The California Transparency in Supply Chains Act
Pier 1 Imports is committed to conducting its operations 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 Imports expects its vendors and agents to share and uphold these values.
The California Transparency in Supply Act of 2010 (California Senate Bill 657) requires large manufacturers and retailers to disclose their efforts to eliminate the risk of slavery, forced labor and human trafficking from within their supply chains. Examples of how Pier 1 Imports is working to eliminate these risks are listed below:
- Verification and Risk Assessment: Pier 1 Imports' Code of Vendor Conduct (“the code”) requires vendors to comply with applicable laws, including laws regarding forced labor. Each vendor agrees to comply with the code prior to becoming a Pier 1 Imports vendor. Pier 1 Imports vendors undergo evaluations to ensure compliance with the code, and the local health, safety and labor laws. Risk assessments of the supply chain are conducted to identify areas of potential risk and remediation plans developed to address any risk identified.
- Auditing: Pier 1 Imports conducts both announced and unannounced social compliance program audits, which includes review of standards related to forced labor and human trafficking in the supply chain. These audits are performed by third party auditors, as well as Pier 1 Imports internal personnel. Factory management is expected to address issues identified in the audit. A Vendors failure to comply with any Pier 1 Imports term, condition, requirement, policy or procedure may result in the cancellation of existing orders and/or termination of the business relationship.
- Certification: Pier 1 Imports Code of Vendor Conduct requires its vendors to comply with applicable laws, including laws strictly prohibiting forced labor. Each vendor agrees to comply with the code prior to becoming a Pier 1 Imports vendor. Additionally, each supplier reaffirms its compliance to the code and Pier 1 Imports requirements regarding forced labor through the Master Terms and Conditions of each accepted Purchase Order.
- Accountability: Pier 1 Imports associates are required to comply with the Pier 1 Imports Code of Business Conduct and Ethics, which is regularly updated. Associate training and certification of compliance is conducted periodically. Associates with production, sourcing or quality control responsibilities are informed of the code and the requirements regarding forced labor. Allegation of violations of the code of Business Conduct and Ethics by Pier 1 Imports associates and/or the code by its suppliers are investigated and appropriate action taken, up to and including termination of associates and termination of agents and/or suppliers.
- Training: Pier 1 Imports believes that the success of its supply chain accountability program requires effective education and training of our employees, agents and vendors. Accordingly, Pier 1 Imports conducts regular training for its employees, agents and vendors regarding social compliance issues, including human rights and fair labor practices.
Code of Vendor Conduct
Compliance with Laws
Vendors must comply with all applicable national and/or local laws and regulations which govern their operations, including, those governing labor, health, safety, the environment, corruption and bribery.
- 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: Each worker will be treated with dignity and respect. Corporal punishment, threats of violence or other forms of physical, sexual, psychological or verbal harassment, intimidation, or abuse will not be used.
- Association: Vendors must respect the right of workers to choose whether to lawfully and peacefully form or join associations of their choosing, as allowed by local law.
- 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, in violation of applicable local law, 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 local 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, provide workers with rest periods and ensure that working hours consistent with applicable law are 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.
Applicable laws regarding protection and preservation of the environment in the vendor's country should be complied with. All input materials and components must be obtained from permissible sources as allowed by applicable law.
Vendors will comply with and adhere to the applicable supply chain security criteria contained in the US Customs and Border Protection's "Customs – Trade Partnership Against Terrorism" (C-TPAT) Program or the equivalent criteria contained in an applicable World Customs Organization accredited security program. C-TPAT Guidelines are available on the Connect Portal for review by Vendors.
Vendors must comply with and adhere to the local laws and regulations concerning 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 designated representatives to engage in the assessment of vendor activities to confirm compliance with this Code of Vendor Conduct, including unannounced onsite 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.