California transparency in Supply Chains Act of 2010 (SB657)

The California Transparency in Supply Chains Act of 2010 (SB657) requires retail sellers and manufacturers doing business in California to disclose their efforts to eradicate slavery and human trafficking in their direct supply chain.

ASICS America Corporation uses the below accepted definitions of Slavery and Human Trafficking to formulate its disclosure:

Slavery is "the most extreme version of forced labor where a person is under the absolute control of another person who exercises powers of ownership. The arrangement is permanent in nature and, in some cases, based on descent. The enslaved person is treated as a commodity and property and is restricted in terms of freedom of movement.", as defined by several in the NGO community.

Human Trafficking is "any recruitment, harboring, transportation, provision, or obtaining of a person for labor services, through the use of force, fraud, or coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery.", as defined in the Victims of Trafficking and Violence Protections Act (VTVPA) of 2000. Human trafficking is also known as modern-day slave trade.

ASICS America Corporation condemns the use of force or involuntary labor and deploys international monitors as well as certified third party auditors to verify its supply chain compliance to this zero tolerance point.

Many years ago, ASICS America Corporation realized that workers' conditions everywhere were a vital component of a sound supply chain and has dedicated a team of Corporate Social Responsibility (CSR) specialists to monitor vendor compliance performance in agreement with its vendor Policy of Engagement and Code of Conduct. Manufacturing partners sign a vendor agreement which includes acceptance to comply with our Policy of Engagement. Not meeting these terms can result in the termination of the business relationship. This policy is based on ASICS Philosophy, ASICS Vision and ASICS Code of Conduct as well as the World Federation of Sporting Goods Industry (WFSGI) model Code of Conduct.

ASICS America Corporation’s vendor agreement requires all suppliers to operate in full compliance with all national and local laws, rules and regulations applicable to their business operations and in cases where no local laws exist, ASICS America Corporation expects that international standards become the rule to be followed.

ASICS America Corporation is a member of the Fair Labor Association (FLA), an organization dedicated to protecting workers’ rights worldwide. As a member, ASICS America Corporation voluntarily chooses to follow the FLA’s code of conduct and agrees to work with its vendors to achieve compliance.

ASICS America Corporation global supply chain partners are evaluated on their compliance of the Policy of Engagement and the FLA’s Code of Conduct based on a combination of announced and unannounced audits conducted by third party accredited monitors as well as internal compliance specialists. In addition, ASICS America Corporation agrees to third party random audits on behalf of FLA to monitor its factory base and work on improving working conditions at those sites.

Over and above ASICS America Corporation vendor requirements and expectations, “ASICS Code of Conduct” sets out the basic standards by which all members of ASICS Group must comply during their daily activities and with each business decision. All directors, officers and employees in ASICS Group are required to review, understand and comply with this Code.

ASICS America Corporation is working on a plan to start internal training on ASICS America Corporation’s Code of Conduct to ensure the necessary participants in supply chain management are knowledgeable and aware of the issues and concerns surrounding the supply chain, including human trafficking and slavery with a particular focus on mitigating risks. ASICS America Corporation works with third party trainers and invites factory management to participate in CSR seminars, trainings and or conferences in the bigger manufacturing centers to encourage attendance. Future seminars will have a special focus on identifying and preventing supply chain risks, especially related to human trafficking and slavery.