In January of 2012, the state of California passed the Transparency in Supply Chains Act (the "Statute"). This Statute requires companies that conduct business in California to disclose their efforts to eradicate slavery and human trafficking from direct supply chains. More specifically, this Statute requires that companies disclose to what extent, if any, they address each of the five points below:
Vera Bradley's Supplier Code of Conduct prohibits the use of forced, involuntary, or child labor of any kind in our supply chain. Suppliers may not participate in, or benefit from, any form of forced labor (including prison labor, indentured labor, bonded/debt labor, sale labor, etc.). Before we engage with a potential supplier, a Vera Bradley Auditor or third-party audit provider conducts an on-site audit to evaluate each potential supplier's ability to comply with our Supplier Code of Conduct.
Each facility of any supplier conducting business with Vera Bradley is subject to an audit to ensure that they are in compliance with our Supplier Code of Conduct. The audits are performed by either a trained Vera Bradley Auditor or a third-party audit provider who employs experts in local laws and who speak the local languages. The frequency of audits for each facility is based on factors such as prior risk assessment and previous audit results. Our goal is to audit each facility once per year. Currently our audits are scheduled with the suppliers due to the amount of time and resources required on-site to complete all audit requirements.
Vera Bradley requires all finished goods suppliers, as well as any direct-sourced component suppliers, to be in compliance with our Supplier Code of Conduct in addition to any applicable laws within the country of origin regarding slavery and human trafficking. We ask all suppliers to certify that the production of any additional materials incorporated into the product comply with the applicable laws regarding slavery and human trafficking of the countries with whom they are doing business.
Our Supplier Code of Conduct states that any discovery of forced labor or human trafficking shall be treated as a zero-tolerance violation, which requires immediate corrective action by the supplier. In the event of a zero tolerance violation, Vera Bradley reserves the right to refuse to begin, or to terminate, a business relationship, regardless of any corrective action taken.
Vera Bradley is currently working towards training all employees, management, and third-party audit providers who work with our supply chain with regards to the risks of human trafficking and slavery as well as what actions can be taken to mitigate these risks.