At Ross Stores, Inc., encompassing Ross Dress for Less and dd’s DISCOUNTS, our commitment to ethical business practices is deeply ingrained in our corporate culture. This dedication is reflected in our interactions with all stakeholders, including our valued customers, dedicated associates, reliable vendors, and invested investors. A cornerstone of this ethical approach is Ross’s unwavering policy against knowingly sourcing merchandise from any manufacturer that engages in unethical labor practices, specifically the exploitation of child, slave, prison, or forced labor.
As a prominent off-price retailer, Ross operates 1,561 stores across 37 states, the District of Columbia, and Guam, as of April 29, 2017. The vast majority of our diverse product range, spanning apparel, footwear, accessories, and home goods, is sourced from Ross Suppliers after production. These goods are often initially manufactured to meet the specifications of other retailers and subsequently made available to us.
While Ross acknowledges that we do not exert direct operational control over the intricate manufacturing processes of these goods, we are steadfast in our commitment to ensuring that all ross suppliers adhere to our stringent ethical standards. This commitment is formalized both contractually and through rigorous enforcement mechanisms.
Although a portion of our inventory is procured directly through our international buying agents and directly from manufacturers, this direct sourcing constitutes a smaller fraction of the total merchandise available in our stores. For these directly sourced items, we implement supplementary measures to meticulously monitor compliance with our ethical sourcing standards.
Ross’s comprehensive standards and requirements pertaining to sourcing and human rights are meticulously documented across various company materials. These include our Code of Business Conduct and Ethics, the Vendor Compliance Manual, Purchase Orders, Vendor Indemnification Agreements, and Buying Agent Agreements. For detailed information, our Code of Business Conduct and Ethics is publicly accessible under the “Corporate Governance” section of our Investor Relations website at www.rossstores.com. Furthermore, our comprehensive Vendor Compliance Manual can be accessed at partners.rossstores.com, providing ross suppliers with clear guidelines.
Effective communication of our sourcing and human rights standards is paramount. Ross diligently communicates these essential standards and requirements to all vendors, buyers, and international buying agents throughout every stage of our purchasing processes, ensuring clarity and accountability across our supply chain.
Ross’s Core Sourcing and Human Rights Standards for Suppliers
Ross Stores mandates that all vendors, manufacturers, and business partners, including ross suppliers, strictly adhere to all pertinent federal, state, local, and international laws. This encompasses all legal frameworks governing the manufacture and production of goods supplied to Ross. Crucially, this includes comprehensive compliance with all applicable laws pertaining to:
- Fair labor compensation for workers;
- Safe and ethical working conditions;
- The prohibition of child labor, slave labor, prison labor, and forced labor;
- Environmental protection and sustainability;
- Product safety and consumer protection;
- Anti-corruption and anti-bribery measures, including adherence to foreign corrupt practices legislation;
- Building and workplace safety standards; and
- All analogous obligations dictated by law.
Ross’s ethical stance is unequivocal: we will not knowingly procure any product that has been manufactured using child labor, slave labor, prison labor, or forced labor. Furthermore, we explicitly prohibit the purchase of goods produced in circumstances where workers are denied legally mandated wages or are subjected to unsafe working environments. Our commitment extends to environmental responsibility and consumer safety; Ross will not knowingly purchase products manufactured in violation of established environmental or consumer product safety regulations.
To ensure a responsible supply chain, vendors are explicitly obligated to ensure that all contractors or subcontractors involved in the production of goods for Ross, including all ross suppliers within their network, fully comply with all applicable laws and regulations. This extended responsibility underscores our commitment to ethical sourcing at every tier of our supply chain.
Training and Robust Enforcement of Ross’s Ethical Standards
Ross Stores prioritizes proactive training and continuous monitoring to uphold our stringent ethical standards. We provide comprehensive initial training for all new buying associates, equipping them with the knowledge and tools necessary to navigate ethical sourcing considerations. Furthermore, ongoing training and regular updates are provided to buyers and other associates actively involved in our product sourcing operations, ensuring that our team remains informed and vigilant. Ross’s Legal and Transportation departments play a critical role in actively monitoring and rigorously assessing our supply chain for consistent compliance with product safety regulations, labor laws, and human trafficking legislation.
For products directly imported by Ross and sold in our stores, we implement a multi-faceted approach to ensure ethical sourcing and compliance:
- Ross provides targeted training and clear instructions to overseas buying agents, shippers, product testing laboratories, and relevant Ross associates. This training focuses on the Company’s ethical standards and the specific policies and protocols governing import products, ensuring all stakeholders are aligned.
- Ross mandates that buying agents conduct thorough initial in-person walkthroughs and subsequent comprehensive inspections of vendor factories. These inspections are critical for identifying and addressing potential compliance issues at the source. Ross diligently reviews and audits all buying agent inspection reports to verify their completeness, comprehensiveness, and up-to-date status, ensuring accountability and transparency.
- To further enhance oversight, Ross engages independent third-party auditors to conduct social compliance audits at select vendor factories. These audits provide an objective assessment of working conditions and adherence to ethical labor practices within our supply chain.
- Members of Ross’s Legal team actively participate in the monitoring process by observing select buying agent inspections and third-party audits of vendor factories. This direct involvement underscores the Company’s commitment to rigorous oversight and accountability.
- Ross maintains a robust system for tracking vendor corrective actions taken to address any issues identified during buying agent inspections or third-party audits. This proactive follow-up ensures that identified problems are effectively resolved and that ross suppliers are committed to continuous improvement.
- Ross requires its international buying agents to proactively request and meticulously review available third-party factory audit reports from direct import ross suppliers. Any issues identified in these reports must be promptly disclosed to Ross compliance personnel within the Legal department, facilitating swift and decisive action.
In the event that Ross becomes aware of any vendor’s non-compliance with Ross’s requirements or established procedures, including any violations of applicable local, national, or international labor or human trafficking laws, Ross is committed to taking decisive and appropriate responsive action. Such action may include the immediate suspension of all shipments of a vendor’s merchandise and, in serious cases, the termination of the entire business relationship. This resolute approach underscores Ross’s unwavering commitment to ethical sourcing and human rights throughout our supply chain and with all ross suppliers.
