California Transparency in Supply Chains Act of 2010 (SB 657)
Ariat International, Inc. (“Ariat”) is committed to conducting business in a responsible, ethical, and transparent manner. Ariat seeks the same level of integrity and ethical standards with its vendor and supplier partners (“Suppliers”). Ariat carefully selects potential Suppliers that share our same values and uses controls and programs designed to ensure that the facilities that manufacture Ariat products are fair and safe places for workers. In particular, Ariat requires that its Suppliers employ and engage their workers according to applicable legal requirements and human rights principles.
Ariat has formed strong business relationships with a limited number of Suppliers to manufacture Ariat products. Prior to onboarding a Supplier, Ariat evaluates the potential Supplier’s workforce profile, manufacturing processes and the associated health and safety risks. All Suppliers must certify they comply with the Ariat Code of Conduct, which strictly prohibits the use of any compulsory labor, including human trafficking and slavery.
Ariat audits Suppliers through on-site inspections to monitor compliance with the Ariat Code of Conduct, which sets forth Ariat’s guidelines for conducting business in a lawful, ethical and responsible manner. The intensity and frequency of these audits vary based on geographical risk evaluations and the historical performance of a given factory in previous inspections. When issues of noncompliance are identified, Ariat works with the Supplier to identify the cause of the non-conformance and develops a corrective plan to assure future compliance.
Ariat’s Suppliers are contractually required to comply with all applicable laws within their country of business. Additionally, Ariat Suppliers are required to adhere to the Ariat Code of Conduct, which, among other things, prohibits child labor and any form of forced, bonded, trafficked, indentured or prison labor. Each supplier must compliance with these terms prior to becoming an Ariat-approved contracted factory.
Any Employee or Contractor’s failure to comply with the Code of Conduct may result in corrective action up to and including termination of employment. Similarly, failure of Suppliers to abide by Ariat’s Supplier Agreement and/or Code of Conduct can result in corrective action up to and including the termination of existing and future business.
Ariat provides training and education on the detection and evaluation of supply chain risks to employees and management who are responsible for supply chain management.