Commitment to Vendor Accountability
Ethics and Values
Pier 1 Imports is committed to conducting its business with a high standard of business ethics, in compliance with applicable laws and with a regard for human rights and fair labor practices. While we recognize and respect the cultural differences that exist throughout the world, Pier 1 expects its vendors and agents to share and uphold these values.
Oversight and Code of Vendor Conduct
To facilitate vendor commitment to these values, Pier 1 established a Vendor Relations Department that has management and oversight responsibility for vendor accountability. This department develops programs and implements procedures aimed at ensuring compliance with Pier 1's Code of Vendor Conduct. Two principle functions of this department are to educate vendors regarding our expectations (i.e. the standards set forth in the code) and to coordinate assessment activities at production facilities.
The Code of Vendor Conduct was established in order to reflect Pier 1's desire to do business with vendors who comply with the legal requirements applicable to the conduct of their business, and who respect accepted international labor standards. The Vendor Relations Department, together with Pier 1's agents, virtually all of whom are located in the countries where Pier 1's merchandise is produced, ensure that vendors are informed of, and understand, the terms of the code.
Education and Training
Pier 1 believes that the success of our vendor accountability process requires effective education and training of our employees, agents and vendors, as well as subcontractors engaged in the production of Pier 1 merchandise. Accordingly, we are committed to allocating the resources reasonably required to promote an understanding of our requirements.
Assessment and Compliance
Visits to production facilities are routinely made by Pier 1 agents and buyers. Pier 1's agents are required by agreement to promptly notify Pier 1 of any event of noncompliance with the code. Assessments of production facilities are conducted periodically by either a representative of the Vendor Relations Department or, when requested, by a third party. Vendors will be notified of the results of the assessment and offered guidance with respect to matters requiring correction or which need improvement; however, Pier 1 reserves the right to suspend future orders or to terminate its relationship with the vendor for compliance failures.
Cooperation and Communication
While we believe our vendor accountability process promotes responsible working conditions, we also believe that the continued cooperation and communication among all constituencies interested in this important area offer the best long-term prospects for improved labor conditions.
Code of Vendor Conduct
Compliance with Laws
- Vendors must fully comply with all applicable national and/or local laws and regulations, including, but not limited to those governing labor, health and safety, and the environment.
- No Child Labor: Vendors will not use child labor. A “child” refers to a person under the minimum age for employment established by local law, or the age at which compulsory school has ended, whichever is greater, but in no case under the age of 14.
- Voluntary Labor: All labor must be voluntary. Forced, bonded, prison, or indentured labor is not allowed. Workers must be allowed to maintain control over their identity documents.
- No Harassment or Coercion: Vendors will treat each worker with dignity and respect, and will not use corporal punishment, threats of violence or other forms of physical, sexual, psychological or verbal harassment, intimidation or abuse.
- Freedom of Association: Vendors must respect the right of workers to choose whether to lawfully and peacefully form or join associations of their choosing.
- Nondiscrimination: Workers should be hired on the basis of their ability and qualification to do the job, and not on the basis of personal characteristics or beliefs. Vendors will not unlawfully discriminate with regard to hiring and employment practices on the basis of race, religion, age, nationality, social or ethnic origin, gender, sexual orientation, political opinion or disability.
- Wages and Benefits: Vendors must compensate all workers with wages, overtime premiums, and benefits that meet or exceed applicable law, local industry standards, or collective agreements, whichever are higher.
- Hours of Work/Overtime: Vendors will maintain reasonable employee work hours in compliance with applicable law. Vendors must provide workers with rest periods and ensure the working hours are consistent with applicable law and not excessive. Generally, workers should not be scheduled for more than forty-eight (48) regular hours per week and 12 hours overtime. Except for extraordinary business circumstances, workers should be permitted to at least one (1) day off in every seven (7) day period, or the rest period required by applicable law if greater than one (1) day a week.
- Health and Safety: Vendors will provide workers with a safe and healthy workplace in compliance with applicable law, ensuring at a minimum, reasonable access to potable water and sanitary facilities, fire safety, and adequate lighting and ventilation.
- Vendors will comply with all applicable laws regarding protection and preservation of the environment in their country. All input materials and components must be obtained from permissible sources consistent with applicable laws, if any.
- Vendors will comply with and adhere to the applicable supply chain security criteria contained in the U.S. Customs and Border Protection’s “Customs – Trade Partnership Against Terrorism” or the equivalent criteria contained in an applicable World Customs Organization accredited security program.
- Vendors must not tolerate, permit, or engage in bribery, corruption, or unethical practices whether in dealings with public officials or individuals in the private sector.
Monitoring, Documentation and Compliance
- Vendors will permit Pier 1 Imports and its agents (including third parties) to engage in assessment activities to confirm compliance with this Code of Vendor Conduct, including unannounced on site inspections of production facilities, reviews of books and records relating to labor matters, and private interviews with workers. Vendors will maintain on site all documentation that may be needed to demonstrate compliance with this Code of Vendor Conduct.
Communication of Standards
- Vendors will take appropriate steps to ensure that the provisions of this Code of Vendor Conduct are communicated to workers, and any subcontractor, and its workers, including the prominent posting of a copy of this Code of Vendor Conduct, in the local language and in a place readily accessible to all such workers, at all times.