Supplier Responsibility (California Transparency in Supply Chains Act Disclosure Statement)

For more than 40 years, Kids II has been committed to providing quality products and the observance of high ethical standards in the conduct of our business. We promote honesty, integrity, accountability and compliance with laws as core values of our culture. All levels of employees within the company agree and acknowledge that employment is conditional upon the adherence to and compliance with the highest standards and business practices and requirements of ethical conduct and that at all times employees’ conduct and ethics must be above reproach. We respect the personal dignity and individual worth of every human being and comply with all applicable human rights laws.

We verify our product supply chains for risks of human trafficking and slavery through participation in the C-TPAT program, which requires working with Customs and Border Protection to protect the supply chain, identify security gaps, and implement specific security measures, including a 7 point inspection of every container before it is loaded and recording the actual loading and sealing of the containers. All of our suppliers are subject to an annual GSV (Global Security Verification) audit conducted by third party auditors. The GSV audit addresses all C-TPAT related activities to ensure a secure supply chain.

Our product manufacturers are required to certify and demonstrate compliance with our Supplier Code of Conduct, which includes the Company’s mandatory ethical standards. Those ethical standards include an absolute prohibition on use of involuntary labor and a requirement that our suppliers comply with all applicable laws, regulations, and mandatory industry standards relevant in the countries where our products are sold. Prior to commencing a business relationship with a factory, we audit the factory to ensure compliance with these requirements.

We routinely audit our suppliers’ factories to ensure the quality and safety of our products and to verify compliance with the Supplier Code of Conduct and applicable laws. In some instances, these audits are performed by outside third parties. Audits are generally conducted on an announced basis, but periodically may be conducted on an unannounced basis. Further, all of our suppliers are subject to annual GSV audits conducted by third party auditors. The GSV audits verify that our suppliers have systems and procedures in place to combat human trafficking and slavery.

If we learn that our suppliers are not complying with our Supplier Code of Conduct, including the prohibition against involuntary labor, then the violators are subject to disciplinary action up to and including termination of the business relationship. Additionally, any of our supply chain employees who facilitate or conceal any such violations would also be subject to disciplinary action.

Every member of our supply chain staff receives training on our Supplier Code of Conduct and its prohibition against involuntary labor, as well as our processes for ensuring supplier compliance.