Exhibit 14.1
Dear Associates,
For more than 100 years, our Company's founding values of trust and integrity
have sustained us, and have sent a signal to our customers, shareholders, and
suppliers about the standards to which we subscribe.
Especially now, as we regain our leadership position in American retailing, each
of us should feel a renewed sense of pride about our Company's enduring
reputation for the highest ethical behavior. Likewise, each of us is personally
responsible to continue to support the sound principles of integrity and
fairness on which this Company was founded.
We have issued this document, the Statement of Business Ethics, to restate our
ethical obligations in conducting ourselves, as well as the Company's business.
It also states our Company's policy to follow the law and to act ethically in
all situations.
Please review this document carefully. You are asked to sign a certificate that
you have read this document, and that you are, and will continue to be, in
compliance with its principles.
This Statement of Business Ethics has my full support and the support of your
Board of Directors. You can count on us to uphold our Company's reputation and
commitment to the highest standard of ethics. Likewise, I am counting on each of
you to live by the standards that form our shared heritage.
As we turn our focus to the next phase of the Company's growth, I look forward
to working together to ensure that our original values continue to be reflected
in the daily actions of all of us. Our customers, shareholders, suppliers, and
our associate partners deserve no less of us.
Myron (Mike) E. Ullman, III
Chairman of the Board and
Chief Executive Officer
Statement of Business Ethics
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The "Spirit" of This Statement
The JCPenney Business Ethics Committee
Compliance with Law
No associate should take any action on behalf of the Company which he or she
knows, or reasonably should know, violates any applicable law or regulation.
1 Books, Records, and Accounts
2 Antitrust
3 Product Safety
4 Advertising
5 Political Activities
6 Securities Laws
7 Environmental Laws
8 Human Resources - Related Laws
Conflicts of Interest
All associates of the Company should avoid outside activities or relationships
that impair, or appear to impair, the exercise of their judgment in the
Company's best interest.
1 Gifts, Loans, Entertainment
2 Interest in Other Businesses and Organizations
2A Relations with Suppliers
2B Interest in Competitors
3 Diversion of Corporate Opportunity
4 Public Statements, Presentations, and Honorariums
5 Holding Public Office
Use of Company Information
1 Personal Use of Company Information
2 Disclosure of Company Information
3 Protection of Customer Information
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Preservation of Company Assets
Assets of the Company may not be diverted to the personal use of any associate.
Procedures established for purchase, sale or other utilization of assets must be
followed.
Compliance, Questions and Reporting
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This section explains how and to whom associates may raise inquiries or present
information related to this Statement.
Verification of Compliance
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This final section describes the Certificate of Compliance to be electronically
signed by the associate.
We have provided helpful examples of many of the sections of the Statement of
Business Ethics.
Click here to view the examples.
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The "Spirit" of This Statement
Daily, we are faced with business decisions and choices with ethical
implications. Fortunately, our cultural heritage for integrity has strong roots
and provides associates guidance on important ethical issues.
"Does it square with what is right and just?" These words express the values of
fairness that we all believe is fundamentally the right way to do business.
Making these words come to life takes work and careful follow-through in our
business actions. Our actions as managers clearly set the tone for the behavior
of others. Managers should foster an "open door policy" to encourage resolution
of ethical issues.
Keep in mind the values on which our Company was founded:
|X| Treat all associates with respect
|X| Deal fairly and honestly with our business contacts, customers, suppliers,
shareholders and contractors and ensure that dealings are transparent
|X| Strive to create a workplace with high ethical values
|X| Make a personal commitment to follow our Statement of Business Ethics in
principle and in spirit
|X| Ask questions when ethical matters arise
Our tradition of honesty and integrity impacts the linkage between our
principles and our success. The continued success of the Company relies on the
values of our associates. One error in judgment by a single associate can cause
severe damage to the hard-earned excellent reputation of our Company.
The principles stated here apply to all associates in the Company and in
JCPenney's domestic subsidiaries including J. C. Penney Corporation, Inc., the
Company's principal operating company.
Ultimately the principles expressed here were derived from James Cash Penney,
our founder, and his belief in doing business by the standard of the Golden
Rule. In 1913, Mr. Penney and six of his partners interpreted the meaning of the
Golden Rule for their business when they drafted the set of principles that we
know today as The Penney Idea. Those principles are the foundation of the
Company's ethical culture -- and of this Statement.
The JCPenney Business Ethics Committee
JCPenney has long had a Business Ethics Committee, whose function is to maintain
an effective business ethics program for the Company. The Committee ensures that
this Statement is current with our business and the law, and that it is
communicated to associates. The Committee also makes decisions regarding
inquiries that are brought to its attention. Committee membership consists of
senior management representing a broad cross-section of the Company. The
Committee currently consists of the Chief Human Resources and Administration
Officer, the General Counsel, the Chief Technology Officer, the Director of
JCPenney Stores, the Controller, the Director of Auditing, and the General
Merchandise Manager for Women's Apparel.
Compliance with Law
The Official JCPenney Policy Statement
Each associate of the Company, while acting on behalf of the Company, shall
comply with all applicable governmental laws, including federal, state, and
local statutes, regulations, and codes.
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The Purpose of the Policy
More and more, our activities are subject to a variety of federal, state, and
local laws and regulations. Company policy has always been to comply with all
applicable laws and regulations in the conduct of its business. As a result of
increased regulation of corporations and the amendments to the United States
Sentencing Commission Guidelines for organizations, our Company has further
strengthened its compliance efforts to address the Sentencing Guidelines and to
deter, prevent, and detect wrongdoing by our associates and agents. This
Statement of Business Ethics constitutes one of the core documents of our
compliance program. For this and other reasons, no associate should take, or
permit to be taken, any action on behalf of the Company which he or she knows,
or reasonably should know, violates any applicable governmental laws.
Discussion
Our Company policy statement is, simply, "we will obey all laws," certainly the
starting point for any business conduct. We have to do much more than just obey
the laws, although very obviously, we can do no less. Violation of the laws can
result in both corporate and personal liability.
At the same time, we recognize that we are not all lawyers. We cannot know all
the laws that may apply. Nor can we understand all aspects of the laws that
apply. We are expected, however, to take certain common-sense precautions. The
first and most important is - when in doubt, ask. The section of this Statement
entitled "Compliance, Questions and Reporting" explains how you should address
any legal questions you may have.
1 Books, Records, and Accounts
The results of operations of our Company must be recorded in accordance with the
requirements of law and generally accepted accounting principles. It is Company
policy, as well as a requirement of law, to maintain books, records, and
accounts that, in reasonable detail, accurately and fairly reflect the business
transactions and disposition of assets of the Company. In order to carry out
this policy and assure compliance with applicable laws, no associate should
take, or permit to be taken, any action in a manner whereby the Company's books,
records, and accounts would not accurately, fairly, and completely reflect the
action taken. No false or misleading entries should be made in any books or
records of the Company for any reason, and no fund, asset, or account of the
Company may be established or acquired for any purpose unless such fund, asset,
or account is accurately reflected in the books and records of the Company. No
corporate funds or assets should be used for any unlawful purpose. Associates
should follow the Company's Records Retention Guidelines which can be found in
the Company Policy Manual 8700 Records Retention.
2 Antitrust
Broadly speaking, the antitrust laws regulate the competitive conduct and
dealings of business. Violations can lead to extremely serious consequences for
both the Company and the individuals involved. A complete description of the
antitrust laws is beyond the scope of this document. However, it should be noted
that any activity with a competitor or supplier in restraint of trade, such as
price fixing, is illegal. Discriminatory activities with suppliers in areas such
as pricing, terms, promotional allowances, and services may violate the
antitrust laws. This does not mean, of course, that we cannot and should not
negotiate hard in all areas with our suppliers.
3 Product Safety
Products sold by the Company must not only meet all applicable safety standards
set by law, they must also meet Company standards. It is Company policy not to
knowingly sell any unsafe product and to
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minimize as much as possible hazards from products which inherently entail some
risks. The reputation and success of our Company has been built upon the
performance of our products. Our customers have a right to expect that our
products will not endanger their health or safety in any way.
4 Advertising
Advertising used by the Company is legally required to be true and not deceptive
or misleading in any manner. All product or pricing claims must be substantiated
by supporting data before they are made. We must be careful to assure that the
customer is not disappointed by claims about our products which are not
supported by performance. The purpose of our advertising has always been to
emphasize the quality of our products and the fairness of our prices. We believe
that a properly informed customer will be a loyal customer.
5 Political Activities
The Company and its associates have a legitimate interest in the composition of
our state, local, and federal governments and in the laws which prescribe the
ways business should be conducted. This is, however, an extremely sensitive
area. There are laws at the federal, state, and local levels which govern the
involvement of the Company and its associates in political activities. Corporate
payments of anything of value, including cash, merchandise, or services, in
connection with political activities are generally either illegal or strictly
regulated by law. Regulated activities include the support of, or opposition to,
candidates for public office; contributions in support of, or opposition to,
initiatives or referenda; and contributions, gifts, or honoraria to government
officials. All proposed payments, donations, or services in any of these areas
must be reviewed in advance and approved in writing by the designated
representative of the Government Relations Group of the Legal Department.
Failure to comply with this policy can lead to embarrassment and serious
problems for the Company and its associates. Call 972-431-1252 for more
information.
6 Securities Laws
Federal and state securities laws and rules of the securities exchanges affect a
wide variety of the Company's activities.
No associate may engage in, or permit other associates to engage in, any
activity which he or she knows or reasonably should know, is prohibited by the
securities laws.
The basic rules set out here apply to all JCPenney associates regardless of
their position level. Those who are Divisional Vice Presidents and above should
also consult the Insider Trading Compliance Program portion of their "Welcome
Package" and their periodic "blackout period" alerts, as well as these rules.
Disclosure Rules - No false, misleading, or deceptive statements may be made in
connection with the purchase or sale of any security or in any report filed with
the Securities and Exchange Commission or distributed to any financial analyst,
stockholder, or prospective purchaser of stock. In addition, improper or
premature disclosure of information to outsiders or associates who do not
require the information to perform their jobs is strictly prohibited. Disclosure
to the public is limited to the Public Relations and Investor Relations
Departments. See the Public Relations Guidelines and Procedures.
Prohibited Trading - In the course of your employment, you may have access to
material inside (non-public) information concerning the Company, or those with
whom it does business. This places you in a special position of trust and
confidence and will make you an "insider" for purposes of federal and state
securities laws, rules, and regulations.
Under no circumstance should you (or others to whom you have disclosed such
information ("tippees")) attempt to buy or sell securities of the Company,
(including transfers into, or out of, the stock accounts of
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JCPenney's Savings Plan and Mirror Plans, the exercise of stock options, or
buying or selling JCPenney securities through your personal broker) or of any
other entity with which the Company may be involved, when you have knowledge of
material events affecting the Company which have not been made public.
Although there is no statutory definition of what constitutes "material inside
information," courts have held that information was material when a reasonable
investor would have considered it important to his or her investment decision.
The following are examples of information usually considered material: sales,
earnings, significant charges against earnings, dividend actions, stock splits,
stock buyback programs, mergers and acquisitions, strategic plans, new lines,
important personnel changes, real estate plans, capital investment plans,
marketing plans, joint ventures, public and private sales of debt or equity
securities, and the effects of a significant government investigation of the
Company. This list is not exhaustive.
You should be aware that you may be considered a "temporary insider" with
respect to information concerning third parties with whom the Company is doing
business or negotiating a transaction, e.g., vendors, joint ventures, or
investment partnerships, and that the same rules on disclosure and abstention
from trading in that corporation's securities will apply to you and your
tippees.
JCPenney associates are reminded that engaging in prohibited trading activities
and tipping can result in substantial civil and criminal penalties, including
imprisonment.
7 Environmental Laws
The Company is committed to doing business in an environmentally responsible
manner. It continually seeks to assure that its operations, to the fullest
extent feasible, preserve and improve the environment and protect the health and
safety of associates, customers, and communities where the Company does
business. The Company has adopted a statement of principles on the environment
to give more specific content to its policy of environmental responsibility.
Included among those principles is a commitment to comply with laws and
regulations involving environmental quality and related health and safety issues
that are applicable to the Company's operations. Accordingly, every associate is
expected to conduct the Company's business in an environmentally responsible
manner and not to engage in any activity which violates any environmental laws
or regulations.
8 Human Resources - Related Laws
The Company's Human Resources policy is to employ, train, promote, upgrade, and
otherwise provide equal terms and conditions of employment to all. Individuals
and associates will be employed regardless of race, color, religion, national
origin, sex, age, physical/mental disability or sexual orientation. Appropriate
diversity practices have been and will continue to be undertaken to assure
implementation of this policy.
JCPenney provides its associates wages, hours and other terms and conditions of
employment in compliance with applicable federal and state laws.
Conflicts of Interest
The Official JCPenney Policy Statement
Each associate of the Company shall avoid any activity, interest, or
relationship with non-Company persons or entities that would create, or might
appear to others to create, a conflict with the interests of the Company.
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The Purpose of the Policy
All Company associates, at all levels, in every department, must be able to
perform their duties and exercise their judgments on behalf of the Company
without impairment, or the appearance of impairment, by virtue of a non-Company
activity, interest, or relationship.
Discussion
Associates should avoid the development of any relationships or participation in
any transaction involving a possible conflict, or appearance of conflict,
between the interest of the Company and the personal interest of the associate.
While we wish to preserve the privacy of our associates and their right to
conduct their personal affairs without interference, a full and prompt
disclosure of facts regarding potential conflicts is necessary to avoid
problems. The determination as to whether there is a conflict, or appearance of
a conflict, is to be made by the Company and not by the associate involved. In
appropriate circumstances where the facts are disclosed, and if there is no
illegal or unethical conduct involved, the Company could consent to the proposed
activity if it is in the best interest of the Company, even though a potential
conflict of interest may exist.
1 Gifts, Loans, Entertainment
Commercial bribery is illegal, and the solicitation, payment, or receipt of any
business related bribe is prohibited. An associate should not, directly or
indirectly, accept gifts of cash or anything else of value from anyone having or
seeking business with the Company, other than non-cash gifts of nominal value
generally used for promotional purposes by the donor. "Nominal value" means,
generally, not more than $50 in value. If an associate receives a gift with a
value of $50 or more from a supplier, he or she should notify his or her manager
immediately.
Participation in business-related functions, including the acceptance of lunches
or other meals on occasion, is a normal and permissible business practice.
However, care must be exercised to ensure that such functions are necessary and
that their value and frequency are not excessive.
Other forms of entertainment or outings, such as local sports events, dinners,
theater performances, or golf dates, may be accepted only if it is practicable
for the associate to reciprocate at an appropriate time. In those cases where
reciprocation does not seem possible, but the associate believes it is in the
Company's interest to attend, he or she should get the agreement of appropriate
supervisory personnel, such as a unit manager or a department head.
Entertainment trips at even partial supplier expense should not be accepted.
Thus invitations to events of significance such as the U.S. Open Tennis Match,
the Master's Golf Tournament, or the Super Bowl, which carry with them more than
the cost of tickets, cannot be accepted. It is unlikely that travel, or trip
expense, can be reciprocated.
Travel expenses of associates may be paid by a supplier if the trip is solely
for business purposes and is approved in advance by the manager.
Associates shall not accept loans from any persons or entities having or seeking
business with the Company except from recognized financial institutions, at the
normal interest rates for individual borrowers prevailing at the time of
borrowing. In discussing personal financing with banks, no associate should
state or imply that the bank's response will in any way affect its relationship
with the Company. The Company's business relationships with financial
institutions are not to be utilized to influence in any way personal loans to
associates.
In summary, nothing should be accepted that could impair, or appear to impair,
an associate's ability to perform his or her Company duties or to exercise his
or her judgment in a fair and unbiased manner. A divided loyalty will invariably
create serious problems for the Company and its associates.
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2 Interest in Other Businesses and Organizations
An associate should not have any direct or indirect interest in, or relationship
to, any transaction in which the Company or one of its subsidiaries is or will
be a party if such interest or relationship might influence, or appear to
influence, that associate in the performance of Company duties, or otherwise
give rise to the appearance of wrongdoing or a conflict of interest. Associates
should not have any interest, financial or otherwise, in any competitor,
supplier, or third party with whom the Company or any of its subsidiaries is
doing business or negotiating a transaction, e.g., vendor, joint venture, or
investment partnership, that could influence the associate's objectivity or
judgment in performing his or her duties or could otherwise create a conflict of
interest or an appearance of one.
2A Relations with Suppliers
A supplier is one who furnishes or offers to furnish goods or services of any
kind to the Company. It is Company policy to select a supplier on the basis of
price, quality, and performance. An associate must avoid personal, financial, or
other involvement with a supplier with whom he or she does, or is likely to do,
business. An associate shall not purchase products directly from suppliers doing
business with the Company or with whom the Company is negotiating to do
business, unless such purchase is made under circumstances and at prices offered
to the general public. An associate should not solicit suppliers to engage in
activities outside of the business relationship. Such involvement and activities
might appear to cause the associate to select a supplier for reasons other than
price, quality, and performance.
Former Associates
Any associate regardless of level (managerial or administrative), who leaves the
Company for whatever reason, including retirement, will not be permitted to call
on the Company as a representative of a supplier selling or seeking to sell
goods or services to the Company, unless a period of one year has elapsed since
the former associate left the employ of the Company.
Relatives
An associate should not be in a position to make or influence a decision
relating to the Company's engaging in business with a company in which a
relative or close friend has an interest. An associate should not be in a
position to derive an indirect benefit from a Company transaction involving a
relative. An associate should disclose in the disclosure box on the Certificate
of Compliance on the HR Kiosk any situation in which a relative has an interest
in a supplier, prospective supplier, or in any Company transaction. For these
purposes, "relative" should be construed to include the associate's spouse,
child, parent, brothers and sisters and their spouses, sons-in-law,
daughters-in-law, other in-laws, cousins, and unmarried partners.
Close Relatives
No spouse, sibling, child, or parent of a Company associate in a profit sharing
management position will be permitted to call on units of the Company as a
representative of a supplier selling or seeking to sell goods or services to the
Company unless the matter has been disclosed and approved in advance by either
the Human Resources Department or the Business Ethics Committee. An associate
should seek that approval by disclosing the relationship in the disclosure box
of the Certificate of Compliance. The Human Resources Department and Business
Ethics Committee will base their decisions on:
|X| The extent, if any, the associate's position might influence the Company's
business relationship with the spouse, child, or parent's company; and
|X| The likelihood the relationship would result in the appearance or
possibility of a conflict of interest.
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Solicitations of Suppliers for Non Profit Organizations
All requests to suppliers to support nonprofit organizations and their
activities should be submitted to the Public Affairs Committee at the Home
Office for review. Additionally, before any manager accepts unusual honors from
a non profit organization with which there has been only a slight association, a
request should be submitted to the Public Affairs Committee. This step is
designed to avoid creating the impression that the Company provides ongoing
financial support to the organization and that suppliers should also do so.
We recognize that many management associates at all levels serve on a voluntary
basis on boards and executive committees of a variety of organizations. Very
often, that service is recognized at special banquets or events. This approach
is not directed toward that activity, and there is no need to clear that honor
in advance. As a Company, however, we are concerned with the bestowing of honors
for little or no service that carry with them an implicit message that the
honoree will be encouraged, or is expected, to solicit participation or funds
from Company suppliers. As in all things, if there is any doubt, you are
encouraged to review the matter in advance with the Company's Public Affairs
Department.
2B Interest in Competitors
A competitor of the Company is any organization that sells goods or services
similar to any of those offered for sale by the Company. Under this definition,
it is the type of goods or services sold, and not the manner of sale, that
determines another organization's status as a competitor. Accordingly, the fact
that goods or services are not marketed through traditional types of retail
stores, but, for example, out of one's home, is not relevant. An associate
should not have any direct or indirect interest in, or relationship with, any
competitor of the Company if such interest or relationship might influence, or
appear to influence, that person in the performance of his or her Company
duties. For these purposes, prohibited interests or relationships with respect
to competitors include selling, recruiting, distribution, or similar activities,
whether conducted out of the associate's home or otherwise. Prohibited
activities also include directing the involvement of other persons in
competitors. An associate may, however, sell products or work for another
company that sells products of the type sold by the Company so long as the
activity for the competitor does not relate to, impact, or interfere with the
associate's position with the Company.
Ownership of stock in a competitor will not be deemed a conflict of interest if
both of the following conditions exist: (a) the stock is publicly traded, and
(b) the amount owned by the associate does not exceed one tenth of 1% of the
amount outstanding.
3 Diversion of Corporate Opportunity
An associate should not appropriate to himself or herself, nor divert to any
other person or entity, a business or financial opportunity which the associate
knows, or reasonably could anticipate, the Company would have an interest in
pursuing.
4 Public Statements, Presentations, and Honorariums
Associates should refer all media inquiries regarding any corporate issue -
corporate performance, real estate strategy, personnel, store openings or
closings, layoffs, etc. - to the Public Relations Department by calling (972)
431-4181. Associates should refer all inquiries from the investment community to
the Investor Relations Department by calling (972) 431-2217. For more detailed
guidance regarding public statements, please refer to the Public Relations
Guidelines and Procedures.
An associate should not make a presentation, participate in a panel discussion,
teach a course, or write an article or book relating to his or her work
activities without obtaining proper approval from the associate's
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department head or other appropriate supervisory personnel. The supervisor will
decide whether further approval is required and, if so, make application for
such approval.
An associate's department head or supervisor may also determine whether, and the
extent to which, acceptance and retention of an honorarium or other compensation
is permissible.
Public Relations clearance is required in cases where presentations involving
the Company are likely to be picked up by the media.
5 Holding Public Office
The Company encourages associates to become involved in the political process on
their own time. Company policy does not in any way restrict an associate's right
to participate personally in political activities or to use personal funds for
political purposes. However, in the case of an associate holding public office,
whether elective or appointive, the potential for conflict of interest, or the
appearance of conflict, must be taken into account. Therefore, the associate
must disclose the intent to engage in these activities to his or her manager and
on the Certificate of Compliance and receive a positive response prior to
initiating any action.
The Company prohibits the use of Company facilities (e.g., telephones, copying
machines, mailing lists) or personnel (e.g., secretarial help) for this purpose
and prohibits political activities during an associate's work hours. These
activities could also be illegal. Such activities must be restricted to the use
of an associate's personal resources and facilities. An associate who requests
an extended leave of absence for the purpose of engaging in political activities
should disclose this fact to his or her supervisor and the Government Relations
Department by calling 972-431-1252 when seeking approval. Disclosure is
necessary because there are potential restrictions against the payment of
benefits (e.g., continuation of participation in benefit plans) by corporations
in such circumstances that should be reviewed prior to the beginning of the
leave period.
Use of Company Information
All non-public information and records concerning any aspect of the Company's
business or acquired by associates as a result of their employment by the
Company are confidential. Unauthorized use or disclosure of such information or
records violates Company policy and may also violate the law.
1 Personal Use of Company Information
An associate may not use Company information for personal benefit or for the
benefit of others. This would also include information not in the public domain
concerning third parties with whom the Company is doing business or negotiating
a transaction, e.g., vendors, joint ventures, or landlords. An associate can be
held liable to the Company or a third party for any benefit gained from improper
use of such information.
2 Disclosure of Company Information
An associate may not disclose non-public Company information, including
information about our internal operations, customers, suppliers, or associates,
to others without appropriate authorization.
3 Protection of Customer Information
Associates should handle all customer personal information with care and prevent
unauthorized disclosure of the information they share with us. This
responsibility includes the appropriate disposal of customer
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data in all forms. The Policy on Safeguarding JCPenney Information
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outlines procedures for handling confidential customer information.
Preservation of Company Assets
The Official JCPenney Policy Statement
Each associate of the Company shall comply with Company procedures to preserve
the assets of the Company and shall not create situations that may harm the
reputation of the Company or create financial liability.
The Purpose of the Policy
The assets of the Company are to be acquired, used, and disposed of for the
benefit of the Company and its stockholders, and not for the personal enrichment
of its associates.
Discussion
No corporate funds or assets should be used for any unlawful purpose. In
addition, no associate should appropriate or make available to others any
Company property for a non-Company purpose. Tangible assets include items such
as cash, inventory, equipment, supplies, displays, and samples. Intangible
assets include Company brands, trademarks, ideas, inventions, and the data and
information to which associates have access as a result of their work
responsibilities.
Each associate must be familiar with the procedures applicable to his or her
responsibilities and must be sure that they are followed, particularly in
connection with the acquisition, use, or disposition of Company assets.
Associates who are in a supervisory role also must require compliance on the
part of those whom they supervise, particularly where the Company may have
obtained use of material (training programs, software, etc.) under license from
a supplier.
Office equipment, such as telephones, computers, and copy machines are entrusted
to associates to use for Company business purposes. They should be used only for
Company business, and where personal use is authorized, appropriate
reimbursement is expected. The Company maintains ownership rights in all
information contained in its electronic resources and reserves its right to
access at any time any information contained in its electronic resources. The
contents of electronic files may be disclosed to others within the Company,
without the consent of the associate, whenever a question about the use of the
resource is raised.
Inventions
Inventions or innovations conceived or devised by associates are an asset of the
Company when they (a) arise out of or are suggested by work performed by an
associate for the Company, (b) result from the associate's use of Company time,
facilities, equipment, or supplies, or (c) arise out of or are suggested by the
associate's use of Company information on trade secrets or other confidential
information of the Company. When an associate invention is deemed an asset of
the Company, the associate must assign the invention to the Company.
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Compliance, Questions and Reporting
Compliance
We expect every associate at every level to comply with the Statement of
Business Ethics. All associate are also responsible for reporting suspected
violations of the Statement of Business Ethics or law. Failure to abide by the
Statement of Business Ethics or to report violations will result in disciplinary
action, up to and including termination.
Questions and Disclosures
This Statement seeks to explain through discussion and examples the basic
JCPenney principles of business ethics. Obviously, however, it is not possible
to cover every situation that may come up. We cannot emphasize too strongly the
importance of communication and disclosure. They are the key components of this
Company program, as they are also the foundation for the free and open working
environment that has always characterized JCPenney. Many resources are available
to help you if you have questions about the ethical standards the Company
expects. Associates are encouraged to bring ethical questions to the attention
of their manager or other supervisory personnel (such as a unit manager or
department head). If an associate is uncertain about whether his or her own
actions or relationships violate the Statement, he or she should follow the
procedures on the Certificate of Compliance page located on the HR Kiosk.
Associates should not refrain from raising questions because they assume
appropriate supervisory personnel are aware of an issue. Moreover, associates
should not assume that certain questionable activities are permissible because
they or others have engaged in them.
The Company has also established a number of hotlines for specific issues which
associates are encouraged to use if they have questions. Information on these
hotlines is included in the next section.
Reporting Violations
All associates have an obligation to report actual or suspected violations of
the JCPenney Statement of Business Ethics, and any actual or suspected
violations of federal, state or local laws. Associates should report their
concerns to their supervisor. If they are not comfortable discussing the issue
with their supervisor, they should call one of the hotlines provided by the
Company, which are described in the next section. The Company will promptly
investigate reports of violations.
No Retaliation
The Company will take no adverse action or retribution against an associate
because he or she reports in good faith any concern or potential violation of
Company policy or law.
Company Hotlines
- ------------------------------------------- ------------------------
Human Resources: The HR Support Center HR Support Center
is responsible for assisting associates -----------------
and advising Managers with HR related Contact Us
issues, such as discrimination, dissatisfaction
with working conditions, supervisory and/or salary |X| HRConcern@jcpenney.com
concerns and harassment issues.
- ------------------------------------------- ------------------------
Ethical Questions: If questions on ethics Ethics Hotline:
cannot be resolved at a unit or department 972-431-1257
level, then associates may direct them to
the following telephone number.
- ------------------------------------------- ------------------------
<Page>
- ------------------------------------------- ------------------------
Legal Questions: Generally, legal questions Legal Hotline:
should bedirected to the Legal Department 972-431-1257
or a specific department's Legal Coordinator.
If resolution cannot be obtained or is
unsatisfactory, associates may use the
following telephone number.
- ------------------------------------------- ------------------------
Stores Issues: Stores should direct legal Store Response Team
matters and questions regarding customers -----------------------
to the legal contact for (See telephone number
their state. by state)
- ------------------------------------------- ------------------------
Reporting Harassment: JCPenney has a Harassment Free Policy
long-standing policy against harassment of any and Complaint Procedures
kind, including sexual, psychological or
electronic harassment. This hotline is a Working in Harmony Hotline:
confidential source to report harassment. 800-786-0890
- ------------------------------------------- ------------------------
Accounting and Auditing Complaints: This number Accounting Complaints
should be used to file a complaint involving Hotline:
accounting, internal controls, or auditing matters 800-544-1635
that affect our financial reporting process.
Complaints are kept confidential and JCPenney Company, Inc.
can be anonymous. P. O. Box 259017
Plano, TX 75025-9017
- ------------------------------------------- ------------------------
Loss Prevention: A hotline is available to report Loss Prevention Hotline:
on shrinkage or theft issues. 800-235-1680
- -------------------------------------------------------------------------------
Verification of Compliance
This Statement of Business Ethics contains a Certificate of Compliance that all
management associates (and those administrative, non-management associates
designated by their unit managers or department heads as being in sensitive
positions) are required to complete. JCPenney management associates must access
the Certificate of Compliance at the HR Kiosk.
To sign the Certificate of Compliance, log on to the HR Kiosk. Click on "You
Have Associate Tasks" in the right hand column. Click on the link for "Signature
Required." Follow the instructions on the Certificate of Compliance page,
including entering any applicable disclosures and then electronically sign the
Certificate.
If you do not have the message "You Have Associate Tasks," you can
electronically sign the Certificate by completing the following steps:
1) Log onto the HR Kiosk.
2) Select Associate Self Service from the Menu on the left.
3) Click on "Business Ethics (View/Sign)." This will take you to the
Certificate page and from this page you can also access the full Statement
of Business Ethics if you have not yet read it.
4) The Certificate of Compliance Update page will appear. Click on the tab at
the top entitled "Bus Ethics Update." Go to the line under the second
paragraph and click in the box to complete the electronic signature.
<page>
5) Enter any applicable disclosures in the disclosure box at the bottom of the
Certificate of Compliance and click on the Save button.
You may access the HR Kiosk using the link at the bottom of this page.
Administrative associates who are required by their department to sign should
click here to print the Certificate of Compliance manually, sign it, and give it
to their manager.
DO NOT SIGN the Certificate until you have read, understood, and accepted the
principles contained in both the Statement of Business Ethics and the
Certificate of Compliance.
The Certificate of Compliance is neither an employment contract nor a guarantee
of continued employment.
Every associate should comply with the principles contained in this Statement to
avoid any impairment, or appearance of impairment, of his or her ability to
perform Company duties, as well as to avoid liability for the Company or for the
associate involved, or possible adverse comment.
This Statement is intended to be a positive document. It must be recognized,
however, that this Statement is more than an expression of desire that certain
ideals be observed. Accordingly, associates should be aware that failure to
comply with the principles described in this Statement, including the disclosure
requirements, may result in termination of employment. Such termination, under
certain circumstances, may have additional significant financial implications
for management profit-sharing associates. These additional implications may
include, for example, termination of equity awards under the terms of the
applicable equity plan.
Click here to go to HR Kiosk
----------------------------
Click here to review examples.
-------------------------------
Examples
- ------------------------------------------------------------------------------
Conflict of Interest
Examples for Gifts, Loans, Entertainment
Example A
Situation: A supplier of the Company invites an associate with whom he does
business, and the associate's spouse, to have dinner at the supplier's home. The
associate does not wish to turn down this invitation because it helps to build a
good working relationship, and the associate intends to reciprocate at a later
date.
Analysis: The associate would be permitted to accept this invitation because of
the intention to reciprocate. If reciprocation did not appear practicable, the
invitation could be accepted only with the approval of the associate's unit
manager or department head.
Example B
Situation: An associate has been invited by a supplier to attend a two-day
seminar that is held in a resort area. This meeting is a combination of business
and pleasure, but it is regarded in its particular area as being the most
important meeting of the year.
<page>
Analysis: The associate would be permitted to attend this meeting with the
approval of his or her unit manager or department head. Even though such
meetings may appear to be attractive from the entertainment point of view,
attendance is necessary or desirable at times in order that associates remain
current in their areas of responsibility for the Company.
Example C
Situation: An associate in Information Systems is using the Internet to research
potential suppliers for a service to the Company. One of the companies offers a
raffle for a free computer on its website. The associate is unsure whether she
should enter the raffle.
Analysis: The associate should not enter the raffle. Acceptance of a prize would
create the appearance that the potential supplier was offering the associate an
incentive to select its services and might impair the associate's judgment.
Conflict of Interest
Examples for Relations with Suppliers
Example A
Situation: A Buyer of sleepwear in the Merchandising Department contemplates
purchasing 100 shares of "X" corporation, which is listed on the New York Stock
Exchange, for a long-term investment. "X" corporation is one of three major
manufacturers from whom the Company buys sleepwear of this type, and this Buyer
is currently involved in the decision to select "X" corporation to supply a new
line of merchandise.
Analysis: A conflict of interest would exist in this situation because ownership
of the stock might influence, or appear to influence, the associate in his or
her decision-making process. A conflict generally would exist where an
associate's duties or position would enable him or her to influence the decision
as to whether the Company should acquire goods, services, supplies, properties,
or facilities from an organization in which the associate has an interest.
Example B
Situation: A Buyer in the Children's Division receives a recommendation from a
broker to purchase 100 shares of the common stock of "Y" corporation. The Buyer
knows that "Y" corporation is a supplier of fitness equipment which the Company
sells through its catalog. Moreover, the Buyer is generally aware that the
Company has a high regard for merchandise manufactured by "Y" corporation. The
Buyer is not, however, in a position to influence the Company's transactions
with "Y" corporation.
Analysis: Ownership of an interest in "Y" corporation should not create a
conflict for the Buyer in this situation because his or her Company duties do
not involve any relationship with "Y" corporation and the Buyer is not able to
influence transactions with "Y" corporation. However, to be certain that all
facts have been properly considered, the associate should enter the information
in the disclosure box of the Certificate of Compliance prior to making the
purchase.
Example C
Situation: An associate has dealings with a sales representative of "Z"
corporation in the performance of his or her duties for the Company. The
associate is asked by the sales representative to join the representative and
five other individuals in a partnership formed to own income producing real
property.
<page>
Analysis: This situation involves a conflict of interest. Any non-Company
business relationship with a representative of a supplier creates an appearance
of a conflict if the associate's Company duties involve dealings with, or
decisions relating to the use of, that supplier.
Example D
Situation: An associate owns a 5% interest in a partnership, ABC Associates,
that owns and operates a shopping center with space suitable for the Company.
This associate supervises a number of other associates who are engaged actively
in seeking space for a Company store in the same area in which the ABC
Associates' shopping center is located. The associate must approve a
recommendation as to the location of the store.
Analysis: A conflict of interest exists in this situation because the supervisor
is in a position where ownership of the partnership interest could influence the
approval of the recommendation or influence the decision of associates reporting
to the supervisor.
Example E
Situation: An associate has been invited to join the board of directors of a
bank.
Analysis: To guard against a conflict of interest, or the appearance of
conflict, associates are advised to check with the Treasurer's Department before
going on the board of a bank.
Example F
Situation: A Buyer uses his position to induce a representative of a supplier to
develop a non-marital, intimate relationship with him or her.
Analysis: Even assuming that the relationship is one welcomed by both parties,
it creates the appearance of a conflict and can create an actual conflict if the
relationship influences the associate's business judgment. This type of conduct
shall not be allowed to play a role in any business decision. While the Company
does not want to interfere with associates' privacy, associates must ensure that
their conduct does not compromise in any way the Company's legitimate business
interests.
Example G
Situation: A Company department is planning a golf outing. Associates want to
solicit suppliers to donate raffle prizes or tee prizes.
Analysis: This practice would create a conflict of interest, or at least the
appearance of a conflict. To avoid that, all prizes should be purchased at
standard Company cost or retail.
Example H
Situation: An associate belongs to a country club. The club is engaged in a
membership drive, offering prizes to members who bring in or sign up a new
member. The associate asks a supplier representative to join the club.
Analysis: The associate should not involve the supplier in membership
solicitations. This would create a conflict of interest.
<page>
Example I
Situation: An associate is assigned to direct a special project to examine a
certain area of the Company's business. A part of the project will involve the
hiring of a consulting firm to advise on a specific aspect of the project. The
associate, having a high regard for a consulting firm in which her
brother-in-law has an interest, contemplates hiring that firm to do the
necessary work.
Analysis: Before hiring the firm, the associate must disclose the relationship
in the disclosure box of the Certificate of Compliance and receive a positive
response. A conflict of interest could exist in this situation because the
interest of the associate's relative in the firm selected by the associate to
supply services to the Company might appear to have influenced the associate in
her decision-making process.
Example J
Situation: The wife of a buyer started her own merchandise firm several years
ago and has become very successful. To establish a relationship with JCPenney,
she employs a sales manager to call directly on the Merchandise Department,
including the area in which her husband works. As the owner, she does not engage
in direct selling to JCPenney, although the firm does a growing business with
JCPenney.
Analysis: A conflict exists. The spouse is the owner and head of the business
and as such cannot insulate against or avoid a violation of the spirit of this
policy by using this approach.
Example K
Situation: A Store Manager's spouse contemplates purchasing with his or her own
funds an interest in a warehouse that the Company leases.
Analysis: A conflict of interest would exist in this instance even though the
Store Manager has no connection with the warehouse because he or she would have
an indirect interest which might be adverse to the Company's interest as a
lessee of the building.
Example L
Situation: The son of an associate was hired on a temporary basis for summer
employment by a company that performs services for the Company. The associate is
responsible for choosing and negotiating the contract with the service company.
Analysis: A conflict of interest would exist in this situation since the
associate is responsible for choosing the service company. The employment of the
son, even on a temporary basis, could influence, or appear to influence, the
associate's decisions.
Example M
Situation: An associate has been promoted to his first profit sharing position
at a new store in a neighboring state. Upon reporting to the new unit, the Store
Manager informs him that the Store Manager's spouse is a knowledgeable, licensed
real estate broker, who would be pleased to help the relocating associate find a
new home.
Analysis: This indirect interest in the spouse's real estate activity has
probably created the impression in the transferred associate that he would be
well advised to use the Store Manager's spouse or firm. Even if the Store
Manager added a disclaimer ("...if you want to use a broker, and haven't
selected one...."), this type of referral creates the impression of a greater
interest in the spouse's benefit than in the associate's -- or the Company's --
and that creates the appearance of a conflict of interest and is to be avoided.
<page>
Conflict of Interest
Examples for Interest in Competitors
Example A
Situation: A management associate in the Real Estate Department sells Mary Kay
cosmetics and merchandise to friends and neighbors. The associate has asked
whether this type of activity would constitute a prohibited interest in a
competitor.
Analysis: The associate should disclose this proposed activity on the
Certificate of Compliance and await a decision prior to entering into the
business. The Company will consider the relevant facts associated with the
associate's responsibilities and this activity. In this case, it is likely that
the activity will be approved since the sale of cosmetics is not likely to
relate to impact, or interfere with, the associate's job for the Company. She
would be reminded not to involve Company time, assets, or associates in this
activity.
Example B
Situation: A Store Manager proposes to buy a substantial number of shares of
stock of a corporation formed to operate a women's apparel shop. The shop will
be located in a shopping center which also contains a JCPenney store, and will
carry similar merchandise.
Analysis: A conflict of interest would exist. The apparel shop is a competitor
because of its location and because of the merchandise it carries. In addition,
the proposed purchase of stock by the associate does not meet the guidelines.
Conflict of Interest
Examples for Diversion of Corporate Opportunity
Example A
Situation: An associate overhears a conversation at a Company meeting to the
effect that the Company is about to look for a new site for a logistics center
in a certain area. The associate immediately calls an old friend, who now lives
in that area, and relays the information. The friend forms a corporation which
acquires a suitable site. The Company subsequently purchases that site from the
corporation formed by the associate's friend.
Analysis: This situation involves a diversion of corporate opportunity even
though the associate did not gain personally. The associate has diverted to
another an opportunity which belonged to the Company.
Conflict of Interest
Examples for Holding Public Office
Example A
Situation: An associate who has been active in parent teacher activities has
received a request to run for a position of member on the local school board.
The school board generally meets in the evenings or weekends and occasionally
requires other minor commitments of time during the day.
<page>
Analysis: The holding of a position such as school board member does not result
in a conflict of interest in the normal situation. However, to avoid potential
conflicts, the associate should disclose her intent on the Certificate of
Compliance and receive a positive response before making a commitment to run. It
is also advisable to review this matter with the appropriate unit manager or
department head with respect to the amount of the time that will be required. In
most cases, the Company encourages this type of community service.
Example B
Situation: A Store Manager, due to his past community involvement, is asked to
consider running for mayor of the town in which the manager's store is located.
The position is deemed to be part time.
Analysis: The associate should disclose his consideration in the disclosure box
of the Certificate of Compliance before deciding whether to run for office. The
Store Manager holding the office of mayor could find himself or herself in
conflict with the best interests of the Company. In fulfilling his duties, the
manager could become involved with licenses, permits, inspections, or other
governmental functions on which the town and Company positions would differ. The
Company will determine, based on all the circumstances, whether the associate
should seek this office and, if so, what restrictions should apply.
Use of Company Information
Examples for Personal Use of Company Information
Example A
Situation: An associate learns as a result of his duties with the Company that
"D" corporation is about to announce a major breakthrough that should greatly
increase the value of "D" corporation's stock. The associate purchases 500
shares of "D" corporation before the news becomes public and also tells a friend
about it.
Analysis: The associate in this situation would be using Company information
improperly in two ways. First, the associate would be using information acquired
solely as a result of his relationship to the Company for personal benefit.
Second, the associate would be disclosing information which had not been
previously disclosed to the public to another person who is not a Company
associate needing the information for the proper performance of Company duties.
Such disclosure may also constitute a violation of the Securities Exchange Act
of 1934.
Example B
Situation: An associate is assigned to a unit which has an ongoing direct
responsibility for a business relationship which the Company has entered into
with "X" corporation. As a result, the associate becomes aware of significant
developments affecting that relationship. Acting on that knowledge, the
associate then purchases 500 shares of "X" corporation on a stock exchange.
Analysis: If the associate's awareness of unique developments was acquired at a
time when the information was not available to the public, the associate has
violated securities laws and rules if the developments were material. Civil and
criminal charges can result. This conduct would be a clear violation of our
Statement of Business Ethics.
<page>
Example C
Situation: A second associate (B) works with the associate (A) mentioned in
Example B. Associate B becomes aware of the significant developments only after
they are mentioned in the newspapers. Associate B then purchases 500 shares of
the stock of "X" corporation.
Analysis: Although there is no overt violation of securities laws and rules
(since the material information was already public), a conflict of interest
could exist if the duties or position of associate B enabled him to influence
the decision as to whether the Company should continue to do business with "X"
corporation. In such a case, an investment like this should not be made while
the associate holds these assigned duties.
Example D
Situation: An associate with access to Company financial information discusses
non-public information with a stockbroker in anticipation of trading stock in
the Company.
Analysis: A conflict of interest would exist in addition to possible violations
of federal securities laws. The conflict would arise from discussing
confidential Company information with someone other than as required in
performance of Company duties or as expressly authorized by the Company.
Example E
Situation: An associate uses Company information to develop a mailing list for
his spouse's business.
Analysis: A conflict of interest would exist, as well as a possible violation of
the Company's Privacy Policy regarding safeguarding of customer information. The
conflict would arise from using confidential Company information for personal
gain.
Use of Company Information
Examples for Disclosure of Company Information
Example A
Situation: An associate becomes aware of planned organizational changes within
the Company before they are announced. He reveals the changes on an Internet
bulletin board.
Analysis: This use of Company information violates the Statement of Business
Ethics.
Example B
Situation: A store associate maintains his own personal website on the Internet.
On his website, the associate highlights the fact that he works at JCPenney, and
includes the Company logo and a scanned image of a local JCPenney store. The
associate discloses upcoming sales and new merchandise offerings well ahead of
local advertising. He offers to take orders for merchandise or arrange for
customers to pre-select merchandise in advance of the sale by contacting him at
home.
Analysis: This use of Company information to solicit sales is inappropriate. The
associate is improperly disclosing confidential Company information,
misrepresenting himself as an agent of the Company in this advertising format,
and exposing the Company to liability for any misrepresentations in the
advertising.
<page>
Example C
Situation: An associate resigns and takes a job with another company. Upon
departure, she takes Company files and software and uses Company information
about procedures, assets, plans, customers, and suppliers in performing the new
job.
Analysis: The former associate's conduct is prohibited. Company information is
the property of the Company. Therefore, Company materials may not be removed,
and Company information may not be used by a former associate. Use of this
information may subject the former associate to liability to the Company. It is
also a possible violation of the Company's Privacy Policy regarding the
safeguarding of customer information.
Example D
Situation: A student at a local college wants to use JCPenney as a case study
for an audit class project. Since the student previously worked as an intern at
the Home Office, he sends a survey to his former JCPenney manager. The survey
asks questions about the JCPenney environment, including what security programs
are used, the Company's internal policies, and the types and version numbers of
databases, software, and operating systems in use within the Company. The
student also requests a list of payroll and accounting applications and a
network diagram showing the location of servers, routers, and firewalls. The
manager is aware of JCPenney's long-term relationship with the college and wants
to assist the student. He completes the questionnaire.
Analysis: The manager has placed the Company's electronic resources at risk, and
has violated Company policy and possibly state laws and other regulatory
requirements. Associates must never disclose to anyone outside of the Company,
specific information relating to the Company's information systems environment,
security controls in use, or the way in which they are implemented. An outsider
could use this information in an attempt to compromise Company systems. Outside
inquiries for system or security-related information should be declined, or
directed to the Information Security department for a response.
Example E
Situation: A store associate takes a phone call from an individual who states
she is from the "computer department" at the Home Office. She is calling
regarding a problem with the store's wireless network, and asks the associate
for the wireless access number and password. When the associate hesitates to
give out this information, the caller stresses that it is important because
their system's access points are failing and she needs to repair them. Since the
caller sounds legitimate, the associate gives her the store's wireless logon ID
and password.
Analysis: This associate has violated Company policy and has exposed the
JCPenney network to a potential breach situation. Associates must never disclose
confidential information about the JCPenney network to anyone over the phone.
Hackers will typically use this technique in an attempt to gain information that
can be used to breach the security of network and information resources.
Use of Company Information
Examples for Protection of Customer Information
Example A
Situation: A 20-year styling salon associate resigns with plans to open her own
business. She asks one of the salon's receptionists to give her a printed copy
of her extensive client list. The stylist intends to send each client her new
<page>
contact information. The list contains clients' names, addresses, phone numbers
and email addresses. The receptionist complies with the request, unaware of the
stylist's resignation, but inadvertently prints two copies of the information.
She throws away the second copy in a trash can.
Analysis: Both associates have placed customer information at risk. Their
actions may also violate several state laws as well as the Company's Privacy
Policy for safeguarding customer information. The stylist has no right to use
Company information in her new job, or to solicit customers for non-Company
services. The receptionist should not provide customer personal information to
anyone without proper authorization. Authorization for such a disclosure must
generally be from the Salon Manager. In addition, printed copies of customer
personal information must be disposed of in a manner that will protect against
unauthorized access to or use of the information. Proper disposal requires
shredding the document instead of placing it in a trash can where it can be
removed by anyone.
Example B
Situation: A store associate in the Children's Department takes a call from
"Brett from the Loss Prevention Center." "Brett" advises the associate that a
credit card had been used fraudulently in that department earlier in the day,
and that he needs the account numbers of other bankcard transactions rung at
that register. Associate provides 38 account numbers to the caller.
Analysis: In this example, a thief posing as "Brett" used a technique called
"social engineering" to trick the store associate into giving out confidential
customer information. The associate's action placed all of the customers'
account numbers at risk for fraudulent charges. Disclosing a customer's credit
card number to an unauthorized person violates the Company's Privacy Policy and
the Policy on Safeguarding JCPenney information. Associates must never disclose
confidential information over the phone to anyone without first verifying the
true identity of the caller, and legitimacy of the request. In general, no one
from the Loss Prevention Department would call a store associate and ask for
credit card numbers from the day's transactions.
Example C
Situation: In anticipation of store closing in the evening, a store associate
empties a register and places cash and personal checks in the cash bag. When a
customer asks for assistance, the associate places the cash bag on top of the
register wrap area. While he is assisting the customer, another customer takes
the cash bag and exits the store.
Analysis: This associate failed to protect the privacy of customer personal
information. Personal checks contain key information that can be used by
criminals to steal an individual's identity or commit fraud, typically name,
address, phone number, bank account number, and in some cases, driver's license
number. Associates must keep cash and media bags out of the reach of customers
at all times. Place bags on a shelf to ensure they are not visible or accessible
to customers when the register is unattended.
Preservation of Company Assets
Examples for Preservation of Company Assets
Example A
Situation: An associate, in a rush to complete his or her work before leaving on
a business trip, authorizes the payment of supplier invoices without following
the prescribed Company procedures for approving invoices for payment.
<page>
Analysis: This conduct would involve a violation of the Statement of Business
Ethics. Company procedures require that invoices be approved only by certain
designated associates. Each associate is required to determine that the Company,
in accordance with applicable Company procedures, has received or will receive
full value in terms of cost, quantity, and quality and that accurate supporting
documentation is available.
Example B
Situation: An associate duplicates a user's manual on use of a particular
software program for a neighbor who has a business that he operates out of his
home on a part time basis.
Analysis: This action violates this Statement because it misuses Company assets
(in this case, the user's manual) in an unauthorized manner. Additionally, the
copying of the materials could be a violation of the Company's license agreement
with the software developer and might also be a violation of the federal
copyright laws. The same type of violation could occur if the actual software
were duplicated.
Example C
Situation: An associate runs a carpet cleaning business on the side. The
associate uses Company software and hardware to generate letters to customers,
create advertising copy, and store financial information such as monthly
receivables, tax information, etc. The associate, on occasion, has used
duplicating machines to make copies of advertising fliers for the business, and
has solicited new customers by posting ads on Internet newsgroups. The associate
is seen working on this information during business hours by a fellow associate,
who reports the activity to the department head.
Analysis: The associate has used Company resources for non-business activities.
The manager has reason to suspect inappropriate use of Company resources, and
has the right to access this associate's personal computer files, without the
associate's prior consent, to determine the extent of misuse.
Example D
Situation: An associate is vehemently opposed to a new government ruling in his
town. The associate begins sending harassing e-mail communication to a local
city council member, using the Company's equipment and e-mail resources. Each
note identifies the associate by his electronic address
("associatename@jcpenney.com"). The council member contacts the Company to
threaten legal action against the Company unless the associate's e-mail ceases.
Analysis: The associate misused his e-mail privileges by sending personal,
non-business correspondence on Company time, using Company equipment and
resources. The associate further placed the Company's reputation at risk, and
subjected it to possible legal implications by the harassing nature of his
correspondence while purportedly acting as a representative of the Company.
Example E
Situation: An associate uses the Company's Internet connection to access
external newsgroups. The associate gets into a heated debate with others on the
quality of Company XYZ's product. The associate's personal experience with
Company XYZ has been unsatisfactory, and the associate makes derogatory and
libelous remarks about the company and its offerings. Each posting to the
newsgroup identifies the associate by her JCPenney e-mail address
("associatename@jcpenney.com"). The associate is unaware that Company XYZ is one
of JCPenney's new suppliers.
<page>
Analysis: The associate appears to act as a representative of JCPenney with each
note she posts to an electronic newsgroup. As such, the associate's comments
could be perceived as the opinion of the Company, and in this example, possibly
threaten the Company's relationship with the supplier.
Example F
Situation: An associate uses the Company's Internet connection to repeatedly
access "adult" material during the business day. A fellow associate observes
this activity, and is offended by an image displayed on the associate's computer
screen. Consequently, the manager monitors the associate's Internet activity
without his knowledge.
Analysis: There is no business reason for an associate to use Company resources
to knowingly and voluntarily access, print, or distribute adult or potentially
offensive material. Such actions are a violation of the policy on the Protection
of Company Assets in Electronic Form, as well as a potential violation of the
JCPenney Anti-Harassment policy.