The J.Crew Code of Vendor Conduct is the basis for the Responsible Sourcing Program at J.Crew. The Code sets forth the guiding principles that are expected of our suppliers. All vendors that manufacture our products are contractually required to comply with the provisions of the Code.
MONITORING SUPPLIER CONDITIONS
While it's relatively simple to communicate our expectations to our suppliers, it is more complicated to verify compliance throughout our supply chain. Therefore, we carefully select and rely on independent external firms to conduct both announced and unannounced inspections of manufacturing facilities and to help guide our program.
The suppliers that manufacture our products are regularly inspected to monitor compliance with our Code of Vendor Conduct and related laws and regulations. All new suppliers are subject to inspection before any purchase orders are placed. A typical inspection consists of document review, private worker interviews and a walk-through of the facility to assess workplace health and safety. When appropriate, we will also conduct surveillance and off-site interviews.
In fiscal year 2010, there were approximately 150 vendors representing approximately 215 authorized factories in 18 countries. We inspected 100% of new factories and 80% of our existing authorized factories. The factories we inspected represent approximately 80% of our total production.
IMPROVING SUPPLIER CONDITIONS
We are committed to long-term relationships with our suppliers. It is our practice to assist noncompliant suppliers to become compliant with our Code of Vendor Conduct. We provide our suppliers with the tools they need to improve working conditions, including training and in-factory consultations.
We terminate a business relationship only as a last resort, if a critical issue of noncompliance is identified or when a supplier is unwilling to comply with our requirements despite our efforts to help them become compliant.
We regularly conduct Responsible Sourcing training seminars for our suppliers. These seminars focus on our Code of Vendor Conduct, program requirements and other relevant topics, including working hours and overtime, health and safety and management systems. Since 2005, we have conducted five training seminars and have provided training to around 250 supplier representatives. We also conduct regular training seminars for our associates who work with suppliers on our program requirements and how to best support the company's responsible sourcing efforts.
INDUSTRY COLLABORATION AND PARTNERSHIPS
J.Crew is a member of the Fair Factories Clearinghouse, a nonprofit organization dedicated to facilitating continuous improvement in workplace conditions through technology and collaboration. Our membership in the FFC has allowed for improved communication with our business partners and has made us more effective and efficient in our program operations. More information can be found at fairfactories.org.