- WORKPLACE CODE OF CONDUCT We have a mission statement at Patagonia that goes like this: “Build the best product, do the least harm, use business to inspire and implement solutions to the environmental crisis.” It guides our every move - including how we expect our suppliers to treat their employees and the communities in which they live and do business. Patagonia makes clothing for outdoor pursuits: climbing, surfing, skiing, fly-fishing, trail-running. These sports require a healthy natural environment, which is attainable only if our communities are healthy and their citizens have a right to freedom and wellbeing. For us, a commitment to promoting and protecting human rights and personal health and safety is essential to doing responsible business in the apparel industry. We believe relationships should be built on integrity and respect. And we pursue ever-greater quality in everything we do. This includes the treatment of human beings, because we know when people are able to meet their basic needs they are in a better position to protect the environment. We have developed a workplace code of conduct (see below) so that our expectations are clear to our suppliers. At Patagonia we continuously push ourselves to lead an examined life and improve social and environmental conditions. We encourage our suppliers to do the same. FORCED LABOR There shall not be any use of forced labor, whether in the form of prison labor, indentured labor, bonded labor or otherwise. CHILD LABOR No person shall be employed at an age younger than 15 or younger than the age for completing compulsory education in the country of manufacture where such age is higher than 15. HARASSMENT, ABUSE AND VIOLENCE Every employee shall be treated with respect and dignity. No employee shall be subject to any physical, sexual, psychological or verbal harassment or abuse. NONDISCRIMINATION No person shall be subject to any discrimination in employment, including hiring, salary, benefits, advancement, discipline, termination or retirement, on the basis of gender, race, religion, age, disability, sexual orientation, nationality, political opinion, veteran status, marital status, or social or ethnic origin. HEALTH AND SAFETY Employers shall provide a safe and healthy working environment to prevent accidents and injury to health arising out of, linked with, or occurring in the course of work or as a result of the operation and employer facilities. The employer shall take a proactive approach to health and safety by including policies, systems and training designed to help prevent accidents, injuries and protect worker health. FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING Workers must be free to join organizations of their own choice. Employers shall recognize and respect the right of employees to freedom of association and collective bargaining. WAGES AND BENEFITS Employers shall recognize that wages are essential to meeting employees’ basic needs. Employers shall pay employees at least the minimum wage required by local law. Employers shall provide mandated benefits as directed by the laws of the country. HOURS OF WORK Except in extraordinary business circumstances, employees shall not be required to work more than the lesser of 60 hours per week or the limits on regular and overtime hours allowed by the law of the country of manufacture. Except in extraordinary circumstances, employees shall be entitled to at least one day of rest in every 7-day period. OVERTIME COMPENSATION In addition to their compensation for regular hours of work, employees shall be compensated for overtime hours at such premium rate as is legally required in the country of manufacture or, in those countries where such laws do not exist, at a rate at least equal to their regular hourly compensation rate. WOMEN’S, DISABLED, ETHNIC MINORITIES AND U.S. VETERANS RIGHTS All Employers will ensure that workers who are women, disabled, or an ethnic minority receive equal treatment in all aspects of employment. All U.S. employers will ensure that veterans receive equal treatment in all aspects of employment. ENVIRONMENTAL Factories shall have written environmental policies and standards and must comply with all applicable environmental laws and regulations. Factories shall continuously monitor their production process including those related to emissions, discharges and disposal of wastes. Factories shall take a progressive approach to minimize negative impacts on the environment. 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 Patagonia’s quality standards. These audits must be performed by a trained QA staff person provided by the factory who has the autonomy and support they need in order to provide an unbiased report on the quality of every shipment of finished goods. SUB-CONTRACTING Patagonia does not permit unapproved sub-contracting under any circumstances. All salesman sample and bulk production orders must be placed within facilities that have been approved by Patagonia, without exception. COMPLIANCE WITH LAW Suppliers and contractors must adhere strictly to all applicable laws and regulations in effect where the company does business. The standards on this workplace code of conduct are determined to be in compliance based on in-depth Patagonia benchmarks. These benchmarks outline specific details on what is measured for each standard. Please see Patagonia’s Social Responsibility Benchmarks for further detail. If suppliers are violating any of these codes, we would like to know about it. Please bring these issues to our attention by emailing Patagonia at social_responsibility@patagonia.com. Please feel free to write in your local language and all information that we receive will be kept in strict confidence and your identity protected. Patagonia will not allow retaliation against you for such reporting.