Corporate Governance:

Corporate Governance entails the long-term improvement of value for the Group in the best interest of its customers, employees and other stakeholders. It describes the distribution of rights and responsibilities among different participants in the Group , such as the Supervisory Board, the Executive Board, Managers and Employees as well as other parties involved. At Lali Group of Companies, Corporate Governance is characterized by competence, transparency and openness in reporting and the comparability in accounting through the implementation of International Accounting Standards as well as a special focus on social and environmental affairs.

Work in partnership:
No company exists in isolation. Businesses need to involve and inform the organizations, groups and individuals who have a vested interest in their performance. Opening up regular dialogue with all our stakeholders helps us find out how best to respond to their needs. We have always worked closely with our business stakeholders - including customers, suppliers, and staff - in order to build trusting commercial relationships.

Core Values
Authenticity. Inspiration. Commitment. Honesty.

These are some of the core values of the Lali Group. We measure ourselves by these values, and we measure our business partners in the same way.

Consistent with these values, we expect our partners - contractors, subcontractors, suppliers, and others - to conduct themselves with the utmost fairness, honesty, and responsibility in all aspects of their business.

These Standards of Engagement are tools that assist us in selecting and retaining business partners that follow workplace standards and business practices consistent with our policies and values. As a set of guiding principles, they also help identify potential problems so that we can work with our business partners to address issues of concern as they arise.

I. General Principle
Business partners shall comply fully with all legal requirements relevant to the conduct of their businesses.

II. Employment Standards
We will only do business with partners who treat their employees fairly and legally with regard to wages, benefits, and working conditions. In particular, the following guidelines apply:

Forced Labor:
Business partners shall not employ forced labor, whether in the form of prison labor, indentured labor, bonded labor, or otherwise.

Child Labor:
Business partners shall not employ children who are less than 18 years old , or who are younger than the age for completing compulsory education

Discrimination:
While we recognize and respect cultural differences, we believe that workers should be employed on the basis of their ability to do the job, rather than on the basis of personal characteristics or beliefs. We will seek business partners that share this value, and that do not discriminate in hiring and employment practices on grounds of race, national origin, gender, religion, age, disability, sexual orientation, or political opinion.

Wages and Benefits:
Business partners shall pay their employees the minimum wage required by law or the prevailing industry wage, whichever is higher, and shall provide legally mandated benefits. Wages shall be paid directly to the employee in cash or check or the equivalent, and information relating to wages shall be provided to employees in a form they understand. Advances and deductions from wages shall be carefully monitored, and shall comply with law.

Right of Association:
Business partners shall recognize and respect the right of workers to join and organize associations of their own choosing.

Disciplinary Practices:
Every employee shall be treated with respect and dignity. No employee shall be subject to any physical, sexual, psychological or verbal harassment or abuse.

III. Health and Safety
Business partners shall provide a safe and healthy working environment, including protection from fire, accidents, and toxic substances. Lighting, heating and ventilation systems should be adequate. Employees should have access at all times to sanitary facilities, which should be adequate and clean. When residential facilities are provided for employees, the same standards should apply.

IV. Environmental Requirements
Business partners shall comply with all applicable environmental laws and regulations.

V. Community Involvement
We will favor business partners who make efforts to contribute to improving conditions in the country and community in which they operate.

Mission and values
Our mission is to be the best group in the world. The 'best', in quality, price, social and environmental terms, means that we are dedicated to our valued clients, socially responsible, safe and environmentally sustainable practices in the group and its supply chain, and to enhancing the value of our products by guaranteeing the ideals of the Group for the consumer and for those making our products We aim to have everything for everyone. In specific terms our mission can be defined as follows:

• strengthening our image and reputation
   
• making our supply chain more effective
   
• Ensuring to provide a long-term future for our products.

The values of the company - authenticity, inspiration, honesty and commitment form the basis of our Standards of Engagement, the Group's code of conduct that aims to ensure that our suppliers´ factories are safe, fair places in which to work. Our ultimate goal for our suppliers´ conduct is that they have systems of 'self-governance', meaning that they will eventually develop their own systems in line with local and international social and environmental standards rather than being externally regulated by customers.

Principles of sustainability
Our principles of sustainability help us set standards for our own social and environmental performance  Our principles are set out as follows.

Legislation
We adhere to social and environmental laws, directives and guidelines while continually improving upon our own contribution to a sustainable society.

Management
We aim to:

• analyse, evaluate and assess the social and environmental impact of our products, technologies and processes at the design and development stage
• set up clear targets, formulate an action plan and monitor progress.

Supplier and customer relationships
We expect suppliers' activities to be compatible with our Standards of Engagement. We work in partnership with them to improve workplace conditions. We encourage our business customers to take a proactive stance on the social and environmental impact of their own activities.

Support
We support social and environmental projects and develop partnerships with businesses and organizations whose direct and indirect output contributes to a sustainable society.

Stakeholder dialogue 
We aim to communicate with all stakeholders in an atmosphere of mutual trust and respect. We provide them with appropriate information related to the export, management , social and environmental performance of the group on a regular basis.

Membership:
Lali Group of companies has the membership of the following associations:

• Sialkot Chamber of Commerce and Industry.
• Pakistan Gloves Association
• Pakistan Sports Goods Manufacturers Association.
• Pakistan Hosiery Manufacturers Association.
• Pakistan Surgical Manufacturers Association.