Policy on Global Citizenship

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Allegro MicroSystems, LLC designs, develops, manufactures and markets magnetic sensor integrated circuits (ICs) and application specific analog power semiconductors for the automotive, communications, consumer and industrial markets.

We believe that our long-term success is directly linked to our interactions with our customers, suppliers, associates, shareholders and neighbors and our ability to secure their confidence and
trust. We believe that, when we listen to and understand the needs of these stakeholders, we are able to respond more fully to their needs and, in turn, improve performance in all dimensions of our
business.

Our actions are guided by several key principles:

  • We will protect the environment.
  • We will operate our business with integrity.
  • We will invest in our workforce.
  • We will improve the communities in which we operate.

Protecting the Environment

Allegro operates an environmental management system which has been certified to the international standard ISO 14001. Fundamental to our mission are the following actions:

  • Minimize Environmental Impact.
  • Comply with Applicable Laws and Regulations.
  • Conserve Natural Resources.

We extend our environmental commitment by encouraging our associates to be aware of the environment in their business activities and to participate in volunteer and community efforts that
improve the local environment. On an annual basis, for example, Allegro participates in the international celebration of Earth Day. As part of this event, associates and their family members are invited to assist in clean-up activities in the local neighborhood. This activity improves the local environment and increases awareness of our environmental responsibilities.

On an ongoing basis, Allegro supports fossil fuel conservation through a ride-sharing program. In this effort, Allegro assists associates in connecting with carpools and provides preferred parking spots and other incentives to carpoolers. In addition, we conserve resources through an organization-wide recycling program for many types of items including paper, cardboard, ink and toner cartridges, bottles/cans/food containers, batteries, pallets, metal items, chemical containers, pump oil, thermocouples, computers, fluorescent lamps, wafers, and scrap devices.

Operating with Integrity

Our business success is dependent on our ability to develop trusting relationships with our customers, associates, shareholders, suppliers and neighbors. One key responsibility is ensuring our
compliance with such legislation as the Foreign Corrupt Practices Act (FCPA) and the Bribery Act 2010 of the United Kingdom.

Allegro’s efforts are focused on the following key principles:

  • Honesty. We will be honest in all communications while protecting the Company’s proprietary information.
  • Excellence. We will strive for excellence in all of our activities with the ultimate goal of providing products and services which meet or exceed the expectations of our internal and external customers.
  • Corporate Citizenship. Our commitment to the community will be evident in our observance of all local laws and regulations, respect for environmental concerns and community service.
  • Respect. We will be respectful in our dealings with fellow associates, shareholders, business partners, customers and suppliers.
  • Compliance. Allegro requires all associates to comply with the laws of all countries and local regions in which it does business or has business relationships. Associates are expected to understand that certain conduct is in violation of the law, including the following examples:
    • Bribery, attempted bribery of government officials, business contacts or corporate representatives or receipt of kickbacks or hidden commission payments.
    • Conflicts of interest where an employee’s personal interests interfere with or are in conflict with or appear to be in conflict with the interests of Allegro.
    • Providing or receipt of corporate hospitality that (1) is excessive, (2) could be construed as a bribe or payoff, (3) is a gift of cash or (4) is a gift that provides some other form of benefit.
    • Theft of, attempted theft of or failure to protect, within reason, Allegro’s proprietary information and/or intellectual property.

Our Code of Business Conduct and Ethics embodies these principles and guides our dealings with customers, partners, associates, suppliers and competitors.

Investing in Our People

Allegro employs approximately 3,500 associates in locations throughout North America, Europe, South America and Asia. In large part, our success results from the dedication, talent and commitment of our associates.

We recognize, however, that sustainable growth within our competitive business environment requires that we continuously transform our work culture to ensure it is capable of responding to market demands and customer needs with innovative solutions and approaches.

To that end, we encourage and reward the following behaviors:

  • Credibility. The leadership team is accessible to associates and responds to suggestions, issues and concerns with fairness, integrity and honesty. Associates are sensitive to the needs of
    internal and external customers and keep their commitments to these customers.
  • Respect. The leadership team ensures that all associates are treated with respect and dignity and collaborates with associates in relevant decisions. Associates are encouraged to grow professionally and are supported in these efforts.
  • Fairness. The leadership team works to ensure that its decisions are fair, equitable and impartial.
  • Communication is open, honest and candid. The desire for group cohesion does not impede the surfacing of issues, decision-making and problem-solving.
  • Achievement. Corporate goals are cascaded from the Executive Staff to Managers and their associates. Rewards are based on our collective and individual achievement of these
    goals.
  • Teamwork. Teamwork is emphasized across the organization.
  • Accountability. Managers foster a sense of urgency and hold their staff members accountable for the achievement of objectives.

Our performance management systems differentiate achievement in these areas, encourage innovation and ensure that associates are rewarded commensurate with their contribution and consistent with industry peers.

By working together in this manner, Allegro will be a highly successful organization which is able to share its prosperity with associates.

Learning and Development

Our commitment to associates is evident in our support of continuous learning and development. In addition to formal on-site, job-related courses and certification programs, Allegro provides many informal opportunities for learning and growth, including:

AeU, Allegro’s on-line university, offers courses on various topics and is accessible to associates through the corporate intranet.

Allegro actively supports associates’ ongoing formal education by paying all expenses associated with the pursuit of job-related degree programs. We have developed effective partnerships with
local colleges and universities and offer on-site degree programs, further facilitating associates’ professional development.

Equal Opportunity

Allegro is committed to the principles of equal opportunity and provides opportunities to all individuals, without regard to race, color, religion, sex, national origin, age, disability, or any other non job-related characteristic. This policy governs all aspects of employment, including selection, job assignment, compensation, discipline, termination and access to benefits and training. In addition, Allegro makes reasonable accommodations for qualified individuals with known disabilities, unless doing so would create undue hardship.

Harassment

Allegro is committed to providing a work environment that is free of discrimination and unlawful harassment. Actions, words, jokes, or comments based on an individual’s sex, race, ethnicity, age, religion, or any other non job-related characteristic are not tolerated.

Compensation

Throughout the world, Allegro complies with minimum wage legislation and, in all countries, our compensation exceeds legal minimum wage requirements. To support our retention efforts, we
participate in industry surveys which enable us to benchmark our compensation process.

Forced Labor

We do not use forced, prison or indentured labor. We ensure that terms of employment are voluntary.

Minimum Hiring Age/Child Labor

Our hiring practices conform to the International Labor Organization conventions for minimum age and child labor. Allegro employs no one under the age of 18.

Working Hours

We do not require associates to work more than the maximum hours of daily labor set by law.

Freedom of Association

We recognize the right of our associates to join, or refrain from joining, associations of their own choosing, and the right to collective bargaining, unless otherwise prohibited by law. Our US operations comply with the National Labor Relations act and other applicable federal and state laws.

Safe and Healthy Working Conditions

We provide a safe and healthy work environment and operate all company facilities in a safe and sanitary manner. In addition, in all of our business operations throughout the world, Allegro implements security measures and practices crisis preparedness.

No Harsh or Inhumane Treatment

Allegro works diligently to create a work culture that is free of intimidation, reprisal, abuse or harassment. We prohibit the physical abuse and harassment of associates as well as the threat of physical abuse or harassment.

Improving Our Community

Around the globe, Allegro and its associates work to support community needs, with a special focus on activities which support education, health, the environment and children.

Allegro is a generous donor to local agencies and organizations, including the United Way. In addition to corporate donations, Allegro matches the contributions made by our associates through an active Matching Gifts Program. Our Dollars for Doers program provides a corporate contribution to match associates’ volunteer time.

Scholarship Fund

On an annual basis, Allegro provides college scholarships for selected children of associates at all locations.

Key Performance Indicators

Our success in these areas is measured on an annual basis through the following key performance indicators, including:

  • Sustaining the Environment
    • Natural Resource Usage
    • Toxic Use Reduction
    • Recycling
  • Investing in People
    • Associate Turnover
    • Internal Customer Survey results
    • % of Associates enrolled in a degree program
    • Workforce Diversity
    • Total recordable injury/illness rate
    • DART rate (Days away, Restricted or Transferred)
  • Improving our Community
    • Corporate Donations and Matching Gifts

 

Ravi Vig
President and Chief Operating Officer

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