Topo Athletic Supplier and Factory Code of Conduct

Law and Code Compliance:

Our suppliers are expected to comply with and will be monitored to ensure compliance with: (1) all relevant and applicable laws and regulations of the country in which employees are employed including those at the federal, state/provincial and local community levels, (2) the Topo Athletic Supplier and Factory Code of Conduct, (3) where applicable, collective bargaining agreements. When differences or conflicts in standards arise, suppliers are expected to comply with the highest standard that is most favorable to employees.

Child Labor:

No person shall be employed under the age of 15 or under the age required for completion of compulsory education, whichever is higher. Juvenile employees (ages 15-17) shall not perform work which, by its nature or the circumstances in which it is carried out, is likely to compromise their health, safety or morals.

Forced Labor:

There shall be no use of forced labor, including prison, indentured, bonded, slave or other forms of forced labor. Acts of human trafficking are also prohibited. Suppliers are required to monitor any third party entity which assists them in recruiting or hiring employees, to ensure that people seeking employment at their facility are not compelled to work through force, deception, intimidation, coercion or as a punishment for holding or expressing political views.

Harassment and Abuse Are Not Tolerated:

Supplier’s employees are treated with respect and dignity. Employees are not subject to physical, sexual, psychological or verbal harassment or abuse.

Freedom of Association and Collective Bargaining:

Employees must be free to join organizations of their own choice. Suppliers shall recognize and respect the right of employees to freedom of association and collective bargaining. All suppliers must develop and fully implement effective grievance mechanisms which resolve internal industrial disputes, employee complaints, and ensure effective, respectful and transparent communication between employees, their representatives and management.

Working Hours Are Not Excessive:

Suppliers shall not require employees to work more than the regular and overtime hours allowed by the law of the country where the employees are employed. The regular work week shall not exceed 48 hours. Suppliers shall allow employees at least 24 consecutive hours of rest in every seven-day period. All overtime work shall be consensual. Suppliers shall not request overtime on a regular basis and shall compensate all overtime work at a premium rate. Other than in extraordinary circumstances, the sum of regular and overtime hours in a week shall not exceed 60 hours.

Compensation Is Timely Paid:

Supplier acknowledges that every employee, male or female, has a right to compensation for a regular work week that is sufficient to meet employees’ basic needs and provide some discretionary income. Supplier’s employees are timely paid at least the minimum wage required by country law, or prevailing wage, whichever is higher, and provided legally mandated benefits, including holidays and leaves, and statutory severance when employment ends. There are no disciplinary deductions from pay. When compensation does not meet the employees’ basic needs and provide some discretionary income, supplier shall develop, communicate and implement strategies to progressively realize compensation that does.

Disciplinary Practices:

Employees must be treated with respect and dignity. No employee may be subjected to any physical, sexual, psychological or verbal harassment or abuse, or to fines or penalties as a disciplinary measure.

Business partners must publicize and enforce a non-retaliation policy that permits factory employees to express their concerns about workplace conditions directly to factory management or to Topo Athletic without fear of retribution or losing their jobs.

Health & Safety:

A safe and hygienic working environment must be provided, and occupational health and safety practices which prevent accidents and injury must be promoted. This includes protection from fire, accidents and toxic substances. Lighting, heating and ventilation systems must be adequate. Employees must have access at all times to sanitary facilities which should be adequate and clean. Business partners must have health and safety policies which are clearly communicated to employees. Where residential facilities are provided to employees, the same standards apply.

Quality:

Quality is the result of clarity, capable and well-integrated systems, and good communication. To achieve this, factories must have a clearly documented quality system and quality improvement plan. That system must include reliable "in process" and final finished goods audits and procedures that meet Topo Athletic's quality standards. These audits must be performed by a trained QA staff person provided by the factory. The QA staff person must be granted the autonomy and support he/she needs in order to provide an unbiased report on the quality of every shipment of finished goods.

Environmental Requirements:

Business partners must make progressive improvement in environmental performance in their own operations and require the same of their partners, suppliers and subcontractors. This includes: integrating principles of sustainability into business decisions; responsible use of natural resources; adoption of cleaner production and pollution prevention measures; and designing and developing products, materials and technologies according to the principles of sustainability.