CHS Download Corporate Governance Documentation Terms of Commitment to Ethical Sourcing


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CHS Download Corporate Governance Documentation Terms of Commitment to Ethical Sourcing

  1. 1. Terms of Commitment to Ethical Sourcing Chico’s, White House | Black Market, and Soma Intimates (the Company”) believe that every person has a right to decent and humane working conditions. We also believe that protection of our environment must be a priority in our approach towards business. Accordingly, we have voluntarily established these Terms of Commitment to Ethical Sourcing. As a retailer, we do not own the factories that make the merchandise sold in our stores. However, we believe that we have a responsibility to work with our suppliers so that what we sell is made under working conditions and in factories that operate consistent with our values and business commitments; regardless of whether the merchandise is made in the United States or in a foreign country. These Terms of Commitment set out the requirements that our suppliers and manufacturers must meet, and compliance with our Terms is a requirement for the selection of new suppliers. The Company is committed to working with its supplier-partners to achieve the goals of these Terms. If a supplier is found to be in violation of our Terms, we require the supplier to take corrective action within an appropriate time. We prefer to support and encourage continuous improvement towards compliance so that the workers involved and the local community not be adversely impacted. However, in a case where a factory or supplier shows itself unwilling or unable to meet our requirements, we will have no choice but to cease doing business with that supplier. We also believe that our customers share our commitment to ethical sourcing and are entitled to know that we have a policy and program to meet their expectations. In addition, since our philosophy or corporate social responsibility is premised upon the idea that we are a partner with our customers and community, we are interested in hearing your views and suggestions on what more the Company might do to continue to meet, and hopefully exceed, your expectations. Code of Conduct for Ethical Sourcing I. General Requirements: Suppliers shall operate in full compliance with the laws, regulations or other legal requirements of their respective countries including, without limitation, all legal requirements for working conditions and environmental protection. In addition, suppliers shall comply with these Terms of Commitment to Ethical Sourcing. If the national law governing a supplier and these Terms address the same issue, the provision with the more stringent requirement applies. Suppliers will allow the Company’s personnel and any other representatives acting on its behalf to inspect any facility producing merchandise for the
  2. 2. Company and the relevant records of that facility, without prior notice. Suppliers will not contract or subcontract the production of our merchandise to any factory or facility without our prior approval. II. Child Labor: Suppliers must meet all applicable laws, regulations, or other legal requirements regarding the minimum age for employment. In any event, however, suppliers must not hire anyone under the age of 16, or under the age interfering with compulsory schooling, or under the minimum age established by law, whichever is greater. All other laws and regulations governing working conditions for minors must be followed. III. Forced or Compulsory Labor: Suppliers shall not use forced or compulsory labor of any kind, including prison labor, bonded labor or indentured labor. IV. Disciplinary Practices: Suppliers shall not permit any physical, sexual, psychological, or verbal harassment or abuse of workers. V. Freedom of Association and Collective Bargaining: Suppliers shall recognize the right of workers to organize and join trade unions of their own choosing and to bargain collectively. Suppliers shall not threaten, penalize or discriminate against, or otherwise interfere with workers exercising these rights. Suppliers shall engage in negotiations with worker representatives intended to reach agreement on employment conditions. VI. Discrimination: Suppliers shall not discriminate in employment or working conditions on the basis of gender, race, color, religion, nationality, political opinion, social origin, age, disability, sexual orientation, maternity or marital status, or other distinguishing characteristics. VII. Wages and Benefits: Suppliers shall pay wages for a standard workweek, equivalent to at least the legally mandated minimum wage, or the prevailing industry wage, whichever is higher. All other benefits required by law or regulation shall also be provided, including paid holidays and vacations. Suppliers shall establish wage and benefit levels in recognition of the basic needs of employees. Suppliers shall not make
  3. 3. deductions for disciplinary purposes, and shall provide written information to each employee specifying the wages and benefits provided for each pay period. VIII. Hours and Overtime: Suppliers shall comply with all applicable laws and industry standards such that hours worked each day, and days worked each week, shall not exceed the legal limitations of the countries in which any product is produced. Suppliers will provide at least one day off in every seven-day period. In addition to their compensation for regular hours of work, employees shall be compensated for overtime hours at such premium rate as is legally required in the country of manufacturer or, in those countries where such laws do not exist, at a rate at least equal to their regular hourly compensation rate. IX. Health and Safety Suppliers shall provide a safe and healthy working environment, and take into consideration any particular hazards posed by the specific operations involved. Suppliers shall comply with prevailing national laws and regulations on health and safety issues. Suppliers shall assure that employees are adequately trained on health and safety procedures and that necessary protective equipment is provided to and used by employees. Suppliers who provide residential facilities for their workers must assure they meet all applicable health and safety requirements. X. Environment: Suppliers shall comply with all applicable environmental laws and regulations. Suppliers shall have an appropriate management system in place to assure that manufacturing practices meet the objective of environmental protection.