CHAPTER 1 GENERAL
Article 1 Background
PT. Herba Penawar Alwahida, hereinafter referred to as HPAI, is aware of the importance of a good reputation. Therefore, being responsible and performing with high professionalism are the top priority of every businessperson involved in Halal Network company, which is a business based on trust and honesty.
The company’s business principles obliged the businesspersons to perform responsible actions with high integrity while following Islamic Shariah norms, abide the laws and regulations, and respect the universal acceptable norms. Company agents or Agents, which affect the company’s reputation, should be equipped with the code of conduct to avoid conflict of interest, authority abuse and misuse of information.
The code of conduct is intended to make every Agent acts ethically and consistently with high integrity according to the company’s business principles in building public trust. Moreover, Agents’ compliance with Islamic Shariah, laws and regulations, and respect to Indonesia traditions and culture show that the sales are accurate, exhaustive, impartial, and meet the ethical standards. Thus, the Agency Regulations shall be obeyed by every Agent in their profession.
Article 2 General
The terms used in this Code of Conduct are referred to as:
- HPAI is a company in the field of products trading business where the marketing system or method is done through a direct sales activities through network marketing developed by business partners (Direct Selling) with the concept of Halal Network.
- AGENT is an individual or a business venture or organization that has registered to be a distributor of HPAI.
- ACTIVE AGENT is an agent who is officially registered in the company and within 6 (six) months to make at least 1 (one) time of product purchase at the official HPAI stock agent.
- HALAL NETWORK is a network of halal business in an effort to provide, promote, and campaign Halalan Thayyiban products in order to create the widest possible product market halalan thoyyiban conducted jointly by the parties that are members of the HPAI according to Islamic law.
- HPAI Commission of Discipline and Ethics (CODE) is a commissioner consists of representatives Agent (CELLS) and HPAI Management, whose duty is to escort and discipline HPAI agency regulation. HPAI CODE is under the supervision of HPAI Sharia Board and Board of Directors.
- Cooperation of Executive Loyal Leaders (CELLS) is a body or agency or official organization under the authority of HPAI as the official representative of the entire HPAI Halal Network Agents and Leaders, which serves as the HPAI Support System organization and the HPAI LED Coordinating organization for synergy and harmonization steps in terms of LED business activity on HPAI Halal Network and potential development of HPAI LEDs and Agents.
- Loyal Executive Director (LED) is an HPAI agent with the rank of Executive Director (ED) who exclusively do network marketing business in HPAI Halal Network, and reach the condition of Group’s business bonus and turnover, as well as meet the qualification standards of character and personal integrity in accordance with prevailing regulations. LED requirements are set by the HPAI Board of Directors based on the consensus agreement between HPAI Board of Directors and CELLS. LED list is established by Decree (SK) of the Board of Directors of HPAI and LEDs are not involved either directly or indirectly with other Network Marketing Business. Business Network Marketing is a business that provides a bonus or commission profits to more than one generation level.
- PRODUCT referred to all goods marketed by the company.
- CONSUMER PRICE is the price of HPAI products for non-HPAI Agents which set by the Company and is the official price of the products published in all company media.
- AGENT PRICE is the price of HPAI products for HPAI Agents which set by the Company and is the official price of the products published in all company media.
- BONUS is a profit sharing reward given to HPAI Agent through personal purchase or product sales target in a month, based on the principles of Sharia al-Ju’alah (conditional bonus contract).
- ROYALTY is a profit sharing from HPAI to HPAI Agents taken from International Points Turnover, and distributed according to the prevailing regulations, based on the principles of Sharia al-Ju’alah (conditional bonus contract).
- ACHIEVEMENT TARGET (AT) is target achievement based on the purchase of HPAI agent based on the concept of Islamic Sharia; contract al-Ju’alah (Conditional Bonus Contract). Bonus or royalties will be given when the conditions are met).
- POINTS is a term used for the unit value assigned to each product used to classify a rank or position, promotion, and royalties as well as the amount of bonus.
- AGENTS STOCK is HPAI agent who meets the requirements and is approved by the company to serve the sales by complying with the regulations prescribed by the company.
- BUSINESS CENTER (BC) is HPAI business services and activities center for all HPAI agent, either the agent or network under the Leader who owns the BC or agent outside the BC’s owner’s network.
- PROMOTION is the company system to stimulate the market and HPAI agent performance on achievements, that are timeless and officially designated by the company.
- INDEPENDENT BUSINESS PARTNER is a distributor of company products through a network that abides HPAI code of conduct.
- MENTOR is a direct active upline Line direct of one HPAI agent.
- PARTNERS is a direct active downline line of one HPAI Agent.
- VENDOR is products supplier company which PT. HPAI has ties of cooperation in supplying HPAI products.
Article 3 Objectives
The code of conduct is designed with following objectives:
- As the guidelines and guidance for agents in carrying out their rights and obligations;
- To regulate the relationship between HPAI and HPAI agents;
- To regulate the relationships among agents;
- To protect and retain the interests of HPAI and HPAI Agents;
- To regulate the relationship between agent and consumer.
CHAPTER II AGENT
Article 4 Become an Agent
- An Applicant that can be an agent is an individual or business venture or organization. Applicant in form of business venture or organization applicant is regulated as follows:
- The business venture or organization must be represented by its leader/chief in charge;
- HPAI code of conduct also applies to the business venture or organization’s representative.
- Applicant(s) has to be sponsored by an individual or by a business venture or by an organization which is HPAI active agent.
- Applicant(s) must correctly and completely fill out the application form provided by HPAI official agent.
- By filling out and signing the official agent application form, the prospective agent has agreed to comply with the agency regulations and any possible changes from time to time. The applicant is considered as a valid Agent after receiving HPAI Agent Number.
Article 5 Agent Registration
- The applicant (prospective agent) must be aged 17 (seventeen) and or has been married and have had a national identity card (KTP) at the time the application is submitted.
- The applicant(s) will be charged a registration fee under the regulations.
- The Agent(s)’ name must match the Agent(s)’ bank account holder name.
- If the Agent(s) use another bank account aside of their own, the Agent(s) must include a statement letter.
- If the bank account data, address or sponsor is not complete, the Company reserves the right to reject the Agent(s)’ membership.
- Re-registering an active agent is prohibited.
Article 6 Rights and Obligations of HPAI Agents
- HPAI Agents have the rights to:
- Participate in all training organized by the Company and CELLS or cross-network according to the terms and conditions;
- Get the special Agent price and points for every HPAI products purchase;
- Obtain bonuses and royalties in accordance achievement targets set by the company;
- Get promotion according to the company provisions.
- HPAI agents are obliged to:
- Maintain the company’s good reputation;
- Abide the HPAI Code of conduct;
- Follow the HPAI Support System;
- Hold the values of akhlakul karimah.
Article 7 Agent’s Position in the Company
- The agent’s position in the company is an independent business partner with HPAI.
- An agent does not have an employment relationship with HPAI.
- Agent can not offer a job to other parties on behalf of HPAI.
- Agents are not authorized to take a legal action to other parties on behalf of HPAI
- HPAI Agents are forbidden to use HPAI logo and name in writing or any media without written permission from PT. HPAI management.
- HPAI Agents can only buy HPAI products from Stock Agent and or HPAI Business Center.
- HPAI agent is strictly forbidden to have business or employment relationship, either directly or indirectly with the Vendor or Products Factory of HPAI.
Article 8 Multiple Membership Prohibition
- Every agent is forbidden to own more than one agent number.
- If the company find agent(s) own more than one agent number, the company reserves the right to decide which agent number to remain activated and disabled the inactive number(s).
- A registration that is submitted as an active agent re-registration is considered invalid. Thus, the new registered agent number will automatically be canceled.
- An agent can not submit a resignation letter before the resignation is acknowledged by the nearest active Mentor. The Company is authorized to accept or reject the submission of Agent resignation.
Article 9 Inheritance of Agency
- If an agent pass away, the agency status will be automatically passed to his/her heirs. In the case of eligible heirs, it will follow the law of inheritance in Islamic Sharia. The administrative proof of death of an HPAI agent is marked by the death certificate and the list of heirs must get approval from the HPAI Management HPAI. In this case, HPAI will do everything possible, so that all heirs have the right and portion according to the regulations. The status of the ID number and name of HPAI agent who passed away remain valid, with an addition of ALMARHUM (ALM) or ALMARHUMAH (LMH) behind the deceased.
- If there is a dispute with other parties regarding the agency inheritance, then HPAI will follow the court final decision. During the dispute settlement process, HPAI can take over the agency temporarily until the permanent legal decision given.
- If the heirs or beneficiaries also passed away, HPAI will appoint a member from the next kin of the deceased agent in accordance with the legal law in Indonesia or based on the consensus of the heirs, and it will be made before a notary.
Article 10 Grants of Agency
An agent may grant his/her agency status to another person with the company consent.
CHAPTER III STOCK AGENT
Article 11 Become a Stock Agent
- Every HPAI agent who met the terms and conditions is eligible to become a stock agent.
- The commercial level of HPAI stock agent is described as follow: Stock Center (SC), Distribution Center (DC), dan Agency Center (AC).
- The agent who applies to become a stock agent must fill out the official stock agent application form that matched with the agent’s commercial level.
- The approval of stock agent application is under the full authority of the company.
Article 12 Stock Agent Obligation
- A stock agent is obliged to sell products according to the official price and point;
- A stock agent is obliged to input each sales transaction record matched with the agent’s number who purchase the products with trustworthiness (Amanah);
- A stock agent is prohibited from manipulating sales which can cause loss to others;
- A stock agent is prohibited from stockpiling products which can cause the products sales in unreasonable price; whether the price becomes higher or lower;
- A stock agent is prohibited from registering a fictitious or fake membership.
Article 13 Stock Agent Position
A stock agent position is to stand alone; does not have any employment relationship with the company.
Article 14 Cashback Warranty for Stock Agent
According to the regulation regarding the multilevel or direct-selling business, the company applies the cash back warranty regulation based on the activities of the agent as a stock agent which are:
- Cashback for an agent who resigned from a stock agent.
- Cashback for the invoice with issued date is within 6 months from the date of purchase.
- Cashback for products that want to be returned but can still be used for resale.
- Cashback for the paid member bonuses. The product sales revenue will be deducted from the sum of the products value.
- The company will issue 5% (five percent) discount from the sum of returned products value.
- Cashback will be paid 1 (one) week after the products are returned to the company.
Article 15 business center (BC) and Central Agency (PA)
- The requirements to become a BC and or PA following the terms and conditions issued by the HPAI Management.
- BC and PA are provider/supplier of HPAI products. Thus, both must be an example of the highest standards of Stock agent and BC service.
- BC and PA are strictly forbidden to sell products of other MLM / Network Marketing Business.
- BC and PA are strictly forbidden to get involved either directly or indirectly with the activities of other MLM / Network Marketing Business.
- BC and PA are strictly prohibited from selling other company products that are HPAI Core Business and similar products to HPAI products, for example, Honey, Dates Extract, Soap, Toothpaste, Habbasauda, Olives, etc.
Article 16 Product Price, Point, & Promotion
- Product prices and points are decided by HPAI management. Purchases made by cash at the head office of HPAI, HPAI Business Center, and or Stock Agent.
- HPAI agents have the right to purchase HPAI products with agent price and get point.
- Every agent, stock agent, and HPAI business center must use product price and point specified by the company without adding or reducing any when sale-purchasing products.
- Unless the consumer applying as new HPAI agent as well, it is not allowed to sell the product to the nonHPAI-agent consumer with agent-price.
- HPAI Management has full right over Marketing Promotion. Thus, HPAI agents are not allowed to make massive promotion without HPAI Management approval.
- Every agent, stock agent, and HPAI business center are not allowed to make any promotion that changing the product price and point, except for promotion had been set by HPAI management.
- Every agent, stock agent, and HPAI business center are not allowed to sell or purchase point without product in any form and way.
CHAPTER IV HPAI SUPPORT SYSTEM DISCIPLINE
- HPAI support system (SS) is a method or concept or workings of HPAI agents to achieve success business in HPAI Halal Network in ONE WORKING SYSTEM which integrated under the authority of HPAI CELLS.
- HPAI SS is under the authority of CELLS in concept, application, and discipline regulation.
- HPAI SS is subject to HPAI Code of conduct.
- HPAI agents are obliged to follow and obey the implementation principle of HPAI SS and forbidden from creating any programs, events, and or marketing creative media other than those provided in HPAI SS.
- Promotions, awards, and marketing backups are granted only for HPAI Agent who use HPAI SS properly and obey HPAI SS disciplinary principles.
CHAPTER V VIOLATIONS AND PENALTIES
Article 18 Violations
- Serious Violation is if it meets one or part or the whole of the category of violations as follows:
- Agent or stock agent who perform unlawful actions against Religion and State that harm the company;
- Agents who perform actions of affecting, provoking and encouraging other agents to join another network marketing business;
- Agents who perform actions that harm other parties on behalf of the company;
- Agents who made agreement with HPAI partner parties such as vendor, expeditions, and any other which can or potentially harming the company;
- Agents who conspire to commit a violation of the code of conduct as selling product in unreasonable price below the official prices, hoarding products and registering a fictitious membership;
- Doing repeated acts of violation which reduce part or all of Agent’s right, and or not doing obligation as HPAI agent that impact on the loss of others, and offenders who previously had received a 2nd Warning Letter (SP-2) for the same case.
- Moderate Violation is if it meets one or part or the whole of the category of violations as follows:
- Every Agent who commit a violation of the code of conduct as selling product in unreasonable price below the official prices, hoarding products and registering a fictitious membership;
- Every Agent who perform acts of excessive company promotion that out of Sharia norms;
- Declare him/herself as an employee or a part of company organization without company consent;
- Acting on behalf of the company in an event, agreement making, interviews and or promotion in any form that does not get written permission from the company;
- Doing repeated acts of violation which reduce part or all of Agent’s right, and or not doing obligation as HPAI agent that impact on the loss of others, and offenders who previously had received a 1st Warning Letter (SP-1) for the same case.
- Light violation is performed acts of violation which reduce part or all of other agent’s right, and or not doing obligation as HPAI agent that impact on loss of other, and the offender previously has received VERBAL WARNING recorded by CODE for the same case.
Article 19 Sanctions
- On the basis of the decision of CODE, the company fully entitled to give sanctions.
- Sanctions are given after CODE done the process of investigation, request for information and explanations from the parties and witnesses, and violations proven legally and convincingly.
- Sanctions are given depend on the weight and impact of the violation which explained as follows:
- The VERBAL WARNING which recorded in CODE administration is possibly issued together with disciplinary sanction from CODE.
- 1st WARNING LETTER (SP-1) possibly issued together with disciplinary sanction from CODE.
- 2nd WARNING LETTER (SP-2) possibly issued together with disciplinary sanction from CODE.
- Letter of Revocation of HPAI Agency.
- The verbal warning, 1st warning letter, and 2nd warning letter are not stages of sanction. Thus, if necessary CODE reserves the right to immediately give sanction for the serious violation.
- CODE can issue the verbal warning or warning letter for acts that included in light violation category.
- In the matter of CODE issuing warning letter for those who violated the regulation, it has to be known by the company, the board of sharia, and HPAI BPH CELLS.
- Every agent and stock agent who violated the code of conduct will be given sanctions as follows:
- Agent will not get any bonus;
- The Company reserves the right to revoke reward status that has been or will be granted;
- The Company reserves the right to revoke his/her agency at any time without prior notice; and
- Every agent whose membership has been revoked will not be compensated in any form.
CHAPTER VI CLOSING
- The Company reserves the absolute right to change or renew Regulatory Agency when necessary without the consent of the Agent and advance notice to the Agent.
- All the provisions defined in Regulation Agency is an absolute agreement between the Parties.
- The code of conduct is an inseparable part of HPAI Agents Registration Form.
The organizational structure of HPAI CODE ( Committee of Ethics and Discipline)
CODE Board of Advisory
- DR. Mawardi Muhammad Saleh, MA
- H. Muslim Muhammad Yatim, Lc
- H. Agung Yulianto, SE, Ak, M.Kom
- Supriyono – Ketua
- Erwin Chandra Kelana – Wakil Ketua
- H. Rofik Hananto – Anggota
- Z.B Firly Ramly – Anggota
- Wisnu Wijaya AP – Anggota
- Amir Hamzah – Sekretaris
COMPLAINTS & CONSULTATION
For complaint of alleged violations and or consultation of ethical code, please send it in writing complete with chronology via email to:
Examples of alleged ethical code violation by HPAI agent and LED agent:
- Recruitment or re-registration of HPAI active agent (within six months of expenditure is still active)
- Personal/stock agent Purchase Point not included in the invoice
- A LED HPAI Agent is active in a Network Marketing business other than HPAI Halal Network
- Violation of HPAI CELLS Support System
The administrative response of complaints will be issued by the CODE Secretariat no later than 3 x 24 hours (on working days) from the complaint is received.