. If you are uncertain about where you should refer a reporter who may contact you, call Corporate Communications immediately. For more information, ask Corporate Communications for a copy of Ceridian's Media Relations Guide.
You are responsible for protecting company confidential information from disclosure. Even if you retire or leave Ceridian, you may not disclose proprietary company information or use it in any unauthorised manner.
Employees must assign to Ceridian the right to any ideas and inventions an employee develops if they are capable of being used in an area of Ceridian's business. Computer programs and publications are covered by this standard, which may also apply to software and inventions developed at home on personally owned equipment. Inventions that are not developed for Ceridian, are not within our areas of business and are not developed with the use of company resources are excluded. If an employee believes his or her invention falls outside Ceridian's business interests, ask a business unit lawyer for a written release of any claim or right Ceridian may have to the invention.
Ceridian property is to be used only for company purposes. Misuse of Ceridian equipment, tools, supplies and other assets for personal gain not only violates Ceridian's policies, but also may violate tax or other laws.
We have an obligation not to misuse or steal the intellectual property of any customer, supplier, business partner, competitor or other company. Ceridian periodically gets information about other companies to assist in marketing or other legitimate activities. This is acceptable when the information comes from proper sources, which generally means information that is published or in the public domain, independently developed, or lawfully received from the owner or a third party. We may not, however, engage in industrial espionage or acquire information about other companies through improper means. Improper behaviour includes persuading present or former employees of another company to divulge confidential information, or receiving information that was illegally or improperly acquired by another party. If you come into possession of information from another company that has proprietary markings or that you believe may be proprietary, you must determine if Ceridian is authorised to have it. If you are not sure, contact a Ceridian lawyer. If Ceridian should not have the information, the Ceridian lawyer is the proper person to return the information to the owner.
Companies sometimes will provide proprietary information for a business reason. For example, a company may send information about a new computer product it is developing so that a supplier can develop software for the product. When Ceridian properly receives such proprietary information, there should always be a written non-disclosure agreement that defines Ceridian's obligations for the use and protection of the information. This agreement should be reviewed by a Ceridian lawyer before it is signed. Once the information is entrusted to Ceridian, you must protect its confidentiality and limit your use of it to what is authorised by the agreement. You also are responsible for making sure that only authorised individuals have access to the information.
Ceridian licenses the use of computer software from a variety of outside companies and prohibits the unauthorised duplication and use of copyrighted, licensed software. This includes use of software on local area networks or on multiple computers. Copies may be made only to provide necessary back-up unless otherwise authorised by the software developer. It is the responsibility of each of us to determine whether software is properly licensed, and when we learn of any misuse of software or related documentation within the company, we are to notify a Ceridian lawyer. Illegal reproduction of software may result in civil damages and criminal penalties.
We must avoid any actual or apparent situations where loyalty could be divided or personal interests could be in conflict with those of Ceridian. A conflict of interest would exist, for example, if you had personal interests that you could advance at the expense of Ceridian's interests. It is difficult to describe all conflicts of interest, but some examples of conflict situations include:
In sum, you should not have any business or financial relationships with customers, subcontractors, partners, suppliers or competitors that could in any way impair or appear to impair the proper performance of their jobs, unless the relationships have been disclosed and approved by a Ceridian lawyer, or in the case of a non-employee director, by the Board of Directors or its designee.
Any one of us can be liable for insider trading if we buy or sell Ceridian securities (including debt securities and exchange-traded stock options) based on information not publicly available that could affect the price of the securities. We can also be liable for insider trading if we trade securities of any other company about which we have obtained important, non-public information through Ceridian (such as information about a pending acquisition by Ceridian). We can be in possession of material, non-public information and face insider trading risk. For example, an individual who prepares, types, copies or sees papers related to earnings, products, financial situations, production problems, divestitures or acquisitions could be in a risk position when trading in Ceridian securities before this information becomes public. To comply with Securities and Exchange Commission regulations, do not buy or sell securities at a time when you have non-public information of a material nature about Ceridian or any other company; you must wait until that information becomes publicly available. In addition, do not give information or tips to family, friends or anyone outside of Ceridian so they can trade on the basis of material, non-public information.
Violation of this policy will not only subject you to prompt disciplinary action, but could also result in civil and criminal penalties, including fines and jail sentences, for violating the law.
Laws in many countries prohibit actions that could unreasonably restrain the functioning of a free and competitive marketplace. Examples of possible violations of these laws are agreements among competitors to charge the same prices for their products, divide markets, jointly control production, or boycott others.
Any agreement that could limit competition in the market may be a violation of these laws and must be reviewed by a Ceridian lawyer. You need to exercise caution whenever you encounter a competitor because, in a later context, even innocent verbal exchanges can be viewed as an improper agreement. Avoid any discussions with competitors related to market share, projected sales for any specific product or service, revenues and expenses, production schedules, inventories, unannounced products and services, pricing strategies, marketing, or other proprietary information. These guidelines apply to all contacts you may have with competitors, including those at trade shows or meetings of professional organisations.
Many products, software and associated technical or commercial data may not be exported without prior written approval from the government, and in some cases, export licenses must be obtained. In addition, Ceridian is responsible for ensuring that items delivered to a specific country are not diverted to restricted countries. Many different types of transactions can be considered exports requiring government approval, including:
If you have any doubt about a pending situation involving Ceridian, or need to discuss the specific restrictions from your government, check with a Ceridian lawyer.
All of Ceridian's operations must be conducted in compliance with all applicable environmental, health and safety laws and regulations. Ceridian policies mandate that each of its businesses establish and maintain compliance programs and monitor compliance on a regular basis; allocate sufficient resources to assure effective compliance; periodically report compliance performance to designated individuals; provide prompt notification of any incident which may constitute a violation of any environmental, health and safety law; and act responsibly to protect employees and the environment whether or not any laws and regulations apply. For more information about Ceridian's environmental, health and safety policies, please refer to Ceridian's core policies on Ceridian's intranet (the "InfoNet") (Environmental, Health and Safety) or ask Human Resources for a copy.
It is Ceridian's policy to cooperate with governmental authorities in their proper performance of inquiries or investigations. However, it is important that all such matters be properly coordinated within Ceridian. Since government investigations are normally conducted in the context of some applicable law, business unit or corporate lawyers should be immediately notified and brought into any investigation in which Ceridian becomes or might become involved. "Investigation" is defined as a non-routine inquiry regarding a possible violation of law by Ceridian, any Ceridian employee, or any other company or person. It does not include routine government audits or compliance reviews. In the event of an investigation, all requests, either oral or written, for access to Ceridian files or for other information should be referred immediately to business unit or corporate lawyers. If a government official attempts to serve a subpoena, contact a Ceridian lawyer immediately.
In the U.S., federal law prohibits the use of company resources to publicly support political parties or candidates, or to reimburse an individual's personal political contributions. In countries where political contributions are allowed, Ceridian policy requires an individual to submit requests to a business unit lawyer, who will confer with the Office of General Counsel before a decision is made.
Federal and state laws in the United States permit companies to sponsor political action committees, funded by voluntary contributions from employees and stockholders, that may make political contributions on behalf of their members. The Chief Executive Officer must approve the sponsorship of any political action committees sponsored by Ceridian or its subsidiaries, and such committees must be organised and conducted in strict accordance with the law, with membership entirely voluntary.
Individuals, of course, may support the parties and candidates of their choice, as long as they do so on their own time and do not use Ceridian's name or resources.
Information that you record and submit internally or to any party outside Ceridian must be accurate, timely and complete so as to provide a true picture of the material. Reports must not mislead those who receive them - whether as a result of what is said or what is not said. We have implemented administrative and accounting controls to provide reasonable assurance that Ceridian is accurately reporting its financial information and that financial and other reports are accurately and reliably prepared, and fully and fairly disclose all required otherwise material information.
It is Ceridian's policy that its records be retained only during the period of their immediate use unless longer retention is required by law, litigation, court order, or for internal or historical reference. Ceridian's Record Retention Policy on the InfoNet must be followed. If you are unsure about the proper retention period of a Ceridian report, record, correspondence or other document, consult this policy or ask a business unit or corporate lawyer.
Ceridian reimburses individuals for authorised expenditures incurred in the conduct of Ceridian business. These expenses must be reasonable, ordinary and necessary and must be related to a legal purpose, be ethical in nature and amount, and in no way compromise Ceridian's integrity or that of employees or any other company or individual. Expenses should be submitted in a timely manner. Costs must be properly recorded, with no substitutions or transfers of costs (e.g., charges incurred for a meal must not be recorded as a taxi or other non-meal charge).
It is unlawful for any officer or director, or any employee or anyone else acting under their direction, to coerce, manipulate, mislead or improperly influence our independent auditors engaged in the performance of an audit or review of our financial statements. Ceridian's independent auditors must be able to go about their audit and review of our financial statements without the inappropriate influence from directors, officers or other employees at Ceridian, and without being misled through materially false or misleading statement or omissions from our directors, officers or other employees of Ceridian.
For complete information about Ceridian policies concerning reporting, controls, record retention, reimbursing employee expenses, independent auditors and other financial matters, see Ceridian's Financial Policies on the InfoNet.
Ceridian is owned by the public and its shares are listed on The New York Stock Exchange. As a result, Ceridian is obligated to make various public disclosures. Ceridian is committed to full compliance with all requirements of the Securities and Exchange Commission and The New York Stock Exchange. Ceridian has implemented disclosure controls and procedures to provide reasonable assurance that our public disclosures are timely, compliant and otherwise full, fair, accurate and understandable. All individuals responsible for the preparation of Ceridian's public disclosures, or who provide information as part of that process, have a responsibility to assure that all public disclosures and information are complete, accurate, understandable and in compliance with Ceridian's disclosure controls and procedures.
Ceridian requires all employees to follow its core policies regarding affirmative action and equal employment, delegation of authority, fraternisation, dispute resolution, company service, environmental health and safety, workplace violence, sexual harassment, records retention. These core policies are kept on the InfoNet (see table of contents for this section) or a copy can be obtained from human resources.
Failure to comply with the standards explained in this Code of Conduct will result in disciplinary action that may include termination, referral for criminal prosecution, and/or legal action seeking reimbursement to Ceridian for any losses or damages resulting from the violation.
Disciplinary action will be taken:
If you need help resolving an ethics issue that directly concerns you, the best resource in most situations is your manager. If you see another employee engaging in activities that appear questionable, bring it to the attention of that employee or that employee's manager if at all possible; your manager may also be able to help. If these approaches do not seem appropriate or they do not resolve the problem, here are some other resources:
If a non-employee director has questions or suspects a violation of this Code of Conduct, they may use any of the resources described above or they may contact the chair of the Nominating and Corporate Governance Committee of the Board of Directors. The Nominating and Corporate Governance Committee will investigate any suspected violations and take appropriate action.
It is vitally important that you ask for help when you need it and that you report possible violations of the law or of the Code of Conduct. You will not lose your job or be placed at any career disadvantage for questioning a Ceridian practice or reporting a possible violation of Ceridian's policies. Ceridian or members of its Board of Directors or committees will investigate possible violations. In doing so, it will respect the rights of all parties concerned. If a violation is found, Ceridian will take appropriate disciplinary action, up to and including termination and filing of criminal charges. The identity of individuals reporting possible violations will be kept confidential to the extent possible. One exception is if Ceridian is required by applicable law or the administrative or judicial process to reveal it.
Policies and practices sometimes have exceptions. If an employee encounters a situation that is not covered by this guide or seems to require an exception, talk with your manager. Your manager will consult with senior management and/or a lawyer to determine if an exception is warranted.
Waivers of this Code involving any of Ceridian's executive officers, senior financial officers or directors may be made only by Ceridian's Board of Directors or a designated committee of the Board, and all waivers granted will be disclosed to Ceridian's stockholders.
Adopted by the Board of Directors: January 27, 2004.
Last modified 4 August 2006