Social Responsibility
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.
- 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
Management System
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 of PacSun unrestricted access to all areas of the facilities and to all relevant records at all times, whether or not advance notice has been provided.
Child Labor
Factories must not employ workers younger than 15 years of age--or 14 where local law allows such exception, consistent with the International Labor Organization guidelines-- or the age for completing compulsory education--or the minimum age established by law in the country of manufacture. In addition, factories must comply with all legal requirements for authorized young workers, particularly those pertaining to hours of work, wages, and working conditions.
Forced Labor
There shall not be any use of forced labor, whether in the form of prison labor, indentured labor, bonded labor or otherwise.
Working Conditions
Factories must provide their workers with a clean, safe and healthy work environment in compliance with all applicable, legally mandated standards for workplace health and safety in the countries in which they operate. This includes residential facilities, if applicable.
Freedom of Association and Right to Collective Bargaining
Factories shall recognize and respect employees’ right to freedom of association and collective bargaining.
Subcontracting
Factories must not use subcontractors in the manufacture of products without PacSun’s written approval and factories will use subcontractors only after they have demonstrated compliance with this Code of Conduct.
Factories shall recognize and respect employees’ right to freedom of association and collective bargaining.
Discrimination
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.
Disciplinary Practices
Every employee shall be treated with respect and dignity. Factories 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. In addition, factories shall not use monetary fines as a disciplinary practice.
Wages/Benefits
Factories must pay workers at least the minimum compensation required by local law and provide all legally mandated benefits. In addition to their compensation for regular hours of work, workers must be compensated for overtime hours at such premium rate as is legally required or, in those countries where such laws do not exist, at least equal to their regular hourly compensation rate.
Hours of Work
Factories must ensure that, except in extraordinary business circumstances, on a regularly scheduled basis, workers shall not be required to work more than the lesser of (a) sixty (60) hours per week, including overtime or (b) the limits on regular and overtime hours allowed by the law of the country of manufacture. In addition, except in extraordinary business circumstances, all workers shall be entitled to at least one day off in every consecutive seven day period.
Environmental
Factories must comply with all local environmental laws applicable to their operations.
Communication
Factories must communicate the provisions of the PacSun Code of Conduct to workers and supervisors.
PacSun Conflict Minerals Policy
In July 2010, Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law to eliminate the illegal trade of tin, tantalum, tungsten, and gold (3TG minerals) in the Democratic Republic of the Congo (DRC) and its adjoining countries, which include Central African Republic, the Republic of the Congo, South Sudan, Zambia, Angola, Tanzania, Burundi, Rwanda and Uganda. Under the rule and form adopted pursuant to this law (collectively, the Conflict Minerals Rule), publicly traded companies, such as PacSun, are required to report annually to the Securities and Exchange Commission (SEC), among other things, the presence of necessary “conflict minerals” originating from the DRC or its adjoining countries in the products they manufacture or contract to manufacture. PacSun supports ending the violence and human rights abuses taking place in the DRC and its adjoining countries. We are committed to ensuring that any 3TG minerals contained in our proprietary branded products are sourced from conflict free sources that do not fund armed conflict. As such, we are working to implement policies and procedures in support of the Conflict Minerals Rule and this policy.
PacSun does not directly source 3TG minerals or raw materials from any mines or smelters and only purchases finished consumer goods from suppliers. PacSun therefore requires the cooperation of its suppliers in the implementation of this policy.
In support of PacSun’s policy on conflict minerals, suppliers are expected to use materials that are “DRC conflict free” within the meaning of the Conflict Minerals Rule in the products they sell to PacSun. Suppliers are expected to adopt policies and management systems that are consistent with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. In addition, PacSun suppliers are required to complete in a timely manner the PacSun Conflict Minerals Questionnaire, which we modeled after the questionnaire developed by Electronic Industry Citizenship Coalition (EICC) and Global e-Sustainability Initiative (GeSI). Suppliers also are required to, if requested, provide supporting documentation. An overview of our due diligence program is provided below in PacSun’s Conflict Minerals Report.
We are committed to working with our suppliers to increase transparency regarding the traceability of any 3TG minerals that may be contained in our products. However, in the event that PacSun determines that a supplier’s efforts to comply with this policy have been insufficient or the supplier fails to cooperate in developing and implementing reasonable steps to comply, PacSun maintains the right to take appropriate actions necessary up to and including discontinuing the business relationship with the supplier. Suppliers are encouraged to contact our merchant teams with whom they regularly conduct business if they have questions concerning this policy. In addition, concerns regarding this policy, or violations, can be reported as follows:
By email: [email protected]
By traditional mail:
Pacific Sunwear of California
Attn: General Counsel
3450 Mira Loma Ave
Anaheim, CA 92806