Perform with Integrity

Code of
CONDUCT
 Table of Contents

From Our Chairman and CEO . . . . . . . . . . . . . 3 We Maintain Accurate and Complete We Comply With Laws and Regulations . 22
Financial Records . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Why We Have a Code of Conduct . . . . . . . . . 4 International Trade . . . . . . . . . . . . . . . . . . . . . . . . 22
Providing Accurate Numbers . . . . . . . . . . . . . . 10 Competition and Antitrust . . . . . . . . . . . . . . . . . 22
Your Responsibilities . . . . . . . . . . . . . . . . . . . . . . 4
Ensuring Sarbanes-Oxley (SOX) Compliance . . 11 Insider Trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Deciding How to Act . . . . . . . . . . . . . . . . . . . . . . 5
Never Crossing the Line . . . . . . . . . . . . . . . . . . . 11 Political and Charitable Activities . . . . . . . . . . 24
Managers and Supervisors . . . . . . . . . . . . . . . . . 5
Cooperating with Auditors . . . . . . . . . . . . . . . . 11
We Raise Our Concerns . . . . . . . . . . . . . . . . . . . . 25
We Maintain Safe and Responsible
Workplaces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 We Safeguard Our Environment . . . . . . . . . 12 Where to Seek Guidance and .
Raise Concerns . . . . . . . . . . . . . . . . . . . . . . . . . 25
Safety First! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Being Environmentally Responsible . . . . . . . . 12
EthicsPoint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Work Environments Free From Unlawful . Reducing Our Impact . . . . . . . . . . . . . . . . . . . . . . 13
How EthicsPoint Reports Are Handled . . . . . 26
Discrimination or Harassment and Violence 6
No Retaliation for Raising Concerns . . . . . . . . 26
A Drug-Free Work Environment . . . . . . . . . . . . 7 We Protect PCC’s Reputation . . . . . . . . . . . . . 14
Annual Ethics and Finance Questionnaires . 26
Government Contracts . . . . . . . . . . . . . . . . . . . . 14 Penalties for Violations . . . . . . . . . . . . . . . . . . . . 27
We Manufacture Quality Products . . . . . . . 8
Conflicts of Interest . . . . . . . . . . . . . . . . . . . . . . . . 15 Consequences for Bonus Eligibility and .
Customer Requirements . . . . . . . . . . . . . . . . . . . 8 Gifts, Loans and Entertainment . . . . . . . . . . . . 16 Entitlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
The Importance of Inspections . . . . . . . . . . . . . 8 Improper Payments . . . . . . . . . . . . . . . . . . . . . . . 17
Maintaining Accurate and Complete . Working with Suppliers . . . . . . . . . . . . . . . . . . . . 18 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Customer and Government Audits, Inquiries . We Protect Company Information
and Investigations . . . . . . . . . . . . . . . . . . . . . . 9 and Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Information Security . . . . . . . . . . . . . . . . . . . . . . 19
Confidential and Proprietary Information . . 20
Information Privacy . . . . . . . . . . . . . . . . . . . . . . . 20
Computers and Email . . . . . . . . . . . . . . . . . . . . . 21
External Communications . . . . . . . . . . . . . . . . . 21

pcc code of conduc t 

 From Our Chairman and CEO

Dear fellow employee,

The document you’re holding in your hands is the most important work-related document you will
read all year. It defines in great detail what conduct is expected from every employee of Precision
Castparts. I expect you to perform with integrity, and you have every right to expect the same from me.

This Code of Conduct is not a set of suggestions. Rather, it sets out in no uncertain terms our responsi-
bilities as PCC employees toward the company and toward each other. And, if we are uncertain about
how to behave in a particular situation, or if we believe that someone else is not strictly adhering to the
Code, the company provides clear avenues here for us to air our concerns.

No matter where we work, no matter where in the world we live, nothing justifies stepping outside
this Code. Nothing—not the drive to “make numbers,” not the desire to please a customer, not a direct
order from our manager or supervisor. We are all members of the Precision Castparts team, and we
share in the company’s success. Our company cannot truly be successful unless we all perform with “We should all be good at the jobs
integrity every day and in every circumstance.
we do. However, competence is not
We should all be good at the jobs we do. However, competence is not enough. We must perform our enough. We must perform our jobs
jobs legally and ethically. I emphasize this point in my business review meetings every quarter, and
I will continue to do so. I also encourage people to come forward and speak up if they see someone legally and ethically. ”
crossing the line. There will be no retaliation—period. A working environment based on trust and
mutual respect is the only way for this Code of Conduct to work effectively for all of us.

So please read this document carefully. If you do not understand a concept, ask your supervisor or
manager for clarification. If you have questions or concerns, please make them known. Thank you for
your continued contributions to PCC’s success.

Mark Donegan .
Chairman and Chief Executive Officer .
Precision Castparts Corp.

pcc code of conduc t 

 Why We Have a Code of Conduct

Why We Have a Code of Conduct

At PCC, we strive to perform with integrity—every day and in everything we do. Ethical behavior is the
cornerstone of integrity and is everyone’s responsibility, from members of the Board of Directors to
the newest production employee. This Code of Conduct, which applies to all of us, provides important
principles and guidelines for ethical behavior. It expresses our intent and expectation to uphold the
highest standards of integrity.

Your Responsibilities

As an employee in a PCC company, you need to review this Code thoroughly and refer to it when work
issues arise and you are unsure how to proceed. Your business unit may issue its own policies and
procedures. You must follow those policies and procedures in addition to those found in this Code. .
You must also comply with all laws that apply to your business.
Ethical behavior is the cornerstone
The Code applies to all employees, including those who work under collective bargaining agreements.
of integrity and is everyone’s We believe it is consistent with positive labor relations and our mutual commitments under those
responsibility, from members of the agreements. However, if anything in this Code should conflict with any provision in a collective-bar-
gaining agreement, the collective-bargaining agreement will govern. In all other instances, the .
Board of Directors to the newest Code applies.
production employee.

pcc code of conduc t 

 Why We Have a Code of Conduct

Deciding How to Act

We all need to “think before we act,” and we must always use good judgment. Before you act, ask
yourself the following questions:

n Is it the right thing to do?

n Is it legal?
n Do I have the authority to act?
n Does my action comply with the Code of Conduct?
n Would I be upset or embarrassed if other people, such as my coworkers or family members, found
out about this action or if it were published in the news media?
n If I am unsure, where can I get advice?
And remember, if you are unsure about the right thing to do, PCC encourages you and expects you to
ask someone on your management team. A lack of knowledge is not an excuse!
We all need to “think before we act.”
Managers and Supervisors If you are unsure of the right thing to
If you are a supervisor or manager, you are responsible for knowing the Code and helping the people do, PCC expects you to ask someone
who report to you become familiar with its contents. You’re also responsible for preventing violations
of the Code, as well as detecting violations that may occur and reporting them appropriately. You’re
on your management team. A lack of
expected to: knowledge is not an excuse!
n Lead with integrity
n Encourage employees to ask questions and help them get answers
n Create an environment where employees can raise concerns without fear of retaliation
n Protect the health and safety of PCC employees
n Protect the accuracy and quality of PCC’s products and financial records
n Never compromise PCC’s reputation

pcc code of conduc t 

We Maintain Safe and Responsible Workplaces

We Maintain Safe and Responsible Workplaces

PCC is committed to creating and maintaining a safe working environment and preventing workplace
injuries. Through management leadership and employee commitment, we work to conduct our opera-
tions in a safe and healthy manner.

Safety First!

To maintain a safe and healthy work environment for all PCC employees, we need everyone’s help.
As PCC employees, we must take responsibility for observing all safety and health rules, policies and
procedures. This includes taking precautions necessary to protect yourself, your coworkers and any
onsite visitors. You must always use the personal protective equipment that is required for your job,
such as safety glasses, hard hats, safety shoes and protective clothing. You must always report imme-
diately any workplace accident, injury, occupational illnesses or unsafe practices to your supervisor or
manager. Safety is much more than just how we maintain equipment or keep work areas clean. All of us
Safety is much more than just should proactively address safety concerns before they cause an accident or injury by bringing them to

how we maintain equipment or the attention of a supervisor, safety representative, a member of the plant safety committee or .
human resources.
keep work areas clean. All of us
Suggestions to improve workplace safety are welcome and should be reported to your plant or general
should proactively address safety manager, safety representative or safety committee for consideration and evaluation.
concerns before they cause an
Work Environments Free From Unlawful Discrimination or Harassment and Violence
accident or injury.
We respect people for who they are and what they are capable of doing. PCC does not tolerate unlawful
discrimination in the workplace or from any of its employees or representatives. We must always deal
with coworkers, job applicants, customers and suppliers without regard to their race, color, religion,
sex, sexual orientation, gender identity, national origin, age, disability, veteran status or other status
protected by applicable law. Any suspected violations of this policy must be reported immediately to a
supervisor, manager or human resources representative for prompt investigation.

pcc code of conduc t 

 We Maintain Safe and Responsible Workplaces

We are also committed to providing you with a safe, secure work environment, free from unlawful
harassment and violence.

Sexual harassment by employees or others, including vendors, salespeople, customers and visitors is
strictly prohibited.

PCC also does not tolerate any other type of unlawful harassment, including harassment based on
individual characteristics (for example, race, color, religion or cultural background).

Workplace violence or the threat of violence is unacceptable. Violent behavior or threats should be
reported to your supervisor or the human resources staff, and will be investigated. Employees who
engage in violence or threats of violence may be subject to disciplinary action or termination, as well as
criminal prosecution.

If you experience or become aware of unlawful harassment or discrimination, you must notify your
supervisor, manager or the human resources staff immediately. We strictly prohibit retaliation against
employees who report concerns in good faith.

A Drug-Free Work Environment

Because safety comes first, you must remain free of the influence of alcohol, drugs, or any other
substance that may impair your ability to perform your duties safely and efficiently. .
PCC does not tolerate any type of
You must know and follow the drug and alcohol policies of your workplace whenever you are con- unlawful harassment based on
ducting business for PCC, both on company premises and when you are representing PCC away from
the workplace. Those who violate those policies and expectations will be subject to discipline or
individual characteristics, such
termination. as race, color, religion or cultural
background. Notify your supervisor,
manager or human resources staff
immediately to report any concerns.

pcc code of conduc t 

 We Manufacture Quality Products

We Manufacture Quality Products

We have achieved leadership in our served markets through a constant focus on quality, cost and deliv-
ery. We strive to be the best in each of these categories. Certainly our customers expect no less. Because
we manufacture products for critical aerospace, power, automotive and other industrial applications,
we must always act with the highest degree of competence and personal integrity. There is absolutely
no middle ground; there is no compromise.

Customer Requirements
Our reputation depends on our ability to meet our customers’ needs. We all need to strictly follow
the instructions and specifications provided to us by our customers. Under no circumstance should
a departure from customer specifications occur without being reported and authorized through the
appropriate channels.
We insist on the highest quality of work from our suppliers as well. Our suppliers must pay the same
strict attention to customer specifications as we do. Therefore, we must clearly communicate to our
Because we manufacture products suppliers the importance of following customer specifications, contract requirements and PCC-imposed
for critical aerospace, power, production requirements.

automotive and other industrial The Importance of Inspections

applications, we must always Inspections tell us whether or not our products meet our customers’ specifications and contract
requirements. PCC employees involved in the product testing and inspection process play a critical role
act with the highest degree of in product integrity. We rely on you to give us and the customer confidence and faith that our products
meet specifications.
competence and personal integrity.
Inspectors and testers must conduct their work with the highest integrity. Under no circumstance
should any required test or inspection be skipped. All records relating to testing and inspection must
be 100 percent accurate and disclose all required information fully. Any nondisclosure of information,
unauthorized departure from testing or inspection requirements or falsification of records will be
grounds for discipline or termination.

Maintaining Accurate and Complete Records

The importance of maintaining accurate and complete records of our manufactured products cannot
be overemphasized. Our customers must be assured that our records will always represent a complete

pcc code of conduc t 

 We Manufacture Quality Products

and accurate history of the manufacturing process. These records may be vital in the event of an aircraft
incident or unexpected escape or departure in the manufacturing process.
The same principles apply to our suppliers. We must be diligent in demanding that our suppliers maintain
accurate and complete records in accordance with our requirements and those of the customer.

Customer and Government Audits, Inquiries and Investigations

Audits, inquiries and investigations are a valuable process for upholding product integrity. They are ben-
eficial for PCC because they validate our processes and provide us with insight for process improvements.
Audits benefit our customers by reassuring their faith and confidence in the quality of our products.
To handle an audit, inquiry, or investigation with integrity, we must follow these guidelines:
n Always cooperate courteously with customers or government officials conducting an audit, inquiry or
investigation.
o Where a request is not a routine one, or you are unsure of what the actual question is, notify
and seek advice from your quality manager, plant or general manager or PCC’s corporate legal
department before responding.
n Make sure that any information we provide is truthful and accurate and that PCC’s legitimate interests
are protected.
o Avoid unverified speculation or opinion on facts or causes. If you are unsure of the facts, you
are encouraged to seek advice from your quality manager, plant or general manager or PCC’s
corporate legal department before responding.
n Make sure that all records and information relevant to any audit, inquiry or investigation are pre-
Audits, inquiries and investigations
served immediately. are beneficial for PCC because
o Make sure that any automatic systems, including electronic systems, for record disposal are
stopped to avoid destruction of relevant records and information.
they uphold product integrity and
n Never mislead any customer, investigator or other government official. provide us with insight for process
n Never conceal, alter or destroy documents, information or records. If in doubt, consult PCC’s corpo- improvements.
rate legal department.
n Never hinder other employees from providing accurate information.
n Never retaliate against anyone who cooperates in an audit, inquiry or investigation.

pcc code of conduc t 

We Maintain Accurate & Complete Financial Records

We Maintain Accurate and Complete Financial Records

We must always keep complete, accurate, timely and understandable financial reports. Doing so not
only meets our obligations to government regulators, our shareholders and external stakeholders, but
also protects our reputation and supports our internal business decisions.

Because accurate financial records are of such great importance, PCC prohibits improper financial
reporting or failure to follow PCC financial policies. As part of PCC’s pledge to perform with integrity,
private sessions with the CEO, CFO or the Corporate Controller are always available following opera-
tional and financial quarterly reviews.

Providing Accurate Numbers

All finance employees (including accounting, treasury and tax compliance) are responsible for under-
standing and following PCC’s finance policies, including our Financial Code of Professional Conduct.
Deviation from PCC policy without prior approval is unacceptable.

We maintain the integrity of PCC’s financial reporting in several ways:

n Resolving all actual or apparent conflicts of interest related to any material transaction or
relationship

Because accurate financial records n Promoting and providing disclosures that present the information appropriately (i.e., accurately,
completely, objectively, relevantly, timely and understandably)
are of such great importance, n Keeping PCC financial data in a manner that fully complies with PCC’s policies and all applicable
PCC prohibits improper financial laws, rules and regulations including generally accepted accounting principles (GAAP)

reporting or failure to follow n Maintaining effective internal controls over financial reporting

PCC’s financial policies. n Protecting the confidentiality of information we use

n Proactively resolving all known accounting matters in a timely manner, including elevating matters
to the appropriate levels within PCC (including the CFO and CEO) until satisfactorily resolved
Any concern about the accuracy of our financial books and records should be raised immediately and
will be resolved. No retaliation will occur for raising concerns in good faith.

pcc code of conduc t 10

 We Maintain Accurate & Complete Financial Records

Ensuring Sarbanes-Oxley (SOX) Compliance

At PCC, complying with SOX is a serious obligation. Those responsible for SOX compliance must carefully
follow company procedures and internal controls. Any questions or concerns must be communicated to
the division and corporate levels. Decisions should be thoroughly communicated and explained to staff.
Lack of knowledge is not an excuse. When in doubt, check it out. Ask questions! Good internal controls is
not just the law, it’s a best business practice that allows us to make fully informed business decisions.

Never Crossing the Line

As PCC employees, regardless of our position or job responsibilities, it is our obligation to make certain the
company’s books and records are accurate. No entry may be made on the company’s books and records
that intentionally hides or disguises the true nature of any transaction. Under no circumstance should you:

n Deliberately make a false or misleading entry in a report, record or expense claim

n Falsify any record, whether financial or non-financial (such as safety, environmental or quality results)
n Buy, sell, transfer or dispose of company assets without proper documentation or authorization
n Try to influence others to do anything that would compromise the integrity of PCC’s financial .
records or reports
Finance should be a business partner with the operational team and provide clear GAAP guidance.
Finance and accounting are responsible only for the accuracy of the numbers, not making the numbers.
The audit process is vital to
maintaining the integrity of PCC’s
PCC has zero tolerance for falsifying or creating any misleading information. Never cross the line!
financial records. All PCC employees
Cooperating with Auditors
must give auditors their full and
The audit process is vital to maintaining the integrity of PCC’s financial records. PCC has internal and complete cooperation.
external auditors who help ensure that our financial reporting is truthful, accurate, complete, objective,
consistent, timely and understandable.

All PCC employees must give auditors their full and complete cooperation. Refusing to cooperate with an
auditor or providing false or misleading information to an auditor is grounds for discipline or termination.

pcc code of conduc t 11

 We Safeguard Our Environment

We Safeguard Our Environment

We are committed to protecting our natural environment and conserving natural resources. We
operate all facilities in an environmentally responsible manner and focus on ways to reduce our impact
to the environment.

Being Environmentally Responsible

We conduct business in an environmentally responsible way by:

n Operating our facilities in compliance with all environmental laws, rules and regulations
n Providing management oversight of environmental practices at each plant
n Training our employees in proper waste management procedures
n Minimizing the creation of waste, especially hazardous waste, and disposing of all waste in a safe
and responsible manner
n Acting as good neighbors to our surrounding communities by communicating with the

We are committed to acting as public regarding our environmental management practices and participating in community
environmental improvement efforts
good neighbors to our surrounding
communities by operating our
facilities in an environmentally
responsible manner.

pcc code of conduc t 12

 We Safeguard Our Environment

Reducing Our Impact

PCC focuses on reducing our impact to the environment because it’s the right thing to do and because
it’s good business. Conserving natural resources and reusing waste materials improve our overall
production, provide a better working environment for our employees, and improve employee morale.

We reduce our impact to the environment in several ways:

n Maximizing the recycling of waste materials

n Maximizing the use of nontoxic substances
n Minimizing the creation of waste, including hazardous waste, and disposing of all waste in a safe
and responsible manner
n Minimizing the impact of facility operations on the quality of our air, water and land
n Constantly evaluating ways to reduce material usage and conserve energy and water resources
All PCC employees are expected to know and follow this policy in the performance of their job. We
encourage employees to promptly report to the respective plant or division environmental affairs
manager any activities or conditions that may violate this policy or any environmental law. Conserving natural resources and
reusing waste materials improve
our overall production, provide
a better working environment
for our employees, and improve
employee morale.

pcc code of conduc t 13

 We Protect PCC’s Reputation

We Protect PCC’s Reputation

To succeed, PCC relies on the quality of our products and our people, not on an unfair or illegal
advantage. That reputation is an important company asset, and we all must work diligently to avoid
tarnishing it through improper gifts or payments and conflicts of interest.

Government Contracts

PCC conducts business with the U.S. government and other national governments and govern-
ment-owned enterprises. In working with government agencies and officials, we must always apply
the highest ethical standards and comply with all applicable laws and regulations. If you work with
governments, you need to know the special requirements that apply to your government contracts and
transactions. Always be truthful and accurate when dealing with government officials and agencies.
In working with government Your facility’s reports, certifications, statements and proposals to the government must always be
agencies and officials, we must current, accurate and complete.

always apply the highest ethical PCC strictly prohibits the following actions:
standards and comply with all n Departing from contract requirements and unauthorized contract substitutions, such as failure to
applicable laws and regulations. perform required tests and inspections
n Submitting inaccurate cost or pricing data
n Charging incorrect or unauthorized costs on government contracts
n Violating government regulations that establish restrictions on gratuities, recruiting and hiring or
certification procedures
n Negotiating for employment with a government official or his/her family members while the
official has the ability to influence decision-making about government contracts
If you suspect any violation in connection with government contracts, you need to report your concern
immediately to the appropriate person (human resources, plant or general manager, division vice
president of finance or division president) and continue elevating your concern to the PCC corporate
legal department, if necessary, until it is resolved.

pcc code of conduc t 14

 We Protect PCC’s Reputation

Conflicts of Interest

Making sure that our integrity remains uncompromised is fundamental to maintaining trust with our
customers and suppliers—and that means, in part, steering clear of conflicts of interest. On the job or
in our free time, nothing we do should conflict with our responsibilities to PCC. No activity at work or at
home should hurt PCC’s reputation or good name. Even when nothing wrong is intended, the appear-
ance of conflicting interests can have negative effects. It is crucial to consider how your actions might
appear, and to avoid even the perception of a conflict of interest.

Examples of actual or apparent conflicts of interest include the following:

n Having financial interests in a company where you could personally affect PCC’s business with that
company, such as a customer or supplier
n Receiving personal discounts or other benefits from suppliers, service providers or customers that
the public or your PCC coworkers do not receive
n Directing business to suppliers when you know they are owned or managed by your family
members or close friends
Making sure that our integrity
n Misusing PCC resources, your position or influence to promote or assist an outside activity
n Directly or indirectly hiring, promoting or supervising a family member or close friend
remains uncompromised is
n Allowing personal relationships to conflict with your PCC responsibilities or compromise company fundamental to maintaining trust
interests with our customers and suppliers.
n Having a second job that you perform using PCC hours or PCC equipment or materials
On the job or in our free time,
If you become aware of a conflict or the appearance of a conflict of interest, or if you are unsure
whether an actual or apparent conflict of interest exists, you must promptly disclose the situation in
nothing we do should conflict with
writing to your plant or general manager or to human resources personnel and follow their recommen- our responsibilities to PCC.
dation. You also may contact the PCC corporate legal department for guidance.

pcc code of conduc t 15

 We Protect PCC’s Reputation

Gifts, Loans and Entertainment

Gifts and entertainment are a normal part of doing business, but when used inappropriately, they may
call our integrity into question. PCC has rules for giving and receiving gifts, loans and entertainment to
prevent any impropriety or damage to PCC’s reputation, which is central to preserving our integrity.

You may not ask for gifts or loans, directly or indirectly. This applies to suppliers, customers, and govern-
ment officials doing business, or seeking to do business, with PCC.

You may accept unsolicited, inexpensive gifts from existing or potential suppliers or customers. However,
if you are unsure whether a gift’s value exceeds this standard, seek guidance from the PCC corporate
legal department. Gift baskets may be accepted if shared with others in the office.

You may provide gifts, meals or You may never give or accept a cash gift or loan under any circumstance.

entertainment as long as they are If a vendor, supplier or customer invites you for a reasonable and customary business meal or entertain-
ment at their expense, you may accept the invitation. If you are uncertain as to what is “reasonable and
reasonable in value and customary customary,” please seek advice.
in nature, are unsolicited, and are
When giving gifts, the same principles apply. You may provide gifts, meals or entertainment as long as
not intended to obtain an unfair they are reasonable in value and customary in nature, are unsolicited, and are not intended to obtain an

advantage or improper influence. unfair advantage or improper influence.

Governments in many parts of the world have stringent requirements regarding gifts, loans and
entertainment, and violations of these rules can be serious offenses. For example, giving gifts, loans or
entertainment to U.S. government employees is strictly prohibited. If you deal with a government, make
sure you know the rules that apply. Seek advice from the PCC corporate legal department if in doubt.

Never accept or give any business gift, entertainment or courtesy if it will compromise or appear to
compromise your ability to make a fair and objective business decision.

Never accept or give any business gift, entertainment or courtesy if public disclosure of the facts would
embarrass PCC.

pcc code of conduc t 16

 We Protect PCC’s Reputation

Improper Payments

An improper payment (such as a bribe or kickback) to gain advantage is never acceptable and exposes
you and PCC to possible criminal prosecution. PCC prohibits improper payments in all business
dealings, in every country around the world, with both governments and in the private sector. To be
clear—offering, accepting or facilitating bribes, kickbacks, payoffs or other unusual or improper
payments to obtain or keep business is unethical, illegal and strictly forbidden at PCC.

Some laws permit making small “facilitating payments” to government employees for routine govern-
ment services, such as issuing a permit. However, it is difficult to know when a local law may make such
payment illegal, and the penalties for a misstep are severe. Therefore, facilitating payments must not be
made unless prior written approval is obtained from the PCC corporate legal department.
PCC prohibits improper payments
in all business dealings, in every
country around the world, with
both governments and in the
private sector.

pcc code of conduc t 17

 We Protect PCC’s Reputation

Working with Suppliers

PCC’s suppliers play a critical role in our ability to operate and provide products and services to our
customers. To protect PCC’s reputation and perform with integrity, we must choose our suppliers care-
fully, based on merit and with the expectation and requirement that our suppliers will act in a manner
consistent with our compliance and ethics standards.

At PCC, we follow these guidelines when selecting suppliers:

n Do business only with suppliers who comply with all applicable laws, rules and regulations and
PCC’s compliance and ethical standards.
n Do not do business with a supplier who has known or suspected unsafe working conditions or
exhibits a disregard for environmental standards.
n Choose suppliers based on open, competitive bidding, without favoritism or unlawful
discrimination.
n Do not participate in any decision to direct business to a supplier owned or managed by a relative
or close friend. Disclose the relationship in advance to those involved in making the decision.
n Provide a competitive opportunity for small businesses and businesses owned by the disadvan-
Choose suppliers based on open, taged, minorities, women and disabled veterans to earn a share of PCC’s purchasing volume.

competitive bidding without When working with suppliers, follow these guidelines:

favoritism or unlawful discrimination n Safeguard PCC’s confidential and proprietary information with a confidentiality or non-disclosure
agreement, and safeguard any supplier-provided information protected by any similar agreement.
and with the requirement that they
n Require the highest standards of product quality, testing and inspections according to customer
will comply with our ethics standards. specifications, and communicate these expectations clearly.
n Never accept loans, improper gifts or other items of excessive value from suppliers.
n If you have concerns that a PCC supplier is not operating within PCC standards, it is critical that you
promptly raise your concern with your purchasing manager, plant or general manager, a division
executive or the PCC corporate legal department.

pcc code of conduc t 18

 We Protect Company Information and Assets

We Protect Company Information and Assets

PCC’s assets include physical assets, such as equipment and facilities, and proprietary information, such
as trade secrets and intellectual property. These assets enable us to do our jobs and are an important
part of the company’s success. We have a responsibility to each other and to our shareholders to
protect our assets from theft, damage, loss, or misuse. We must also protect not only our property, but
any property of our suppliers and customers that we are entrusted with, such as tooling or .
other equipment.

Information Security

In this day of terrorist threats and natural disasters, PCC is committed to protecting the security of our
employees, facilities, information, information technology (IT) infrastructure and physical assets. It is
critical that all employees take seriously the emergency and crisis management plans in place at their
facility, as well as the following security procedures:

n Participating in emergency planning and emergency drills PCC’s assets enable us to do our
n Complying with the entry and exit rules at PCC facilities, including wearing the appropriate badge jobs and are an important part of
n Restricting access to PCC facilities to authorized personnel and visitors only the company’s success. We have a
Protecting IT assets (including your laptop) from theft or misappropriation
n
responsibility to each other and
n Protecting information, technology, software and know-how from being exposed to foreign
persons in violation of export controls and immigration requirements to our shareholders to protect our
n Providing adequate safeguards for hazardous materials and critical operational and proprietary assets from theft, damage, loss,
information and physical assets
or misuse.
n Promptly reporting any security lapses to your supervisor or manager

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We Protect Company Information and Assets

Confidential and Proprietary Information

PCC’s intellectual property and its confidential or proprietary information are among PCC’s most
valuable assets. We must all work together to safeguard such information.

As PCC employees, we may not:

n Discuss or provide PCC confidential and/or proprietary information to outside companies or indi-
viduals without a legitimate PCC business purpose and only with the proper safeguards in place to
protect the information from misuse
n Discuss or provide PCC proprietary information to outsiders without a signed confidentiality or
non-disclosure agreement in place
We must all work together to n Discuss or provide customer or supplier proprietary information with outsiders unless authorized
safeguard PCC’s most valuable by the customer or supplier

assets­—its intellectual property n Allow PCC employees to inadvertently or intentionally use proprietary information from a .
prior employer
and its confidential or proprietary It is important that we respect the valid intellectual property rights of others. Unauthorized use of
information. others’ intellectual property or proprietary information can expose the company and PCC employees to
civil lawsuits and damages, including significant fines and criminal penalties.

Information Privacy

PCC respects the privacy interests of its employees and other individuals. PCC complies with applicable
privacy laws in all jurisdictions where PCC collects, uses, or discloses personal private information.

pcc code of conduc t 20

 We Protect Company Information and Assets

Computers and Email

PCC’s communication systems—including computers, email, intranet and Internet access, telephones,
mobile phones and voicemail—are the property of PCC and are to be used primarily for business pur-
poses. PCC has a significant investment in these vital systems and networks, and our business depends
on their continued functioning. We all must use care and common sense in using these systems. These
communication systems may be used for personal messages provided that such use is kept to a mini-
mum and in compliance with this Code and applicable policies. You may not use PCC communication
systems for any of the following purposes:

n To send harassing, threatening, discriminating, obscene or inappropriate messages or jokes

n To install or use file-sharing or peer-to-peer networks
n To conduct any illegal, unethical or improper business or non-PCC business
n To access inappropriate materials on the Internet, such as threatening, discriminatory or
pornographic materials PCC has a significant investment
n To send or download copyrighted documents that are not authorized for reproduction in its communications systems—
PCC has the right to monitor the use of these resources including email, voicemail, computers, mobile including computers, email, intranet
phones and documents. Monitoring may be performed for any legitimate business reason and in com-
pliance with applicable laws. You should not expect privacy for any information, personal or otherwise, and Internet access, telephones,
residing on any company communication system. mobile phones and voicemail—
External Communications and our business depends on their
To protect our company’s name and reputation, we have a single office that is authorized to speak to continued functioning.
the public on behalf of PCC. Inquiries or requests for information from investors, analysts and the media
require careful consideration and a unique understanding of legal and media issues. Any such inquiries
should be directed to , at 503.4700 or .
.com.

pcc code of conduc t 21

We Comply With Laws and Regulations

We Comply With Laws and Regulations

Because we do business around the globe, we operate in a variety of communities with different legal,
ethical and cultural standards. We obey the highest standards of the law, and we expect our suppliers to
do so, too.

International Trade

As a global company, PCC deals regularly with foreign companies as customers and suppliers. In doing
so, we must follow the rules and regulations of the United States and other governments and multi-
national organizations that control and restrict international trade in certain commodities, products,
technical data and services. PCC also must comply with laws regarding U.S. trade embargoes.

If your job involves dealing with foreign countries (either buying or selling products) or foreign
customers, suppliers or visitors, you must make sure you understand and follow all laws and regula-
tions regarding import and export compliance, boycotts and embargoes. Violation of these laws has
serious consequences for both the individuals involved and PCC, including civil or criminal penalties,
loss of government contracts, and loss of export privileges. If you have questions or need guidance, you
should contact your division’s export control specialist or PCC’s corporate legal department.
As a global company, PCC deals
regularly with foreign companies Competition and Antitrust

as customers and suppliers. We Competition and antitrust laws have three main purposes:

must comply with laws regarding n To prohibit agreements or understandings between competitors that undermine competition

U.S. trade embargoes and trade n To regulate the behavior of dominant companies

controls and restrictions. n To require prior review and in some instances clearance for mergers, acquisitions and certain other
transactions so as to prevent transactions that would substantially reduce competition

pcc code of conduc t 22

 We Comply With Laws and Regulations

These laws are complex, global in reach, and can operate differently in any particular situation. To avoid
a potential violation of antitrust laws, do not discuss any of the following topics with a competitor,
directly or indirectly:

n Prices
n Bids
n Sales territories, allocation of customers or product lines
n Terms or conditions of sale
n Production, sales capacity or volume
n Costs, profits or profit margins
n Market share
n Product or service offerings
n Customer or supplier classification
n Distribution methods
If you are talking with a competitor and a discussion on any of these topics arises, you should stop the
conversation immediately and consult PCC’s corporate legal department.
Inside information is any non-public
Insider Trading
information that, if disclosed, would
In the course of our jobs, we may learn of material information about PCC or other companies before
reasonably be expected to affect the
it is made public. We may simply overhear a conversation or come across a memo left at the copy
machine. Inside information is any non-public information that, if disclosed, would reasonably be price of a security or would influence
expected to affect the price of a security or would influence a reasonable person’s decision to buy or sell
a security.
a reasonable person’s decision to buy
or sell a security.
Using this information for your financial or other personal benefit or conveying this information to
others is a violation of this policy and may violate the law.

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We Comply With Laws and Regulations

If you are aware of inside information about PCC or any other company, you must not buy or sell the
securities of that company, either directly or through family members or other persons or entities. This
is known as “insider trading.”

You must not recommend or suggest that anyone else buy or sell the securities of PCC or any other
company if you have inside information about the company. This is known as “tipping.”

You should always be careful in discussing PCC business with family and friends, talking about what
you’re working on, or disclosing where you’re going on company business.

Political and Charitable Activities

Generally, PCC does not participate directly in political party activity and does not make political con-
tributions, whether in cash or in kind, anywhere in the world. PCC complies with all national, state, local
You should always be careful in and foreign laws regulating PCC’s participation in political affairs, including limitations on contributions
to political parties, national political committees, and individual candidates.
discussing PCC business with family
Under no circumstances should any political contribution be made, by or on behalf of PCC, without the
and friends, talking about what prior written approval of PCC’s Vice President and General Counsel. PCC employees may participate in
you’re working on, or disclosing the political process on their own time and with their own resources, but they must always make clear
that their views and actions are their own and not PCC’s.
where you’re going on company
PCC encourages its employees to be involved in community and civic affairs. Charitable contributions
business. made by or on behalf of the company must be pre-authorized by your division president or charitable
donation committee. This includes financial gifts, donations, sponsorships, underwriting, membership
payments or in-kind gifts made to charitable organizations or institutions or to qualified non-charitable
civic or community groups.

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 We Raise Our Concerns

We Raise Our Concerns

If you become aware of a situation that may violate this Code, company policy or the law, you need to
report it. We cannot perform with integrity if we simply look the other way or ignore a concern. Many
problems and risks can be fully resolved or their impact reduced if they are addressed early. The success
of PCC demands that you speak up when you have a question or concern.

Employees who have knowledge of an actual or suspected violation of this Code or a company policy
and fail to timely raise a concern may be disciplined or terminated.

To perform with integrity, we must all speak up, ask questions, and get answers!

Where to Seek Guidance and Raise Concerns EthicsPoint

To raise questions or concerns about compliance or a violation of this Code or any PCC policy, including PCC also provides employ-
those of PCC’s subsidiaries, you may use the following channels: ees with a simple, risk-free
way to anonymously and confiden-
n Contact your supervisor or human resources representative
tially report concerns if the employee
n Use your plant’s grievance or problem resolution procedures
is not comfortable with internal reporting for
n Contact your plant or general manager, human resources manager, quality manager or . any reason. Employees may report a concern on
plant controller
EthicsPoint in one of two ways:
n Contact any division executive, including the president
n By calling toll-free in the U.S.
n Contact the PCC corporate legal department or other PCC corporate representative (especially .
for finance-related issues) 1-866-493-1855
(for international locations, see the telephone
n Use EthicsPoint (see box at right)
number posted on the company bulletin board)
In each facility you should find a poster listing the names and contact information of managers in the
plant and division who can answer your questions and concerns. n By accessing www.ethicspoint.com
(for your convenience, links to
www.ethicspoint.com may be found on
www.precastcorp.com)

pcc code of conduc t 25

 We Raise Our Concerns

How EthicsPoint Reports Are Handled

After a concern is reported through EthicsPoint, it will be promptly reviewed and investigated by the
plant or division personnel who are most appropriate depending on the nature of your concern. For
example, concerns best handled by human resources personnel (such as pay, work hours, alleged unfair
treatment, etc.) will be given to the human resources department to address and resolve, unless the
subject of the concern or the subject matter requires that it be elevated to higher management or to
the PCC corporate legal department (such as fraudulent or criminal conduct). It is important to use
company resources best suited to address employee concerns for proper and prompt resolution.

No Retaliation for Raising Concerns

PCC strictly prohibits retaliation against anyone for raising or helping to address a suspected violation
of this Code or any company policy in good faith. Retaliation by any PCC employee is grounds for
discipline or termination.

Annual Ethics and Finance Questionnaires

Annually, after the close of PCC’s fiscal year, two questionnaires are sent to certain PCC employees
including all officers, key management, and certain employees in finance, accounting, treasury,
PCC strictly prohibits retaliation tax, legal, human resources, purchasing, planning, IT, and sales. The questionnaires are designed to
against anyone for raising or helping determine whether a conflict or potential violation of company policy or this Code exists. These annual
questionnaires are required by our Board of Directors. The completed questionnaires also help us
to address a suspected violation of monitor and address our compliance with this Code and reinforce our commitment to always perform
this Code or any company policy in with integrity. Failure to complete the questionnaires or answer them truthfully may be grounds for
discipline or termination.
good faith.

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 We Raise Our Concerns

Penalties for Violations

Employees who violate the letter or spirit of PCC’s policies are subject to disciplinary action or
termination. Misconduct that may result in discipline or termination includes:

n Violating PCC policy

n Asking others to violate PCC policy
n Failing to promptly raise a known or suspected violation of PCC policy
n Failing to cooperate in an investigation conducted by PCC, its customer or a government agency
n Retaliating against an employee who has raised or helped to address a good-faith concern
n Failing to demonstrate leadership and diligence in promoting compliance with PCC policy .
and the law Employees who violate the letter or
Consequences for Bonus Eligibility and Entitlement spirit of PCC’s policies are subject to
Certain violations or misconduct may also affect whether an employee remains eligible and entitled
disciplinary action or termination.
to a bonus, including the following:

n Knowingly falsifying any financial or other certifications, including quality, safety and legal
certifications
n Knowingly providing false information relied on by others in a financial or other certification
n Engaging in other fraudulent activity
n Knowingly failing to report such conduct by others
For an employee in the executive bonus or other annual bonus program, the employee engaged in
such misconduct will not have earned a bonus and will be subject to sanctions, including termination
or other disciplinary action. The employee may also face legal action to recover any bonus improperly
received and/or criminal prosecution.

For an employee in a quarterly or monthly bonus program, the employee engaged in such miscon-
duct will be subject to sanctions, including termination or other disciplinary action, loss of bonus
eligibility for up to four quarters and, in some cases, possible criminal prosecution.

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Conclusion

Conclusion
Remember, no matter which PCC company we work for, we are all members of the Precision Castparts
team, and we share in the company’s success. Our company cannot truly succeed unless we all perform
with integrity, every day and in every circumstance.

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4650 SW Macadam Avenue, Suite 400 Perform with Integrity
Portland, Oregon 97239-4262
www.precast.com

Code of conduct © 2008 Precision Castparts Corp. All Rights Reserved. pcc code of conduc t 29