California Transparency in Supply Chain Act
Introduction
The Hermès Group supports the goals of the California Transparency in Supply Chains Act of 2010 (“Act”) and strives to be a model example of human rights and fair labor practices throughout its business activities.
The Hermès Group chooses the best suppliers in its field – those who lead not only in terms of the quality of their products and services but also by way of their social and environmental approaches. To this end, the Hermès Group chooses its suppliers based upon both their ethics and integrity in their business dealings, as well as the social and environmental principles by which they operate.
The implementation of the Act presents the opportunity for the Hermès Group to reaffirm its commitment to enforcing measures that fight against slavery and human trafficking.
As a responsible corporate actor, the Hermès Group has long since integrated standards of the Act into its daily business.
The Hermès Group’s actions in this area include the following:
Verification of Requirements for Suppliers
The Hermès Group has implemented the Hermès Group Code of Good Conduct (“Code”) for its suppliers. The Code sets forth and establishes non-negotiable minimum standards for the Hermès Group’s suppliers in the areas of health and safety, labor standards, business integrity and the environment. In addition, the Hermès Group may conduct third-party supplier audits, described below, in order to verify that its suppliers are complying with these minimum standards.
More information can be found at: www.sa-intl.org and www.pactemondial.org, which set forth the standards which the Hermès Group has incorporated into its Code.
Supplier Audits
The Hermès Group audits suppliers that, based upon an analysis of the volume of the supplier’s business and the risk of abuses in the country in which the supplier is located, pose a high risk of working condition violations. The Hermès Group announces the audit and then delegates the audit to a third party, in charge of ensuring that its suppliers are compliant with Social Accountability International’s SA8000 standards, an international standardized code of conduct for improving working conditions around the world, and are compliant with the Code.
Certification of Supplier Compliance
The Hermès Group requires its suppliers to sign and to adhere to the Code.
Maintaining Accountability
In the event the Hermès Group becomes aware of any actions or conditions not in compliance with its Code, the Hermès Group reserves the right to demand corrective measures.
The Hermès Group reserves the right to terminate an agreement with any supplier who does not comply with the Code.
Training to Company Employees
The Hermès Group employees worldwide have access to a special website which fully explains the commitments of the Hermès Group, including anti-slavery and human trafficking measures.
Further, the Hermès Group’s ethical charter clearly states that it is the company’s policy to uphold human rights in its supply chains. This charter has been translated into nine different languages and is communicated throughout the Hermès Group.
The Hermès Group also performs audits of its suppliers to ensure that these fair labor principles are effectively applied.
The Hermès Group and its employees endeavor to respect the laws and regulation in all countries in which they operate, and conducts its business according to universal principles laid down by international agreements and standards. In particular, the Hermès Group adheres to the Universal Declaration of Human Rights, and the Charter of Fundamental Rights of the European Union, which draws from a variety of legislative instruments, such as national and EU laws, international conventions from the Council of Europe, United Nations (UN) and International Labour Organisation (ILO) directives, and the United Nations Global Compact, a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labor, the environment and anti-corruption.
The Hermès Group will continue to evolve and adapt its policies and procedures to a changing world in order to reflect the company’s unwavering commitment to ethical business principles.
