California Transparency in Supply Chains Act
In 2010, a law was passed in the state of California requiring companies to disclose what they are doing to address human trafficking in their supply chains. The California Transparency in Supply Chains Act seeks to “educate consumers on how to purchase goods produced by companies that responsibly manage their supply chains … to improve the lives of victims of slavery and human trafficking.”
G-III Apparel Group, Inc. (“G-III”) strives to ensure that its products are produced in a legally and socially responsible manner and to prevent complicity in abusive employment practices such as human trafficking and slavery. The items outlined below explain what G-III is doing to address each of the five pillars of the California Transparency in Supply Chains Act.
1. Verification of Supply Chain – We have developed a vendor compliance program that requires vendors to comply with applicable employment and human rights laws, as well as adhere to G-III’s own standards intended to eliminate abusive employment practices, including forced labor, human trafficking and slave labor. Vendors must also certify their compliance with such laws and G-III’s own standards. We verify compliance using internal and third party auditors.
2. Supplier Audits - We conduct audits of supplier’s facilities using independent third-parties to determine whether these facilities are in compliance with laws and our standards. We also use internal personnel to periodically verify compliance. Verification of the product supply chain to determine whether facilities are in compliance with laws and our standards include both announced and unannounced audits of vendor facilities.
3. Supplier Certifications - We require our direct suppliers to certify that they comply with all appropriate laws and our standards prior to the placement of an order by us. This certification of compliance includes materials incorporated by our direct suppliers in products they produce for us.
4. Standards - We maintain internal accountability standards and procedures for employees or contractors failing to meet company standards. Failure of our employees to abide by G-III’s Code of Business Conduct can result in corrective action up to and including termination of employment. Failure of vendors to abide by our standards can result in corrective action plans and other disciplinary measures for vendors who are found to violate applicable laws or our standards up to and including termination of our business relationship with the vendor.
5. Employee Training - G-III conducts internal training with respect to our vendor compliance program and our standards to ensure that personnel involved in supply chain management are made aware of how to identify potentially abusive situations.