Chico’s FAS, Inc., including its brands Chico’s, White House Black Market and Soma (the “ Company”), believes that every person has a right to safe, decent and humane working conditions. We expect our suppliers to understand and comply with our Terms of Commitment to Ethical Souring (“Terms”). The Terms set forth our expectations for our suppliers regarding social, health and safety, environmental, and ethical performance. While we do not own the factories in which our merchandise is made, we are committed to forging strong partnerships with our suppliers so that what we sell is made in factories and under working conditions that are consistent with the Terms. With our complex supply chain, it is important for our continued success that we work with suppliers who operate responsibly and demonstrate a commitment to transparency and continuous improvement. We have implemented written guidelines, formal processes and management oversight so that our Terms are not only words on paper, but a way of doing business at Chico’s FAS, Inc.
Our commitment to CSR begins at the top: oversight of the program rests with our Chief Executive Officer (“CEO”). Updates are provided to the CEO, Chief Financial Officer, and the Audit Committee of our Board of Directors on a wide variety of compliance matters including supplier compliance. Day-to-day responsibility for our CSR program is owned by our Vice President of Global Compliance and Risk Management, who is responsible for organizational alignment and managing our CSR partnerships with internal and external stakeholders. The Global Compliance Department fosters a culture of transparency and seeks to continuously improve compliance with applicable legal and regulatory requirements and Company expectations.
The Company manufactures in approximately 30 countries all around the world. The top 6 countries in which we manufacture are China, Vietnam, Indonesia, Sri Lanka, India and the United States, with at least 4% of our global manufacturing produced in each country.
We conduct risk assessments of our supply chain and of the countries in which our product is produced. This process enables our sourcing team to make informed decisions about where our goods are manufactured. Because of CSR concerns, we do not currently authorize production in Bangladesh or Pakistan.
At Chico’s FAS, Inc., we realize the significant advantages in collaborating with industry groups, trade organizations and other retailers to advance our high compliance standards. Our Global Compliance Department is actively engaged in the communication with, and education of, our suppliers through the use of tools such as our Vendor Extranet, field visits, monthly conference calls with key suppliers, participation in multi-brand compliance summits and worker engagement programs. In addition to other social, safety and environmental training sessions, fire safety continues to be a priority across our supply chain. We partner with various industry associations to promote local fire safety training opportunities and encourage our suppliers to participate in these sessions.
Our comprehensive monitoring program continues to provide us with insight into the complex challenges of workplace conditions, environmental opportunities, safety, security and ethical business practices. The Company utilizes global benchmarks and our historical auditing data to measure factory performance. Our Vendor Scorecard provides our partners with a report of a facility’s performance from a compliance perspective. Our program includes a support system that can help factories tackle challenging labor, health and safety, environment, human rights, ethics and security issues. We are proud of our progress furthering our factory compliance programs.Our emphasis on workplace conditions has demonstrated measurable improvement within our factory base. We encourage a relationship with our suppliers that is built on transparency and recognize they have been a key component of our accomplishments.
As part of our continued commitment to the safety and security of our supply chain, in 2003, Chico’s FAS, Inc. voluntarily partnered with US Customs and Border Protection (CBP) in the Customs – Trade Partnership Against Terrorism (C-TPAT) program earning the highest status (Tier 3) awarded by CBP. We are proud to report we have been able to maintain our Tier 3 status.
Souricing from approximately 30 Countries and 614 Factories