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TM © HUL 2013 The Code of Business Principles, Policies and Rules of Consultant Conduct is published solely for Consultants of Hindustan Unilever Limited’s Network Division by Hindustan Unilever Limited (Network Division) Regd Office: 3rd Floor, Army and Navy Building, 148 M.G. Road, Kalaghoda, Fort, Mumbai - 400 001. All rights are therefore reserved and reproduction of any kind or in any manner in full or part is strictly prohibited. Hindustan Unilever Network is a member of the IDSA. Code of Business Principles, Policies & Rules of Consultant Conduct Contents 1. Code of Business Principles, Policies & Rules of Consultant Conduct 2-36 A Introduction 8 B Definitions 9 C Registration 10 D Reinstatement 13 E Responsibilities 13 F Responsibilities of an Upline consultant 20 G Maintaining the lines of Sponsorship 21 H Business Development materials 25 I Presentation of Hindustan Unilever Network business opportunity 26 J The Hindustan Unilever Network Product Satisfaction or Money Back Guarantee 27 K Compliance of Rules of Conduct 28 L Suspension / Termination of consultantship 29 M Disposition of Terminated or non- renewed or inactive businesses/sponsors 31 N Review by Appeal Panel 32 O Death and inheritance 34 P Other policies 35 Contents Code of Business Principles, Policies & Rules of Consultant Conduct 2. Annexures 37-48 A Annexure 1: Unilever Code of Business Principles 37 B Annexure 2: Format of Consultant Application Form 39-40 C Annexure 3: Format of Consultant Order Form 41-43 D Annexure 4: Format of Goods Return Form 44 E Annexure 5: Format for Information Change Form 45-46 F Annexure 6: Format for Change of Line of Sponsorship 47 G Annexure 7: Format of Privileged Member Application From 48 3. Indian Direct Selling Association (IDSA) – Code of Ethics 49-50 8 9 The Hindustan Unilever Network Code of Business Principles, Policies and Rules of Consultant Conduct details out principles to be followed by all Hindustan Unilever Network Consultants in conducting their business and maintaining their Hindustan Unilever Network Consultantship. It also elaborates the rights and responsibilities of the Consultant. Hindustan Unilever Limited (Network Division) reserves the right to periodically alter these principles, policies and rules including those which are due to change in statutory rules and regulations. All changes will be notified in Leverage and on the Network Division’s website, www.huln.co.in A.1 As a basic guideline in your activities as a Hindustan Unilever Network Consultant, you shall endeavour to always treat others, as you would have them treat you. A.2 You shall respect and follow this Code of Business Principles, Policies and the Rules of Conduct observing not only “the letter” but also “the spirit” thereof. A.3 You shall present the Hindustan Unilever Network Products and the Hindustan Unilever Network Sales and Marketing Plan to all prospective consultants in a truthful and honest manner, and you shall make sure to present only what is officially approved by Hindustan Unilever Network Communications. A.4 You shall be courteous and prompt in the handling of any and all claims for exchange and return, and follow the procedures prescribed by Hindustan Unilever Network from time to time in its official communications. Code of Business Principles, Policies & Rules of Consultant Conduct A. Introduction As owner of your Hindustan Unilever Network Consultantship, you have to conduct your Hindustan Unilever Network business according to the following ethical guidelines A.5 You shall conduct yourself in such a manner so as to reflect only the highest standards of integrity, frankness and responsibility, because you recognise that your conduct as an Hindustan Unilever Network Consultant has far-reaching effects. A.6 You shall accept and carry out the responsibilities of a Hindustan Unilever Network Consultant (and those of Sponsors and Direct downline when you reach such level), as set forth in official Hindustan Unilever Network publications. A.7 In your Hindustan Unilever Network product sales activities and for the purposes of protecting the Hindustan Unilever Network Sales and Marketing Plan, you shall use only Hindustan Unilever Network authorized publications. A.8 By registering as a Consultant you agree to receive transactional and promotion communications from the Company via sms, e-mail, voice calls and written communications. A.9 As a Hindustan Unilever Network Consultant you shall abide by the Unilever Code of Business Principles in the conduct of your Hindustan Unilever Network Consultantship B.2 “Company” in this document refers to Hindustan Unilever Network, a division of Hindustan Unilever Limited unless otherwise stated. B.3 “Sponsor” refers to an existing Consultant who introduces the business and the products to a new applicant. B.4 “Upline” refers to the Sponsor, the Sponsor’s sponsor and so forth and will end with the Top Sponsor. B.5 “Line of Sponsorship” refers to and includes the Consultant, his/her sponsors and so forth and will end with the Company. B.6 “HUN SUB” shall mean a substitute ID that the Company may at its discretion put in place of the ID of a resigning or terminated Consultant. The Company shall have the right to assign this ID to any other Consultant member at any time it may decide to do so. Till such time the HUN Sub ID is assigned to any Consultant, the status of the ID shall be that of an inactive ID. B.7 “Consultant Manager, Consultant Senior Director, Consultant Vice President etc” are nominal titles or designations accorded to the Consultant as per the Hindustan Unilever Network’s Success Blueprint. B.8 “Success Blueprint” refers to Hindustan Unilever Network’s Compensation Plan. B.9 “Products” refers to all products under the Company’s trademarks. B. Definitions B.1 “Consultant” refers to Hindustan Unilever Network consultants and their associates. 10 11 B.10 “Company literature” refers to all literature, CD, etc (including this one) which has been printed by the Company. B.11 “Compensation Plan” is a rebate payable to Consultants based on their personal volume and the volume of their Business group. B.12 “Prospect” refers to a person who is interested in applying for Membership. B.13 “Starter Kit” is a set of business building tools, manuals, Identity Card, etc which enable a new Consultant to start his/her Hindustan Unilever Network Business. B.14 “Privilege Access” is an option which enables a Customer to purchase products at a discount and to obtain other rights such as receipt of the Company’s news and benefits from Hindustan Unilever Network. B.15 “Business Group” refers to a group made up of a Sponsor and their respective downline members who they have recruited. Unless the context so requires, words in the singular shall include the plural and words referring to the masculine shall include the feminine. C. Registration Hindustan Unilever Network Membership is divided into two types, namely Consultant and Privilege Customer C.1 R e q u i r e me n t s for registering as C o n s u l t a n t / Privilege Customer: C.1.1 Applicant must be at least 18 years of age as on the date of application: Annexure-2 C.1.2 The applicant must be a citizen of India only. C.1.3 The applicant must not have been convicted of any crime, not be an insolvent and should be mentally sound to carry out business. C.1.4 Application is open to individuals, couples, partn- ership and companies. In case of partnership, the primary applicant needs to be stated and all communi cat i ons would be addressed to that person. All commissions, incentives, bonuses and recognition titles will also be made to the primary applicant. C.1.5 The applicant needs to be sponsored by an existing active Consultant. In You can register as Hindustan Unilever Network Consultant in 2 easy steps: • Fill up the joining forms and submit along with identity proof, age proof, address proof and passport size colour photograph • Collect the Starter Kit Hindustan Unilever Network does not charge any registration fee for membership case the applicant is a walk-in, the Company reserves the right to assign the person to any existing Consultant in any network or directly under the Company. C.1.6 Equal Opportunity: The opportunity to become a Consultant is available to everyone regardless of race, sex, religious or political beliefs. C.1.7 Post registration of the Consultant/ Privilege Customer, Hindustan Unilever Network would conduct a verification of the address. If address is not confirmed, the Consultant/ Privileged Customer membership would be terminated and the sponsor will be penalized. C1.8 In case of a partnership firm or a company, no partner or director can be a Consultant in his personal capacity. In case where an existing Consultant is a partner or director in a application for registration of a partnership firm or company as a Consultant, his / her individual consultantship shall be terminated on the day the said firm of company is registered as a Consultant. C.2 Consultant Identification Number: Each Consultant would receive an Identity Card bearing on identification number. This number is required when placing orders or making enquires on the Company. This must also be mentioned on the registration form of the downline, who is sponsored by the applicant. The Company upon receipt, acceptance and processing of the Consultant application form issues this number. C.3 Sub-Consultants: A Consultant cannot appoint sub-consultants under him/her except when introducing/ sponsoring them. For this, he/she cannot charge any money from them in any manner or form. C.4 Rejection of Application: The Company reserves the right to reject any application or re-application for any reason at its sole discretion, including if the application contains incomplete, inaccurate, false or misleading information. Any alteration or modification will be subject to verification. C.5 Termination of Membership: The Company reserves the right to immediately terminate a Membership if it is found that the information furnished is either untruthful or fraudulent anytime during the tenure of the Consultantship. C.6 Changes in the Consultant’s residential address: Any changes to the Consultant’s address details on the original membership registration form can be made by the Consultant through a written application along with proof. C.7 Changes in Consultant’s Bank Account: Any changes to the Consultant’s bank account details on the original application form can be made only after a written communication along with proof. C.8 Independent Contractor: By becoming a Consultant, the Consultant is acting herein as an independent contractor and he/she shall have no authority to bind any party to any contractual undertaking without the consent of the Company. C.9 Legal Entity Consultantship: A Company (either a Partnership firm or a Private Limited Company or a Public Limited Company) and join Hindustan Unilever Network. The following additional documents will be required: 12 13 i) Registered Partnership Deed for a Partnership Firm with a Power of Attorney (POA) for the person who would interact with Hindustan Unilever Network on their behalf. ii) Memorandum and Articles of Association for a Private Limited Company or a Public Limited Company containing the clause of conducting Hindustan Unilever Network business. iii) Board resolution/letter from partners with consent to join Hindustan Unilever Network as a Consultant. C.9.1 Application for registration should be made in the current application form which should be signed by the CEO (or Managing Director or equivalent) or any other authorized signatory. C.9.2 The purpose of the above firm/ company also should be to conduct Hindustan Unilever Network business. C.9.3 No change in the shareholding pattern or change in membership or controlling stake is allowed without written permission of Hindustan Unilever Network. C.9.4 Former Consultants (or their spouses) who have resigned, transferred or sold-off their businesses can re- register subject to clause D.2. The Consultant must give in writing that the new application is being made under this option at the time of application. C.10 Husband and Wife Consultantship: Husband and Wife are always considered to be together in Hindustan Unilever Network Consultantship. C.10.1 Husband and Wife are always considered to be together in Hindustan Unilever Network Consultantship even if they both have not signed the registration form. In order to avoid conflict, they cannot be sponsored in different lines of sponsorship, and must be sponsored together. They cannot sponsor each other. C.10.2 Since they are required to operate the Consultantship as a single entity, each will be held accountable for the actions of the other as far as the Rules of Consultant Conduct are concerned. C.10.3 If two Consultants, each of whom has a Consultantship in different lines of Sponsorship get married to each other, one of the Consultants must through sale, transfer or simple resignation surrender his/her Consultantship and join his/her spouse’s Consultantship. C.10.4 The only exemption to 10.3 is when both people at the time of marriage are in the level of a Star Manager or above, then they can operate both Consultantships in their original line of sponsorships. C.11 Active Member: A Consultant is considered active if in a month he/she orders products of minimum 25 PV. In following two months if a Consultant does not meet active guidelines, the Consultant is considered inactive at the end of the third non-ordering month. To re-activate his/her status, he/she should submit a minimum of 25 PV order in a single transaction. He/She will receive Company mailers as long as his/her name has not been removed from the Company mailing list. C.12 Former Consultant Status: The Consultant’s name will be removed from the Consultant’s rolls on the last day of the 12th non-ordering month, if no order is received from the Consultant on or before the last business day of the Consultant’s 12th non-ordering month. D. Reinstatement D.1 Regain Active Status: An inactive Consultant may be reinstated and regain his/her active status by placing a 25 PV order in a single transaction before the last day of 12th non-ordering month. The terms of the Independent Consultant Agreement will apply. He/She will be reinstated to the unit and the Sponsor indicated on record at the time when he/she was removed. D.2 Re-recruitment of Former Consultants: A former Consultant who wishes to re-join will follow the process of new registration and will be assigned a new identification number. D.3 Active Period: Your registration is valid as long as you stay active in the business, or don’t resign or are not terminated as per rules of the company. E. Responsibilities E.1 Abide by the Hindustan Unilever Network’s Rules and Amendments to Rules: A Consultant is responsible for studying, understanding and strictly complying with Hindustan Unilever Network’s Code of Business Principles, Policies and Rules of Consultant Conduct and any amendment thereof effected by the Company from time to time, provided the amendments are published in the Leverage or website or any other means of communication prior to going into effect. E.2 Truthful: A Consultant must always identify himself/ herself truthfully to his/her prospective customers. He/ She shall also identify Hindustan Unilever Network, the product and the purpose of his/her approach. E.3 Employment Relationship: All Hindustan Unilever Network Consultants are independent Consultants who will operate as per their own time plan and promote products of Hindustan Unilever Network to their clients, sponsor other Consultants and build their teams. They are not employees/agents of Hindustan Unilever Network, Hindustan Unilever Limited or any of its associated/subsidiary companies. E.3.1 Consultants do not have the authority to bind the Company to any obligation, agreement or commitment of any kind. Consultants must not at any time, in any manner, suggest or imply that they are in employment, in joint ventures, agents or legal representatives of the Company. 16 17 approval, unless as per standard format from the Company, becomes the property of the Company and will be made available to all Consultants for their use at the discretion of the Company. E.9.2 Hindustan Unilever Network will not allow use of its trade name (Company name), trademarks (product names) designs, or symbols by any person, including Hindustan Unilever Network Consultants without its prior permission. Hindustan Unilever Network will issue cease and desist orders to any persons violating the above and will, if necessary, follow with appropriate court action for failure to comply with a cease and desist order. E.9.3 If a Consultant wishes to display/use Hindustan Unilever Network logo to public, he/ she must obtain prior written approval from the Business Head of Hindustan Unilever Network. However, Hindustan Unilever Network can withdraw the permission if standards are not met. E.9.4 No Hindustan Unilever Network Consultant may print, cause to be printed or procure from any source other than the Company any item, stationery or literature of any kind on which the names of Hindustan Unilever Limited, Hindustan Unilever Network, any of its associated companies or subsidiaries are imprinted without taking written permission of the Business Head of Hindustan Unilever Network. E.9.5 No Consultant can reproduce any material or literature of the Company without prior written permission of the Business Head of Hindustan Unilever Network. E.9.6 Hindustan Unilever Network reserves the right to withdraw the permission at any given point of time by informing the distributor in writing. E.10 Communication with Media: Consultants are not authorised to communicate with any media personnel giving details of the Company’s production, policy, activities or strategies. Should they have any query, they should address it to our corporate communications department or mail our helpdesk at hun.care@unilever.com. A Consultant may not be involved in interviews on any media, whether by television, radio, magazines, etc, nor utilize any advertising media (including the internet) without Hindustan Unilever Network’s prior written consent. Promotional material provided by Hindustan Unilever Network for specific advertising use can be used as specified without prior approval. E.11 Compliance with Applicable Laws, Regulations: E.11.1 The Consultant shall comply with all laws and regulations of the land and other policies as may be communicated from time to time. He/she will also comply with Unilever Code of Business Principles (Annexure 1) in all his/her dealings with the Company, downlines, uplines and customers and should not engage in any activity which will bring him/ her or the Company any disrepute. The Consultant must keep the Company informed if he/ she is involved in any conflict/dispute/legal matter which is directly or indirectly likely to involve, or affect the reputation of the Company. E.11.2 The Consultant will comply with all policies of the Company e.g. on Confidentiality of Information, Policy on use of e-mail, internet, data protection, etc. while dealing with the Company. These are available on the Company’s website or at the Company offices/branches. Consultants cannot assign in any manner the Agreement to any other person except in accordance with the guidelines as per the Policy. E.12 Loss/Damage: The Consultants will indemnify and keep the Company indemnified from and against any claim, loss, damage or liability suffered or incurred by the Company resulting from a breach of the agreement or the policy by the Consultant, or from any act of negligence or default of the Consultants, or her/his agents, employees, licencees or clients. E.13 Product Satisfaction Refund Policy: Whenever a customer requests, the Hindustan Unilever Network Product Satisfaction Refund Policy has to be honoured, the Consultant shall offer the customer the choice of a full refund of the purchase price or full credit for exchange with the same or another Company Product. Any reimbursement to the Consultant in such instances is covered by the Company’s satisfaction refund policy. E.14 Written Sales Receipt: A Consultant shall deliver to the customer at the time of sale a written and dated invoice cum-receipt which shall: E.14.1 Mention details of the product sold, describe the product(s) sold. E.14.2 Bear the price charged. E.14.3 Bear the full name, address and telephone number of the Consultant selling the Product, and E.14.4 Give details of Hindustan Unilever Network’s Product Satisfaction Refund Policy. E.15 Non-Hindustan Unilever Network Activities: A Hindustan Unilever Network Consultant can do any other business/professional service but he/ she is not allowed to use Hindustan Unilever Network Consultantship or Hindustan Unilever Network events/ activities to promote his/her non Hindustan Unilever Network business or service. A Hindustan Unilever network Consultant who sells any product or service, literature/tools other than as 18 19 Hindustan Unilever Network products, services, literature/tools shall not sell such products, services, literature/ tools to another Hindustan Unilever Network Consultant or entice him/her to participate in any non- Hindustan Unilever Network selling activity. Entice means to ask, induce, cajole, persuade to sell any product or service whether or not this is done to obtain revenues or for any other reason. E.15.1 A Hindustan Unilever Network Consultant can engage in selling activities related to non- Hindustan Unilever Network approved or non-Hindustan Unilever Network produced products and services but they cannot use the activities or events organized to promote Hindustan Unilever Network products or Hindustan Unilever Network by the Company or by any other Consultant or use their knowledge or association with Hindustan Unilever Network to promote and expand their non-Hindustan Unilever Network business. E.15.2 Husband and Wife as already explained are deemed to operate as a single entity irrespective of whether both names are there in the Consultantship or not. Each will be held accountable for the actions of the other as per Rules of Conduct. Hindustan Unilever Network reserves the right to cease the remaining Consultant’s Consultantship if one of the partners of the Husband-Wife partnership chooses to resign his or her authorisation as a Consultant and takes advantage of business or his/her knowledge of or association with Hindustan Unilever Network or other Hindustan Unilever Network Consultants to promote and expand any non-Hindustan Unilever Network business. E.15.3 A Consultant must keep Hindustan Unilever Network informed if his/her spouse is a representative of any other direct selling Company. E.16 Inducement to change line of Sponsorship or indulging in non- Hindustan Unilever Network selling activities: No Consultant should directly or indirectly induce any other Hindustan Unilever Network Consultant to change his/her line of Sponsorship, e.g. by resigning and joining under a different sponsor or by starting new business in the name of his/her immediate and blood relatives (Parents/Children) under a different sponsor except as responsible under the Rules of Conduct herein, irrespective of whether this is done for any purpose whatsoever as this shall tantamount to interference or enticement. E.17 No Exclusive Territories for selling / sponsoring: There is no exclusive territory or franchisee granted by the Company. Therefore, the Consultants have no authority to grant, sell, assign or transfer such a territory or franchise. Every Consultant is free to conduct his/her business in any area of the Country. E.18 Exporting products or sponsoring internationally: All Hindustan Unilever Network Consultants must sell all Hindustan Unilever Network products, services, literature/tools of Hindustan Unilever Network only within India and should not export these directly or through any other exporter to any other country. E.19 Place timely orders & provide consistent service to customers: Hindustan Unilever Network provides Consultants with a broad selection of products for purchase. A Hindustan Unilever Network consultant is expected to provide consistent and timely service to customers. E.20 Privacy: All Consultants are required to maintain privacy of customers. E.21 HULN Plan Manipulation: No Consultant shall manipulate the Hindustan Unilever Network Compensation Plan in any way which results in any benefits that have not been earned in accordance with the terms of the Hindustan Unilever Compensation Plan or this Code. E.22 Fund-raising: No Consultant shall use the Company products in conjunction with any type of fund-raising activity. Fund-raising includes the solicitation for the purchase of HULN products based on the representation that all, or some, of the gains, proceeds, bonuses, or profits generated by such sale will benefit a particular group, organization or cause. E.23 Sound Business Practices: A Consultant must operate his or her Consultantship in a financially responsible, solvent, and business like manner. The Company shall have the right to take action against any Consultant that it knows, or reasonably believes, is operating their Consultantship in a financially irresponsible, insolvent or unbusiness like manner. E.24 By registering as a Consultant, a Consultant represents to the Company that there is no legal bar or limitation on his or her ability to meet the legal obligations of a Consultant, whether such obligations are to the Corporation, Government entities, itself, customers, or other consultants. If there is an obstacle or limitation, the Consultant must declare it. The Company reserves the right to deduct any amounts due to the Company from the payments to be made to the consultant. E.25 If a Consultant or any Consultant in his or her Business Group files a petition for bankruptcy or has bankruptcy proceedings commenced against him or her, or has any assets seized by court order or taken in execution of an unsatisfied judgement debt, the Consultant must immediately inform the Company. In such cases, the Company reserves the right to terminate the Consultant and/or to alter its terms of conducting business with the Consultant. E.26 Unlawful Business Enterprises or Activities: No Consultant may operate any illegal or unlawful business enterprise, engage or participate in any illegal or unlawful business activity, or be convicted of any illegal or unlawful activity. 20 21 F. Responsibilities of a Upline consultant An Upline Consultant should: • Introduce the business and product to new applicants and continuously develop his/her Consultant Group. • Train, educate, assist the new Consultant in selling and distributing products, helping him/her present the business opportunity as well as manage business. • Maintain frequent communication meets with his/her group. • Must participate, train, guide and motivate the team in all seminars and meetings conducted by his/her Consultant Group. • All Consultant Managers and above are required to submit their monthly business activity plan to Upline or to the company. • All business plans received from their downlines also should be submitted along with their business plan. A Consultant must service his/her personal group Consultants monthly by: F.1 Recruitment and development: A sponsor should recruit and continuously develop his/her personal group. F.2 Training and development: A new Consultant recruited by a Sponsor forms part of the Sponsor’s Consultant group. The Upline Consultant is responsible for training, educating, assisting the new Consultant in selling and distributing products, business planning and helping him/her present the business opportunity as well as manage business. F.3 Communication: An Upline Consultant should maintain frequent communication meets with his/her group, informing about meeting dates, venues, product news, training sessions, advantage, offers, etc. to his/ her downlines. F.4 Participation in all Hindustan Unilever Network Meetings: An Upline Consultant must participate in all seminars and meetings conducted by his/her Consultant Group. He/she should also attend business meetings/ seminars sponsored by Hindustan Unilever Network or called for by Hindustan Unilever Network officers. F.5 Independent Relationship: A Sponsor shall not represent that there is an employment or agency relationship between himself and the Consultants he sponsors. A Sponsor shall not force any member in his member group to purchase products. F.6 Monitor: A Sponsor must monitor the activities of his/her sponsored downline Consultants to ensure their compliance with the Company’s Policies and Procedures as well as motivating new members. F.7 He/she shall ensure that all Consultants whom he/she sponsors are supplied with the Hindustan Unilever Network starter kit and do the kit opening ceremony. F.8 An Upline Consultant should enforce the Code of Business Principles, Policies and Rules of Consultant in his/ her Consultant Group. F.9 Presentation of the Hindustan Unilever Network Plan: F.9.1 When inviting a prospect to hear a presentation of Hindustan Unilever Network Plan, the Hindustan Unilever Network Consultant shall not give the impression that it relates to an employment opportunity. He must not disguise the event as a “market survey”. He must not directly or indirectly indicate that the Hindustan Unilever Network business, consultants or products are part of any business other than Hindustan Unilever Network’s business. He must not deny, if asked, that the presentation is about Hindustan Unilever Network business opportunity. F.9.2 Hindustan Unilever Network business opportunity should not be presented as a get-rich- quickly opportunity. F.9.3 Hindustan Unilever Network Consultant must specify that there is no requirement to retail Hindustan Unilever Network products. G. Maintaining the lines of sponsorship • The transfer/sale of business, change of sponsor, resignation or re-registration of Consultantship, demerging/merging Consultantship each involve assignment of the Consultantship agreement or an amendment thereof and are normally not encouraged. Normally individual transfers are not encouraged. • No Consultant Manager and above can obtain transfer under the rule of group transfer without completing two full years after obtaining his title recognition. • A Consultant who wishes to change sponsor must resign his existing Consultantship under his present sponsor and thereafter remain inactive for a period of six or more consecutive months. • A Consultant can resign at any point of time by giving written notice to the Company with a copy to immediate active upline and Manager. 22 23 G.1 The Transfer/Sale of Business: Change of sponsor, resignation or re-registration of consultantship, demerging/merging of consultantship, each involve assignment of the consultantship agreement or an amendment thereof and is normally not encouraged. However, under exceptional circumstances, they may be carried out subject to prior authorization by the Company. All such transactions are only granted at the sole discretion of Hindustan Unilever Network. Consultants must submit the following 3 letters along with format given in Annexure 6. i. Written request to the Company. ii. Written No-Objection letter signed by the Consultant’s existing upline (his/her 2nd level sponsor if his/her immediate sponsor’s ID is frozen) iii. Written acceptance letter from the new Sponsor. The final authority to take a decision regarding this rests with the Company and such a decision will be final and binding on Consultants. G.2 Individual Transfers: Normally individual transfers are not encouraged. However, under exceptional circumstances, Consultants who wish to transfer their membership are allowed to do so to members of their immediate family at the discretion of the Company. The application must be on standard format (Annexure 6). Such transfers are irreversible. The following are defined as members of the immediate family: i. Children including step-children ii. Spouse iii. Own brother or sister iv. In-laws or blood relations of the immediate family v. Parents Consultants must submit 3 letters along with format given in Annexure 6 i. A written request to the Company. • In case of division of a business due to divorce between the primary and associate members or dissolution of a Corporate body or Partnership firm, the same shall be done with proper written approval of the Company. • When a Consultant wants to sell his/her business, it must be offered to the immediate Sponsor. • Businesses cannot be merged or combined without the previous written approval of the Company. ii. A written no-objection letter signed by the Consultant’s existing upline (his/her 2nd level sponsor if his/her immediate sponsor’s ID is frozen). iii. A written acceptance letter from the new Sponsor. The final authority to take a decision rests with the Company and such a decision will be final and binding on Consultants. G.3 Group Transfers: Transfer of a personal group is allowed subject to him/her: i. Obtaining release from all their uplines up to first qualified Consultant Director ii. Obtaining consent from all consultants who wish to move. iii. Obtaining acceptance from new sponsor or his/her direct downlines. No Consultant Manager and above can obtain transfer under this rule without completing two full years after obtaining his/her title recognition. G.3.1 A Consultant who wishes to transfer to a different sponsor all or part of his personal group must submit a written request to the Company accompanied by written consent from all active Consultants in his line of sponsorship up to and including the first qualified Consultant Manager and qualified Consultant Director. G.3.2 The transfer request must be accompanied by written consents of all those Consultants whom the transferring Consultant wishes to take with him or her and the written acceptance of the transfer, signed by the sponsor and Consultant Manager to whom the individual wants to be transferred. Hindustan Unilever Network will also take the acceptance of upline Consultant Vice President and above and will allow 30 days for comment. G.3.3 No consultantship currently recognized by Hindustan Unilever Network as a group leader (i.e, First time Manager, Star and Founder Managers) can be transferred under this rule. A former Consultant Manager may be transferred if more than two full years have elapsed since the last fiscal year in which the consultantship was recognized as such, provided there has been compliance with the procedures outlined above. G.4 Divorce, Separation or other dissolution: In case of division of a business due to divorce between the primary and associate members or dissolution of a corporate body or partnership firm, the same shall be done with proper written approval of the Company. Adequate care should be taken to ensure that the interest/income of the downlines are not affected. Rule C.11 of this Code provides that, if a husband and wife both are always considered to be together in the Consultancy. This Rule applies even when a divorce is pending or the parties are no longer living together. During the division or separation process, neither party will administer or operate, together or separately, any other HULN business without HULN’s approval. G.5 Name Change: Any request for name change will only be entertained if accompanied with an affidavit or proof. This will be verified by the Company and Company’s decision on this will be final and binding. G.6 Resignation: The Consultant can resign at any point of time by giving written notice to the Company with a copy to immediate active upline and Manager. In such event, the Company will have the discretion to either put a Hindustan Unilever Network SUB (HUN SUB) or move the downlines up to the immediate sponsor of the resigning Consultant. The final authority to take a decision regarding this rests with the Company and such a decision will be final and binding on Consultants. A Consultant upon exiting either by way of resignation, termination or inactivity (as defined in the Manual) or by any other means or on suspension will be 26 27 I. Presentation of Hindustan Unilever Network Business Opportunity A Consultant should present the Company’s Compensation Plan accurately and completely as stated in the Company’s Compensation Plan Book and in the Company’s training tools. When presenting the Hindustan Unilever Network business opportunity to others, he/she must emphasize that it involves running an independent business and is not an offer of employment. Following guidelines should be strictly by the consultant while scheduling and presenting adhered to Hindustan Unilever Network business opportunity; • Take prior appointment with the prospect. • Dress appropriately. • Carry Hindustan Unilever Network identity card, photo identity card issued by Government Authorities and other documents such as Hindustan Unilever Network Compensation Plan booklet, business manual, COBP manual and product leaflets and samples. • Be present at scheduled time and place. • Introduce yourself and present Hindustan Unilever Network identity card, photo identity card issued by Government Authorities for identification. • Present opportunity plan with product literature, refund policy, complaint redressal mechanism and documents confirming right to cancel the order and receive a full refund of the sums paid. • If the sale is concluded during the presentation handover the product along with invoice cum receipt copy. J.1 Refund within 30 days: Any Product found defective or below expectations can be returned and exchanged within 30 days with proof of purchase on standard “Goods Return Form” Annexure 4. J.2 Guarantee does not apply: The guarantee does not apply to damage caused by accident, misuse, abuse or alteration to the product. J.3 Requirement: The product must have been used from the original container and according to the label directions, with the copy of the original invoice, Goods Return Form Annexure 4. J.4 Consumer Refund: Should a consumer not be entirely satisfied with the product, the Consultant must give the consumer the choice of a full replacement without charge or a refund of the full purchase price. If the Consultant does receive a product back from the customer, it must be returned either in person to the Hindustan Unilever Network Centre or by mail to the Company. The Hindustan Unilever Network product Satisfaction or Money Back Guarantee Hindustan Unilever Network offers a 100% product satisfaction or money back guarantee. If a consumer is dissatisfied or finds any Hindustan Unilever Network product below expectations, Hindustan Unilever Network will replace it and The Consultant may in turn refund the money to his/her consumer. The product must be returned within 30 days from the date of purchase along with the copy of the original invoice, Goods Return Form Annexure 4. J. The Hindustan Unilever Network Product Satisfaction or Money Back Guarantee 28 29 K. Compliance of Rules of Conduct Compliance of the Rules of Conduct has to be strictly adhered to and any violation to these rules is extremely serious because it affects the business of the Consultant and also impacts the image of Hindustan Unilever Network in the eyes of the public, media and government officials. While the Company will endeavour to correct any violation through advice and guidance, in serious cases further action may be required by Hindustan Unilever Network in any order or combination but not limited to the following: i. Re-coaching of the Consultant or his group ii. Suspension iii. Termination/cessation of the Consultantship K.1 Any Consultant who has discovered that there is a violation must notify Hindustan Unilever Network about the same along with all associated evidence. Once the complaint is received, the Company may do (but not limited to) the following to any of the following: K.1.1 Send a notice to the appropriate Consultant requesting for a response. K.1.2 Ask for additional information from either parties. K.1.3 In case the Company decides that based on the information and circumstances there is a violation of the rule it will informally discuss the matter with the Consultant to explain the reason behind the rule and obtain assurance from the Consultant that there will be no more violation in future. K.1.4 If the informal process is not successful and if the Company decides on any action other than suspension or termination to the Consultant then the Company will inform the decision through a written communication to the violating Consultant and his/ her direct upline and the top most active Consultant in the line of sponsorship of the violating Consultant. The letter will contain the corrective action to be taken along with a time limit if relevant. K.1.5 In case the Consultant does not comply within the specified time limit, the Company will take further action directly. Such action shall be notified to the violating Consultant in writing with a copy to the top-most Consultant in the line of Sponsorship. L. Suspension / Termination of Consultantship A Hindustan Unilever Network Consultant can be suspended or terminated from continuing his/her Hindustan Unilever Network business: i. If he/she provides false information in the application form. ii. If he/she misrepresents Hindustan Unilever Network and its business. iii. On violation of the rules of Conduct. iv. If he/she is declared bankrupt/involvement. v. If he/she is convicted of any crime/offense. vi. If he/she is mentally unsound to handle the business. vii. If he/she does not fulfill his/her responsibilities as an Upline Consultant as per clause-F. L.1 Termination can be effected by either party giving 30 days notice. L.2 Circumstances that may lead to termination include but are not limited to: L.2.1 In the Company’s opinion the Consultant has provided false information in his Consultant Application Form. L.2.2 If the Consultant makes a misrepresentation of the Company’s business. L.2.3 If the Consultant breaches these rules of Conduct. L.2.4 If the Consultant is convicted of any crime. L.2.5 If the Consultant becomes the subject of any insolvency/ bankruptcy proceedings. L.2.6 If the Consultant is incapable of managing the business due to his mental condition. L.2.7 If the Consultant dies without appointing an executer or heir who is ready to take responsibility of the deceased business. L.2.8 Spreads rumours or interferes with other networks or in the normal conduct of the business. L.2.9 Crossline selling and retailing at establishments other than beauty parlours and health spas. L.2.10 If the Consultant fails to make payment of any products or services provided by the Company. L.3 Conduct Committee: All complaints will be entertained by a Conduct Committee consisting of two Senior Managers of Hindustan Unilever Network or Hindustan Unilever Limited appointed by the Business Head. The decision of the Conduct Committee will be final and binding. L.4 Effect of Suspension: When a Consultant and/or his/her Associate 30 31 Consultant is under suspension, the Company can take any or all of the following actions: L.4.1 Not release payments of lifestyle bonuses or any commission that may be due to him/her. L.4.2 Not allow her/him from attending Company sponsored conferences, events, meetings, training sessions, etc. L.4.3 Prevent her/him from joining Company organized trips. L.4.4 Prevent her/him from placing orders on the Company for a specified period. L.4.5 Prevent her/him from sponsoring downlines. L.5 Suspension/Termination Process: L.5.1 When the Company decides to suspend or terminate a Consultant, the Company will inform the Consultant in writing that the Consultant is suspended and/or terminated. L.5.2 The suspension and/or termination notice will be sent by recorded delivery to the Consultant’s address on record. In case of suspension, the Consultant will have twenty (20) days from the date of suspension letter to send a written response by recorded delivery agreeing to correct the violation and/or comply with the Agreement, as the case may be. L.5.3 If no response or unsatisfactory response is received by the Company within twenty (20) days, the Company shall be entitled to terminate her/his Consultant Identification Number without any act, correspondence or notice and the Company shall not be liable to pay any claim or compensation to the Consultant for such termination. L.5.4 The suspension and termination of a Consultant by the Company is in addition to all other rights and resources available to the Company. L.5.5 All notices to be served under Terms and Conditions of the Agreement shall be sent by registered mail/courier to the last known address and shall be deemed served 48 hours after posting/dispatch. L.6 Status of Associate Consultants: Suspension/Termination of Consultant automatically leads to suspension/ termination of Associate Consultants also. L.7 Status of Terminated Consultants: No Consultant having been terminated shall represent herself/himself as a Hindustan Unilever Network Consultant, purchase products from the Company, receive any discounts, bonuses, awards, or be eligible to attend Company functions. Voluntary resignation of a Consultant results in loss of rights to his/her group’s business. Consultants, irrespective of their suspension/termination, shall make good all losses/damages suffered by the Company on account of their misrepresentation. L.8 Status of Downlines of Terminated Consultants: In the event of termination of a Consultant, the Company will have the discretion to either put a Hindustan Unilever Network SUB or move the downlines up to the immediate sponsor of the terminated consultant. The final authority to take a decision regarding this rests with the Company and such a decision will be final and binding on Consultants. L.9 Company reserves the right to recovery: Without prejudice to the Consultant, the Company shall have the right to recover the loss/lost/damage as they seem fit in the circumstances of the case. L.10 Unsold, resalable product inventory, promotional material: If requested, upon termination the Company shall buy back any unsold, resaleable product inventory, promotional material, sales aids and kits, purchased within the previous twelve months and refund the Consultant’s original cost, less a handling charge of up to 10% of the net purchase price. The Company shall also deduct the cost of any benefit received by the Consultant and his/her uplines based on the original purchase of the returned goods. L.11 De-sponsorship: De-sponsorship means the removal of a Consultant from his position as a Sponsor in the Line of Sponsorship including, at the absolute discretion of the Company, the removal of the Distributor’s right to ever sponsor again in his current line of Sponsorship or any other line of Sponsorship. Such removal being effected by written notice from the Company to the relevant Consultant and becoming effective on the date stated in such notice. M.1 In the event Hindustan Unilever Network decides that it is necessary to terminate a Consultant’s business or if a Consultant resigns or dies without leaving heirs who will take on operating the consultantship, the disposition of the business of such a Consultant will be decided by Hindustan Unilever Network at its sole discretion. In doing so it may employ one of the following procedures: M.1.1 Hindustan Unilever Network may elect to sell/assign the business subject to applicable laws & regulations, in which case it will observe the following: M. Disposition of Terminated or Non Renewed or Inactive Businesses / Sponsors M.1.1.1 The business will be offered by Hindustan Unilever Network through sale or assignment to another Consultant as per Section G.8. M.1.1.2 The terms of sale will be set forth in a written contract executed between Hindustan Unilever Network and the purchaser. M.1.2 Hindustan Unilever Network may so decide to dissolve the business by merging it with the business of the first qualified sponsor upline in the line of sponsorship. M.1.3 However Hindustan Unilever Network is in no way limited to any of the above methods of disposition and may exercise its sole discretion as to the method and terms of disposition. 32 33 N. Review by Appeal Panel Any Consultant can use his/her right to approach the appeal panel. The appeal request must be received in writing along with documents to support the requests. The parties may offer evidence and produce additional evidence independently or as the Panel requests. N.1 Any Consultant can use his/her right to approach the appeal panel. In that case the decision taken by Hindustan Unilever Network may be suspended until the re-examination has taken place and a final decision has been taken by the re-examination panel. During this period of suspension: N.1.1 The Consultant is not allowed to conduct any Hindustan Unilever Network-related activity. N.1.2 The consultant cannot represent him/herself as a Hindustan Unilever Network Consultant. N.1.3 All payments and commissions payable to the business will be computed but held in escrow account by Hindustan Unilever Network. N.1.4 Whether the business volume of the business qualifies for the standard Reward & Recognition of the Company (as detailed out in the compensation plan and as may be announced from time to time) will be decided by Hindustan Unilever Network when the final decision is taken by the appeal panel. All recognitions may be withheld by Hindustan Unilever Network at its discretion. N.1.5 The Consultant will not be invited to attend any event held by the Company or any of its Consultants even though he/ she may have qualified for such event prior to the suspension/ termination. N.1.6 In the eventuality that the appeal panel decision is in favour of the Consultant, Hindustan Unilever Network shall restore full rights and privileges and pay the monies held in the escrow account to the Consultant. N.1.7 In the event that the appeal panel takes any other decision, Hindustan Unilever Network will decide what to do with the monies held in the escrow account. N.2 Appeal Process: The appeal request must be received in writing along with documents to support the requests. The request must be filed within the time period specified in the decision letter and is to be addressed to Hindustan Unilever Network, Army and Navy Building, 3rd Floor, Mumbai-400 001, for the attention of the National Operations Head. If the request is filed after the time limit, the same will be denied and the Consultant notified that his request has not been accepted. N.2.1 The Appeal Panel shall consist of appropriate personnel from the corporate staff of Hindustan Unilever Network as may be determined at that time by the Business Head of Hindustan Unilever Network. It is to be noted that this Appeal Panel provides an internal opportunity for review of decisions regarding termination, suspension and the members of this panel do not act as arbitrators. N.2.2 In case the Consultant initiates legal proceedings prior to hearing by the Appeal Panel, the same shall be cancelled and the opportunity for re- examination withdrawn by Hindustan Unilever Network. N.2.3 Procedures for Review by Panel: N.2.3.1 The parties may produce evidence on their own or as the Panel requests. Admissibility of the evidence with respect to its relevance and significance shall be at the discretion of the Appeal Panel. N.2.3.2 Either party can inspect the document submitted by the other party. N.2.4 Final Determination by the Review Panel: N.2.4.1 The determination of the Appeal Panel will be communication to all parties by a registered letter or email. N.2.4.2 The Review Panel has the right to change including modify, reiterate the decision of Hindustan Unilever Network. N.2.4.3 If the Appeal Panel upholds the termination of the Consultant, such termination will be confirmed by the Company and the Consultant will be informed that: i. Either the termination of the Consultant business has been confirmed with effect from the date of termination previously notified to the Consultant by Hindustan Unilever Network, or ii. His or her business has been terminated by the Appeal Panel in which case the business is deemed to have been terminated by Hindustan Unilever Network by the service of notice of the Appeal Panel’s decision to the Consultant. N.2.4.4 If the Appeal decides on any action other than termination then: i. The Company will take necessary steps to implement the Appeal Panel’s determination. 34 35 ii. Then Notification of such action will be communicated directly by Hindustan Unilever Network to the Consultant by registered mail clearly specifying the date by which the Consultant has to complete any action or the dates by which any action will be taken by the Company. N.2.4.5 The decision of the Appeal Panel shall not give rise to any liability on the part of Hindustan Unilever Network to the Consultant, including but not limited to loss of profits or goodwill. In the case of death of a Consultant, the Company should be notified by the administrator or the nominee (as defined in the application form) within 3 months of the death with a letter. O.1 In case of death of a Consultant: O.1.1 If Hindustan Unilever Network is not notified of the appointment of an administrator (in accordance with provisions of section O.1.2 below, Hindustan Unilever Network can appoint a representative as per the terms and conditions that it considers appropriate to manage the consultantship or assign the consultantship in accordance with section O.1.2.iii or cancel it in accordance with section M. The representative appointed to manage the consultantship based on Hindustan Unilever Network specifications will receive in full or part commissions and privileges earned by the consultantship he/ she represents, for the period during which he/she manages it. O.1.2 The Company should be notified by the administrator or the nominee (as defined in the application form) within 3 months of the death with a letter confirming that he/she will do the following: O. Death & Inheritance i. Sell the consultantship in accordance with Section M of the rules. ii. Become the Consultant, take charge of the deceased consultantship. iii. Appoint a representative for a period of time, as per terms and conditions specified by Hindustan Unilever Network, who will operate the consultantship with the understanding that the said representative is or will become a consultant before he/she starts to operate the consultantship. In accordance with rules as specified by Hindustan Unilever Network, the representative can receive in full or part all incentives and rewards as earned by the consultantship that he represents for the period during which he manages it. P. Other Policies O.2 If the Hindustan Unilever Network consultantship belongs to two unmarried people and one of them dies then the following applies: O.2.1 The surviving consultant will be in charge of the business during the time or according to Section O 2.2, or until Hindustan Unilever Network cancels the consultantship according to Section L 2.7. O.2.2 Within 30 days following the issuance of letter of administration or proper authorization O.2.2.1 The surviving Consult- ant shall obtain (by will or sale or operation of law) the interest of the deceased consultantship, or O.2.2.2 The administrator of the deceased Consultant’s estate can assign or transfer the latter’s part to another Consultant who shall operate the business with the surviving Consultant or, O.2.2.3 The Hindustan Unilever Network consultantship can be sold in accordance with Section G, of the rules. O.2.3 The administrator of the deceased Consultant’s estate and the surviving Consultant shall appoint a representative to operate the consultantship for said period, under the terms and conditions specified by Hindustan Unilever Network, with the understanding that the representative shall become a Hindustan Unilever Network Consultant before he takes charge of the business. P.1 Restricted Entry: Entry to seminars, meetings, training sessions, conferences, etc which are organized by the Company are personal and are not transferable. P.2 Company Rights: P.2.1 Right to Change Prices: Hindustan Unilever Network has the right to change its prices and range without prior notice. Hindustan Unilever Network will not give performance discount, bonus or any other compensation for any losses suffered due to price changes, range changes or products being out of stock. P.2.2 Right to deduct any overdue invoices: Hindustan Unilever Network reserves the right to deduct, at any time, any overdue invoices from any performance discount or bonus due for payment to the Consultant. P.2.3 Right to revise the Compensation Plan: Hindustan Unilever Network reserves the right to expand or revise the Hindustan Unilever Network compensation plan, qualification criteria or the code and rules with immediate effect. 36 37 P.2.4 Right to make changes in the content: The Company reserves the right to make changes in the content, description, range and formulation of the products, including changes in the marketing strategy, compensation plan, prices, policies and procedures from time to time. P.2.5 Waiver: The waiver by the Company of any breach or non- enforcement by the Company of any policy shall not prejudice or preclude the subsequent enforcement of that policy and shall not be deemed a waiver or acquiescence on part of the Company. P.2.6 Force Majure: The Company shall not be liable for any non- performance of its obligations or consequences thereof under this policy due to Force Majure circumstances beyond its reasonable circumstances. P.2.7 Final Authority: The Business Head shall be the final authority on interpretation of the Company policies. P.2.8 Dispute Settlement: In the event that the Consultant or the Company is not satisfied by the final determination of the re- examination panel (Section N) then a sole Arbitrator shall settle all disputes between parties with respect to the Policy Manual. The Sole Arbitrator will be appointed from the panel of Arbitrators maintained by the Mumbai Chamber of Commerce. The process of arbitration will take place in Mumbai. P.2.9 Right to change the Business Policies: The Company reserves the right to change the Business Policies mentioned in this manual. Any change in the Manual will be uploaded by the Company at the Company website (www.huln.co.in) or through any other means of communication and the date of implementation of the rules will be the date on which these have been thus uploaded or communicated. A notice intimating the change will be delayed in the notice board of the company centre and copy of these rules will be available at Company centres. The Company in addition may also intimate via SMS to all those Consultants who are active (active as defined in this Manual) at their last mobile number as registered with the Company about change of these rules. P.2.10 All notices/letters to be served under the terms and conditions of the agreement of consultantship shall be sent by registered mail, courier or any other valid means of communication to the last known address and shall be deemed served within 48 hours of posting/dispatch. P.3 Conflicts of Interests: All Consultants must avoid activities that interfere with their responsibilities as a Consultant. Consultants shall not misuse or take any undue advantage of their positions to seek gain for themselves or others. Any interest or action that makes it difficult for him/her to perform his/her duties as a Consultant in an effective and unbiased manner is a conflict of interest. All Consultants must act in the best interest of the Company. Unilever Code of Business Principles Our Principles Our code of business principles describes the operational standards that everyone at Unilever follows, wherever they are in the world. It also supports our approach to governance and corporate responsibility. Code of Business Principles Standard of Conduct: We conduct our operations with honesty, integrity and openness, and with respect for the human rights and interests of our employees. We shall similarly respect legitimate interests of those with whom we have relationships. Obeying the Law: Unilever companies and employees are required to comply with the laws and regulations of the countries in which they operate. Employees: Unilever is committed to diversity in a working environment where there is mutual trust and respect and where everyone feels responsible for the performance and reputation of the company. We will recruit, employ and promote employees on the sole basis of the qualifications and abilities needed for the work to be performed. We are committed to safe and healthy working conditions for all our employees. We will not use any form of forced, compulsory or child labour. We are committed to working with employees to develop and enhance each individual’s skills and capabilities. We respect the dignity of the individual and the right of employees to freedom of association. We will maintain good communications with employees through company based information and consultation procedures. Consumers: Unilever is committed to providing branded products and services which consistently offer value in terms of price and quality, and which are safe for their intended use. Products and services will be accurately and properly labeled, advertised and communicated. Shareholders: Unilever will conduct its operations in accordance with internationally accepted principles of good corporate governance. We will provide timely, regular and reliable information on our activities, structure, financial situation and performance to all our shareholders. Business Partners: Unilever is committed to establishing mutually beneficial relations with its suppliers, customers and business partners. In our business dealings, we expect our business partners to adhere to business principles consistent with our own. Community Involvement: Unilever strives to be a trusted corporate citizen and, as an integral part of society, to fulfill its responsibilities to societies and communities in which the Company operates. Public Activities: Unilever companies are encouraged to promote and defend their legitimate business interests. Unilever will co-operate with governments and other organisations, both directly and through bodies such as trade associations, in the development of proposed legislation and other regulations which may affect legitimate business interests. Unilever neither supports political parties nor contributes to the funds of groups whose activities are calculated to promote party interests. Annexure.1 38 39 The Environment: Unilever is committed to making continuous improvements in the management of environmental impact and to the longer-term goal of developing a sustainable business. Unilever will work in partnership with others to promote environmental care, increase understanding of environmental issues and disseminate good practice. Innovation: In our scientific innovation to meet consumer needs, we will respect the concerns of our consumers and of society. We will work on the basis of sound science, applying rigorous standards of product safety. Competition: Unilever believes in vigorous yet fair competition and supports the development of appropriate competition laws. Unilever companies and employees will conduct their operations in accordance with the principles of fair competition and all applicable regulations. Unilever is committed to making continuous improvements in management of environmental impact and to the longer term goal of developing a sustainable business. Unilever will work in partnership with others to promote environmental care, increase understanding of environmental issues and disseminate good practice. Business Integrity: Unilever does not give or receive, whether directly or indirectly, bribes or other improper advantages for business or financial gain. No employee may offer, give or receive any gift or payment which is, or may be construed as being, a bribe. Any demand for, or offer of, a bribe must be rejected immediately and reported to management. Unilever accounting records and supporting documents must accurately describe and reflect the nature of the underlying transactions. No undisclosed or unrecorded account, fund or asset will be established or maintained. Conflicts of Interests: All Unilever employees are expected to avoid personal activities and financial interests which could conflict with their responsibilities to the Company. Unilever employees must not seek gain for themselves or others through misuse of their positions. Compl i ance- Moni t or i ng- Repor t i ng: Compliance with these principles is an essential element in our business success. The Unilever board is responsible for ensuring these principles are communicated to, and understood and observed by, all employees. Day-to-day responsibility is delegated to the senior management of the regions and operating companies. They are responsible for implementing these principles, if necessary through more detailed guidance tailored to local needs. Assurance of compliance is given and monitored each year. Compliance with the code is subject to review by the board supported by the audit committee of the board and the corporate risk committee. Any breaches of the code must be reported in accordance with the procedures specified by the joint secretaries. The board of Unilever will not criticize management for any loss of business resulting from adherence to these principles and other mandatory policies and instructions. The board of Unilever expects employees to bring to their attention, or to that of senior management, any breach or suspected breach of these principles. Provision has been made for employees to be able to report in confidence and no employee will suffer as a consequence of doing so. In this code the expressions ‘Unilever’ and ‘Unilever companies’ are used for convenience and mean the Unilever Group of companies comprising Unilever N.V., Unilever PLC and their respective subsidiary companies. The board of Unilever means the directors of Unilever N.V. and Unilever PLC. Annexure.2 PAN Card Passport Driving License Voter ID card *Attach photocopy of any one of these documents www.huln.co.in Reg. Office : Hindustan Unilever Limited, Army &Navy Building, 3rd Floor, 148 MG Road, Fort, Mumbai - 400 001. Phone : 022 - 61914500 Format of Application Form-Front 40 41 I have read and understood the contents of the Business Manual & the Code of Business Principles, Policies and Rules of Consultant Conduct which is made available to me. I agree to abide by the same. I agree that all changes in the Business Manual & the Code of Business Principles, Policies and Rules of Consultant Conduct made in future shall be applicable and binding to me. www.huln.co.in Reg. Office : Hindustan Unilever Limited, Army &Navy Building, 3rd Floor, 148 MG Road, Fort, Mumbai - 400 001. Phone : 022 - 61914500 I hereby authorise HUN to send me promotional and transactional messages on my mobile phone no. supplied by me. Format of Application Form-Back Annexure.2 Format of Consultant Order Form Annexure.3 42 43 Format of Consultant Order Form (Contd.) Annexure.3 Format of Consultant Order Form (Contd.) Annexure.3 44 45 Annexure.4 Format of Goods Return Form Serial No. __________________ GOODS RETURN FORM All Goods Returns Forms must be complete and accompanied with a copy of Invoice as proof of purchase. All claims for returns must be made within 30 days from the date of purchase. Upcountry replacement will be couriered to the Consultant by the respective Branch. Replacement will be made with the same product as being returned by the Consultant. Goods may be returned under one of the following codes: A. Client dissatisfaction: Goods returned on account of client dissatisfaction must be accompanied with a letter from the client mentioning Usage, Name, Address, Telephone and Reason for return. B. Product received in damaged condition for order received through courier the damage must be clearly mentioned on the courier copy of invoice and communicated to the Sender within 24 hours of receipt of damaged consignment. C. Incorrect product delivered: Product must be returned in resaleable condition. Tamper proof seal, if any, should be intact. R e t u r n C o d e s : Consultant's Signature (As on Application Form) ________________________ For Official Use Only Received on : Return Warehouse : Instruction Code : Invoice Number Cusultant ID No. First Name Surname Tel No. Product Code Return Code Reason for Return Product Name Qty Reg. Office : Hindustan Unilever Limited, Army & Navy Building, 3rd Floor, 148 MG Road, Fort, Mumbai - 400 001. Phone : 022 - 61914500 Annexure.5 Format for Information Change Form INFORMATION CHANGE FORM Consultant / Consumer name Information Applied for change (Please tick &fill in relevant section supported by document required) 1. Maling Address 2. Contact Details 3. Associate Consultant Details 4. Bank Details 5. Nominee Details IDNo P R I V I L E G E D C O N S U M E R I N F O R M A T I O N C O N S U L T A N T I N F O R M A T I O N * Reg. Office : Hindustan Unilever Limited, Army &Navy Building, 3rd Floor, 148 MG Road, Fort, Mumbai - 400 001. Phone : 022 - 61914500 46 47 Annexure.5 Format for Information Change Form (Contd.) Reg. Office : Hindustan Unilever Limited, Army &Navy Building, 3rd Floor, 148 MG Road, Fort, Mumbai - 400 001. Phone : 022 - 61914500 www.huln.co.in A S S O C I A T E C O N S U L T A N T I N F O R M A T I O N * B A N K D E T A I L S N O M I N E E Reg. Office : Hindustan Unilever Limited, Army &Navy Building, 3rd Floor, 148 MG Road, Fort, Mumbai - 400 001. Phone : 022 - 61914500 Annexure.6 Format for Change of Line of Sponsorship To: The Branch Manager Hindustan Unilever Network (Name & Address of the Centre) Dear Sir/Madam, Format for Change of Line of Sponsorship I/We, (Name of the Consultant and/or Associate), ID No.____________________, would like to Change my/our line of Sponsorship on account of (Tick one): 1. Transfer of Business Relationship with the Transferee: _____________________ 2. Sale of Business Transfer form Attached (Yes/No) 3. Change of Sponsor Release & Acceptance letters attached (Yes/No) 4. Resignation & Re-registration Inactivity Period note Attached (Yes/No) Merger Reason:__________________________________________ My/Our Current Sponsor is 1. Name : _______________________________________ ID : _____________________ 2. Name : _______________________________________ ID : _____________________ New Sponsor/New Consultant is: Name : ___________________________________________ ID : ________________________________ I/We agree that I/we have read all the clauses as mentioned in the Policy Manual and am/are affecting the change as per the procedure laid therein. Request for your approval, Your faithfully, Consultant / Associate Consultant: Name ____________________________________ Name ____________________________________ Signature _________________________________ Signature _________________________________ ID No. ___________________________________ ID No. ___________________________________ I agree. I agree. Existing Sponsor/active Director or & above New Sponsor Name ____________________________________ Name ____________________________________ Signature _________________________________ Signature _________________________________ ID No. ___________________________________ ID No. ___________________________________ Reg. Office : Hindustan Unilever Limited, Army & Navy Building, 3rd Floor, 148 MG Road, Fort, Mumbai - 400 001. Phone : 022 - 61914500 48 49 PAN Card Passport Driving License Voter ID card Passport *Attach photocopy of any one of these documents Reg. Office : Hindustan Unilever Limited, Army &Navy Building, 3rd Floor, 148 MG Road, Fort, Mumbai - 400 001. Phone : 022 - 61914500 PRIVILEGED MEMBER APPLICATION FORM Privileged Member Name (As per Bank Details) B A S I C I N F O R M A T I O N * A D D I T I O N A L I N F O R M A T I O N I D P R O O F A D D R E S S P R O O F S P O N S O R * D E C L A R A T I O N That all the particulars and information given in this application form (and all documents referred or provided there- with) are true, correct, complete and up-to-date in all respects and I have not withheld any information. I agree and understand that Hindustan Unilever Network reserves the right to retain the application form, and the documents provided therewith, and will not return the same to me. I confrm that I have read the details of Privileged Membership and promise to abide by all rules governing the same. I declare that I have verifed this form. I recommend Mr/Mrs...................................................... to become a privileged Member of Hindustan Unilever Network. Signature of Consultant I declare, confrm, agree Annexure.7 Format of Privileged Member Application Form Code of Business Ethics A Code Administrator has been appointed to take care of customer grievances. Any consumer who feels that he has been aggrieved by a DSA member company in any way, can approach the Code Administrator either individually or through a consumer organisation. In July 1997, Justice D.M. Rege, Retd. Justice, Mumbai High Court, was appointed as the Code Administrator of the IDSA. Code Administrators from around the world meet biennially to discuss important issues & share their experiences. Consumers are protected against illegal or unethical practices. General 1. Scope: The World Direct Selling Code of Conduct Towards Consumers (hereinafter referred to as the “Code”) is published by the World Federation of Direct Selling Association (WFDSA) for its national Direct Selling association members. The Code concerns the relations between Direct Selling companies and Direct Sellers on the one hand and consumers on the other. The Code is aimed at achieving the satisfaction and protection of consumers, the promotion of fair competition in the framework of free enterprise and the enhancement of the public image of Direct Selling. 2. Glossary of Terms: For the purpose of the Code, the terms used have the following meanings: i) Direct Selling: The marketing of consumer products directly to consumers generally in their homes or the homes of others, at their workplace and other places away from their permanent retail locations, usually through explanation or demonstration of the products by a Direct Seller. ii) DSAs: Direct Selling Associations are national associations of Direct Selling companies representing the interest of the Direct Selling industry of a country. The Code of Ethics sets out fair and ethical principles which induce a congenial and healthy environment in the direct selling industry. Consumers are protected against illegal or unethical practices through the enforcement of the Code. To fulfill its objectives, the Association has laid down guidelines for behavior : i) Towards Consumers. ii) Towards Direct Sellers, between Direct Sellers and between companies. Indian Direct Selling Associaton (IDSA) 50 iii) Company: A Direct Selling company is a business entity which utilizes a direct selling organisation for the marketing of products associated with its trademark or service mark or other identifying symbol and which is a member of a DSA. iv) Direct Seller: A Direct Seller is a person who is a member of a distribution system of a direct selling company. A direct seller may be an independent commercial agent, independent contractor, independent dealer or Consultant, employed or self-employed representative, franchisee or the likes. v) Product: Product includes goods and services, both tangible and intangible. vi) Selling: Selling includes contacting potential customers, presenting and demonstrating products, taking orders and delivery of goods and the collection of payment. vii) Party selling: Selling through explanation and demonstration of products to a group of prospective customers by a Direct Seller usually in the home of a hostess who invites other persons for this purpose. viii) Order form: Includes printed or written orders, receipts & contracts. ix) Recruiting: Any activity conducted for the purpose of inducing a person to become a direct seller. x) Code Administrator: Independent person or body appointed by a DSA to monitor member companies’ observance of the DSA’s code and to resolve complaints under the code. 3. Associations: Every national DSA pledges to adopt a code of conduct that incorporates the substance of the provisions of the code, as a condition of its admission and continuing membership in WFDSA. 4. Companies: Every DSA member company pledges to abide by the code as a condition of admission and continuing membership in the DSA. 5. Direct sellers: Direct Sellers are not bound directly by the code, but shall be required by their companies to adhere to it or to business policies, meeting its standards as a condition of membership in the companies’ distribution systems. 6. Self-regulation: The court is a measure of self-regulation by the Direct Selling industry. It is not a law, and its obligations may require a level of ethical behaviour which exceeds existing legal requirements. Non-observance does not create any civil law responsibility. With termination of its membership in a DSA, a company is no longer bound by the Code, the provisions of which remain applicable to events or transactions occurring during the time a company was a member of the DSA. 7. Law: Companies and Direct Sellers are presumed to comply with the requirements of law and therefore the code does not restate all legal obligations. 8. Standards: The code contains standards of ethical behaviour for Direct Selling companies and Direct Sellers. National DSAs may vary these standards provided that the substance of the code is preserved or as is required by national law. It is recommended that the code be used as evidence of industry standards.