California Transparency in Supply Chain Act of 2010 (SB 657)
The California Transparency in Supply Chain Act of 2010 (SB 657) became effective in the State of California on January 1, 2012. This law was designed to increase the amount of information made available by companies regarding their efforts to address the issues of slavery and human trafficking, thereby allowing consumers to make better, more informed choices about the products they buy and the companies they choose to support.
Haggar Clothing Co.'s ("Haggar's") efforts include:
- Haggar engages in verification of its apparel product supply chain to evaluate and address risks of slavery and human trafficking. Preliminary risk assessments are performed by Haggar on potential suppliers with assessment questionnaires, followed by an in-depth assessment conducted by a third-party auditing firm. Continuing suppliers are audited by a third-party auditing firm on a yearly basis.
- Haggar conducts audits of direct suppliers to evaluate supplier compliance with Haggar's standards for human trafficking and slavery. We have developed and issued a Code of Conduct to our direct suppliers. Direct suppliers are evaluated through audits on their compliance with our Code of Conduct. Our audits are unannounced audits performed by a third-party auditing firm. Following audits, suppliers are required to produce a corrective action plan to outline how the supplier will resolve any issues uncovered in the audits. Haggar has zero tolerance for human trafficking or slavery.
- Haggar's purchase order agreements require all direct suppliers to comply with our Code of Conduct as well as the applicable laws regarding slavery and human trafficking of the country in which the suppliers are doing business. Haggar also requires its direct suppliers to certify that materials incorporated into the products Haggar purchases comply with the laws regarding slavery and human trafficking of the country in which they are doing business.
- Haggar maintains and enforces internal accountability standards and procedures for employees and contractors regarding company standards that address slavery and human trafficking. In the case of non-compliance, Haggar reserves the right to examine the specific situation and develop a best possible strategy for resolution. If cases of non-compliance are not resolved within a timely manner, Haggar may terminate the business relationship.
- Haggar conducts internal training on Haggar's Code of Conduct to ensure the necessary participants in the supply chain management team are knowledgeable and aware of the issues and concerns surrounding, and mitigating risks to, the supply chain, including risks of human trafficking and slavery. Haggar also encourages employees involved in the supply chain to participate in external training programs and seminars on social compliance issues, including the issues of human trafficking and slavery.