The word CODE is the other term for a system of principles and moral rules while CONDUCT is a behavior, guide or direction. As the advent for a new era of network marketing business unfolds, SIERRA MOUNTAIN HEALTH & BEAUTY PRODUCTS TRADING advocates these terms and adopts as its guidelines for moral principles of its Independent Distributors.

Canon 1 - COMMITMENT TO ETHICAL BUSINESS PRACTICES

• Rule 1.01 - An INDEPENDENT DISTRIBUTOR shall not engage in dishonest or deceitful conduct to the detriment of the company’s reputation and goodwill.
• Rule 1.02 - An INDEPENDENT DISTRIBUTOR, in promoting his business, shall use only true, honest, fair, dignified, and objective information or statements of fact.
• Rule 1.03 - An INDEPENDENT DISTRIBUTOR shall not use any false, fraudulent, misleading, deceptive or unfair statement in his conduct of his business.
• Rule 1.04 - An INDEPENDENT DISTRIBUTOR shall encourage other INDEPENDENT DISTRIBUTOR and their clients to avoid, end or settle personal and business disputes, misunderstanding and the like between themselves and admit a fair and reasonable settlement.
• Rule 1.05 – An INDEPENDENT DISTRIBUTOR shall not make negative, insulting, or defamatory comments about the company, its owners, officers, staff, or fellow distributors, whether inside or outside company premises. The act of gossiping, spreading rumors, or engaging in any behavior that may harm the reputation, unity, or integrity of the company and its people is strictly prohibited.

Canon 2 - ETHICAL BOUNDARIES IN NETWORK BUILDING

• Rule 2.01 – An INDEPENDENT DISTRIBUTOR is strictly prohibited from conducting, presenting, or promoting any other networking business within the company premises or during official company functions.
• Rule 2.02 – No INDEPENDENT DISTRIBUTOR shall recruit, solicit, or persuade any fellow INDEPENDENT DISTRIBUTOR of SIERRA MOUNTAIN HEALTH & BEAUTY PRODUCTS TRADING to join, register, or participate in another networking company.
• Rule 2.03 – This prohibition applies regardless of intent, whether direct or indirect, personal or online.
• Rule 2.04 – The reason: An INDEPENDENT DISTRIBUTOR is considered a strategic partner of SMH, and part of his obligation is to protect the integrity, stability, and growth of the company’s network.
• Rule 2.05 – Any violation shall be considered a serious breach of trust and a conflict of interest. The company reserves the right to investigate, and if proven, may impose appropriate sanctions which can include suspension, forfeiture of benefits, or termination of distributorship, depending on the gravity of the offense. Due process will always be observed.

Canon 3 - PROHIBITION OF ENCROACHMENT & CROSS-RECRUITMENT

• Rule 3.01 - An INDEPENDENT DISTRIBUTOR shall not, whether directly or indirectly, encroach upon or attempt to take over the business prospects of another Distributor. The role and relationship of a prospect’s intended or existing Upline must always be recognized and respected.
• Rule 3.02 - To uphold fairness and integrity, SIERRA MOUNTAIN HEALTH & BEAUTY PRODUCTS TRADING strictly prohibits any form of cross-recruitment or cross-lining.

Canon 4 - CONCEALMENT OF CROSS-LINING OR CROSS-RECRUITMENT

• Rule 4.01 - Any INDEPENDENT DISTRIBUTOR who, in an attempt to conceal cross-lining or cross-recruitment, uses the names of relatives or other individuals – as dummy account - and is later found guilty of such conduct, shall be subject to strict penalties. Sanctions may include reprimand, suspension, forfeiture of benefits, or termination of distributorship, depending on the gravity of the offense.

Canon 5 - ETHICAL DEALINGS AND TRANSPARENCY WITH CLIENTS

• Rule 5.01 – When dealing with a prospective client or buyer, an INDEPENDENT DISTRIBUTOR shall exercise due diligence to first determine whether the individual has an existing or prior business relationship with another Distributor of SIERRA MOUNTAIN HEALTH & BEAUTY PRODUCTS TRADING. If such prior dealings exist, the distributor must refrain from pursuing the transaction unless the period for protection of the original distributor, as prescribed in the company’s rules and regulations, has already lapsed.

Canon 6 - POLICIES ON LAPSED ACCOUNTS AND REGISTRATION

• Rule 6.01 – Inactive Accounts A Distributor’s account shall be considered lapsed if there has been no activity for a continuous period or consecutive six (6) months, meaning no product purchases and no new sponsorships.
• Rule 6.02 – Re-Registration A Distributor who wishes to rejoin the business after lapsing must submit a formal resignation letter. The original account shall revert to the direct sponsor, and all existing downlines under that account shall remain in their current structure. Downlines cannot be transferred.
• Rule 6.03 – Unauthorized Purchases An Upline is strictly prohibited from purchasing products on behalf of a Distributor for the purpose of artificially maintaining the Distributor’s “active” status. If a Distributor denies authorizing such purchases, the upline who carried out the transaction shall face penalties as determined by the company.
• Rule 6.04 – Consent in Registration Registration of Distributor accounts must be done with the full knowledge and consent of the individual being registered. An Upline cannot register someone merely by obtaining their name and entering it into the system. Every Distributor must fully understand the SMH business prior to registration. This policy is intended to eliminate the practice of “name filling” or enrolling individuals without their informed consent.

CANON 7 - UNAUTHORIZED ENCASHMENT AND MISREPRESENTATION

• An INDEPENDENT DISTRIBUTOR shall not, directly or indirectly, engage in or assist with the unauthorized use of another Distributor’s identification to claim commissions, gift certificates, or any other benefits provided by the company. Withdrawal of commissions shall only be permitted for immediate family members, provided they present a valid authorization letter and proper identification. If a distributor withdraws commissions or funds through online e-wallets or online banking, the account holder’s name must match the name of the registered Independent Distributor.

Canon 10 – Integrity, Accountability, and Professional Conduct

• Rule 10.01 – An INDEPENDENT DISTRIBUTOR shall safeguard all payments collected from prospective distributors until they are properly remitted to the company. Any form of misappropriation, malversation, or misuse of such funds is strictly prohibited.
• Rule 10.02 – An INDEPENDENT DISTRIBUTOR shall act with honesty and integrity in all dealings with prospective clients and downlines, and shall respect and protect the trust and confidence placed in him.
• Rule 10.03 – An INDEPENDENT DISTRIBUTOR shall not make promises of assistance or commitments to downlines or fellow distributors unless he is genuinely able and available to fulfill them.
• Rule 10.04 – An INDEPENDENT DISTRIBUTOR is personally accountable for his own actions and must faithfully comply with all company rules, regulations, and policies.
• Rule 10.05 – Any INDEPENDENT DISTRIBUTOR found to be in violation of company policies or this Code of Professional Conduct shall be subject to investigation and appropriate administrative proceedings before the company’s grievance committee.

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