Code of Conduct

CODE OF CONDUCT AND ETHICAL STANDARD

CODE NO. 1

Pursuant to the company’s core values of Credibility, Honesty, Equality, Resiliency, Sincerity and Humility, (CHERISH) all independent distributors are strictly enjoined to observe the following:

Independent Distributors shall at all times, remain loyal to the company. They shall follow and observe faithfully all its policies. They shall refrain from committing acts prohibited by the company. They shall not join, represent, associate, sponsor, recruit for competing companies, business groups, partnership or individual, either locally or abroad. They shall introduce, present, promote, offer, sell, in any form nor manner the products, services, businesses, marketing programs and plans of a competing company.

PENALTIES

FIRST OFFENSE: One (1) month deactivation of all the accounts and the reasonable portion of the account of the respondent shall be given to the complainant as a form of reward to be determined by the company, which accrued at the time of the commission of the violation.

SECOND OFFENSE: Perpetual deactivation of all the accounts which carries with it the forfeiture of all benefits, privileges, commissions and other remunerations either monetary or in kind in favor of the company, which accrued at the time of the commission of the violation.

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CODE NO. 2

All Independent Distributors are strictly enjoined to be honest in their conduct and dealings. They shall not make written or oral derogatory or defamatory remarks, utterances or any statement in any form that discredits the company, its centers or any of its service branches. They shall respect and not malign the credibility of the company’s officers and employees.

PENALTIES

FIRST OFFENSE: One (1) month deactivation of all the accounts and the reasonable portion of the account of the respondent shall be given to the complainant as a form of reward to be determined by the company, which accrued at the time of the commission of the violation.

SECOND OFFENSE: Perpetual deactivation of all the accounts which carries with it the forfeiture of all benefits, privileges, commissions and other remunerations either monetary or in kind in favor of the company, which accrued at the time of the commission of the violation, without prejudice to criminal prosecution.

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CODE NO. 3

All independent distributors are strictly enjoined to conduct business in a professional manner. A professional is shall not utter  false statements in the course of his work, he shall not  commit misrepresentation, exaggeration, disinformation, make vain promises, introduce spurious products or services, or circumvent the marketing plans or programs of the company nor commit any act that contravenes the tenor and the purposes thereof.

PENALTIES

FIRST OFFENSE: One (1) month deactivation of all the accounts and the reasonable portion of the account of the respondent shall be given to the complainant as a form of reward to be determined by the company, which accrued at the time of the commission of the violation.

SECOND OFFENSE: Perpetual deactivation of all the accounts which carries with it the forfeiture of all benefits, privileges, commissions and other remunerations either monetary or in kind, which accrued at the time of the commission of the violation, without prejudice to criminal prosecution.

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CODE NO. 4

All Independent Distributors are strictly enjoined to deal honestly with their fellow independent distributors. They shall refrain from committing the following acts:  

a)   Imitating or counterfeiting any handwriting, or signature;

b)   Causing it to appear that a distributor has participated in any act or activity when he did not in fact so participate;

c)   Inserting untruthful statements in a narration of facts such as those in the affidavit, deed and other documents similar thereto;

d) Altering true dates;

e)   Making any alteration or intercalation in a genuine document which alters or changes its meaning;

f)   Issuing in an authenticated form a document purporting to be a copy of an original document when no such original actually exists.

PENALTY

FIRST OFFENSE: Perpetual deactivation of all the accounts which carries with it the forfeiture of all benefits, privileges, commissions and other remunerations either monetary or in kind in favor of the company, which accrued at the time of the commission of the violation, without prejudice to criminal prosecution.

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CODE NO. 5

All Independent Distributors are strictly enjoined to observe humility and respect towards fellow independent distributors, officers and employees of the company.  Rudeness, disrespect and discourtesy have no place in the organization.

PENALTIES

FIRST OFFENSE: One (1) month deactivation of all the accounts and the reasonable portion of the account of the respondent shall be given to the complainant as a form of reward to be determined by the company, which accrued at the time of the commission of the violation.

SECOND OFFENSE: Perpetual deactivation of all the accounts which carries with it the forfeiture of all benefits, privileges, commissions and other remunerations either monetary or in kind, in favor of the company which accrued at the time of the commission of the violation, without prejudice to criminal prosecution.

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CODE NO. 6

All Independent Distributors are strictly enjoined to observe the sense of equality and fairness toward fellow independent distributors by observing the 6-month rule, wherein a fellow independent distributors has 6-month  from presentation of the marketing plan or program of the company and signing of any document towards distributorship by the prospective distributor, within which fellow distributor shall not interfere, intervene or alienate said prospective distributor at the prejudice of the first independent distributor. 

Distributors are reminded to observe the 6-month rule embodied, where a prospect may sign a registration form, and provided that the sponsoring Independent Distributor validate the same with the Staff-in-charge, either in the Head Office or any Royale Branch nationwide. The date stamped in the registration form shall serve as basis for determining the 6 months period.

PENALTIES

FIRST OFFENSE: As for the independent distributor who interfered, intervened or alienated the prospective distributor within the 6-months period at the prejudice of the first distributor shall suffer the penalty of one (1) month deactivation of all the accounts with forfeiture in favor of the company of all the benefits, privileges, commissions and other remunerations either monetary or in kind, which accrued at the time of the commission of the violation. On the other hand, the account of the prospective independent distributor who later became an independent distributor shall be placed in the networking group of the first distributor;

SECOND OFFENSE: Perpetual deactivation of all the accounts which carries with it the forfeiture of all benefits, privileges, commissions and other remunerations either monetary or in kind, which accrued at the time of the commission of the violation.

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Code No. 7

Cross Lining/ Cross Sponsoring: 

Cross-Sponsoring also known as pirating or poaching is defined as the registration of an Independent Distributor who already has a current Independent Distributor Agreement on file or on record, or who has had such an agreement covered by the six (6) months rule (please refer to Code No. 6), to a different line of sponsorship. 

Actual or attempted Cross Lining/Cross Sponsoring is strictly prohibited. Cross Lining shall also be deemed to include any act that tends to circumvent the company policies but produces the same effect.  Violation of this prohibition may result in the termination of both the newly placed Distributor as well as the Distributor who sponsored or attempted to sponsor said new Independent Distributor.

For purposes of establishing Cross Lining/ Cross Sponsoring, Spouses shall automatically belong to the same sponsor group or line.   Cross Lining through the use of dummies -whether real or fictitious persons-is also prohibited.

Cross sponsoring shall be penalized in the following manner:

FIRST OFFENSE: One (1) month deactivation of all the accounts and the reasonable portion of the account of the respondent shall be given to the complainant as a form of reward to be determined by the company, which accrued at the time of the commission of the violation.

SECOND OFFENSE: Perpetual deactivation of all the accounts which carries with it the forfeiture of all benefits, privileges, commissions and other remunerations either monetary or in kind, in favor of the company which accrued at the time of the commission of the violation, without prejudice to criminal prosecution.

In both instances, Royale may also transfer the entire or part thereof, of the cross lining distributor to his or her original sponsor’s organization, in accordance with Royale’s authority and sole discretion to determine the ultimate disposition of the organization.

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CODE NO. 8

All Independent Distributors shall not commit any fraudulent act or false pretenses to the prejudice directly or indirectly of the company or fellow distributor. These acts are the following:

a)   using a fictitious name, or dummy for registration or sponsoring purposes;

b)   by altering the quality, fineness or weight of the product or any product of the company;

c)   issuing a check to a fellow distributor or to the company or incurring obligation to both, without or with insufficient funds to cover the amount of the check or evading the performance thereof or any obligation after demand.

PENALTY

FIRST OFFENSE: Perpetual deactivation of all the accounts which carries with it the forfeiture of all benefits, privileges, commissions and other remunerations either monetary or in kind in favor of the company, which accrued at the time of the commission of the violation, without prejudice to criminal prosecution.

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CODE NO. 9

All intellectual property rights for products and services of the Company shall remain the exclusive property of ROYALE. Intellectual property shall include copyrights, trade secrets, trademarks, service marks, trade names and other intellectual property rights.  Unauthorized use of the company’s intellectual property is absolutely prohibited.  Any use of ROYALE's trademarks and logos must be cleared in advance with and have the written consent of the Management.  Independent Distributor who violated this shall be liable to the Company for any damages arising out of the unauthorized use of the Company’s trade names, trademarks, copyrights, and other intellectual property rights, in any form except as specifically authorized by these Policies and Procedures or as otherwise approved in writing by ROYALE.

  

PENALTY

FIRST OFFENSE: Written Reprimand

SECOND OFFENSE: One (1) week deactivation of all the accounts and the reasonable portion of the account of the respondent shall be given to the complainant as a form of reward to be determined by the company, which accrued at the time of the commission of the violation.

THIRD OFFENSE: One (1) month deactivation of all the accounts and the reasonable portion of the account of the respondent shall be given to the complainant as a form of reward to be determined by the company, which accrued at the time of the commission of the violation.

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CODE NO. 10

All Independent Distributors shall be provided a suggested retail price of company products.  Royale Independent Distributors may sell Royale products at whatever price they and their customers agreed upon but not below the Suggested Retail Price (SRP).  This includes but not limited to “free” products or any other special pricing or incentive that would fall below the SRP.  No distributor shall offer for sale Royale products together with the products of any other company.

PENALTY

FIRST OFFENSE: Written Reprimand

SECOND OFFENSE: One (1) week deactivation of all the accounts and the reasonable portion of the account of the respondent shall be given to the complainant as a form of reward to be determined by the company, which accrued at the time of the commission of the violation.

THIRD OFFENSE: One (1) month deactivation of all the accounts and the reasonable portion of the account of the respondent shall be given to the complainant as a form of reward to be determined by the company, which accrued at the time of the commission of the violation.

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CODE NO. 11

Independent distributors are not allowed to export products to another country, except if permission is granted through a written approval from the management. Any act of exporting Royale products to another country with or without an existing Royale office is considered a violation of the Code of Ethics and shall be punished accordingly.

PENALTIES:

FIRST OFFENSE: Three (3) months deactivation of all the accounts and the reasonable portion of the account of the respondent shall be given to the complainant as a form of reward to be determined by the company, which accrued at the time of the commission of the violation.

SECOND OFFENSE: Perpetual deactivation of all the accounts which carries with it the forfeiture of all benefits, privileges, commissions and other remunerations either monetary or in kind, in favor of the company which accrued at the time of the commission of the violation, without prejudice to criminal prosecution.