Fair Pay & Worker Respect

Allegro MicroSystems, Inc. has a CEO-to-median employee pay ratio of 990:1, with the median employee pay reported as $10,702.

Employee reviews on Glassdoor show an overall rating of 3.87 out of 5, with 74% of employees stating they would recommend the company to a friend and 83% approving of the CEO. The company states a commitment to respecting human rights, treating all stakeholders with dignity, respect, and equality, and fostering a culture of inclusion. It respects employee rights to freedom of association, collective bargaining, fair working conditions, competitive wages, and reasonable hours. Allegro prohibits child labor, forced labor, bonded labor, and human trafficking, and strives for equal pay for equal work, including for women, minorities, and the LGBTQ+ community. The company also aims to provide a safe work environment and has a Supplier Code of Conduct that addresses labor practices and human rights.

Fair Trade & Ethical Sourcing

Allegro MicroSystems has a Human Rights Policy and a Supplier Code of Conduct that address ethical sourcing, labor practices, and conflict minerals.

However, the provided articles do not contain any specific quantitative data for any of the KPIs, including fair-trade certified spend, audit frequency, forced or child labor incidents, traceability coverage, remediation speed, ethical clause coverage in supplier contracts, share of spend on high-risk materials, or supplier diversity spend. Therefore, performance against these metrics cannot be assessed.

Honest & Fair Business

Five out of nine board members are free from material conflicts of interest, representing 55.55% of the board.

The Chairman of the Board, Yoshihiro Suzuki, and Katsumi Kawashima have extensive ties to Sanken, a major shareholder. Michael Doogue is the President and CEO of Allegro, and Richard Lury was previously a board member at Sanken. Joseph (Joe) Martin serves as the Lead Independent Director.

Kind to Animals

Allegro MicroSystems' core business model, which involves designing and manufacturing integrated circuits, does not inherently involve animal agriculture, animal-derived inputs, or animal testing. Therefore, several KPIs are not applicable to its operations, including cruelty-free certification, humane certified operations, ethical input substitution, cage-free sourcing, animal testing volume, animal agriculture ethics, and animal-free R&D collaboration. The company's animal testing policy states a comprehensive no-testing policy, except where mandated by critical safety regulations. Allegro employees have volunteered at an animal shelter, assisting with pet pantry supplies.

The company engages in conservation initiatives such as planting 500 Narra tree seedlings, 300 mangrove seedlings, and 500 Bignay saplings, as well as collecting 194 sacks of waste during coastal cleanups, but specific measurable biodiversity impacts are not provided. While supplier audits include sections on Environmental and Social Responsibility and Corporate Citizenship, no specific details on animal welfare compliance are provided.

No War, No Weapons

Allegro MicroSystems undertakes due diligence on potential distributors to help ensure it does not export to countries where sales are banned by the US Government, indicating robust compliance controls.

The company strives to mitigate the risk of procuring conflict minerals through its Supplier Code of Conduct, which expects products not to contain conflict minerals that finance armed groups. Allegro ensures that 3TG (Tin, Tantalum, Tungsten, Gold) procured for manufacturing does not directly or indirectly benefit armed groups, violence, or human rights violations in the DRC, Covered Countries, and other Conflict-Affected and High-Risk Areas (CAHRAs). For the year ended December 31, 2024, 100% of identified suppliers provided responses to the Conflict Minerals Reporting Template (CMRT), and all 142 remaining smelter or refiner (SOR) facilities were audited by the RMI and validated as conformant with RMAP. Allegro conducts due diligence on potential suppliers before entering into supply agreements and monitors their performance during contracts. The company's Human Rights Policy aligns with the Universal Declaration of Human Rights and enacts policies inclusive of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from CAHRAs. Allegro is continuously improving 3TG sourcing decisions and communicating with stakeholders concerning supply chain changes. When smelting and refining facilities cannot be confirmed or denied as sourcing from the DRC and Covered Countries, those suppliers may be audited and subjected to an executive decision on future sourcing options. Allegro may conduct audits or assessments to assess compliance with its commitments and will investigate misconduct allegations and take remedial action, including contract termination. The company requires suppliers to have a policy or program in place to ensure all 3TG utilized is ethically sourced, conflict-free, and reported to stakeholders within the CMRT.

Respect for Cultures & Communities

Allegro MicroSystems has established at least 4 formal partnerships with local community groups, including local colleges and universities, a local composting service, a health center, and a homeowner's association.

The company provides grievance mechanisms, including a 24/7 ethics alert line managed by a third-party, available at all operational sites. Allegro is committed to respecting legally designated protected areas and ecosystems, with no reported incidents of disruption. Approximately 85% of employees completed EHS training, and annual training is provided on human rights, but specific cultural sensitivity training completion rates are not provided.

Safe & Smart Tech

No specific, concrete data points were found in the provided articles to assess Allegro MicroSystems, Inc. against the 'Safe & Smart Tech' ethical value. Information regarding a data breach and unauthorized data use from 2016 falls outside the typical 'past 3 years' or 'recent years' timeframes specified in the rubric for scoring.

While the company mentions compliance with various environmental and quality regulations, no evidence was provided for specific privacy or security certifications, nor for any other KPIs related to data protection, cybersecurity investment, or AI ethics.

Zero Waste & Sustainable Products

Allegro MicroSystems has implemented numerous waste reduction initiatives, including a project that saves 2.9 metric tons of paper annually since March 2021, and recycling programs for over 10 distinct material types such as paper, cardboard, batteries, metals, and chemical containers.

In FY23, the company reported 548,206 kg of hazardous waste, with only 1% recycled. There have been no waste disposal violations in the past three years. The company has company-wide waste reduction targets to minimize waste throughout its facilities and operations. Allegro also requires adherence to a Supplier Code of Conduct, which includes waste reduction and recyclability requirements for suppliers. However, no specific customer waste education programs are mentioned.