Appendix A: List of Companies Surveyed | Appendix B: Voluntary Company Questionnaire | Appendix C: Codes of Conduct Provided by Companies Surveyed | Appendix D: Site Visits | Appendix E: ILO Convention

Appendix C: Codes of Conduct Provided by Companies Surveyed*

Adidas America, Inc.
Brown Group, Inc.
Edison Brothers Stores, Inc.
Fila Sports, Inc.
Genesco, Inc.
JCPenney Company, Inc.
Kmart Corporation
Lowe's Companies Inc.
May Department Stores Company
Nike, Inc.
Nine West Group, Inc.
Oriental Rug Importers Association (provided by Masterlooms Inc.)
Payless ShoeSource, Inc.
Pentland Sports Group (Mitre)
Reebok International Ltd.
Stride Rite Corporation
Timberland Company
Umbro, U.S.A.
Wal-Mart Stores, Inc.
Wolverine Worldwide, Inc.
                                

* The inclusion of a company's policy in this Appendix does not constitute endorsement by the Department of Labor of any product, service, company, or policy.

Adidas America

Sublicense Agreement

ARTICLE 5- FURTHER DUTIES AND OBLIGATIONS

5.1 (Name of company) shall cooperate fully with ADIDAS Sales and Customer Service personnel.

5.2 (Name of company ) will protect and promote ADIDAS' goodwill and reputation and will avoid any activity which is knowingly detrimental to ADIDAS' interest, reputation, MARKS and goodwill, including strict adherence to ADIDAS' distribution and close out policies.

5.3 (Name of company) will comply with all applicable laws, rules, regulations and requirements regarding the manufacture, distribution, sale, or promotion of PRODUCTS, including, but not limited to, applicable laws, rules and regulations regarding minimum wage; overtime; child labor; and occupational health and safety. (Name of company) shall not use any form of forced labor in the manufacture of PRODUCTS, whether prison labor or otherwise. (Name of company) will cooperate in any compliance or monitoring program implemented by ADIDAS to ensure that all PRODUCTS are manufactured and distributed in compliance with applicable laws, rules, regulations or requirements, and shall require that all its subcontractors do so as well. (Name of company) shall, at ADIDAS' request, certify in writing that it is in compliance with all applicable laws. Breach of this provision shall be grounds for immediate termination of this Agreement.

5.4 (Name of company) shall undertake to secure from the appropriate authorities in the TERRITORY, at its own cost and expense, without any cost to ADIDAS, all permits, concessions or other documents required by law in connection with the manufacture and/or distribution of PRODUCTS in the TERRITORY.

5.5 (Name of company)'s right to distribute and sell PRODUCTS under the MARKS pursuant to this Agreement is limited to the TERRITORY and approved channels of distribution. (Name of company) shall submit to ADIDAS a list of its proposed channels of distribution, which channels must be approved in writing by ADIDAS prior to the effective date of this AGREEMENT. Any failure to obtain approval of channels of distribution or any deviation from approved channels without the prior written approval of ADIDAS will be deemed a material breach of this Agreement giving ADIDAS the right to terminate this Agreement. (Name of company) will not, directly or indirectly, knowingly make sales of PRODUCTS to third parties who intend to sell PRODUCTS outside the TERRITORY or outside approved channels of distribution, and will promptly terminate sales to such third parties.


Brown Group Policy and Control Manual

SUBJECT: Importation of Goods Manufactured by Forced or Child Labor

ISSUE DATE: 5/20/93

I. PURPOSE

To set forth corporate policy prohibiting the importation of goods manufactured by forced or child labor.

II. COMPANIES AFFECTED

All Brown Group, Inc. member companies.

III. IMPLEMENTATION

To be adopted immediately.

IV. DESCRIPTION OF POLICY

All Brown Group, Inc. member companies will comply with and take positive actions, as described under Specific Guidelines, to insure adherence to the provisions of the Smoot-Hawley Tariff Act of 1930 relating to the prohibition of the importation into the United States of goods manufactured by convict, forced, or indentured labor ("forced labor"). The member companies will also obtain assurance from any manufacturer or supplier that any goods accepted by Brown Group, Inc. member companies were produced in compliance with the respective child labor laws of the country of manufacture.

V. SPECIFIC GUIDELINES

1. Provisions of the law relating to forced labor -

Section 307 of the Smoot-Hawley Tariff Act of 1930 (19 U.S.C. § 1307 provides:

All goods, wares, articles and merchandise mined, produced, or manufactured wholly or in part in any foreign country by convict labor or/and forced labor or/and indentured labor under penal sanctions shall not be entitled to entry at any of the ports of the United States, and the importation thereof is hereby prohibited, and Secretary of the Treasury is authorized and directed to prescribe such regulations as may be necessary for the enforcement of this provision. The provisions of this section relating to goods, wares, articles and merchandise mined, produced, or manufactured by forced labor or/and indentured labor, shall take effect on January 1, 1932; but in no case shall such provisions be applicable to goods, wares, articles, or merchandise so mined, produced, or manufactured which are not mined, produced, or manufactured in such quantities in the United States as to meet the consumptive demands of the United States.

"Forced Labor," as herein used, shall mean all work or service which is exacted from any person under the menace of any penalty for its nonperformance and for which the worker does not offer himself voluntarily.

2. Governmental administration and enforcement of the law relating to forced labor -

The United States Customs Service is responsible for the administration of the Tariff Act of 1930, as amended, including the prohibition against importation of goods made by forced labor addressed in Section 307. Pursuant to Customs Regulations, the Commissioner of Customs is required to investigate and determine whether merchandise within the purview of Section 307 is being, or is likely to be, imported into the United States. The publication of a final finding that certain merchandise is subject to the provisions of Section 307, and consequently prohibited from importation, is subject to the approval of the Secretary of the Treasury. Regulations dealing with this issue are found in Sections 12.42 through 12.45 of the Customs Regulations (19 C.F.R. §12.42 - 12.45).

In addition to the prohibition found in Section 307 and the resulting exposure to seizure of the goods by U.S. Customs Service, there are criminal statutes which make it a violation to knowingly import forced labor-made goods.

\3. Specific actions to help insure member company compliance -

A. Any member company which purchases any goods, the title of which passes to the member company or its customers outside the United States and imports such goods into the United States, shall notify the manufacturer of the goods of Brown Group, Inc.'s policy relating to the importation of goods manufactured by forced or child labor.

Notification of the policy should be performed in writing and can be accomplished through a letter similar to the example in Exhibit I. If the manufacturer's name and address is not known at the time of placing the purchase order, the written notification should be sent to the agent assisting with the purchase.

B. As a further procedure to help insure compliance with this policy, the member company shall require the manufacturer to certify that the goods, including component parts of the goods, were not manufactured with forced or child labor. An example of this certification appears in Exhibit II.

This certification document shall be required as a condition of payment for the goods whether purchased by letter-of-credit or on an open account basis.

C. Each member company overseas buying office shall be diligent in the enforcement of this policy and immediately cease any business activities with any manufacturer that is discovered using forced or child labor or is suspected of using forced or child labor to produce goods for any member company or its customer. On-site visits by employees of the member company buying offices shall be conducted on a periodic basis at each manufacturing location for which purchase orders are being serviced to review for compliance with this policy. 


Brown Group Inc.
Policy and Control Manual

EXHIBIT I
MEMORANDUM

ISSUE DATE: 5/20/93

TO: ALL BROWN GROUP, INC. RESOURCES

FROM: (APPLICABLE OFFICER OF MEMBER COMPANY)

RE: PROHIBITION AGAINST THE IMPORTATION OF GOODS MANUFACTURED BY CONVICT, FORCED, INDENTURED OR CHILD LABOR.

Brown Group, Inc. (BGI) has reviewed pertinent U.S. statutes and regulations prohibiting the importation of goods manufactured by convict, forced, or indentured labor. In order that there may be no misunderstanding as to the scope of what is covered by the statute and regulations, the following is provided for your information.

Section 307 of the Smoot-Hawley Tariff Act of 1930 (19 U.S.C. SS 1307)
provides:

All goods, wares, articles and merchandise mined, produced, or manufactured wholly or in part in any foreign country by convict labor or/and forced labor or/and indentured labor under penal sanctions shall not be entitled to entry at any of the ports of the United States, and the importation thereof and the importation thereof is hereby prohibited, and the Secretary of the Treasury is authorized and directed to prescribe such regulations as may be necessary for the enforcement of this provision. The provisions of this section relating to goods, wares, articles and merchandise mined, produced, or manufactured by forced labor or/and indentured labor, shall take effect on January 1, 1932; but in no case shall such provisions be applicable to goods, wares, articles, or merchandise so mined, produced, or manufactured which are not mined, produced, or manufactured in such quantities in the United States as to meet the consumptive demands of the United States.

"Forced Labor," as herein used, shall mean all work or service which is exacted from any person under the menace of any penalty for its nonperformance and for which the worker does not offer himself voluntarily.

The United States Customs Service is responsible for the administration of the Tariff Act of 1930, as amended, including the prohibition against importation of goods made by convict, forced, or indentured labor addressed in Section 307. Pursuant to Customs Regulations, the Commissioner of Customs is required to investigate and determine whether merchandise within the purview of Section 307 is being, or is likely to be, imported into the United States. The publication of a final finding that certain merchandise is subject to the provisions of Section 307, and consequently prohibited from importation, is subject to the approval of the Secretary of the Treasury. Regulations dealing with this issue are found in Sections 12.42 through 12.45 of the Customs Regulations (19 C.F.R. §§ 12.42- 12.45).

It is the stated policy of BGI that it will not purchase from or deal with any company or individual who is violating or contemplates violating Section 307 or the respective child labor laws of the country of manufacture. In addition to the prohibition found in Section 307, there are criminal statutes which make it a violation to knowingly import convict-made goods. Due to the very serious nature of this problem, if at any time BGI learns of or suspects that any of its vendors is dealing with or utilizing prison, forced or child labor to produce goods for BGI, the company will immediately cease doing business with any and all such organizations.

BGI's intention is to follow this policy without exception. The prohibition includes those situations where goods are manufactured with components or materials that have been made by prison or child labor. BGI will not accept any finished product or any portion of that finished product that is the result of prison, forced or child labor. Any company representing BGI as a buying agent, will be required to notify any prospective manufacturer or supplier of BGI's policy and to vigorously ensure compliance with this policy with respect to any orders placed with manufacturers or suppliers.

In order to help assure compliance with the above, BGI may require an executed certification from each company from which we purchase first cost footwear or components and with respect to each order, affirming that the footwear or components were not manufactured in violation of Section 307 of the Smoot-Hawley Tariff Act of 1930 or the respective child labor laws of the country of manufacture.

We expect 100% cooperation from your company. If you have any questions regarding this matter, please do not hesitate to contact our office.

Very truly yours,



Brown Group Inc.
Policy and Control Manual

EXHIBIT II

MANUFACTURER'S CERTIFICATE

As manufacturer of  ___________________________(Buyer's name and purchase order number) we hereby certify that the merchandise described therein was manufactured wholly or in part at

(Factory Name) __________________________________________

\(Factory Location) _______________________________________

and that convict labor and/or forced labor and/or indentured labor under penal sanctions as defined by U.S.A. law as well as child labor (as defined by the respective laws of the country where the manufacturing occurred) was not employed, in whole or in part, in any stage of the production or manufacture of the merchandise or any material or component thereof. We further certify that this transaction does not involve transshipments of merchandise for the purpose of mislabeling, evading quota or country of origin restrictions or avoiding compliance with forced labor (as defined by U.S.A. law) or child labor (as defined by the respective laws of the country where the manufacturing occurred).

(Name of Manufacturer)
__________________________________________________________

(Signature) _________________________________________________

(Date) _________________________(Title) _______________________

This report was produced by the staff of the International Child Labor Program and is published by the U.S. Department of Labor, Bureau of International Labor Affairs.

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