California Transparency in Supply Chains Act Disclosure
Cost Plus World Market (“World Market”) is committed to ethical and responsible conduct in all of our operations, respect for the rights of all individuals and respect for the environment. We are dedicated to upholding the human rights of all workers involved in our product supply chains. We consider fair labor practices to be an important part of human rights. Our goal is to ensure that all individuals involved in our supply chains experience safe, fair and non-discriminatory working conditions. We will not knowingly work with any company that does not comply with our ethical standards.
Because we specialize in finding unique products from around the world and working with artisan communities in many countries, we are particularly committed to working with vendors that provide fair and ethical working conditions. This statement describes our actions to support human rights, including our efforts to guard against human trafficking and slave labor in our company’s supply chain, in compliance with the California Transparency in Supply Chains Act of 2010.
Verification of Product Supply Chain to Guard Against Human Trafficking and Slave Labor
Our products come from partners all over the world, including buying agents and direct vendors located in the United States and abroad. We require our buying agents to perform audits and keep documentation confirming that the vendors with whom they work comply with our Social Compliance Policy. In addition, each vendor and buying agent must agree in writing to abide by our Social Compliance Policy, which is part of our Purchase Order Terms and Conditions and Vendor Guide. This policy guards against human trafficking and slave labor, and helps to ensure fair working conditions at all factories in our supply chain, including the following requirements:
- The use of prison, forced, indentured, or bonded labor is prohibited in the production of any merchandise.
- Physical, sexual or psychological harassment or abuse, or cruel or unusual disciplinary practices are prohibited.
- No child labor may be used in the production of goods for World Market. Every vendor must comply with the child labor laws of the country where the workers are employed and of the exporting country, and no worker may be employed who is under 15 years old or younger than the age for mandatory compulsory education in their jurisdiction, whichever is older.
- Fair wages and benefits must be provided in compliance with laws of the country of manufacture and the exporting country, including those relating to minimum wages, overtime, maximum hours, piece rates, benefits, and other elements of compensation.
- Overtime in excess of the hours allowed by the manufacturing country’s laws is prohibited, and employees may not work more than 60 hours in a week, except under extraordinary circumstances. Employees shall be entitled to no less than one day off in every seven-day period.
Our partners agree to monitor, report and verify compliance with this policy for both themselves and their suppliers. Buying agents Vendors agree to monitor, report, and verify compliance with these requirements for both themselves and their suppliers and subcontractors.
Audits of Suppliers to Evaluate Compliance With Company Standards to Prevent Trafficking and Slavery in Supply Chains World Market regularly audits its vendors in order to monitor and evaluate their compliance with our standards for working conditions and human rights, including our prohibition on forced labor in any form. The audits occur in several ways:
World Market uses a third party to conduct independent third-party monitoring of some of the factories that produce goods for the company, primarily factories located in China. These audits are conducted annually. The company intends to utilize third party auditing in other locations if issues arise that suggest closer monitoring is required to ensure compliance with company policies.
We require our buying agents to perform audits and provide documentation annually confirming that the factories with which they work comply with our Social Compliance Policy and the Vendor Guide. Buying agents conduct periodic on-site visits for the purpose of inspecting working conditions and conducting audits of production records and practices.
Our own buyers may also visit factories of vendors with whom they deal directly, and they have been trained to be aware of signs of human trafficking and slavery and to report any observed issues or violations of the company’s Social Compliance Policy.
Certification by Vendors that Materials Used in Their Products Comply With Laws Regarding Slavery and Human Trafficking
World Market vendors must provide written certification that they will abide by our Purchase Order Terms and Conditions, which contains the express warranty that the vendor is in compliance with all current and later adopted laws of the exporting country and the country in which the goods are produced governing child and involuntary labor. In addition, the Vendor Guide requires written certification that: “Vendor hereby certifies that the materials incorporated into the goods provided to the company comply with the laws regarding slavery and human trafficking of the country in which the vendor is doing business and the territory in which the goods are produced.”
Internal Accountability Standards and Procedures Ensure Compliance With Our Social Compliance Policy
World Market recognizes that it must hold our suppliers accountable for compliance with its human rights standards, including our strict prohibition on forced labor of any kind. Our partners must monitor, report and verify compliance for themselves and their suppliers. In support of that effort, we have created an online social compliance reporting system for all direct vendors, whether located in the United States or abroad. Each direct vendor is required to complete a Social Compliance Assessment audit form annually, addressing a variety of topics, including human trafficking and slavery.
We have a written procedure in the event we identify potential human rights violations. If an issue is identified, we work with the company’s agents and vendors to remediate any violations of our Social Compliance Policy, and require that vendors implement appropriate and timely corrective action. Any violation of the company’s Social Compliance Policy which our buyers, agents or other employees become aware of must be reported to senior management and the matter will be evaluated for prompt remediation. The company has established a confidential hotline that can be used by employees, agents or any third party to report suspected violations of the company Social Compliance Policy. We treat every violation of the Social Compliance Policy seriously, and reserve the right to terminate our relationship with any vendor who fails to meet our standards.
Training on Human Trafficking and Slavery for Employees and Management with Direct Responsibility for Supply Chain Management
World Market has adopted a training program for buyers, sourcing and quality control teams, senior management, and other employees with responsibilities in the supply chain, educating them about the issues and risks associated with slavery and human trafficking. The company has also provided training to employees on how to identify and report issues relating to human trafficking and slavery. This training will be repeated at appropriate intervals to ensure that all new employees are educated about the company’s Social Compliance Policy and the issues relating to human trafficking and slavery.
We are committed to upholding the human rights of all workers involved in our product supply chains, and to the eradication of human trafficking and slavery worldwide.