codeofconduct

QA1If I discover a great price on something I want to buy and don’t havemy personal credit cards with me, is it acceptable to use my company-issued credit card so long as I repay the charges?No. You cannot use a company credit card for personal expenses.

QA2My supervisor has asked maintenance employees to leave the facilityduring working hours to fix an electrical problem at his home. Whatshould I do?You should report your concerns to one of the many options availableto you so the activity can be reviewed.

QA3My supervisor gave me an invoice and asked me to put it on mycompany credit card and forward it to her for approval and payment.Should I pay the invoice?No. Every employee is responsible for paying the expenses they incur.In this case, your supervisor, who can certify the expense, isresponsible for the charge and should submit it to her supervisor forapproval, even if the amount is within your supervisor’s authority toapprove.

QA4I have noticed unescorted people wandering around and takingpictures at the facility. What should I do?Photography of company property is permitted only when approved bythe business unit leader or local site management. Unauthorizedphotography of company property could be a sign of surveillance andthe activity should be considered suspicious. Additionally, thisphotography could result in a loss of intellectual property. If you see theactivity occurring, immediately report the matter to security or amember of management.

QA5I routinely take my assigned company laptop home and on businesstrips. Is it acceptable to leave it in a vehicle unattended?The loss of a laptop or any portable communication device not onlyresults in the loss of the property, but it can also lead to a loss ofconfidential information or personal data. You should take the laptopinside your home to ensure safe storage. If you have a few stops tomake before arriving home, discreetly store the laptop or any otherproperty so that it is not visible in the vehicle.   

Chapter 3.8Intellectual Property and ConfidentialInformationThe value of ideas, creations, innovations and information —intellectual property — often exceeds the value of more tangible items,such as physical property. The company’s considerable intellectualproperty assets are central to developing new products, attracting newbusiness opportunities and maintaining our existing businesses in ahighly competitive environment.Intellectual property that you or others create on behalf of the company,or that relates to our business, belongs to the company. If we do notidentify and protect our intellectual property, we risk losing our rights toit and the competitive advantages it offers.Some categories of intellectual property are: Trade secrets and confidential and proprietary business information Trademarks and trade names Copyrighted information Patented and non-patented technologyThe company’s intellectual property may be confidential and containproprietary information. Confidential and proprietary information mustnot be shared with others inside or outside of the company unless theindividuals have a legitimate need-to-know and have agreed tomaintain the confidentiality of the information. Appropriate authorizationand agreements must be in place prior to disclosure.Some typical examples of confidential and proprietary informationinclude: Business processes and systems Corporate strategies Customer lists Financial data Legal and regulatory matters Manufacturing methods Marketing strategies Modeling and other analytical and/or management techniques Organizational charts Unpublished patent applications or patentable, or potentially patentable inventions Pricing information Product formulas Sales data and strategies Software developed by the company Technical data, processes and equipment Technical product and process information Trade secrets and “know how” Employee personal information in certain jurisdictions

QA1Some non-company sites I visit require me to sign a visitor’s log or non-disclosure agreement before entering the site. What should I do?Before your visit, ask your host for a copy of any agreements that youmay have to sign for site access. This can help avoid surprises whenyou arrive at the site. Many sites require visitors to sign in and maysometimes require a non-disclosure agreement be signed in order toenter the site. You may sign the visitor log or non-disclosure agreementif it does not obligate you or the company beyond our expectation,expressed in this Code, to respect the intellectual property rights ofothers. Agreements that may further bind the company must bereviewed by a company Legal resource. It is best to ensure that anynecessary agreements are executed in advance. Otherwise, if you areunable to meet the requirements of the site, you may have to decline toenter the site or discontinue the meeting until you can execute anacceptable agreement.  

Chapter 3.9Protecting the Company's IntellectualPropertyYou are not allowed to use the company’s intellectual property forpersonal benefit or for the profit or benefit of persons outside of thecompany.Care must be taken not to lose, misplace or leave confidentialinformation unattended or where others may easily access it, such asopen computer files, unrestricted shared drives or documents left onphotocopiers or on your desk. Safeguard confidential information andproperly dispose of these materials when finished with them. Only usecompany authorized hardware and software when sending companyconfidential information electronically. Do not casually discussconfidential information where others might overhear, such as whenusing video conferencing, speakerphones, mobile phones and whentalking in public places. You must always adhere to the specific securitymeasures or procedures that your Koch company has established.When employment ends, the obligation to protect the company’sconfidential information and intellectual property continues. Allproperty, documents, materials and files, including computer materialsand databases, must be returned to the company. No copies ofconfidential information or intellectual property belonging to thecompany should be retained by the departing employee.

QA1I attend college courses on weeknights and would like to use someinformation that belongs to the company in connection with a courseassignment. Does this violate company policy?Possibly. Much of the information we produce, use or control whileworking for the company is confidential and proprietary. While someinformation is public and can be used elsewhere, or may be appropriateto use for educational purposes, we should never assume anycompany information is public. Ask your supervisor before using anycompany information for any purpose other than your responsibilities atthe company.

QA2I overheard some employees discussing company business on acommercial airplane. What, if anything, should I do?If you believe the information being discussed is sensitive orconfidential, respectfully tell the people they can be overheard. Everyemployee has a responsibility to ensure that confidential andproprietary information is not shared publicly.

QA3I just discovered what appears to be sensitive information left in aconference room. What should I do?First secure the information and then try to determine the likely ownerof the documents and return them to that person. If you cannot,contact your compliance and ethics resource or Legal for help.

QA4Is it acceptable to post the company’s intellectual property online suchas to an Internet bulletin board or blog?No. You are not allowed to publish company intellectual property unlessauthorized by Legal. If the intellectual property constitutes confidentialinformation, it cannot be disclosed to anyone outside the companyunless they have a legitimate need-to-know such information toconduct company business and have agreed to maintain theconfidentiality of the information. 

QA5There is a non-company website that has information about one of ourproducts that I believe is inaccurate. Should I post a statement onbehalf of the company to correct the inaccurate information?Only those authorized to represent the company may do so. You shouldcontact your supervisor if you are concerned about the inaccurateinformation so that the authorized company resource can respond tothe posting, if appropriate. 

QA6Do I have to protect confidential and proprietary information even after Ileave the company?Yes. You are obligated not to use or disclose the company’sconfidential and proprietary information after you leave the company. 

Chapter 3.10Trademark UseThere is significant inherent value in presenting a unified look to ourcustomers and communities. Our corporate brands and othertrademarks are valuable assets, and it is important to use ourtrademarks properly and follow company brand guidelines orstandards. It is also important to use, protect and enforce our rights tomaintain the strength and value of our brands and corporate identity.Some examples of our company trademarks: Marks like Market-Based Management®, Principled Entrepreneurship™ and the Koch logo are all trademarks owned by Koch Industries. Brands like Lycra® fiber and Stainmaster® carpet are trademarks owned by INVISTA. Brands like Brawny® paper towels and Quilted Northern® tissue are trademarks owned by Georgia-Pacific Consumer Products. Brands like Mini-Fit® connectors and Picoflex® connectors are trademarks owned by Molex. Brands like Gold Diesel® fuel and SureSol® specialty solvents are trademarks owned by Flint Hills Resources. Brands like Agrotain® nitrogen stabilizer and Nitamin® fertilizer are trademarks owned by Koch Agronomic Services. Brands like Intalox® structured packing and Flexiring® random packing are trademarks owned by Koch-Glitsch.Trademarks should not be reproduced in any form that differs from thecompany’s brand guidelines or standards and they must be inaccordance with all applicable laws.Tag_Set_A

Chapter 3.11Patents and Trade SecretsProtecting the company’s intellectual property is essential to ensuringthat the company secures the full value of its technical innovations.Because of the complex nature of patents and trade secrets, youshould contact your Koch company’s Legal resource so proper stepsare taken to protect newly developed technologies.If you become aware of a potential infringement or misuse of thecompany’s patents or trade secrets by a third-party, you should contactyour Koch company’s Legal resource for analysis.

Chapter 3.12Others’ Patents and Trade SecretsThe company respects the valid and enforceable patent rights andtrade secrets of others throughout the world by avoiding infringementor misuse of such rights or by obtaining licenses. Because of thecomplex nature of patents and trade secrets, you should contact yourKoch company’s intellectual property Legal resource who will worktogether with the business to ensure proper steps are taken to protectnewly developed technologies.

Chapter 3.13Corporate-developed Software Applications,Code and DocumentationSoftware applications developed by employees are company propertyand are generally for exclusive use by the company. You are prohibitedfrom unauthorized duplication or distribution of these applications.Tag_Set_K

QA1Can I sell a product or service I develop on my own time?It depends on the product or service. Like many companies, we claiman ownership right, to the extent allowed by law, to any product orservice reasonably related to our business, even if you develop it onyour own time. Acting with integrity and ensuring that you arecomplying with your legal obligations requires a release letter fromLegal before you begin marketing any such product or service.

Chapter 3.14Proper Use of Others' Intellectual PropertySimilar to your obligation to properly use and protect the company’sintellectual property, you have an obligation to ensure that you respectthe intellectual property of others. It is the right thing to do and therecan be significant legal consequences for you and the company if youmisuse others’ intellectual property.

Chapter 3.15Others' Confidential and ProprietaryInformationCollecting information about our competitors from legitimate publicsources to evaluate the relative merits of their products, services andmarketing methods is proper and often necessary. However, there arelimits to the ways information may be acquired. For example, seekingconfidential information from a new employee who recently worked fora competitor, misrepresenting your identity in the hopes of gettingconfidential information from or about a competitor or sharing or usingconfidential information of other companies gained while conductingthe due diligence process for potential acquisitions for the purposesother than evaluating the acquisition are prohibited and may be illegal.If information is covered by a confidentiality agreement or use-restriction obligations that the company owes to another individual orcompany, such as a licensor of technology, the sharing and use of suchinformation is subject to the conditions of the agreement with the party.

QA1I worked on an acquisition that did not materialize. Another team isworking on a similar acquisition. Can I share information from theproject?It depends. In the case of a potential acquisition, a confidentialityagreement is normally signed by the company before receivinginformation. The terms of the agreement may prohibit the disclosureand/or use of that information for other projects. Contact Legal foranalysis of the issue.

QA2A vendor mistakenly sent me a copy of a report that containsconfidential information about a competitor’s business plan. Can I giveit to our marketing department?No. You should not read this report any further, nor should you keep ormake copies of it. Bring the document to the attention of your managerand Legal for appropriate handling.

Chapter 3.16CopyrightCopyright laws protect many materials we use in the course of ourwork. Music, electronic and printed graphic images, other companies’logos and designs, digital content, scanned documents, trade journalarticles, engineering drawings, online videos and articles are someexamples. Presentation slides, training materials, management modelsor other materials prepared by outside consultants or organizations arecopyright protected.Do not reproduce, distribute or alter software, documentation or othermaterials without a valid license or other prior permission of thecopyright owner or its authorized agent.To distribute copyright protected materials, you have severaloptions: Verify if the material is covered by our multinational corporate license agreement from Copyright Clearance Center by visiting www.copyright.com. Circulate the original printed form of the material or if the material is only available on the Internet, circulate the link to the material. Seek permission to reproduce and distribute from the copyright owner.

QA1I would like to use a work-related video or article that I found on awebsite as part of a presentation to my team. May I do so?It depends. Relevant factors can include the source of the video orarticle, the method of sharing and the purpose for sharing. The creatorof a video or author of an article is the original owner of the copyright.The fact that a video or article has been published on a website doesnot give you the right to copy the video or article. Many websites onlyallow you to download a video or print one copy of an article forindividual use. Seek ways to appropriately share the knowledge.Options may include passing along the website link, embedding a linkto a video or requesting permission from the copyright owner.

Chapter 3.17Software License AgreementsSoftware licensed for use on company computers is generally createdand copyrighted by other companies and may be subject to restrictionsregarding its use and distribution. The company generally receives anduses this software under licensing agreements and does not haveownership rights. Copying or using software on unauthorizedcomputers may be illegal and also violate the license agreement.Use software only in accordance with the terms specified in theapplicable software license agreement. You are responsible forunderstanding and complying with your Koch company’s softwarepolicy and all software license agreements. If a specific softwarelicense agreement is not clear, contact your local IT resource.Tag_Set_K

Chapter 3.18Copying, Using, or Distributing UnauthorizedSoftwareDo not make, use or distribute unauthorized copies of any softwareunder any circumstances.Tag_Set_K

QA1Is it acceptable to install freeware, shareware, etc., onto my companycomputer?Do not install any software product, including any software you mayhave purchased for personal use, on a company computer withoutapproval by your business IT leader. They can help ensure that alllicense requirements are met and that the software is appropriate foruse on the computer.

QA2Can software licenses be transferred from one company employee orrepresentative to another company employee or representative?All license transfers should be cleared through your IT resource. Somelicenses prohibit transfers between employees or require other specialhandling.

QA3What is the policy regarding software purchases?Software purchases are coordinated through your IT resource and mustfollow your Koch company’s software purchasing policy to ensureglobal management and auditing of our software licenses. 

Chapter 3.19Managing Company Records andInformationInformation is a valuable asset, and it is everyone’s responsibility toensure that information relating to company business, regardless ofhow it is created or where it is stored, is managed effectively andefficiently, from creation through disposition.The company’s records and information management expectationsare as follows: Comply with applicable laws and regulations mandating the retention of certain types of records. Manage and retain records in accordance with your Koch company’s established retention policy. Only create or store company records in approved locations. Preserve all records that may be relevant to any ongoing or expected litigation, audits or government investigations, or are subject to legal hold. Retain archival information of historical significance to the company. Ensure that vital records are identified, protected from destruction and available for the continued operation of the company in the event of a disaster. Dispose of records that have satisfied applicable retention periods, are not subject to any legal hold, and are of no continuing business value.Tag_Set_C

Chapter 3.20Accurate Business RecordsThe company requires accurate and complete business records. Thisincludes all business records such as environmental, safety,operational, personnel and financial records.To ensure this you must: Prepare records accurately and completely. Sign or approve only records that are accurate and complete. Disclose records only as authorized by company policy.Never give out false information or act deceptively. This includesmaking false entries in company books and records, unauthorizeddestruction of documents, falsification of documents, giving orsoliciting false testimony, or engaging in any act designed to cover up,obscure, mislead or hide a fraudulent transaction or act.Tag_Set_C

QA1I think a coworker is reporting hours that she did not work. What shouldI do?Falsely reporting hours that an employee did not work demonstrates alack of integrity and is a serious issue. It also results in higher costs tothe business and is a form of theft. Report your concern using one ofthe many options available to you.

QA2What if my supervisor asked me not to report my overtime hours?The law and company policy are quite clear in this area. You mustaccurately report all hours worked without exception. You must reportyour supervisor’s behavior using one of the many options available toyou.

QA3I’m supposed to check the gauges on a piece of equipment every shift.Yesterday, I forgot. I almost always get the same measurement. Is itacceptable to just fill in yesterday’s reading with today’s data?Absolutely not. Everything we do is based on honest and accuratemeasurements and reliable data. Practice integrity and humility byacknowledging that you made a mistake. Mistakes can becomeparticularly serious when employees attempt to cover them up.

Chapter 3.21Outside Requests for InformationTo ensure proper handling, refer outside inquiries to theappropriate department or personnel. Refer all inquiries from regulatory agencies to Legal or appropriate resources within the company, such as to human resources or environmental, health and safety professionals. Refer all inquiries from news or trade media requesting a company response to the Government & Public Affairs office, which will identify an appropriate spokesperson. Refer all inquiries about current or former employees to your local human resources leader.

QA1I received a call from a government agency representative askingquestions about the company’s operations and business activities.What should I do?You should politely inform the representative that it is company policyto cooperate with the government, but that you will need to get back tothem. You should immediately contact Legal for guidance.

Chapter 4\"My father once advised a group of business students to 'always dobusiness with honorable people.' He told them 'all the contracts andlawyers in Christendom cannot make a dishonorable man hew to theline.' When we’re considering a business relationship – whether with anemployee, partner, supplier or customer – our first question is alwaysdo they have integrity?\" —Charles KochPersonal and Business Integrity

Chapter 4.1Avoiding Conflicts of InterestAvoiding Conflicts of InterestA conflict of interest occurs when personal, social, financial or politicalactivities interfere with our responsibilities to the company. Actualconflicts must be avoided. Even the appearance of a conflict can bedamaging and should be avoided. You have a primary businessresponsibility to the company and are expected to avoid any activitythat may interfere, or have the appearance of interfering, with theperformance of this responsibility.The following sections are examples of areas where conflicts of interestmay arise.Taking Advantage of Company Business OpportunitiesYou may not take personal advantage of business opportunities, orpotential business opportunities, that you learn about or develop in thecourse of your employment with the company. This is true whether itdirectly benefits you or any other person or business.Working for Other CompaniesWhile there is no general prohibition against working for othercompanies, doing so must never interfere with your responsibilities tothe company, including taking time away from company duties ormisusing company resources. If the second job is with an organizationthat is a competitor, customer or supplier of goods or services to thecompany, it raises an actual or apparent conflict. The sameconsiderations apply to working, consulting with or advising for anorganization that is seeking to become a customer, supplier orcompetitor of the company. Before taking a second job with any othercompany, you should talk with your supervisor to make sure it does notpose a conflict for you.Conducting Business with the CompanyExcept when specifically permitted or approved, you and your closerelatives may not engage in any transaction with the company.Examples include the rental, purchase, sale, transfer or use of propertyor provision of service.A conflict may arise when a relative or friend works for a competitor,customer or supplier and directly interacts with you or your businessgroup as a part of their role with that company. If you are unsurewhether you could be in a situation that might create a potential conflictof interest, consult with your supervisor.Ownership or Investment in Other CompaniesYou and your close relatives should not have a substantial interest inany customers, competitors or suppliers. You are required to informyour supervisor about any outside business interests of this nature youhave or are considering. In addition to a potential violation of insidertrading law, ownership or investments of this kind may impair your

ability to make objective business decisions on behalf of the companyand divert you from your primary responsibilities to the company.Employment of Immediate FamilyThe hiring of relatives must be pre-approved by the executive humanresource leader of the Koch company you are employed by.Personal ActivitiesWe are all expected to commit our full attention to business activitiesduring business hours. Do not let personal activities, including thoserelated to a personal business, take attention away from or interferewith your responsibilities to the company.

QA1One of the electrical contractors who works for the company hasoffered me a part-time job on the weekends. Would this create aproblem?Probably so. Our policy on avoiding conflicts of interest obligates all ofus to avoid even the appearance of a conflict of interest.

QA2My sister manages a local office supply store and she says that she cansave us money if I can help her do business with the company. Can Iuse her firm or recommend her firm to others in the company?This might be perceived as a conflict of interest or favoritism. Youshould disclose the relationship and receive advance approval fromyour local management before pursuing this business arrangement orrecommending it to others in the company.

QA3I have an investment in a company that is not a customer, competitor orsupplier. My investment causes me to receive and answer email andphone calls occasionally while I’m at work. Does this cause a conflict ofinterest?It depends. There are many factors that could cause a conflict to exist.You should contact your supervisor to discuss the facts related to yourinvestment and together determine a course of action.

QA4Can our family-owned business sell its products or services to thecompany?Behaving with integrity requires that your family business should not tryto do business with the company unless and until you have receivedpermission from your local management or your compliance and ethicsresource.

QA5Is it okay to use my computer on my lunchtime to access the Internetto research topics of personal interest?Yes, under certain conditions. If you use the Internet for brief, infrequentperiods of time, and you are not accessing inappropriate sites, it isgenerally acceptable. If you have any doubt, consult with yoursupervisor. You also should refer to the acceptable electronic usagesection in this Code.

QA6My son is at home alone after school until I get home. Is it acceptableto have him telephone me when he gets home from school to let meknow that he has arrived safely?Yes. It’s generally acceptable for us to make and receive personal callsas long as they are infrequent, brief and do not interfere with the normalflow of business activities.

QA7I interact with a lot of people at my workplace and I think it would be agreat opportunity to be able to introduce a new line of cosmeticproducts I sell and also to ask them if they would like to participate in afundraiser for my child’s school. Would either of these activities create aconflict of interest or other policy violation?You are not allowed to solicit from your coworkers during companyworking time, in work areas, or by using company resources, such asemail. You should also refrain from soliciting anyone you supervise.Contact your supervisor or human resources leader to ensure youunderstand the non-solicitation policy applicable to your location.

QA8Are we allowed to participate in betting pools?Office betting pools, often used to wager on the outcomes of sportingevents can be illegal. As such, company assets and resources cannotbe used to sponsor or participate in this type of activity. While certainpooling activities may be legal under state law, any such activity that isconducted during working time or involves the use of company assets,such as email or copy machines, is considered inappropriate.

QA9Does the Code prohibit me from having a romantic relationship with acoworker?The Code is not designed to cover private matters between employees.However, romantic relationships with others in the workplace cancreate situations that may be prohibited by the Code. For instance,employees who supervise one another, coworkers who work closelytogether or who could influence each other’s pay, performance rating,job benefits or other terms and conditions of employment, must avoideven the appearance of a conflict of interest. If you find yourself in asituation that may lead to a potential or actual conflict of interest due toa romantic relationship with a coworker, you are encouraged to bringthe matter to your supervisor’s attention or to the attention of humanresources.

QA10I am a software programmer for the company. I want to start a businessthat will develop and maintain personal computer software for smallcompanies. Will this be a conflict of interest?It depends on many factors, such as whether your product is similar toprograms that you develop while employed by the company, andwhether company time, material, equipment or proprietary informationcould be used in developing, marketing or maintaining your product.Before starting your business, you should consult with your supervisorto get a conflict of interest determination, as well as determine whetherany company proprietary information or trade secrets are involved.