Integrated Compliance Manual for Vendors and Factories

Transcription

Integrated Compliance Manual for Vendors
and Factories
Version 1.0
March 2014
Catherines Stores Corporation
Lane Bryant Purchasing Corp
Maurices Incorporated
The Dress Barn, Inc.
Tween Brands Service Co.
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Created on: 1/13/2014
Last updated: 3/7/2014
Compliance Manual ver.1.0
Table of Contents
1. Introduction ............................................................................................................... 3 2. Compliance Monitoring Overview ............................................................................. 4 3. Factory Approval Process Flowchart ........................................................................ 5 4. Vendor/Factory Responsibility .................................................................................. 6 5. Monitoring Visit Results ............................................................................................ 9 6. Code of Conduct and Labor Compliance Overview ................................................ 12 7. Code of Conduct and Labor Compliance Guidelines .............................................. 13 8. Supply Chain Security Overview ............................................................................ 22 9. Supply Chain Security Guidelines .......................................................................... 23 10. Brand Protection Overview ..................................................................................... 29 11. Brand Protection Guidelines ................................................................................... 29 12. Where to get more information ............................................................................... 31 13. 3rd Party Audit Firms ............................................................................................... 31 14. Where to send factory information .......................................................................... 31 15. Fee Schedule ......................................................................................................... 32 Appendix 1 Code of Conduct ........................................................................................ 33 Appendix 2 Code of Conduct Confirmation ................................................................... 37 Appendix 3 Customs - Trade Partnership Against Terrorism (C-TPAT) ........................ 38 2
1. Introduction
The primary purpose of this Compliance Manual is to establish and outline the policies
and procedures of Ascena's brands, dressbarn, Catherines, Lane Bryant, maurices,
Justice & Brothers (each, a “Brand”) related to Labor Standards, Supply Chain Security,
and Brand Protection.
This manual is intended to be the primary reference document for managing
vendor/factory compliance from the initial engagement to the ongoing monitoring of
factories that produce merchandise for the Brands.
The Brands are committed to conducting business consistent with the highest standards.
The program requires on-site monitoring visits performed by Third Party Monitors to
ensure factories are meeting requirements and manufacturing under conditions
consistent with this Compliance Manual.
Through the policies and procedures outlined in this Compliance Manual, the Brands
demonstrate their commitment to providing the highest quality product manufactured
under conditions they and all of Ascena can be proud of.
Ascena Global Sourcing (AGS), is part of the Shared Services Group under Ascena
Retail Group, Inc. AGS is an important Ascena strategy created as an organization that
collaborates with the Brands. The AGS group provides support to the Brands for
activities such as Sourcing, Compliance, Product Integrity, and Trade Compliance. The
AGS Compliance team ensures products are placed in compliant factories through a
monitoring and remediation program described in this manual. This program ensures
that the Brands and their business partners provide only the best products to their
customers.
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2. Compliance Monitoring Overview
2.1. Every factory is subject to one annual compliance visit at the vendor’s expense. The
annual compliance visit includes:
2.1.1. Labor Compliance – Every Vendor/Factory is required to comply with the Brands
code of conduct in terms of Labor Standards and Workplace Conditions.
2.1.2. Supply Chain Security Compliance – Every Vendor/Factory is required to
observe and adopt best practices in terms of cargo security.
2.1.3. Brand Protection – Every Vendor/Factory is required to have necessary controls
to ensure the integrity of our Brands and to protect intellectual property rights.
2.2. Program monitoring activities may be performed by Elevate, UL Responsible Sourcing
(UL-RS), or other Third Party Monitors, approved by the AGS compliance team.
2.3. No orders will be placed with any new factory prior to an acceptable compliance visit
or a specific exemption granted by AGS.
2.4. AGS may adjust the frequency of factory visits and program activities based on
country/factory risk assessment.
2.5. Vendors that demonstrate they have an effective compliance program, with similar
standards and tools, will be considered to present a lower compliance risk and will be
subject to less frequent monitoring by AGS – subject to periodic reporting of the
results of the related monitoring program.
2.6. AGS may choose to accept a verifiable 3rd party audit from other reputable monitoring
firms that have been conducted within the past 6 months which must include labor
compliance and supply chain security assessments. Audits should be submitted along
with the Factory Profile and Code of Conduct to
factoryprofiles@ascenaglobalsourcing.com for review.
2.7. AGS will conduct either unannounced or announced visits. A third party monitor
will contact the vendor/factory listed on the Factory Profile to schedule announced
factory visits. Some audits may require prepayment.
2.8. The third party monitor will conduct the factory visit in accordance with the scope
specified by AGS.
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3. Factory Approval Process Flowchart
Yes
Vendor submits completed
Factory Profile and COC to:
Does factory
have recent
rd
verifiable 3
party audit?
factoryprofiles@ascenaglobalsourcing.com
No
AGS
verifies
rd
Audit w /3
party
Submit
Audit to
AGS
AGS
Orders
rd
3 party
Audit
Audit
Conducteddraft copy left
with factory
Full audit
report
issued
Yes
AGS reviews
audit and
Factory ID # is
issued
Recap of
recommendations
issued to
vendor/factory
Were there
any issues of
noncompliance
found?
A desktop
review or
Follow-Up
visit
conducted
Vendor reviews
recap with
factory and
implements
necessary
corrective
measures
Vendor submits
CAP to within 14
days
No
Factory
entered into
the AGS
annual audit
program
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4. Vendor/Factory Responsibility
4.1. Identification of Factories
4.1.1. All factories used for the production of any Brand’s merchandise must be
reported to AGS. A Factory Profile must be submitted for each manufacturing
location. This may include cutting, sewing, knitting, linking, assembling,
packaging, filling, printing, etc. facilities (i.e. any other facility that manufactures
or assembles any part of the product).
4.1.2. The use of unauthorized/unreported factories or sub-contractors or other places
of manufacture is prohibited.
4.1.3. Unauthorized Sub-contracting Policy: If unreported factories involved in the
manufacture of any Ascena’s Brands merchandise are identified the following
procedures will apply:

1st Incident- Warning Letter is issued to vendor and factory

2nd Incident-Monetary penalty of USD $10,000 issued to vendor and all
factories are subject to production monitoring at the vendor’s expense

3rd Incident-Monetary penalty of USD $25,000 issued to vendor and
reduction or loss of business enforced.
In order to avoid any penalties or loss of business simply report all factories to AGS.
4.2. Code of Conduct
4.2.1. A copy of this Compliance Manual must be given to and reviewed with the
vendor and factory. An understanding of the manual is confirmed by signing and
returning the Code of Conduct to factoryprofiles@ascenaglobalsourcing.com
4.2.2. The purpose of the acknowledgement is to obtain written assurance that the
factory complies with the Code of Conduct. If the Code of Conduct Confirmation
is not signed, production is not allowed at the factory.
4.2.3. Each factory will designate on the Code of Conduct Confirmation an official who
will be responsible for supervising the vendor’s efforts to ensure factories utilized
by the vendor are in compliance with the Code of Conduct.
4.2.4. All factories involved in the production of any Brand merchandise are expected to
sign and return the Code of Conduct.
4.2.5. All factories are expected to have a copy of the Code of Conduct translated into
the local language and communicated to workers. The Code of Conduct should
not be posted in the factory.
4.2.6. In addition, in order to fully understand the Brand’s requirements as outlined in
the Code of Conduct, factories are expected to have access to applicable local
laws and regulations related to age, wage, hours of work and health and safety.
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4.3. Vendors must provide an updated listing of the factories being used to produce each
Brand’s products and immediately notify AGS of any dropped factories. All factories
must be reported to AGS 2 months before order placement.
4.4. Complete and send a Factory Profile to factoryprofiles@ascenaglobalsourcing.com for
any new factory, change of address or name change of existing factory.
4.4.1. Vendors are responsible for ensuring the factories utilized in the production of the
Brands merchandise have received and understand the Code of Conduct and the
related requirements as specified in this program.
4.5. Place order only after an acceptable visit or exemption is granted by AGS compliance
team. Allow a minimum of 2 months for factory approval.
4.6. Ensure factory awareness of the possibility for unannounced or semi-announced visits
by AGS associates or Third Party Monitors. The factory should be prepared to accept a
semi-announced audit within a 2 week date range which will be communicated at the
time of scheduling.
4.7. Vendors will require the management at the factory to permit AGS and its
representatives to conduct monitoring – including interviews of employees without the
presence of other employees or management. Factory management will permit our
representatives to interview employees without the presence of other employees or
management, and will not disturb the confidentiality of any employee interview.
4.8. Provide logistics support and help to AGS or appointed Third Party Monitors for visits.
4.9. Follow up with factory/subcontractor on improvement areas identified.
4.10. Accept the request for Annual Factory Visit to active factory.
4.11. Vendors and factories are not to interfere with or discourage communication with our
representatives. Any active factory experiencing any extraordinary business
circumstance must notify the AGS Compliance Department, within 24 hours. Any
extraordinary business circumstance includes but is not limited to: natural disaster,
earthquake, hurricane, fire, strike, any situation that is unsafe for workers, any work
stoppage that is unsafe for workers or stops production, any disruption in production
due to an extraordinary business circumstance, factory closure.
4.12. Information and Training
4.12.1. All vendors are encouraged to seek any needed guidance from the AGS
Compliance Team on how to ensure their factories and the related individual
compliance efforts meet our expectations.
4.12.2. We may request the attendance of vendor management at seminars or webinars
conducted by AGS or outside parties. The primary purpose of the training
program is to educate and communicate to the factories and vendors the
Compliance Manual standards. The training and/or communication will cover
differences between applicable local laws and the Code of Conduct and how to
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recognize serious compliance concerns. On-going training will include periodic
updates to the AGS Compliance Program.
4.13. Employee Awareness and Education
4.13.1. Each factory is responsible for the communication to its employees regarding the
factory’s obligation to them, and in accordance with the Code of Conduct.
4.13.2. As part of its responsibility to promote employee awareness, each factory will
take necessary steps to ensure the terms of the Code of Conduct are presented
to employees in languages understood by all employees. This can be
accomplished through meetings and presentations on the requirements.
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5. Monitoring Visit Results
5.1. Upon completion of the monitoring visit, the results will be communicated to AGS in the
form of an audit report. AGS will then review the Evaluation Report and send a
Corrective Action Plan Template to the vendor, if applicable.
5.1.1. The following audit rating applies:
Rating
Definition
A
Authorized for Production
B
Authorized for Production. Follow-up audit will take place within
12-18 months.
C
Conditionally Authorized for production. Follow-up audit will take
place within 6 months.
D
Conditional Authorization for Production with Concerns. Followup audit will take place within 3 months
F
Not Authorized for Production. Active factories that receive an “F”
rating may be terminated.
5.1.2. Remediation and Corrective Action
5.1.2.1.
Ascena, the Brands and AGS expect vendors and factories to provide
transparency into their operations, policies, procedures and records.
Vendors and factories must allow inspection of their records and facilities
by AGS associates and appointed audit partners to verify compliance to
these standards.
5.1.2.2.
Ascena, the Brands and AGS are committed to working with factories to
address non-compliance issues. We fully support Remediation Not
Termination. If the results of a Compliance Monitoring visit are below
standards, but the factory is willing and committed to making
improvements, we may allow the factory to make corrections. In this
regard, factories are expected to develop Corrective Action Plans (CAP)
with realistic dates, demonstrate improvements and be transparent in
addressing identified non-compliance in a timely manner.
5.1.2.3.
Factories are expected to correct all non-compliance as a condition of
continued business. All CAP’s are due back to AGS or the appointed
monitoring firm 14 days after receipt of Evaluation Report. Complete
evidence in the form of photos or documents must be submitted with the
CAP and clearly labeled in English.
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5.2. Follow-up Factory Monitoring Visits
5.2.1. Follow-up factory visits are necessary to ensure corrective actions are taken.
AGS will authorize follow-up visits anywhere from 3-6 months after an initial visit.
Either a third party monitor or a vendor representative authorized by AGS will
perform follow-up visits.
5.2.2. Serious or Repeated Noncompliance findings
AGS will determine the appropriate sanctions for any serious or repeated
violation. If necessary, we may terminate our relationship with a factory. In
addition, where applicable, we will consider sanctions for the vendor associated
with a factory found to have serious or repeated violations.
5.2.3. Critical Issues
No Brand will tolerate any retribution or retaliation taken against any individual
who has, in good faith, sought advice or reported questionable behavior or a
possible violation of the Brand’s Code of Conduct.
No Brand will tolerate any party consciously engaging in practices such as:

Child labor

Denied access

Bribery

Harassment and/or abuse

Forced labor/ Human trafficking (in all its forms)

Discrimination

Unauthorized subcontracting

Health and Safety conditions posing immediate risk to life or limb

Falsifying records
Any critical issues identified by any 3rd party monitor, vendor or factory must be reported to AGS
within 24 hours.
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5.3. Factory Approval Process
5.3.1. Issuance of the factory ID# will be done upon completion or verification of the
compliance audit if required by the Brand.
5.3.2. AGS approves new factory for order placement based on an acceptable factory
visit or a specific exemption.
5.3.3. If the result of a factory visit is not acceptable but the factory is willing and
committed to making improvements, the vendor may request a second visit. The
second visit is at the expense of vendor.
5.3.4. If the factory does not demonstrate or is willing to commit to improvements, AGS
will not authorize production in the factory.
5.3.5. AGS reserves the right to restrict the use of factories in certain countries based
on social, political, security or other risks. Since this may change from time to
time, please contact AGS to discuss.
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6. Code of Conduct and Labor Compliance Overview
We only work with factories that manufacture under safe, lawful, and humane conditions
in accordance with applicable local laws. It is critical that all interested parties – our
consumers, licensing partners, vendors and factories that manufacture our products –
understand that the intention of this effort and our standards is not to require factories to
meet “US or Western standards”. Our requirement – consistent with other leading
brands – is that you are working under conditions which meet minimum standards –
generally consistent with the local laws in the territories in which our products are
manufactured.
The Compliance Manual provides information on the monitoring process and the policies
and procedures that factories must consider to ensure the expectations in the Code of
Conduct are met and the monitoring visits results will be acceptable.
AGS is dedicated to monitoring and enforcing adherence to the Code of Conduct by
vendors and their factories. All credible information regarding potential noncompliance
with the Code of Conduct and related standards will be reviewed and the appropriate
sanction for any serious violation by a factory will be determined by AGS.
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7. Code of Conduct and Labor Compliance Guidelines
The following compliance guidelines provide an effective framework for factories in the
development of policies, procedures, practices and records to accomplish and effectively
demonstrate compliance with the Code of Conduct.
7.1. Transparency: Each Brand expects vendors and factories to provide transparency into
their operations, policies, procedures and records. Vendors and factories must allow
inspection of their records and facilities by the Brand’s associates and appointed audit
partners to verify compliance to these standards. Factories producing goods for a Brand
are expected to be honest and transparent with all records. No Brand will tolerate any
factory that submits falsified records. Each Brand engages in a continuous improvement
model for all factories willing to be transparent. Vendors must disclose the identity and
location of all factories that will produce goods for a Brand, including the use of subcontractors.
7.2. Laws and Regulations: Vendors and factories must operate in full compliance with all
applicable national and local laws and regulations of the countries in which they operate.
Vendors and factories also must comply with all applicable United States and foreign
laws and regulations on the importation of its products into those countries, including:
customs regulations; country of origin labeling; product and fabric testing and product
labeling. The following list of documents must be available for review during the 3rd
party factory visit:
7.2.1. Proof of age – a photocopy of official government documentation
7.2.2. Proof of citizenship or work permit (where necessary by law)
7.2.3. Medical records (where necessary by law)
7.2.4. Executed employment contract/terms & conditions (where necessary by law)
7.2.5. Termination letter (where necessary by law)
7.2.6. Record of disciplinary action
7.2.7. Deduction authorization such as social security (where necessary by law)
7.2.8. The facility must maintain personnel files for all current and former employees.
Records of former employees must be retained for a period of two years.
7.2.9. The facility must have a set of rules and regulations certified by the department
of labor (where applicable);
7.2.10. The factory must communicate rules, regulations and any disciplinary procedures
to employees (e.g. bulletin boards);
7.2.11. The terms of any probationary period must be outlined in the employee’s
employment contract and personnel file;
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7.2.12. A copy of the factory’s business license, any other government license,
certificates of operation etc. must be made available;
7.2.13. All necessary documentation to assess compliance with the Code of Conduct
must be maintained on site at the facility including payroll, time, piece rate
records for at least a 2 year period.
7.3. Subcontracting: Vendors and factories must not use subcontractors in the
manufacture of product or product components for any Brand, unless the Brand
provides written approval, and after the subcontractor agrees in writing to comply with
this Code of Conduct.
7.3.1. No unauthorized outside contract factories can be used for any Brand.
7.3.2. No outside contract sewing in people’s homes (homework) can be used.
7.3.3. All subcontractors must be listed on the Factory Profile Form.
7.4. Bribery and Corruption: A bribe is the payment of anything (money, gifts, or services)
to influence a business or governmental decision. Vendors and factories must not offer
or receive bribes to employees or agents of a Brand, its auditors, or any government
institution. Vendors and factories must comply with all applicable laws related to bribery
and corruption.
7.5. Child Labor: Vendors and factories must not employ workers younger than the age of
15 years or the minimum age established by law in the country of the manufacture,
whichever age is greater. In addition, vendors and factories must comply with all legal
requirements for the work of authorized young workers, particularly those pertaining to
hours of work, wages, and working conditions. Factories must maintain official
documents for every worker that verifies date of birth.
7.5.1. No person under the mandatory school age may work in the facility
7.5.2. Documentation is required to prove age when hiring workers and must be verified.
7.5.3. All age documentation must be maintained on file in the facility
7.5.4. Children must not be present in the facility, unless in a nursery located away from
the production areas
7.5.5. Employees hired as part of an apprenticeship program may not be under 15
years old or the legal minimum age
7.5.6. Minor age employees are not allowed to work in hazardous job positions
7.5.7. If required by national or local law, minor age employees must work restricted
hours
7.6. Forced Labor, Slave Labor, Human Trafficking: Vendors and factories must not use
involuntary or forced labor, whether indentured, bonded, prison, or otherwise. Vendors
and factories must not confiscate or withhold worker identity documents or other
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valuable items, including passports, work permits, and travel documentation. Vendors
and factories must not keep workers’ personal documents as a means to bind them to
employment or to restrict their freedom of movement.
7.6.1. All workers in the facility must be voluntarily employed
7.6.2. No prisoners may be working at the facility
7.7. Contract Labor: Factories that employ or recruit foreign workers must ensure workers
are treated fairly and on equal basis with the local workers.
7.8. Wages and Benefits: Vendors and factories must pay workers at least the minimum
compensation required by local law and must provide all legally mandated benefits. In
addition to their compensation for regular hours of work, workers must be compensated
for overtime hours at such premium rate as is legally required or, in those countries
where such laws do not exist, at least equal to their regular hourly compensation rate.
All factories must provide auditors accurate and complete payroll and timecard records.
7.8.1. Payroll record information including government waiver, payroll register,
production records, time sheets, overtime wages register, and piece rate tickets
must be made available to the auditors.
7.8.2. Time records must show daily start and stop times and include regular and
overtime work
7.8.3. Employees must be paid at least the minimum wage specified by national and
local laws, not including attendance, production, or other bonuses.
7.8.4. Piece rate workers must be guaranteed at least the minimum wage specified by
national and local laws, not including attendance, production or other bonuses.
Production records must be made available to the auditors.
7.8.5. The company must provide workers with an understandable wage statement at
each pay period which includes:

Time worked during the pay period

Wage or piece rate earned

Bonuses earned during the pay period

Hours of overtime at specified rate during the pay period

Total overtime during the pay period

Allowances and legal deductions
7.8.6. Workers must be paid in a regular and timely manner
7.8.7. Earned wages must not be withheld for any reason
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7.8.8. The company must have procedures in place for employees to question wages
paid and possible adjustment to their pay
7.8.9. The company must provide paid holidays and vacation as required by law
7.8.10. The company must provide all benefits required by national and local laws
7.8.11. Records of issuance of employee benefits (i.e. annual leave, maternity leave,
etc.) must be made available to the auditors.
7.8.12. Payment receipts for mandatory social insurance payments must be made
available to the auditors.
7.8.13. The company must have documentation to support employees’ consent to make
voluntary deductions from their pay
7.9. Hours of Work: Vendors and factories must ensure that except in extraordinary
business circumstances, on a regularly scheduled basis, workers shall (1) not be
required to work more than the lesser of (a) sixty (60) hours per week, including
overtime; or (b) the limits on regular and overtime hours allowed by the law of the
country of manufacture. In addition, except in extraordinary business circumstances, all
workers shall be entitled to at least one day off in every consecutive seven-day period.
Workers may refuse overtime without any threat of penalty, punishment or dismissal.
7.9.1. The scheduled work hours must be posted for the week and day.
7.9.2. The number of regular hours in a week is determined by national and local laws.
7.9.3. The scheduled overtime hours must be posted for the week & day.
7.9.4. Overtime hours must not exceed the hours specified by national and local laws,
unless the factory has government permission for hours in excess of the
standard.
7.9.5. Employees must have the right to refuse overtime.
7.9.6. Employees must have at least one day off in every consecutive seven-day period.
7.9.7. Work hours must be properly recorded, listing in and out times for every day
worked.
7.9.8. Employees must record their work hours themselves or sign their time cards/slips
to verify accuracy.
7.10. Health and Safety: Vendors and factories must provide their workers with a clean,
safe, and healthy work environment in compliance with all applicable, legally mandated
standards for workplace health and safety in the countries in which they operate
including standards for electrical, mechanical, structural, and fire safety. This includes
residential facilities, if applicable.
7.10.1. If required by national or local law, medical care must be available on-site.
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7.10.2. A first-aid kit with proper medical supplies must be available to employees.
7.10.3. Employees must be provided all necessary safety equipment (for example,
masks, metal mesh gloves for cutters) free of charge and properly trained on how
to properly use the equipment.
7.10.4. Records must be kept of injuries and accidents.
7.10.5. Employees must have unrestricted access to restrooms during the workday.
7.10.6. The number of restrooms must be appropriate for the number of employees.
7.10.7. The restrooms must be sanitary and stocked with necessary supplies and must
be separated by sex.
7.10.8. A potable water source must be available to employees.
7.10.9. Rest breaks must be provided to employees as required by law.
7.10.10. If the factory has a canteen/cafeteria, it must be sanitary and food must be
stored properly.
7.10.11. The factory must be able to provide a valid certificate for the canteen/cafeteria
7.10.12. There must be adequate lighting and proper ventilation in the facility
7.10.13. The aisles must be marked and free from obstruction.
7.10.14. The electrical equipment and wiring must be safe.
7.10.15. All machines must have machine guards, where appropriate.
7.10.16. Gas cylinders must be properly marked, used, inspected, stored and secured.
7.10.17. Metal detection devices are required to be used (applicable to apparel,
accessory and other sewing facilities)
7.10.18. Complete broken needle records must be kept.
7.10.19. Proper ventilation, temperature and humidity must be maintained
7.10.20. Generators and other heavy vibrating equipment such as boilers are not
allowed beyond the ground floor and must be isolated from any production area.
7.10.21. No Smoking signs must be posted in non-designated smoking areas including
sensitive areas such as chemical storage areas.
7.10.22. Valid operator/equipment certificates must be available
7.10.23. All chemicals must be properly labeled, stored and safely used
7.10.24. The location of dorms must not violate any laws
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7.10.25. Any dormitories are subject to the above requirements
7.10.26. Dormitories, rest rooms and showers must be separated by gender
7.10.27. Sufficient dormitory space and storage areas must be provided to workers
7.10.28. These standards must be communicated to all management and employees at
the facility
7.11. Fire and Emergency Preparedness
7.11.1. All factories must have centralized fire alarms that can be heard by all workers
and is visible in noisy areas. The system must be regularly inspected, clearly
marked, easily accessible and tested in coordination with fire drills.
7.11.2. A centralized PA (Public Address) system reaches all individuals and floors and
is tested in conjunction with the fire alarm system.
7.11.3. There must be an adequate number of fire extinguishers located around the
facility.
7.11.4. The fire extinguishers must be mounted on the walls at the proper height.
7.11.5. Firefighting equipment, including fire extinguishers and hoses, must be easily
accessible, clearly marked, and routinely inspected to ensure they remain
operational and have adequate pressure.
7.11.6. Fire engines and other emergency vehicles must be able to access the facility
without difficulty and with sufficient space to maneuver. The factory may be
asked to provide approval from the local fire department.
7.11.7. Employees must be sufficiently trained to use the fire extinguishers, and how to
administer fire prevention procedures and emergency evacuation plans.
7.11.8. The factory must have a sufficient number of emergency exits.
7.11.9. The emergency exits cannot be locked and access to emergency exits cannot be
blocked in any way.
7.11.10. The emergency exits must be clearly marked by emergency exit signs.
7.11.11. All factories must have emergency lighting, with back-up power, for all
stairways and where needed on exit routes. The lighting must be inspected
periodically and is of industry grade.
7.11.12. Emergency and other hazardous signage must be appropriate, clearly visible,
and compliant with the local legal requirements.
7.11.13. Evacuation maps/plans must be posted throughout the facility.
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7.11.14. Evacuation drills must be conducted in the facility regularly – at least twice per
year.
7.11.15. Emergency assembly points must be designated and adequate, i.e., away from
roads, buildings, and flammable or combustible objects/materials.
7.12. Building Safety
7.12.1. The structure of the factory, including residential facilities provided by the factory
must be stable and safe and does not put anyone in jeopardy.
7.12.2. No room in any factory shall be overcrowded as defined by the building permit,
which should indicate the maximum number of people the building is approved to
hold.
7.12.3. Building inspections must be conducted on a regular basis as per standard of
practice or country law. Where no law exists, building inspections should be
completed at least yearly.
7.12.4. The factory must be aligned with the approved building plan, with no additional
floors or external retrofit structures.
7.12.5. A valid fire license must be available for the factory.
7.13. Environment: Vendors and factories must comply with all local environmental laws
applicable to the workplace. Factories must conduct business so as to minimize the
impact on the environment, including properly managing waste and maximizing
recycling initiatives. The following list of documents must be available for review during
the 3rd party factory visit:
7.13.1. Air emission permits and monitoring records
7.13.2. Reports of analysis of drinking water
7.13.3. Wastewater discharge monitoring reports
7.13.4. Wastewater discharge permits
7.13.5. Hazardous waste manifests or shipping papers
7.13.6. Waste profiles/test results/waste analyses
7.14. Nondiscrimination: While each Brand recognizes and respects cultural differences,
vendors and factories must ensure employment – including hiring, remuneration,
benefits, advancement, termination and retirement – is based on ability and not on
belief or any other personal characteristics.
7.14.1. Policies on anti-discrimination must be provided if applicable (e.g. in employee
handbook)
19
7.15. Humane Treatment: Vendors and factories must treat all workers with respect and
dignity. No worker shall be subject to corporal punishment, physical, sexual,
psychological or verbal harassment or abuse. In addition, vendors and factories will
not use monetary fines as a disciplinary practice.
7.15.1. Employees cannot incur disciplinary pay deductions
7.15.2. Supervisors cannot use corporal punishment or other abusive behavior
7.16. Women’s Rights: Vendors and factories will ensure women workers receive equal
treatment in all aspects of the employment. Pregnancy tests will not be a condition of
employment and pregnancy testing – to the extent provided – will be voluntary and the
option of the worker. In addition, workers will not be forced to use contraception.
7.16.1. Pregnancy testing must not be conducted as a condition of employment
7.16.2. Contraceptives may be made available to employees, but the employees must
never be required to use them
7.17. Freedom of Association: Vendors and factories must recognize and respect the right
of workers to exercise lawful right of free association, including joining or not joining
any association. The decision of the worker to join any such organization must be
made solely by the worker.
7.17.1. Collective Bargaining Agreement and other union documents (e.g. meeting
records) must be provided to the 3rd party auditor for review if applicable
7.18. Communication: Vendors and factories must communicate this Code of Conduct and
the provisions to workers and supervisors and undertake annual, documented training
efforts to educate current and new employees about these Code of Conduct
requirements.
7.19. Monitoring and Compliance: Each Brand will undertake affirmative measures, such
as announced and unannounced on-site inspections of production facilities, to monitor
compliance with the Code of Conduct. Vendors and factories must maintain on site all
documentation necessary to demonstrate compliance with the Code of Conduct, and
vendors and factories must allow Brand representatives full access to production
facilities, worker records and workers for confidential interviews in connection with
monitoring visits.
7.20. No Retaliation: No Brand will tolerate any retribution or retaliation taken against any
individual who has, in good faith, sought advice or reported questionable behavior or a
possible violation of this Code of Conduct.
7.21. Factory Security: All factories producing goods for a Brand must implement minimum
security criteria to help secure our supply chain. The minimum security criteria are
based on recommendations developed as a result of the C-TPAT initiative with US
Importers. See also specific Security discussion and requirements in section 9 of this
manual.
20
7.22. Brand Protection: All factories producing goods for a Brand must protect the
reputation of the Brand and reduce the possibility of illegal activities such as
counterfeiting, diversion, trademark infringement and other infringements of intellectual
property rights. Factories must not sell or otherwise dispose of goods that bear or
incorporate the Brand’s trademarks, copyrights or other intellectual property except as
specifically directed in writing by the Brand. See also specific Brand Protection
discussion and requirements in section 10 of this manual.
For full Code of Conduct, please see Appendix 1.
21
8. Supply Chain Security Overview
Customs Trade-Partnership Against Terrorism (C-TPAT)
In response to the events on September 11, 2001, Bureau of Customs and Border
Protection (CBP) introduced a new anti-terrorism initiative called “Customs-Trade
Partnership Against Terrorism” (C-TPAT), which engages the trade community in a
cooperative relationship with Customs in the war against terrorism.
Under the C-TPAT initiative, Customs will work with foreign manufacturers, exporters,
carriers, importers and other industry sectors emphasizing a seamless security
conscious environment throughout the entire commercial process from manufacturer
through transportation and importation to ultimate distribution.
Participation in the C-TPAT Program
Customs and willing members of the trade community collaborate to better secure the
international supply chain to the United States.
To better secure and facilitate the flow of goods into the United States, CBP will ensure
that existing and new C-TPAT partners fulfill their commitments by verifying that agreed
security measures have been implemented. CBP will also work with its C-TPAT partners
to further finalize minimum, applicable supply chain security criteria and security best
practices. CBP will send teams of supply chain specialists around the globe, to visit
members, their vendors, and vendors’ factories to validate that supply chain security
meets C-TPAT minimum security criteria and best practices and that procedures used
are reliable, accurate, effective and meet the agreed upon security standards. CBP will
continue providing tools and creating incentives for the private sector to join C-TPAT,
which is a prerequisite for the Free and Secure Trade (FAST) program and other CBP
expedited processing programs.
Benefits of Participation in C-TPAT
Benefits to the importer for fully participating in this new initiative with Customs will
include expedited processing, priority levels of service and Customs notification of
compliance and/or enforcement exams. Dedicated commercial lanes for approved and
active participants, along with the deployment of Non-Intrusive Inspection (NII)
technology at the selected ports along the borders will provide for faster screening and
expedited clearance.
Trade Actions
For its part, the business community must review their entire logistics chain and
incorporate sound security principles to reduce their exposure to product and
conveyance tampering. Failure to do so will necessitate Customs to classify the importer
into an “unknown category” resulting in higher scrutiny of cargo and conveyance,
increased reviews and audits, added examinations, requests for more information and
therefore no guarantee of processing times.
22
9. Supply Chain Security Guidelines
Foreign manufacturers must develop and implement a comprehensive plan to enhance
security procedures throughout their operations.
Each vendor and factory agrees to develop and maintain, within a framework consistent
with the listed recommendations and guidelines of C-TPAT described at the following
website -- http://www.cbp.gov/xp/cgov/trade/cargo_security/ctpat/ -- as the same may be
amended from time to time, a verifiable, documented program to enhance security
procedures throughout production and delivery of Goods.
The facility is reviewed by our third party monitor to evaluate the level of security and the
risk associated with any gaps in the security process. Focus is on points of loading and
sealing sea containers. Vendors and factories that demonstrate that they have an
effective security program, with similar standards and tools, will be considered to present
a lower compliance risk. These are general recommendations that must be followed on a
case-by-case basis depending on the company's size and structure and may not be
applicable to all.
Each supplier is required to sign and return the CTPAT Annual Notice to Suppliers.
Each factory must have written security procedures in place that addresses the
following:
9.1. Business Partner Requirement: Foreign manufacturers must have written and
verifiable processes for the selection of business partners including, carriers, other
manufacturers, product suppliers and vendors (parts and raw material suppliers, etc.).
9.1.1. For those business partners eligible for C-TPAT certification (carriers, importers,
ports, terminals, brokers, consolidators, etc.) the foreign manufacturer must have
documentation (e.g. C-TPAT certificate, SVI number, etc.) indicating whether
these business partners are or are not C-TPAT certified.
9.1.2. For those business partners not eligible for C-TPAT certification, the foreign
manufacturer must require that their business partners demonstrate that they are
meeting C-TPAT security criteria via written/electronic confirmation. Based upon
a documented risk assessment process, non-C-TPAT eligible business partners
must be subject to verification of compliance with C-TPAT security criteria by the
foreign manufacturer.
9.1.3. Foreign manufacturers must ensure that business partners develop security
processes and procedures consistent with the C-TPAT security criteria to
enhance the integrity of the shipment at point of origin, assembly or
manufacturing. Periodic reviews of business partners’ processes and facilities
should be conducted based on risk, and should maintain the security standards
required by the foreign manufacturer.
9.1.4. Current or prospective business partners who have obtained a certification in a
supply chain security program being administered by foreign Customs
23
Administration should be required to indicate their status of participation to the
foreign manufacturer.
9.1.5. On U.S. bound shipments, foreign manufacturers should monitor those C-TPAT
carriers that subcontract transportation services to other carriers use other CTPAT approved carriers, or non-C-TPAT carriers that are meeting the C-TPAT
security criteria as outlined in the business partner requirements.
9.1.6. As the foreign manufacturer is responsible for loading trailers and containers,
they should work with the carrier to provide reassurance that there are effective
security procedures and controls implemented at the point-of-stuffing.
9.1.7. All business partners should have a specific employee or department responsible
for supply chain security
9.2. Container and Trailer Security: Container and trailer integrity must be maintained to
protect against the introduction of unauthorized material and/or persons.
9.2.1. At the point-of-stuffing, procedures must be in place to properly seal and
maintain the integrity of the shipping containers and trailers.
9.2.2. A high security seal must be affixed to all loaded containers and trailers bound
for the U.S.
9.2.3. All seals must meet or exceed the current PAS ISO 17712 standard for high
security seals.
9.2.4. Procedures must be in place to verify the physical integrity of the container
structure prior to stuffing, to include the reliability of the locking mechanisms of
the doors. A seven-point inspection process is recommended for all containers:
 Front wall
 Left side
 Right side
 Floor
 Ceiling/Roof
 Inside/outside doors
 Outside/Undercarriage
9.2.5. Procedures must be in place to verify the physical integrity of the trailer structure
prior to stuffing, to include the reliability of the locking mechanisms of the doors.
The following ten-point inspection process is recommended for all trailers:
 Fifth wheel area - check natural compartment/skid plate
 Exterior - front/sides
 Rear - bumper/doors
 Front wall
 Left side
 Right side
 Floor
 Ceiling/Roof
24


Inside/outside doors
Outside/Undercarriage
9.2.6. The sealing of trailers and containers to include continuous seal integrity, are
crucial elements of a secure supply chain, and remains a critical part of a foreign
manufacturers’ commitment to CTPAT.
9.2.7. Written procedures must stipulate how seals are to be issued, controlled and
affixed to loaded containers and trailers, to include procedures for recognizing
and reporting compromised seals and/or containers/trailers to US Customs and
Border Protection or the appropriate foreign authority.
9.2.8. Only designated employees should distribute seals for integrity purposes.
9.2.9. Containers and trailers under foreign manufacturer control or located in a facility
of the foreign manufacturer must be stored in a secure area to prevent
unauthorized access and/or manipulation.
9.2.10. Procedures must be in place for reporting and neutralizing unauthorized entry
into containers/trailers or container/trailer storage areas
9.3. Physical Access Controls: Access controls prevent unauthorized entry to facilities,
maintain control of employees and visitors, and protect company assets. Access
controls must include the positive identification of all employees, visitors, and vendors at
all points of entry.
9.3.1. An employee identification system must be in place for positive identification and
access control purposes. Employees should only be given access to those
secure areas needed for the performance of their duties.
9.3.2. Company management or security personnel must adequately control and record
the issuance and removal of employee, visitor and vendor identification badges.
9.3.3. Procedures for the issuance, removal and changing of access devices (e.g. keys,
key cards, etc.) must be documented.
9.3.4. Visitors and vendors must present photo identification for documentation
purposes upon arrival.
9.3.5. All visitors should be escorted and should visibly display temporary identification.
9.3.6. Arriving packages and mail should be periodically screened before being
disseminated.
9.3.7. Procedures must be in place to identify, challenge and address
unauthorized/unidentified persons.
9.3.8. Packing, loading and shipping areas must be separated from the production area
and access should be restricted to authorized personnel only.
25
9.4. Personnel Security: Processes must be in place to screen prospective employees and
to periodically check current employees.
9.4.1. Application information, such as employment history and references must be
verified prior to employment.
9.4.2. Consistent with foreign regulations, background checks and investigations should
be conducted for prospective employees. Once employed, periodic checks and
reinvestigations should be performed based on cause, and/or the sensitivity of
the employee’s position.
9.4.3. Companies must have procedures in place to remove identification, facility, and
system access for terminated employees.
9.5. Procedural Security: Security measures must be in place to ensure the integrity and
security of processes relevant to the transportation, handling, and storage of cargo in
the supply chain.
9.5.1. Procedures must be in place to ensure that all information used in the clearing of
merchandise/cargo is legible, complete, accurate, and protected against the
exchange, loss or introduction of erroneous information.
9.5.2. Documentation control must include safeguarding computer access and
information.
9.5.3. To help ensure the integrity of cargo, procedures must be in place to ensure that
information received from business partners is reported accurately and timely.
9.5.4. Departing cargo being shipped should be reconciled against information on the
cargo manifest.
9.5.5. The cargo should be accurately described, and the weights, labels, marks and
piece count indicated and verified.
9.5.6. Departing cargo should be verified against purchase or delivery orders.
9.5.7. Drivers delivering or receiving cargo must be positively identified before cargo is
received or released.
9.5.8. Procedures should also be established to track the timely movement of incoming
and outgoing goods.
9.5.9. All shortages, overages, and other significant discrepancies or anomalies must
be resolved and/or investigated appropriately.
9.5.10. Customs and/or other appropriate law enforcement agencies must be notified if
anomalies, illegal or suspicious activities are detected - as appropriate.
9.5.11. A security officer or other authorized staff should be designated to supervise the
loading and unloading of cargo.
26
9.6. Physical Security: Cargo handling and storage facilities in international locations must
have physical barriers and deterrents that guard against unauthorized access. Foreign
manufacturer should incorporate the following C-TPAT physical security criteria
throughout their supply chains as applicable.
9.6.1. Perimeter fencing should enclose the areas around cargo handling and storage
facilities. Interior fencing within a cargo handling structure should be used to
segregate domestic, international, high value, and hazardous cargo.
9.6.2. All fencing must be regularly inspected for integrity and damage.
9.6.3. Gates through which vehicles and/or personnel enter or exit must be manned
and/or monitored.
9.6.4. The number of gates should be kept to the minimum necessary for proper access
and safety.
9.6.5. Private passenger vehicles should be prohibited from parking in or adjacent to
cargo handling and storage areas.
9.6.6. Buildings must be constructed of materials that resist unlawful entry. The integrity
of structures must be maintained by periodic inspection and repair.
9.6.7. All external and internal windows, gates and fences must be secured with locking
devices.
9.6.8. Management or security personnel must control the issuance of all locks and
keys.
9.6.9. Adequate lighting must be provided inside and outside the facility including the
following areas: entrances and exits, cargo handling and storage areas, fence
lines and parking areas.
9.6.10. Alarm systems and video surveillance cameras (CCTV) should be utilized to
monitor premises and prevent unauthorized access to cargo handling and
storage areas. Factories must be able to demonstrate system functionality and
provide access to equipment and records to any auditors representing the
Brands.
9.6.11. CCTV camera records must be kept for a minimum of 3 months in sensitive
areas and at least 1 months in other areas
9.6.12. Loading and unloading, packing area, international cargo and domestic cargo
areas must be segregated.
9.6.13. Any flammable, toxic or other dangerous materials must be segregated and
stored in a secure area.
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9.7. Information Technology Security
9.7.1. Automated systems must use individually assigned accounts that require a
periodic change of password.
9.7.2. IT security policies, procedures and standards must be in place and provided to
employees in the form of training.
9.7.3. A system must be in place to identity the abuse of IT including improper access,
tampering or altering of business data. All system violators must be subject to
appropriate disciplinary actions for abuse.
9.7.4. System access should be appropriate for the level of job responsibility of the
worker.
9.8. Security Training and Threat Awareness: A threat awareness program should be
established and maintained by security personnel to recognize and foster awareness of
the threat posed by terrorists and contraband smugglers at each point in the supply
chain.
9.8.1. Employees must be made aware of the procedures the company has in place to
address a situation and how to report it.
9.8.2. Additional training should be provided to employees in the shipping and receiving
areas, as well as those receiving and opening mail.
9.8.3. Additionally, specific training should be offered to assist employees in the
maintaining cargo integrity, recognizing internal conspiracies and protecting
access controls.
9.8.4. These programs should offer incentives for active employee participation.
9.8.5. A Security and Threat awareness policy should be posted in the local language
for all employees to review
Factories must be assessed before Full Container Loading privileges will be granted by
the compliance team. Only factories that meet the supply chain security standards will
be approved for FCL.
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10.
Brand Protection Overview
The purpose of the Brand Protection Program is to determine by on-site evaluation if a
factory has the capability to protect the reputation of the Brand. In order to reduce the
risk of illegal actives such as counterfeiting, diversion, trademark infringement and other
violations of intellectual property rights, the following guidelines have been established.
The evaluation also helps to determine if factory management understands and supports
the Brand Protection policies in the factory.
11.
Brand Protection Guidelines
11.1. Samples and Tech Packs, Trims, Labels and Artwork
11.1.1. Factories are prohibited from offering for sale any product with any Brand’s
intellectual property, at any time.
11.1.2. Any Brand’s samples are not permitted to be displayed by supplier or in factory
showrooms until 6 months after bulk order shipment.
11.1.3. Photos of Brand merchandise are prohibited by other clients of the factory.
11.1.4. Any overruns must be securely stored until properly sold –off or destroyed
according to each Brand’s policy.
11.1.5. Each facility must maintain storage areas for labels and trims with clear
identification and suitable controls.
11.1.6. Tech Packs, artwork or anything with Brand logos must be secured during
production. Controls must be kept to track movement of Tech Packs and artwork
throughout the production cycle.
11.1.7. Information for discontinued or cancelled styles must be kept secured and may
be destroyed quarterly. Labels must be cut into at least 2 segments to prevent
reuse. Destructions witnessed by factory management with complete and
accurate records must be kept for a minimum of two years. Records must include
photos.
11.2. Production
11.2.1. All garments, products, trims and artwork sent to an authorized sub-contractor
must be returned to the factories including all defective items. In and out
inventory records must be kept.
11.3. Second / Third Quality and Sell-Offs
11.3.1. All Second, Third and defective goods must be securely stored.
11.3.2. Supplier and factory must maintain accurate and complete records of production
and destruction of these items.
29
11.3.3. No merchandise of any type produced at the direction of the Brand may be sold
or delivered to any third party without prior written authorization from the Brand.
11.3.4. Sell-Off activity can be approved only by the Brand. Suppliers or factories that fail
to adhere to this policy may incur legal repercussions or termination of their
relationship with the Brands.
11.3.5. Complete records of all Sell-Offs must be kept for a minimum of two years.
11.3.6. Any Seconds, samples or overruns that are not sold off must be destroyed every
12 months and records and photos kept. Destruction may include, but is not
limited to cutting garments, burning or recycling in accordance with any local
laws.
11.3.7. Factory overruns cannot exceed the allowable percent as established by the
Brand.
11.3.8. Factory visits conducted by appointed audit firms will assess each factory’s ability
to adhere to these policies.
30
12.
Where to get more information
12.1. Each Brand’s vendor website:
13.

Catherines: http://www.csivendormanual.com

DressBarn: http://www.dressbarn.com

Lane Bryant: http://www.csivendormanual.com

Maurices: http://vendors.maurices.com

Tween Brands: http://vendors.tweenbrands.com
3rd Party Audit Firms
Auditors from one of the following firms will conduct visits on behalf the Ascena Retail
Brands.
Elevate www.elevatelimited.com
Rachel Brinkenhoff
Email: rbrinkenhoff@elevatelimited.com
Sumerra www.sumerra.com
Jason Tucker
Email: AGS@sumerra.com
UL Responsible Sourcing (UL-RS) http://industries.ul.com/responsible-sourcing
Kelly Hutcheson
Email: Kelly.Hutcheson@ul.com
Where to send factory information
factoryprofiles@ascenaglobalsourcing.com
14.
AGS Contact Information
Director, Global Compliance: Donna Sikyta dsikyta@ascenaglobalsourcing.com
Mgr, Vendor Compliance, Asia: Sammy Yu syu@ascenaglobalsourcing.com
Specialist, Global Compliance: Carly Cerepak ccerepak@ascenaglobalsourcing.com
Senior Manager Lane Bryant & Catherines: Leah Socker lsocker@ascenaglobalsourcing.com
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16.
Fee Schedule
The following is the cost for the Compliance Monitoring visit that will be charged back to
the vendor:
Factory Evaluation
$2000
To the extent a factory does not permit a third party monitor representative to conduct a
scheduled compliance monitoring visit, or cancels a scheduled visit within 48 hours of
the date of the visit, the vendor will be charged for the full cost of the visit and for any
out-of-pocket costs associated.
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Appendix 1
Code of Conduct
Catherines Stores Corporation, Lane Bryant Purchasing Corp., Maurices Incorporated, The
Dress Barn, Inc., and Tween Brands Service Co. (each, a “Brand”) are committed to socially
responsible business practices and ensuring that each Brands’ products are produced under
safe, lawful, humane and ethical conditions. Each Brand strongly encourages its suppliers to
exceed the requirements of this Code of Conduct and promote best practices and continuous
improvement throughout their factories.
While each Brand recognizes that there are different legal and cultural environments in which
factories operate throughout the world, this Code of Conduct sets forth the basic minimum
requirements all factories must meet in order to do business with the Brand.
This Code of Conduct applies to all factories that produce goods for a Brand or any of its agents.
Transparency
Each Brand expects vendors and factories to provide transparency into their operations, policies,
procedures and records. Vendors and factories must allow inspection of their records and
facilities by the Brand’s associates and appointed audit partners to verify compliance to these
standards. Factories producing goods for a Brand are expected to be honest and transparent
with all records. No Brand will tolerate any factory that submits falsified records. Each Brand
engages in a continuous improvement model for all factories willing to be transparent. Vendors
must disclose the identity and location of all factories that will produce goods for a Brand,
including the use of sub-contractors.
Laws and Regulations
Vendors and factories must operate in full compliance with all applicable laws and regulations of
the countries in which they operate. Vendors and factories also must comply with all applicable
United States and foreign laws and regulations on the importation of its products into those
countries, including: customs regulations; country of origin labeling; product and fabric testing;
and product labeling.
Factory Security
All factories producing goods for a Brand must implement minimum security criteria to help
secure the supply chain. The minimum security criteria are based on recommendations
developed as a result of the C-TPAT initiative with U.S. importers.
Brand Protection
All factories producing goods for a Brand must protect the reputation of the Brand and reduce
the possibility of illegal activities such as counterfeiting, diversion, trademark infringement and
other infringement of intellectual property rights. Factories must not sell or otherwise dispose of
goods that bear or incorporate the Brand’s trademarks, copyrights, patents, or other intellectual
property except as specifically directed in writing by the Brand.
33
Subcontracting
Vendors and factories must not use subcontractors in the manufacture of products or product
components for any Brand, unless the Brand provides written approval and the subcontractor
agrees in writing to comply with this Code of Conduct.
Bribery and Corruption
A bribe is the payment of anything (money, gifts, or services) to influence a business or
governmental decision. Vendors and factories must not offer or receive bribes to employees or
agents of a Brand, its auditors, or any government institution. Vendors and factories must
comply with all applicable laws related to bribery and corruption.
Child Labor
Vendors and factories must not employ workers younger than the age of 15 years or the
minimum age established by law in the country of the manufacture, whichever age is greater. In
addition, vendors and factories must comply with all legal requirements for the work of
authorized young workers, particularly those pertaining to hours of work, wages, and working
conditions. Factories must maintain official documents verifying every worker’s date of birth.
Forced Labor, Slave Labor, Human Trafficking
Vendors and factories must not use involuntary or forced labor, whether indentured, bonded,
prison, or otherwise. Vendors and factories must not confiscate or withhold worker identity
documents or other valuable items, including passports, work permits, and travel documentation.
Vendors and factories must not keep workers’ personal documents as a means to bind them to
employment or to restrict their freedom of movement.
Contract Labor
Factories that employ or recruit foreign workers must ensure those workers are treated fairly
and on equal basis with the local workers.
Wages and Benefits
Vendors and factories must pay workers at least the minimum compensation required by local
law and must provide all legally mandated benefits. In addition to their compensation for regular
hours of work, workers must be compensated for overtime hours at such premium rate as is
legally required or, in those countries where such laws do not exist, at least equal to their
regular hourly compensation rate. All factories must provide auditors accurate and complete
payroll and timecard records.
Hours of Work
Vendors and factories must ensure that, except in extraordinary business circumstances, on a
regularly scheduled basis, workers shall (1) not be required to work more than the lesser of (a)
sixty (60) hours per week, including overtime; or (b) the limits on regular and overtime hours
allowed by the law of the country of manufacture. In addition, except in extraordinary business
circumstances, all workers shall be entitled to at least one day off in every consecutive seven34
day period. Workers may refuse overtime without any threat of penalty, punishment, or
dismissal.
Health and Safety
Vendors and factories must provide their workers with a clean, safe, and healthy work
environment in compliance with all applicable, legally mandated standards for workplace health
and safety in the countries in which they operate (including standards for electrical, mechanical,
structural, and fire safety). This includes residential facilities, if applicable.
Environment
Vendors and factories must comply with all local environmental laws applicable to the workplace.
Factories must conduct business so as to minimize the impact on the environment, including
properly managing waste and maximizing recycling initiatives.
Nondiscrimination
While each Brand recognizes and respects cultural differences, vendors and factories must
ensure employment – including hiring, remuneration, benefits, advancement, termination and
retirement – is based on ability and not on belief or any other personal characteristics.
Humane Treatment
Vendors and factories must treat all workers with respect and dignity. No worker shall be subject
to corporal punishment, physical, sexual, psychological or verbal harassment or abuse. In
addition, vendors and factories will not use monetary fines as a disciplinary practice.
Women’s Rights
Vendors and factories will ensure women workers receive equal treatment in all aspects of the
employment. Pregnancy tests will not be a condition of employment, and pregnancy testing – to
the extent provided – will be voluntary and the option of the worker. In addition, workers will not
be forced to use contraception.
Freedom of Association
Vendors and factories must recognize and respect the right of workers to exercise lawful right of
free association, including joining or not joining any association. The decision of the worker to
join any such organization must be made solely by the worker.
Communication
Vendors and factories must communicate this Code of Conduct and the provisions to workers
and supervisors and undertake annual, documented training efforts to educate current and new
employees about these Code of Conduct requirements.
Monitoring and Compliance
Each Brand will undertake affirmative measures, such as announced and unannounced on-site
inspections of production facilities, to monitor compliance with this Code of Conduct. Vendors
35
and factories must maintain on site all documentation necessary to demonstrate compliance
with this Code of Conduct, and vendors and factories must allow Brand representatives full
access to production facilities, worker records, and workers for confidential interviews in
connection with monitoring visits.
No Retaliation
No Brand will tolerate any retribution or retaliation taken against any individual who has, in good
faith, sought advice or reported questionable behavior or a possible violation of this Code of
Conduct.
Vendors and factories are expected to take necessary corrective actions to promptly
resolve any non-compliance with this Code of Conduct. Each Brand reserves the right to
terminate its business relationships with any vendors and factories that are unwilling to
comply with this Code of Conduct.
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Appendix 2
Code of Conduct Confirmation
As an authorized manager of _______________________________, I acknowledge that I have
(Factory Name)
read and understand the provisions of the Compliance Manual and the Code of Conduct.
I confirm _________________________________________________ is currently in
(Factory Name)
compliance with the Code of Conduct.
___________________________
Signature
_______________________________________________________
Authorized Compliance Manager Name, Title
___________________________
Date
____________________________________________
____________________________________________
____________________________________________
Company Name and Address
Please attach a list of all supplier/manufacturing locations and their products or services
represented by your signature.
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Appendix 3
CUSTOMS - TRADE PARTNERSHIP AGAINST TERRORISM (C-TPAT)
ANNUAL NOTICE TO SUPPLIERS
This is to serve as notice that we support and are participants of the U.S. Customs
Service’s Customs – Trade Partnership Agreement Against Terrorism, commonly referred to as
“C-TPAT.” The C-TPAT program is a joint effort between U.S. Customs and the trade
community to reduce the threat of terrorism by means of protecting the integrity of cargo
imported into, further processed or warehoused in, and/or exported from the United States.
This necessarily requires the securitization of the entire supply chain beginning with the offshore
production of materials, goods, and component goods and continuing on to the warehousing
and transport of such goods and materials until their entry into the United States and distribution
into U.S. commerce or abroad. Shipments of importers participating in C-TPAT will receive
expedited entry into the United States and fewer examinations. Alternatively, where an importer
cannot demonstrate the security of its supply chain, delays and increased inspections of
incoming cargo will result at the U.S. borders.
As a member of C-TPAT, our goal is to enhance and maintain effective security processes
throughout the global supply chain, and to ensure the timely delivery of all incoming cargo. As
valued suppliers to our Brands, your support of C-TPAT is critical to the realization of our
objectives and to the cooperative endeavor between U.S. importers and U.S. Customs. We
require foreign manufacturers of imported goods to develop and implement a comprehensive
plan to enhance security procedures throughout their operations. In addition, our Brands also
expect domestic service providers (including, but not limited to, carriers, freight forwarders and
brokers) to join C-TPAT if eligible. Additionally, U.S. Customs expects Vendors and Factories
and any organization involved in the transfer of goods to have security procedures in place that
address the minimum security criteria as outlined in our Integrated Compliance Manual.
Again, we urge your distribution of this notice to each factory and service provider in your
respective supply chains to confirm they are meeting C-TPAT security criteria.
Kindly confirm that you have read this notice and understand its contents, by signing below
and returning this letter to the attention of Donna Sikyta, Director, Global Compliance.
Thank you for your prompt attention to this matter.
Sincerely,
Donna Sikyta
Director, AGS Global Compliance
614-775-3605
CONFIRMED BY:
_________________________________________
_________________________________
(Name)
(Title)
_________________________________________
(Company Name)
38
Version No.
1.0
1.0
Revision History
Date
1/13/2014
3/5/14
Description of Changes
Created draft
Final
39

Integrated Compliance Manual for Vendors and Factories

Transcription

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