Pennington & Bailes Corporate Social Responsibility Policy

Pennington & Bailes believes that relationships are best founded upon mutual respect, trust, honesty, commitment, and teamwork. These traits are essential to the success of our business. We develop relationships with business partners who are able to give us the best combination of quality, price and service so that we may deliver honest, long standing value to our customers. In developing these partnerships, they must take into account our business standards and determine if our standards and policies translate directly to their practices. Compliance with our standards is a condition for becoming and remaining a business partner of Pennington & Bailes.

In developing our policy, we have sought to understand and use standards that are appropriate to diverse cultures and encourage workers to take pride in their work. We believe that these standards result in higher quality working environments and, as a result, in higher quality products. We initiate and maintain relationships only with partners who: * Are knowledgeable of, and in compliance with, all the legal requirements involved in conducting their business within their respective country. * Share our concern for the environment and adhere to their local and national laws regarding the protection and preservation of the environment. * Believe that workers should be employed based on their ability to perform the job, rather than discriminating on the basis of race, creed, gender, politics, or other personal characteristics or beliefs. * Compensate their employees fairly for normal work hours and overtime, at a minimum adhering to all applicable local laws. * Believe in treating every worker with respect and dignity, those basic human rights, and provide their employees with a safe and healthy work place, including their residential facilities, if provided.

We will terminate our relationship with any business partner who is found to be involved in the use of: * Forced or Compulsory Labor. * Child Labor below the minimum working age in the host country. * Corporal Punishment or other forms of mental or physical coercion. Our business partners are required to provide full access to their facilities and to relevant records relating to employment practices if requested.

As a company, we are committed to ongoing training and development of our employees in the area of Corporate Responsibility and will use the Fair Labor Association’s Principles of Fair Labor & Responsible Sourcing as a guide until otherwise determined. Recognizing that a program cannot be developed overnight, we have a set goal to demonstrate ongoing growth in knowledge and practice in activities associated with those principles on an annual basis.