Our Commitment To Social Responsibility
PacSun is committed to sourcing products from suppliers who conduct their business in a fair and responsible manner and share our belief in protecting human rights and preserving the environment. All PacSun suppliers are expected to make every effort possible to prevent any abusive, exploitative or illegal conditions in their factories. Below are some of our efforts to ensure that our suppliers are honoring their promise to uphold our principles:
- Vendor Code of Conduct: PacSun created a Vendor Code of Conduct in line with international labor standards and laws. All supplier factories and subcontractor factories producing PacSun's proprietary branded merchandise are required to comply with our Vendor Code of Conduct.
- Factory Audits: PacSun uses third-party monitoring firms to ensure that factories producing our goods are complying with our Code of Conduct. All factory assessments are conducted on a semi-announced and announced basis. Throughout the assessment process, the auditors advise factory management on how to correct any noncompliance issues that are found. PacSun also accepts global certifications from organizations such as WRAP and SA8000. In some cases we may accept recent audits from peer companies in the apparel industry whose principles are in line with international labor standards and our Code of Conduct.
- Remediation: We are committed to continuous improvement of our supplier factories. When noncompliance issues are identified, we believe the best way to resolve these issues are to provide the factory with assistance and guidance by placing them on a corrective action plan. However, if a critical issue of noncompliance is identified and/or when a supplier is unable to comply with our requirements, it is our policy to terminate the business relationship.
- Human Rights: PacSun recognizes that fair labor practices are a crucial element in human rights. We believe that workers have the right to bargain collectively if they choose to do so, and that they are entitled to work in a safe environment which is free of harassment, discrimination, and abuse. We also believe workers should have the freedom to choose where they work and be employed at their free will. PacSun will not tolerate any form of child labor or forced labor. In accordance with the California Transparency in Supply Chains Act of 2010, PacSun is committed to doing its part to eradicate slavery and human trafficking. We consider all forms of forced labor unacceptable and will only work with suppliers who share this common belief.
- Environment: PacSun requires all supplier factories and their subcontractors to comply with all local and international laws regarding the protection and preservation of the environment. Our supplier audits also verify that factories have obtained all required operating permits to handle hazardous materials and waste. Factories are also required to have waste management systems in place to ensure the proper handling and treatment of wastewater and hazardous materials as well as to prevent any catastrophic release of chemicals in the environment.
PacSun is continually researching potential program enhancements and will update our efforts as necessary in order to maintain a robust and comprehensive program. All updates to our program will be noted on our Social Responsibility page.
Pacific Sunwear's Code Of Conduct
The factory shall have a publicly available policy committed to social accountability and compliance with applicable laws and other requirements.
- The factory is to operate in full compliance with the laws of their respective countries and with all applicable laws, rules, and regulations, including those regarding labor, worker health and safety and the environment.
- The factory shall allow the Social Compliance Officer unrestricted access to all areas of the facilities and to all relevant records at all times, whether or not advance notice has been provided.
No person shall be employed at an age younger than 16 or under the age for completion of compulsory education or country legal working age, whichever is higher.
There shall not be any use of forced labor, whether in the form of prison labor, indentured labor, bonded labor or otherwise.
The factory, bearing in mind the prevailing knowledge of the industry and of any specific hazards, shall provide a safe and healthy working environment, including systems and training designed to help prevent accident and injuries. The factory shall appoint a senior management representative who is responsible for the health and safety of all personnel, and is accountable for the implementation of the health and safety elements of this standard.
Freedom of Association and Right to Collective Bargaining
The factory shall recognize and respect the right of employees to freedom of association and collective bargaining.
No person shall be subject to any discrimination in employment, including hiring, salary, benefits, advancement, discipline, termination or retirement, on the basis of gender, race, religion, age, disability, sexual orientation, nationality, political opinion, or social or ethnic origin.
Every employee shall be treated with respect and dignity. The factory shall not engage in or support the use of corporal punishment, mental or physical coercion and verbal abuse including but not limited to threats of violence and sexual harassment.
The company shall ensure that wages paid for a standard working week shall meet at least the legal or the local industry minimum standards, which ever is greater and shall always be sufficient to meet the basic needs of personnel and to provide some discretionary income.
All factories must comply with applicable environmental laws and regulations.
- The factory has an environmental plan or management system, such as ISO 14001.
- The factory has procedures for notifying local community authorities in case of accident discharge or any other environmental emergency.
California Transparency In Supply Chain Act Of 2010
As of January 1, 2012, the California Transparency in Supply Chains Act (SB 657) requires companies doing business in the state of California to disclose their efforts to eradicate slavery and human trafficking in their supply chain. This law is designed to increase the amount of information made available by companies on their efforts to eliminate slavery and human trafficking, thus allowing consumers to make more informed choices regarding the products they buy and the companies they choose to support. PacSun believes that workers at our supplier factories have the right to freely choose where they work and be treated with dignity and respect. Our efforts to ensure that slavery and human trafficking are not used in the production of our goods include the following:
- Supplier Certifications: Through our supplier agreements, PacSun vendors and their factories certify that their factories adhere to all terms and conditions of the agreement which includes prohibiting the use of forced labor. PacSun has also created a Vendor Code of Conduct, in line with international standards, conventions and laws which forbids the use of all forms of forced labor in the manufacture of our products. Our definition of forced labor is inclusive of slavery and human trafficking.
- Verification and Evaluation of our Supply Chain: PacSun requires all suppliers to complete and sign a questionnaire disclosing information on all factories producing PacSun's proprietary branded merchandise. Part of this questionnaire requires that factories agree to a third party audit to verify compliance with PacSun's Vendor Code of Conduct. Additionally, whenever possible, our sourcing teams will conduct factory walkthroughs to evaluate their suitability to produce PacSun goods. Part of this evaluation includes assessing workplace conditions and notifying our social compliance team of any human rights issues observed during the walkthrough.
- Third Party Audits: PacSun uses independent third-party monitoring firms to audit factories manufacturing PacSun's proprietary branded merchandise to verify compliance with our code of conduct. Audits are conducted on a semi-announced and announced basis. In some cases PacSun will accept global certifications such as WRAP, SA 8000 or recent audits from apparel companies whose code of conduct include the prohibition of all forms of forced labor including slavery and human trafficking.
- Accountability: PacSun has a zero tolerance policy for violations involving any form of forced labor, slavery and human trafficking. Vendors or factories found in violation of this policy will be immediately terminated as a supplier. Our social compliance team works closely with our senior leadership and General Counsel to ensure that our suppliers are in compliance with our Code of Conduct. Our executive management is accountable to the Nominating and Governance Committee of PacSun's Board of Directors who are provided updates on our social compliance program on a regular basis.
- Training: PacSun has conducted training with our sourcing teams on adherence to our Code of Conduct. Additional training with stakeholder groups within PacSun is planned for 2012 that will focus on monitoring the risk for human trafficking and slavery within the supply chain. We have also met with our key suppliers and reiterated PacSun's zero tolerance policy for factories engaged in slave labor or human trafficking. Suppliers have been informed that they must make every effort possible to guarantee that workers in their factories and the factories of their subcontractors are employed at their free will. Any supplier or subcontractor found in violation of this policy will be terminated.
PacSun takes issues involving human rights seriously and we expect our suppliers to do their best to ensure that forced labor in any form is not used in the production of our goods. We will continue to update our policies and procedures as needed to make certain that the appropriate safeguards are in place to prevent any mistreatment of persons involved in our supply chain.