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 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. may 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.