Modern Slavery Statement
For financial year ending 31 March, 2022
As a company whose mission is to create transformational technology as a force for good, Arm welcomes the requirements of Section 54 of the UK Modern Slavery Act 2015. The transparency that the Act seeks to encourage is in line with the way we operate at Arm as reflected by our Code of Conduct and our company culture.
Arm technology is at the heart of a computing and connectivity revolution that is transforming people’s lives and how businesses operate. We design energy-efficient processors and related technologies to deliver the intelligence in applications ranging from the sensor to the smartphone to the supercomputer. This technology enables customers to derive real business value from their connected devices. Together with our 1,000+ technology partners, we are at the forefront of designing, securing, and managing all areas of computing from the chip to the cloud. We are headquartered in Cambridge UK and are part of the SoftBank Group Corp (SBG).
This statement covers Arm Limited and their group companies.
Our Values and Policies
At Arm, Corporate Responsibility is underpinned by:
Our Code of Conduct
The Arm Code of Conduct supports how we manage our business in a responsible way consistent with our Core Beliefs . It translates legal and regulatory requirements into the behaviors that we expect of all Arm employees, directors and agents and guides us to make ethical decisions that promote trust. Everyone at Arm is required to demonstrate on an annual basis that they have read and understand the Code of Conduct and completed the mandatory Code of Conduct training.
Our Supplier Code of Conduct
Arm’s Supplier Code of Conduct (Supplier Code) describes our corporate responsibility requirements from suppliers that provide products or services to Arm and its subsidiaries. Arm requires suppliers and their employees to commit to the principles in this Code as a condition of doing business.
Our Supplier Diversity Project
Arm is creating a Supplier Diversity program where US suppliers to Arm will be required to define their federally prescribed diversity category. Arm will then analyze and review the supplier results to determine the level of Arm’s supplier diversity spend. As the program matures Arm expects to set annual supplier diversity spending goals.
Our Sustainability StrategyArm has signed the Universal Declaration of Human Rights and our Human Rights Policy is incorporated in our Code of Conduct.
Arm is a participant member of the UN Global Compact (UNGC), which asks companies to operate in ways that, at a minimum meet fundamental responsibilities for human rights, labour, environment, and anti-corruption. UNGC companies commit to incorporating Ten Principles into their strategies, policies, and procedures to demonstrate their commitment and integrity. We submit an annual Communication on Progress against the 21 advanced criteria that support the ten Global Compact principles. The advanced criteria include sections on human rights, elimination of forced and compulsory labour, abolition of child labour and the elimination of discrimination. For details of our reporting on these areas, please see the Corporate Responsibility Report Supplement: Corporate Responsibility Report Supplement
Arm has been a supporter of the UK Living Wage Campaign since 2015. The Living Wage is a voluntary higher rate of base pay (based on the cost of living) which we, as an accredited Living Wage Employer, have committed to paying all our direct employees as a minimum.
Our Supply Base: Assessing and Managing Risk
As an IP company, we do not have an extensive tiered supply base for the provision of raw materials coming into the business. We do, however, purchase a wide range of goods and services from approximately 3000 diverse suppliers who operate globally, regionally, and locally. Our suppliers provide products and services to Arm’s revenue generating components and its enabling functions. Our suppliers help our people to innovate and operate successfully. We attach great importance to the supply side of our value chain.
In 2014, we added requirements relating to responsible labour practices into our standard supplier Terms of Business. These referred to the requirement that suppliers respect and promote the rights set out in the International Labour Organisation’s International (ILO) Labour Standards and the provisions of the United Nations’ Universal Declaration of Human Rights in relation to both its personnel and its suppliers. In 2018, we strengthened these requirements by reference to the UK Modern Slavery Act 2015 specifically, i.e. suppliers are required to conduct proper checks on any agency person and Arm reserves the right to require the supplier to remove from performance of the work any of the supplier’s officers, employees, agents or subcontractors whom Arm believes to be engaging in any Modern Slavery Practice, and take such action as Arm considers necessary to ensure Arm and the supplier fully comply with all applicable laws relating to modern slavery.
We adopted an updated Supplier Code of Conduct in 2021. As part of our standard new supplier onboarding process, suppliers are required to confirm that they comply with our Supplier Code of Conduct, which sets out our key expectations of our Suppliers. In relation to Employment Standards, these are:
We are opposed to the use of any form of child labour or practices that inhibit the development of children. Suppliers must comply with all child labour laws and should not employ anyone under the age of 15, or where it is higher, the mandatory school leaving age in the local country.
Forced or involuntary labour
Suppliers must not participate in human trafficking; use forced, involuntary, or slave labour; or purchase materials or services from companies using forced, involuntary, or slave labour. They must be able to certify that materials included in their products comply with the slavery and human trafficking laws of the country or countries in which they do business.
Compensation and working hours
Suppliers must comply with the applicable wage and hour labour laws and regulations governing employee compensation and working hours. Suppliers should conduct operations in ways that limit overtime to a level that ensures a humane and productive work environment.
Diversity and equality
Suppliers should aim to provide equality of opportunity and treatment regardless of race, colour, gender, religion, nationality, sexual orientation, age, or disability. Suppliers are expected to support equal pay for work of equal value. Suppliers must oppose discrimination or intimidation towards employees including all forms or threats of physical and psychological abuse.
For more information on our Supplier Code of Conduct, please go to suppliers.
Further, we expect our suppliers to:
- implement or maintain, as applicable, a management system that facilitates compliance with the Supplier Code and with the law, and identifies and mitigates related operational risks while facilitating continuous improvement.
- have a process to communicate the Supplier Code requirements to next-tier suppliers and to monitor their compliance to the Supplier Code and all applicable laws and regulations.
- assist us in enforcing the Supplier Code by communicating its principles to their supervisors, employees, and suppliers.
The Supplier Code includes the details of a whistle-blower hotline for confidential reporting of violations of the Supplier Code. Non-compliance within our supply base will be reviewed on a case-by-case basis by our Procurement and/or Legal Compliance team, with action to be taken as appropriate.
We continue our focus on maturing our centre-led procurement organisation, and embedding these processes, controls, performance, risk management and general practices, including Responsible Procurement, across the business. This includes ensuring the business continues to evolve it’s supplier performance and relationship management capabilities, which enable us to be vigilant and actively consider steps that we can take to mitigate key risks such as modern slavery and human trafficking.
We have continued our procurement digitalisation journey, recently expanding the implementation of the e-procurement solution, SAP Ariba, to 11 additional countries across the globe. This software gives greater visibility of the supply base and spend that may be at risk for modern slavery issues in an evolving landscape.
We have created a Supplier Diversity program that is working to monitor and measure Arm’s US supplier diversity spending. Setting supplier diversity spending goals is emerging as one of the key goals of our program.
The Arm Board of Directors approved this statement on 9 September 2022.
Please direct any questions on this statement to Spencer Collins, Chief Legal Officer at firstname.lastname@example.org
Rene Haas, Chief Executive Officer
1Arm's Core Beliefs describe how we act as part of a global community. Together, they articulate Arm's culture:
- 'We, not I' means collaboration first, egos last
- 'Passion for progress' means innovation to make lives better for the individual and for Arm
- 'Be your brilliant self' means skilful individuality, performance, and fun