Ethical Sourcing Policy

1. Purpose:

   Farmers operates all of its business in an ethical manner and is committed to improving social, ethical and environmental standards throughout our supply chain and in all aspects of our operations

   The purpose of this ethical sourcing policy is to set out Farmer’s expectations of how suppliers will behave and how Farmers will manage the relationships.

   This policy applies to all suppliers of goods and services to Farmers. The policy is in addition to all local laws and regulations that may apply to a supplier.

2. Our Expectations:

   Farmers has the expectation that its suppliers will share and demonstrate the same commitment that Farmers has to improving social, ethical and environmental standards.

   The expectation and responsibilities set out in this policy apply to suppliers and any sub-contractors, manufacturing processes, labour and raw materials supply.

   This Policy outlines the minimum standards that all suppliers and their sub-contractors must comply with when producing and supplying merchandise or services for Farmers.

   Farmers expects its suppliers to:

   • Comply with the minimum standards outlined in the Policy.
   • Fully co-operate with any audit process conducted by or on behalf of Farmers; and
   • Ensure that corrective action is taken as a priority to rectify any breach of this Policy.

   We reserve the right to terminate business relationships with suppliers that fall short of the expectations of this policy or fail to take appropriate corrective action where necessary.

3. Ethical Standards

   Farmers expects its suppliers to comply with the following standards and any associated laws and regulations in the supplier’s country of operation and manufacture.

   1. Bribery and Corruption
      • Suppliers must not engage in acts of bribery and corruption.
      • Suppliers must not offer money, gifts or other inducements to any employee of Farmers.
   2. Labour Rights
      • Employment is freely chosen.
      • Workers are not permitted or encouraged to incur debt through recruitment fees, fines or other means.
      • Workers must not be required to lodge deposits or their identity papers with their employer and must be free to leave their employer after reasonable notice.
      • Workers must be free to leave the workplace after their shift.
      • Workers must not be recruited or employed through human trafficking.
   3. Freedom of Association

      Suppliers must respect that workers have the right to join a union or a worker’s organisation of their own choosing and to bargain collectively.

      Suppliers are required to recognise the rights of unions and their organisational activities, including as provided for by relevant legislation.

      Where the right to freedom of association and collective bargaining is restricted under local laws, suppliers must facilitate the development of alternative means of independent and free association and bargaining.

   4. Working Conditions

      Suppliers must provide workers with a safe and clean working environment, taking into account the prevailing knowledge of the industry, any specific hazards and any applicable laws and standards.

      Adequate steps must be taken to prevent accidents and injury to health occurring during the course of work.

      Suppliers must provide adequate safeguards against fire and shall ensure strength, stability and safety of buildings and equipment (including residential accommodation where provided). There must be adequate documentation of compliance checks of the above safeguards.

      Workers must receive regular and recorded health and safety training. Such training must be repeated for new or reassigned workers.

      Suppliers must ensure that personal protective equipment is available and workers are trained in its use. Safeguards on machinery must meet or exceed local laws. There must be adequate documentation of regular maintenance of machinery.

      Suppliers must provide workers with access to clean toilet facilities, clean and drinkable water and if appropriate, sanitary facilities for food storage and preparation. Where suppliers provide worker accommodation, it must be clean, safe and meet the basic needs of the workers.

   5. Child Labour

      Suppliers must not use child labour and must only employ workers who meet the local minimum age requirement. Suppliers must verify the age of their workers and maintain evidence of workers’ proof of age.

   6. Wages

      Wages and benefits paid either directly to workers or through an agency or broker, must meet, as a minimum, any applicable local laws or benchmark industry standards, whichever is the higher. In any event wages must always be enough to meet basic needs and provide some discretionary income.

      All workers must be provided with written and understandable information about their employment conditions with respect to wages before they enter employment and about the particulars of their wages for each pay period.

      Deductions from wages as a disciplinary measure is not permitted, nor any deductions from wages not provided for by local laws without the express permission of workers. All disciplinary and performance management measures must be recorded.

   7. Working Hours

      Working hours must comply with local laws and benchmark industry standards, whichever affords greater protection.

      Overtime must be voluntary and not be excessive. It must not be demanded on a regular basis and must always be compensated at a premium rate.

      Suppliers shall comply with national/local laws for workers’ entitlements to public and annual holidays.

   8. Discrimination

      Suppliers must not discriminate in hiring, promotion, compensation, access to training, termination or retirement, based on personal characteristics such as race, caste, national origin, religion, age, disability, gender, marital status, sexual orientation, union membership or political affiliation.

   9. Discipline

      Physical abuse or discipline, the threat of physical abuse, sexual or other harassment and verbal abuse or other forms of intimidation is prohibited. All disciplinary and performance management measures must be recorded.

   10. Regular Employment

       To every extent possible work performed must be on the basis of a recognised employment relationship established through national law and practice.

       Obligations to employees under local laws and regulations arising from the regular employment relationship must not be avoided through the use of labour-only contracting, subcontracting, home-working arrangements or through apprenticeship schemes where there is no real intent to impart skills or provide regular employment. In addition, any such obligations must not be avoided through the excessive use of fixed-term contracts of employment.

   11. Illegal Labour

       Suppliers must not use illegal labour and must be able to verify the right of their workers’ (including sub-contractors’) legal eligibility and entitlement to work in the country of employment by reviewing original documentation.

   12. Environment

       Suppliers must comply with local environmental protection laws and regulations.

       Suppliers must ensure that key environmental impacts of facilities are identified and managed to minimise the impact of the supplier’s operations on the environment.

       Suppliers must be able to trace the origin of all their raw materials and components, and provide evidence of this to Farmers where requested.

4. Compliance with this Policy

   It is a supplier’s responsibility to ensure compliance with this Policy, and maintain adequate records of all aspects of the ethical standards set out in this Policy.

   We may require suppliers to forward us copies of their current Ethical, Social and Environmental compliance audit documents for all manufacturing facilities that produce goods for Farmers.

   The type of audit documents we may require are SMETA, BSCI, AMFORI, WRAP, and ISO14001 (environment) and any CAPR documents where applicable.

   Farmer’s employees, agents or representatives may visit supplier’s factories or facilities to audit a supplier’s compliance with this Policy.

   We also expect suppliers to ensure their sources of raw material, trims, packaging, and transport etc, also comply and request the same transparency as above.

   Non-compliance with this Policy will require the supplier to undertake corrective action, the extent of which will be dependent upon the nature of the breach. Farmers may terminate the business relationship where deemed appropriate.