Corporate Social

Responsibility at

SOFTJOURN

(October 20, 2016)

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2 Organizational Profile

Foreword

3 Quick overview of CSR practices

at Softjourn

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Supporting Ukraine Developing the local IT communityDeveloping the Tech image of UkraineSupporting Education

Community Involvement and

Development

1Labor Practices

6 Human Rights

8 Environmental Impacts

Fair Operating Practices

9 Consumer Issues

10 Organizational Governance

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Content

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Foreword

If any core value embodies Softjourn’s emphasis on social responsibility it is, “Think Human”. Which not only encompasses how we interact with each other and with our clients, but also how we react and live within our local environment, striving to make life better for everyone. Softjourn realizes that we have a responsibility to all of our stakeholders, clients, and partners as well as to all of our Softjourners and to the communities and countries in which we live. Softjourners put in thousands of hours a year sharing of themselves to improve the world. The adage, “think globally but act locally” really applies.If any core value embodies Softjourn’s emphasis on social responsibility it is, “Think Human”.

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which are ethically tackling pet overpopulation, developing recycling programs, to supporting internship programs, teaching IT at the local universities, endorsing programs to support more women in tech, and aiding the local community in improving the standard of living for all its citizens.

Each project within Softjourn has an internal champion, who has the opportunity to rally and lead their fellow Softjourners in that project. The collaboration, community and respect that comes from having many internal leaders is fantastic. Softjourners develop leadership skills that they can use throughout their careers, and the increased engagement builds a great work environment. This past year has been challenging for Softjourners in Ukraine, but they are answering the call to support Ukraine in its efforts to remain whole and push towards becoming part of the European Union. This involves not only raising money and buying supplies to support Ukraine’s military efforts but also to support the development of Ukraine as a country friendly to investors and as a tech center. I am continually amazed at the unlimited ideas that come through the committees for approval and the seemingly unlimited levels of generosity in terms of time and finances that Softjourners are willing to go to for the ideas that they are passionate about and Softjourn is here to support those ideas to improve Softjourner’s lives and the community around them.

Emmy Gengler, CEO at Softjourn

“Think globally, act locally”

Which not only encompasses how we interact with each other and with our clients, but also how we react and live within our local environment, striving to make life better for everyone.

Softjourn realizes that we have a responsibility to all of our stakeholders, clients, and partners as well as to all of our Softjourners and to the communities and countries in which we live. Softjourners put in thousands of hours a year sharing of themselves to improve the world. The adage, “think globally but act locally” really applies.

Softjourn’s Managing Director in Ukraine is our Head of Corporate Social Responsibility and leads the committee that reviews all Softjourner suggestions and identified social opportunities. Softjourn’s Technical Director is also the Head of Sustainability for Softjourn. He leads a committee which includes our facilities manager and other department heads. Each department head is encouraged to gather suggestions for sustainability and social projects from their department team members and present those to the committee head. Opportunities can range from raising funds to support community members who need expensive medical treatments, supporting the development of animal shelters

Organizational Profile

Softjourn, Inc.

Customer software development, QA services and Project Management

39270 Paseo Padre Pkwy, Suite 251 Fremont, CA 94538 USA

3 countries: US, Ukraine and Poland

Report the primary brands,

products and services:

Report the location of the

organization’s headquarters:

Report the number of countries

where the organization operates:

Report the nature of ownership

and legal form:US-based Corporation

Entertainment and financial industries

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100

Report the markets served:

Total number of employees:

Total number of operations:

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Report the name of the

organization:

• Softjourn is active at various IT conferences and events that contribute to broader engagement in IT. We interest young people in an IT career and supporting computer education for kids, strengthening Ukraine’s reputation for superior IT professionals

Quick overview of CSR practices at Softjourn

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• Softjourn supports the city of Ivano-Frankivsk, where its development center is located, by participating in the initiative called “Warm City.”

• We emphasize Ukraine’s positive image and showcase skillful, talented local developers. Softjourn executives often attend outsourcing conferences, promoting collaboration with Ukrainian developers.

• Softjourn provides a working environment that allows staff to achieve the highest level of personal satisfaction and performance in carrying out their assignments.

• We are a very active social player and participate in a variety of community events like IT football cups, marathons, tennis tournaments, charity fairs,intellectual games and much more.

• Last, but not least, we care about the environment, replacing old equipment with more energy-efficient models, following a special policy for waste disposal, using bicycles, battery recycling and materials that can be recycled.

Softjourn is the primary sponsor of the Warm City initiative, a local project in Ivano-Frankivsk in Western Ukraine. This initiative is intended to bring innovative ideas to life and to create new opportunities for self-fulfillment of Ivano-Frankivsk citizens with the aim of improving living standards through increased capability, trust and ambition. Warm City has several components, among them Warm IT, Warm Bike City and Warm Education.

We support Warm City’s goal to make Ivano-Frankivsk better known for its IT specialists and to generate a positive image of our city on the map of Ukraine. Softjourn team leaders organize meetings with initiative groups and develop new IT projects to make life in Ivano-Frankivsk more comfortable. Serhiy Fitsak, our Technical Director, is a member of the Supervisory Committee responsible for the strategic development of Warm City and oversee its main activities.

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Community Involvement and Development

Making local life better

Building a positive image of Ukraine’s IT industry

• Softjourn is a co-founder of the local IT-cluster that focus on the creating good conditions for the development of the local IT environment and promote interests of IT sector in the region.

• Softjourn participates in the Hi-Tech Initiative, a leading Ukrainian association of IT outsourcing companies. One of the main objectives of the association is to promote Ukrainian software development companies and a positive image of the Ukrainian IT outsourcing industry in global markets. The “Exploring Ukraine. IT Outsourcing Industry” report published by the Ukrainian Hi-Tech Initiative is intended for current and potential clients of software development and IT outsourcing services who are looking for opportunities for setting up business in Ukraine. It provides all the information needed to understand the Ukrainian market.

• Softjourn also participates in the Brain Basket Foundation. The aim of Brain Basket is to train an additional 100,000 IT specialists by the year 2020. Softjourn management is on the advisory board of this organization.

• Softjourn executives frequently participate in outsourcing conferences, with a focus on why businesses should collaborate with companies from Ukraine. We put a lot of emphasis on supporting a positive image of Ukraine and showcasing skillful, talented Ukrainian developers.

• Softjourn, a member of American Chamber of Commerce in Ukraine and shares it’s vision to be the Partner of Choice and positive and positive driver of change in business environment for the benefit of Ukraine.

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Community Involvement and Development

Participating in community events

Softjourn is an active participant of community events, and here are some brief examples:

• Softjourn employees showed their expertise as a spokesmen on the local event – IT Rally;

• Cooperating with KidIT – a local computer educational program for kids;

• Local “What? Where? When?” intellectual game among local IT companies;

• IT Football Cup competition among local IT companies;

• Frankivsk Half-Marathon 2016;

• Charity Fair to support the Ukrainian Army;

• Random Act of Kindness on February 17, 2016, a day when we all tried to bring some simple acts of kindness to people on the streets;

• Donations for supporting people with cancer and other serious diseases in the region;

• Volunteer work and donation to the local dog shelter "Dim Sirka“.

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Community Involvement and Development

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Community Involvement and Development

Provide fair and equitable

treatment to all and rewards

comparable to that of similar organizations

Encourage and provide

opportunities for personal growth

and advancement

Discourage discrimination in employment and

its programs

Provide a safe and well-equipped working

environment

Provide opportunities for

staff participation in decisions and

actions related to their work at

Softjourn

Conduct themselves at all

times in a manner befitting their status as a

representative of Softjourn

Perform all assignments to

the absolute best of their ability

Prepare all documents completely

truthfully and with respect for

the client

Protect and conserve all material and

assets of Softjourncompany

Protect all confidential

Softjourn and client

information to the best of their

ability

Bear in mind, at all times, the

reserve and tact required in their involvement in communication

with clients

Softjourn seeks at all times to:

Labor Practices

Employees agree to:

Labor Practices

Depending on the results of this examination, employees will be placed in the appropriate level of English class and will be required to attend these classes twice a week.

Participation in English classes is mandatory. Also available German and Polish language courses.

Profit sharing program when employees have a sense of ownership in the company. Each employee that works from the beginning of the year receives a percentage of a company's profits based on its annual earnings.

For personal development, every month, Softjourn provides free gym and swimming pool tickets for employees.

For higher productivity and better inside communication Softоurn often provides teambuilding activities and local and abroad corporate celebrations.

To encourage professional growth and development, Softjourn provides educational assistance to employees for tuition and successfully passed certifications. This benefit is available to all full-time employees.

Employees requesting assistance will fill out a one page form, defining the course they would like to take, why they feel it is important for their job and career growth, and present it to their manager for approval.

Softjourn also provides an opportunity to pass eCornell Online courses in High-Performance Leadership, Marketing Strategy, Project Leadership, Business Strategy, Achieving Competitive Advantage and more. More than 20% of Softjourn’s staff are eligible to participate in eCornell at any one time.

Every new hire has their English level evaluated in an examination that must be taken within the first week of employment.

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Personal and professional growth and development

• Working areas and meeting rooms with 100% recyclable tables

• Stand desks made by local company –to improve working conditions for employees who spend working hours sitting at their desks;

• Comfortable 1-to-1 meeting/rest rooms designed in corporate style

• Increased number of workplaces by more than 50 since last year

• At least 100+ m2 of additional working space in 2016, arrangements made to add 200+ more in 2017

• Adding a new open space area for teams to collaborate closer with each other

• Additional kitchen area and tea/coffee zone

• Healthy food programs

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2016 office improvements

Softjourn leadership puts a great emphasis on employee rights and Softjourn's Human Rights policy is outlined in its Employee Handbook. Key points include:

• Equal employment opportunities without regard to race, color, religion, national origin, age, sex, marital status, veteran status, or disability.

• This policy governs all aspects of employment, including selection, job assignment, compensation, promotion, discipline, termination, and access to benefits and training.

• The right of each individual to personal development, training and self-education.

• Annual vacation, medical and personal days off according to Ukrainian law.

• The right to report any violation of rights or discrimination to the managing director.

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Human Rights

Softjourn has established 4 core values to follow:

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Fair Operating Practices

Softjourn’s directors, officers and employees shallneither make nor receive payoffs, bribes, illegalcontributions, or other unlawful payments of moneyor other things of value, shall not perform anyimproper acts in any country, and shall notknowingly have a business relationship with anyrepresentative who violates this guideline.

Softjourn’s directors, officers and employees shallnot promise, offer to make, or authorize thepayment of money, a gift, or anything of value, directly or indirectly, to any foreign governmentofficial, any foreign political party or official thereof, or any candidate for foreign political office for thepurpose of inducing favorable business treatmentor to affect any government decision.

Directors, officers and employees shall providenothing of value, including payments, gratuities, entertainment, meals and travel, to state and localgovernment employees in Ukraine, the U.S., andother countries, except as permitted by law.

All client materials received by directors, officers, and employees of Softjourn are strictly confidential. All Softjourn personnel will take extreme care toprotect both the information and the identity ofclients in line with the client’s wishes.

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Fair Operating Practices

Softjourn encourages directors, officers andemployees to engage in public speaking, preparearticles, and undertake other professional activitiesthat will further Softjourn’s aims, unless the timerequired for such activities detracts from ongoingSoftjourn projects and responsibilities. Any incomereceived for such activities shall be paid directly toSoftjourn or turned over to Softjourn by thedirector, officer or employee.

Directors, officers and employees responsible forreporting financial information and other datamust do so accurately, honestly and carefully, andin a manner consistent with Softjourn’s accountingpolicies and procedures.

Directors, officers and employees are prohibitedfrom engaging in any activity that could beconstrued as an attempt by Softjourn to (a) influence the introduction, modification, approval, or enactment of legislation or (b) engage in anypolitical campaign activity. When it goes about fairoperation practices with our clients, we alwaysoffer to sign NDA agreement before they show ustheir specifications or code.

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Reducing the impact of transport

Softjourn has been a primary sponsor of the Warm Cityinitiative in the city where it operates, Ivano-Frankivsk. One ofthe aimsof the Warm City project is to actively work to make Ivano-Frankivsk bike-friendly. Many Softjourners participateactively in programs to make IF bike friendly, with at least halfusing bicycles or walking to work. Also every employee is allowed to leave bicycle inside our office for better security.

Softjourn cares about the environment, following these environmental principles:

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Environmental Impact

Minimizing waste generation

In the office:Printing of reports or documents is done on a restricted basis. Employees are encouraged to share materials online anddocuments are viewed together via projectors or individualmobile devices. Now we are also changing all our equipment for more environmentally friendly versions: our PCs are being replaced by notebooks as they consume less energy. We have also stopped using our own servers and try to use only cloud (on-demand) service, which has led to greater utilization and less energy consumption. Softjourn office is placed between the buildings and that helped to reduce the air conditioner usage in winter and in summer. We placed a lot of plants to our space to make air fresher. We recently even replaced our plastic mouse traps into corticated ones. And our corporate logo is made from wood.

In the kitchen:Bins are provided for collecting different types of kitchenwaste, separating recyclable materials from those that cannotbe recycled: plastic and glass are binned apart from regularwaste. We have a special bin for collecting power units, like batteries and we encourage our employees also to bring them from home so we can pass them to volunteers for recycle. We also increased the recycling of materials and packaging and now all plates and cups at Softjourn`s kitchen are made of paper.

Efficient use of water and energy

We have reduced the temperature inall water boilers.

Softjourn works to improve the local environment wherever it operates: in Ukraine, in Poland and in the US. In addition to being a main sponsor of the Warm City project in Ivano-Frankivsk, Softjourn is heavily involved in supporting local events related to the war in Ukraine. Softjourners regularly collect donations internally to buy goods needed by those fighting in the east—usually medical supplies. Softjournershave also agreed to put part of their salary into a fund to regularly buy medical and safety equipment. The company also participates in local fund-raising events. All of these activities are in support of Ukraine being independent and continuing its economic development for all citizens.

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Consumer Issues

We keep all the relevant information about correspondence and calls for a particular target as well time and day for a follow-up call, so the system works as a reminder to write or call a particular client exactly when we promised to do so.

Some departments use Asana to organize internal initiatives to help fulfill OKR’s. Any employee can use this product to plan and manage current and future projects without sending emails and creating separate tasks. Every user has their own virtual workspace that contains their projects with specific tasks. They can then add notes, comments, attachments or followers. If the project or task is completed or updated, followers get updates about changes in their inboxes. Asana makes the work on individual projects more coordinated and stores all information in one place, so followers or other project members can easily monitor others’ work.

Softjourn implemented Technology Guilds - main idea is to share knowledge in different technologies and industry domain among Softjourn employees.

For corporate messaging Softjourn uses Slack with easy to use and clear channels about company and operations inside of it.

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Organizational Governance

For the governance of client projects, Softjourn has found it very useful to use different custom activity-tracking programs to organize and track employee work and to have everything in one place so it can be found as soon as needed.

We use the Redmine system to track employee activities and project progress. Any issue can be resolved really quickly and all team members are informed ofit.

We find it very useful for our marketing department to track all our clients and potential client activities sing the Sugar CRM system & Microsoft Dynamics CRM.

United States Ukraine Poland

39270 Paseo Padre Pkwy,

Suite 251

Fremont, CA 94538

Phone: +1.510.744.1528

Tychyny, 7,

Ivano-Frankivsk, 76019, Ukraine

Phone: +380.754.476

Business Link Wroclaw

ul. Rzeznicza 28-31

50-130 Wroclaw

Tel: +4.871.718.1316

Thank you!