Effective January 1, 2012, the California Transparency in Supply Chains Act of 2010 requires retailers and manufacturers doing business in California to disclose their efforts to eradicate slavery and human trafficking in their own direct supply chain. JAKKS Pacific, Inc. and its subsidiaries (collectively, “JAKKS”) is committed to ensuring that its supply chain reflects and upholds the values of human rights and the environment.
In compliance with the spirit and intent of the California Transparency in Supply Chains Act of 2010 (SB 657), JAKKS undertakes the following actions:
(1) JAKKS internally (without the use of a third party auditor) conducts risk assessment of its supply chains in relation to potential slavery and human trafficking.
(2) JAKKS incorporates into its supplier agreements standards which a) prohibit its suppliers from engaging in slavery and human trafficking and b) require the suppliers to provide a safe and healthy work environment that complies with all local and national employment laws. The agreements require that suppliers represent and warrant that they are not and will not engage in any slavery or human trafficking and prohibit them from engaging in any slavery or human trafficking.
(3) JAKKS uses internal staff and does not employ third parties to audit suppliers to determine compliance with the foregoing. If JAKKS learns of or suspects any such violation by a supplier, it will audit the supplier and, if a violation is found, require the supplier to provide JAKKS an action plan to achieve compliance within a reasonable time period. JAKKS will terminate its relationship with any supplier that fails to timely correct violations within a reasonable time period.
JAKKS’ internal policies reflect the aforementioned policies. Employees and contractors working within the JAKKS supply chain are required to comply with these policies and attend training on mitigating risks of slavery and human trafficking. Those who violate the policies are subject to disciplinary action up to and including termination of employment.