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Macy's, Inc. and its subsidiaries are firm in their
resolve to do business only with those manufacturers and suppliers that
share the company's commitment to fair labor practices, including
adherence to laws that protect workers and their salaries, both in the
United States and abroad.
As a condition of doing business with Macy's, Inc., it is required that
manufacturers comply with all laws applicable to the country in which the
merchandise is manufactured, including but not limited to laws against
child or forced labor and unsafe working conditions. This condition is
reiterated on every purchase order issued by the company; the purchase
order contractually commits product manufacturers to adhere to applicable
laws in the fulfillment of the order, providing Macy's, Inc. with an avenue
of legal recourse should the contract be violated.
To further the objective of ensuring the protection of workers, Macy's, Inc. has
adopted and issued to its vendors a clear statement of its standards in a
detailed Vendor / Supplier Code of Conduct. Additionally the company requires
its core vendors annually to acknowledge in writing their understanding of the
company's policies requiring full compliance with all applicable laws in the
manufacture of products to be carried in Macy's, Inc. stores. Relationships with
manufacturers and suppliers who do not sign this agreement are immediately
terminated by Macy's, Inc. In the manufacture of private label products being
made exclusively for Macy's, Inc., the company routinely inspects factories for
contractual compliance, as well as compliance with laws and regulations dealing
with child or forced labor and unsafe working conditions.
Upon learning of a potential or actual violation of law by either a
supplier of merchandise to Macy's, Inc. or a subcontractor hired by such a
supplier, Macy's, Inc. will take the following actions:
When notified by the U.S. Department of Labor or any state or foreign
government, or after determining upon its own inspection that a supplier
or its subcontractor has committed a serious violation of law relating to
child or forced labor or unsafe working conditions, Macy's, Inc. will
immediately suspend all shipments of merchandise from that factory and
will discontinue further business with the supplier. Macy's, Inc. will demand
that the supplier institute monitoring programs necessary to ensure
compliance with applicable laws prior to the resumption of any business
dealings with that supplier. This action will be in addition to any
contractual or legal remedies available to Macy's, Inc. pursuant to the
purchase contract.
Upon notification of a violation of law by a supplier or its
subcontractor, other than as set forth above, Macy's, Inc. shall immediately
suspend further shipments from that factory, pending receipt of a detailed
explanation from the supplier that describes the circumstances surrounding
the violation, the supplier's position with respect to the violation, and
a commitment by the supplier to take remedial action to Macy's, Inc.'s
satisfaction. This action will be in addition to any contractual or legal
remedies available to Macy's, Inc. pursuant to the purchase contract.
Macy's, Inc. reserves the right to investigate any potential violation of law
and, at its discretion, to suspend, discontinue or terminate its
relationship with any supplier for its failure to comply with any laws
applicable to merchandise produced in the United States or any other
country.
Through the establishment of these policies and the proactive measures taken,
Macy's, Inc. believes it is most effectively exercising its economic leverage with
manufacturers to encourage their full compliance with laws designed to protect
their workers; manufacturers who violate these laws know the consequences of
their actions. In addition to its commitment to fully enforce its policies with
manufacturers, Macy's, Inc. is committed to cooperating with state and federal
agencies who ultimately are responsible for enforcing these laws.
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