Ethical Supply Chain Guidelines

"We believe that no business should ever be complicit in human rights abuses"

Overview

Deckers Outdoor Corporation respects internationally recognized human rights and environmental standards and places them at the core of our business practices. We believe that no business should ever be complicit in human rights abuses. We promote greater environmental responsibility and we encourage the development and use of environmentally friendly technologies.

The Deckers Ethical Supply Chain Guidelines are a reflection of our values. We strive to apply these values in everything we do. We select business partners who make a commitment to adhere to these Guidelines and to engage their employees in their implementation.

We are committed to a process of continuous improvement. We recognize that our own business practices can impact our business partners' ability to implement these Guidelines and we commit to addressing our impacts that are related to these Guidelines. Business partners agree to take responsibility for their business impacts, to correct problems when they are found and to build management systems that prevent problems from reoccurring.

All business partners will obey all applicable laws and regulations, and in cases where the either the Guidelines or the applicable laws are stricter, the higher of the two shall apply.

Forced and Child Labor

Forced Labor: Our business partners shall not use forced labor whether in the form of prison labor, indentured labor, bonded labor or otherwise.

Child Labor: Our business partners shall not employ workers below the age of 16, or, in the case of hazardous work, the age of 18. If the legal age for employment is higher than 16, then the higher age shall apply.

Wages, Benefits and Hours of Work

Wages and Benefits: Our business partners, at a minimum, will pay employees wages and benefits that meet applicable laws for all regular hours worked. For overtime hours, employees must receive compensation at premium rates. Employment practices such as training or apprenticeship wages, pre-employment fees, deposits, or other practices that effectively lower an employee's pay below the legal minimum wage are not permitted.

Hours of Work: Our business partners will comply with legally mandated work hours; use overtime only when each employee is fully compensated according to applicable law and informs each employee at the time of hiring if mandatory overtime is a condition of employment. Except in extraordinary business circumstances, employees are provided one day off in seven, and will work no more than 60 hours per week, or in compliance with legal limits if they are lower.

Discrimination, Abuse and Bargaining

Non-discrimination: Employment decisions shall be made solely on the person's ability to do the job. No person shall be subject to discrimination in employment, including hiring, salary, benefits, advancement, discipline, termination or retirement on the basis of gender, race, religion, age, disability, sexual orientation, marital status, pregnancy, nationality, political opinion, social or ethnic origin.

Harassment or abuse: Our business partners shall treat their employees with respect and dignity. Work environments must be free of intolerance, retribution for grievances, and corporal punishment. No employee shall be subject to any physical, sexual, psychological or verbal harassment or abuse.

Freedom of association/collective bargaining: Our business partners shall recognize and respect the right of employees to freedom of association and collective bargaining. Where these rights are restricted under law, parallel means for the representation of workers are encouraged.

Health, Safety and Environment

Health and Safety: Our business partners shall ensure a safe and healthy workplace. Business partners shall provide written safety and health policies and procedures that minimize negative impacts on the workplace environment, reduce work-related injury and illness, and promote the general health of employees. Employers must provide training and adequate equipment to ensure workplace safety practices. This requirement applies to residential facilities provided, if any.

Environment: We require a continuous effort to improve environmental performance along a defined path towards clean production. We expect our business partners to: 1) adopt environmental management systems that address key business impacts and advance sustainable environmental practices; 2) disclose environmental impacts and activities through regular reporting; 3) reduce or eliminate toxic and hazardous substances from operations and products, in accordance with the Deckers Restricted Substances Policy; 4) increase efficiency and thereby minimize pollution and waste; 5) reduce the use of natural resources including raw materials, energy and water; and 6) take responsibility for proper waste management.

Assessments and Monitoring

Assessments and Monitoring: To measure progress against these Guidelines, we conduct ongoing assessments and reviews of facilities. We require full and open access to the facilities, operations and employees involved in our business. Employees of our business partners must be advised of these Guidelines in their local language and provided the opportunity to confidentially notify us or our designated representatives of any violations of these Guidelines. We will not tolerate harassment or retaliation against any employee who seeks to exercise their rights under the Guidelines. Business partners will maintain sufficient records to demonstrate and verify compliance with the Guidelines.

Restricted Substances Policy

Deckers Outdoors Corporation ("Deckers") is committed to assuring that all of the materials used in its products are safe - for workers, for consumers and for the environment. Therefore, Deckers has established a Restricted Substances Policy that mandates compliance with all international directives, laws, and regulations that restrict the type and concentration of potentially hazardous substances. Consistent with our company values, the Restricted Substances Policy goes beyond mandated restrictions and includes some substances, such as PVC, which are not restricted by law, but that are a cause of concern for many consumers and some Non-Governmental Organizations (NGOs). Compliance with the Deckers' Restricted Substances Policy by our business partners is a pre-requisite for doing business with Deckers.

Scope

All Factories, Materials Suppliers ("Suppliers") and Licensees must adhere to the Deckers Restricted Substances Policy. To this end, all materials, components and finished product must comply with:

  1. All international directives, laws, and regulations that restrict the type and concentration of potentially hazardous substances. Future laws and restrictions are to be immediately incorporated by reference into this policy.
  2. Deckers' List of Restricted Substances (RSL). This document specifies restrictions on substances and materials used in the manufacture of all Deckers products. It is applicable to all products, materials, chemicals, components and other things of value supplied for use in Deckers products. The Deckers RSL incorporates many current legal restrictions in major markets, as well as restrictions voluntarily imposed by Deckers. Updates to the RSL will be distributed to all business partners and are to be immediately incorporated by reference into this policy.

Responsibilities

We expect our business partners to implement best practices to ensure that materials and products supplied to Deckers are in full compliance with the Deckers RS Policy and are fully compliant with all international directives, laws, and regulations that restrict the type and concentration of potentially hazardous substances.

At a minimum, Factories, Suppliers and Licensees must acknowledge receipt of the Deckers Restricted Substances Policy and commit to following strictly the provisions of this Policy by signing the Deckers RS Agreement. Further, they must certify that all products, materials, components and other things of value supplied to Deckers comply with the prohibitions, limitations and other provisions of this Policy. Additional responsibilities of our business partners are described herein.

Factory Responsibilities

  • Certify acceptance of the Deckers RS Policy by signing the Deckers RS Agreement
  • Implement best practices to comply with the Deckers RS Policy
  • Place RS Statement of Compliance on all Purchase Orders
  • Assure RS Statement is on all Supplier Invoices
  • Assure that Supplier RS Test Results are received for all materials and components prior to production. Test Results must be scanned and sent to Deckers RS Point of Contact prior to production and Factory invoicing.
  • Assure that all RS Test Results are current and updated as necessary.
  • Conduct RS testing of finished product according to Deckers' instruction. Samples must be sent to an approved Test Facility at Factory expense. Test Results to be conveyed directly from Test Facility to Deckers RS Point of Contact within designated timeframe.
  • Identify an individual who will serve as contact for RS Compliance. This person must be capable of making decisions, addressing questions and responding to issues raised by Deckers.
  • Accept liability and make restitution for all loss and damage suffered by Deckers as a result of non-compliance with this Policy.
  • Submit to annual RS Auditing of compliance procedures and internal records.

Supplier Responsibilities

  • Certify acceptance of the Deckers RS Policy by signing the Deckers RS Agreement.
  • Implement best practices to comply with the Deckers RS Policy.
  • Conduct RS testing of all material prior to production. RS Testing to be conducted at Supplier expense by an approved Test Facility unless in-house testing by Supplier is explicitly approved in writing by Deckers. RS Test Results shall be good for 18 months if there are no production or material changes and no RS compliance problems.
  • Maintain RS Test Results on file for 5 years.
  • Submit copy of RS Test Results to Factory with each shipment of product.
  • Place RS Statement of Compliance on all invoices.
  • Identify an individual who will serve as contact for RS Compliance. This person must be capable of making decisions, addressing questions and responding to issues raised by Deckers.
  • Accept liability and make restitution for all loss and damage suffered by Deckers as a result of non-compliance with this Policy.
  • Submit to periodic RS Auditing of compliance procedures and internal records.

Licensee Responsibilities

  • Certify acceptance of the Deckers RS Policy by signing the Deckers RS Agreement.
  • Implement best practices to comply with the Deckers RS Policy.
  • Conduct RS testing of all product at an approved Test Lab unless explicitly exempted, in writing, from such testing by Deckers. All RS Testing to be conducted at Licensee expense.
  • Maintain RS Test Results on file for 5 years.
  • Submit copy of RS Test Results to Deckers with each shipment of product.
  • Place RS Statement of Compliance on all invoices.
  • Identify an individual who will serve as contact for RS Compliance. This person must be capable of making decisions, addressing questions and responding to issues raised by Deckers.
  • Accept liability and make restitution for all loss and damage suffered by Deckers as a result of non-compliance with this Policy.
  • Participate in recall actions as directed by Deckers and pay all costs of recalling product due to Licensee non-compliance.
  • Submit to periodic RS Auditing of compliance procedures and internal records.

Restricted Substances Testing

  1. Finished Product Testing
    1. Factories must pay for selective testing of finished product at Final Confirmation phase. Product will be selected by Quality Control team using criteria established by the Deckers RS Committee.
      1. Timing. It is very important Finished Product Testing is carried out before production commences. This procedure facilitates some correction in the selection of materials if one of the materials should fail the testing. Selected product will be sent to an approved Test Facility no later than __________.
      2. Frequency. Testing will be conducted twice a year, each time before the production of the new collection for Spring/Summer and Autumn/Winter starts.
      3. Results. Test results will be sent directly to Deckers prior to production.
      4. Product Failure. If product fails testing, Factory will work with Deckers to determine cause of failure. If failure is due to non-compliance by a supplier, Deckers may, at its discretion, require corrective action or remove the supplier from the approved supplier list. If failure is due to non-compliance or negligence on the part of the Factory, Deckers may, at its discretion, require corrective action and place Factory on probation, or terminate the Factory manufacturing agreement.
    2. Licensees must conduct RS testing of all finished product to assure compliance with the Deckers RS Policy.
      1. Timing. All product must be tested prior to product delivery.
      2. Frequency. Testing will be conducted for all new product.
      3. Results. Test results will be sent to Deckers product delivery and invoicing. Results are good for 18 months unless there is a change in source or production.
      4. Product Failure. If product fails testing, Deckers will not accept product. All licensed product must be compliant with this policy. Licensee will be responsible for any penalties incurred by Deckers due to a delay in product delivery due to RS failure. If product that is delivered with the requisite RS Test Results subsequently fails RS testing, Deckers may, at its discretion, require corrective action and place Licensee on probation, or terminate agreement with Licensee.
      5. Exemptions. Licensees that demonstrate enforcement of a Restricted Substances program that meets the terms of the Deckers RS Policy may be exempted from RS test requirements. Such exemptions will be in writing, and may be granted and terminated at Deckers' sole discretion.
  2. Supplier Testing
    1. Suppliers must conduct and pay for testing of all things of value supplied to Deckers.
      1. Timing. All materials testing must be conducted prior to shipment of material to Factory.
      2. Frequency. Testing will be conducted for all new materials.
      3. Results. Test results will be conveyed to the Factory with all shipments. Results are good for 18 months unless there is a change in source or production.
      4. Product Failure. If materials fail testing, Factory will not accept shipment. All materials must be compliant with this policy. If material that is shipped with the requisite RS Test Results subsequently fails RS testing, Deckers may, at its discretion, require corrective action and place Supplier on probation, or remove the Supplier from the approved list.

Restricted Substances Auditing

  1. Factory Auditing. Factory Audits will be conducted annually by Deckers, or more frequently if necessary, to assure compliance with this Policy.
  2. Supplier & Licensee Auditing. Supplier and Licensee Audits will be conducted as needed to determine the extent to which new and existing Suppliers and Licensees comply with this Policy, and to identify risks, strengths and opportunities that might affect the quality of Deckers products and services. Audits may be conducted prior to Supplier/Licensee business award, during product sourcing and manufacturing stages, or when quality issues arise.

Non-Compliance and Corrective Action.

A failure to comply with the terms of the Deckers RS Policy will be considered a breach of contract and may, at Deckers' sole discretion, result in suspension or termination of a business partner's approved status. Any penalties incurred by Deckers as a result of non-compliance with this Policy will be the sole responsibility of the non-compliant party, including the costs of any product recalls or litigation.

If Deckers determines that a product or material does not conform to the terms of this Policy, the non-compliant party agrees to the following:

  1. Begin an investigation into the cause and extent of the non-conformity.
  2. Undertake corrective action, as approved by Deckers.

Deckers will respond to non-conformities in the following manner:

  1. Approve corrective action plan by non-compliant party.
  2. Conduct a Restricted Substances audit to confirm that the corrective action has successfully addressed the non-conformity.
  3. If, at Deckers' sole discretion, it is determined that the non-compliant party intentionally disregarded the policy, or has made insufficient effort to comply with the policy, the supplier or licensee may be suspended or terminated.

Restricted Substances List

Substances on the RSL shall not be intentionally added to materials used in Deckers product, or used, in the case of ozone depleting substances, in the manufacture of Deckers product. The RSL includes substances, limits and test methods and will be updated on an as needed basis.

While Deckers has attempted to include known restrictions in all major markets, business partners are solely responsible for delivering products and materials that are fully compliant with all international directives, laws and regulations that restrict the type and concentration of potentially hazardous substances. Deckers does not, by its provision of this List, assume any responsibility for compliance by any business partner.

Click here for Deckers' List of Restricted Substances.

Approved Test Facilities

Only the attached list of Test Facilities have been approved by Deckers to conduct RS testing of materials and finished product for compliance with this Policy. Other labs, or in-house testing, may be permitted on a case-by-case basis with written approval by Deckers.