Supply Chains Act

On January 1, 2012, the California Transparency in Supply Chains Act of 2010 (SB 657) will go into effect. This law increases the amount of information disclosed to address the issues of slavery, human trafficking, forced labor and child labor in supply chains. Hickorycraft Furniture, Inc. commends global efforts to eliminate these practices and believes individuals have the right to freely choose employment, to associate freely and be represented by worker councils or labor unions on a voluntary basis, and to bargain collectively as they choose. Additionally, Hickorycraft Furniture, Inc. believes individuals have the right to a workplace free of harassment and unlawful discrimination. As a responsible corporate citizen, we seek to ensure that quality and safety standards are maintained throughout our supply chain by welltreated workers in accordance with all applicable laws. We have undertaken the following to ensure our suppliers are not engaging in forced or child labor.

Risk Assessments

Hickorycraft Furniture Inc. assesses risks using country specific research guides, government assessments, and industry guidance. Risk assessments are the foundation for the Hickorycraft Furniture, Inc. Rules of Conduct Supplier Agreement. This agreement extends our corporate values regarding ethical worker treatment and care for the environment and sets forth compliance with international standards, applicable laws and regulations.

Acknowledgement of Standards

Each Hickorycraft Furniture, Inc. supplier is required to commit that they acknowledge and agree to adhere to our Rules of Conduct Supplier Agreement.

Supplier Audits

Compliance with our Rules of Conduct is ensured with routine onsite audits attended by Hickorycraft Furniture, Inc. employees and by collaborative audits with suppliers. Additionally, annual unannounced third party on-site audits are administered by a validation team contracted by a retail partner.

Accountability

Hickorycraft Furniture, Inc. maintains a zero tolerance policy for human trafficking, forced labor and child labor. If other non-compliance issues arise from a supplier audit, suppliers are required to produce corrective action plans, which Hickorycraft reviews and approves.

Capacity Building

Hickorycraft Furniture, Inc. partners with nongovernmental organizations (NGOs) to raise awareness of Hickorycraft Furniture, Inc’s corporate values including provisions related to forced labor and child labor. Our capacity building efforts include worker communications training, which provides employees access to raise concerns with superiors.

Employee Training

Hickorycraft Furniture, Inc. trains employees responsible for supply chain on-site audits in techniques to recognize and report non-compliance with our expectations. In addition, Hickorycraft Furniture, Inc’s sourcing personnel follow an “eyes always open” approach under which all relevant personnel are trained to recognize environment, health, safety, and labor red flags, including red flags relating to forced labor, and to report and investigate all suspicions of improper conduct.

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