Code of Conduct
Social Compliance Code of Conduct
The following is the Social Compliance Code of Conduct for Crocs, Inc. (the "SC Code"). The SC Code is used as a tool to assist Crocs, Inc. ("Crocs") in selecting and retaining Business Partners (as defined below) who follow business practices consistent with our policies and values. As a set of guiding principles, the SC Code also helps identify potential problems so that we can work with our Business Partners to address issues as they arise. By way of example, Business Partners will develop and implement action plans for continuous improvement in factory working conditions. Progress of these and related plans will be monitored by the Business Partners themselves, Crocs' internal monitoring team, and external independent monitors. Additionally, Crocs and external independent monitors will conduct announced and unannounced audits of suppliers to evaluate supplier compliance with the SC Code's standards and business practices. Crocs also has a broad social compliance-training program in place that covers the topics of human trafficking and slavery, particularly with respect to mitigating risks within the supply chains of products.
As Crocs evolves its business model in sourcing and manufacturing, we intend to work with Business Partners that understand that meeting these minimum standards is a critical baseline from which manufacturing leadership, continuous improvement, and self-governance must evolve. Beyond this SC Code, Crocs is committed to collaborating with Business Partners to help build a leaner, greener, more empowered and equitable supply chain. We expect our Business Partners to share Crocs' commitment to the goals of reducing waste, using resources responsibly, supporting workers' rights, and advancing the welfare of workers and communities. We believe that partnerships based on transparency, collaboration, and mutual respect are integral to making this happen.
Our Partners commit to this Social Compliance Code of Conduct by signing a copy of the document below, which outlines these standards and business practices. This commitment will be updated and agreed upon on an annual basis.
General Principle Business Partners (including but not limited to agents, vendors, manufacturers, factories, suppliers, and subcontractors) must comply fully with all legal requirements relevant to the conduct of their businesses. The language to be used for purposes of notice and interpreting the meaning of these guidelines shall be English unless otherwise noted.
Forced Labor: Crocs' Business Partners do not use forced labor, including prison labor, indentured labor, bonded labor, or other forms of forced labor. Business Partners' employees shall not be required to lodge 'deposits' or identity papers upon commencing employment with the Business Partner or as a condition of employment and are free to leave the Business Partner after giving reasonable notice. The Business Partner is responsible for employment eligibility fees of foreign workers, including recruitment fees. Crocs' Business Partners certify that they will comply with the laws regarding slavery and human trafficking of the country or countries in which they are doing business.
Child Labor: Crocs' Business Partners will not employ any person less than fifteen (15) years of age unless local minimum age law stipulates a higher age for work or mandatory schooling, in which case the higher age shall apply. Furthermore, Business Partners must comply with all local laws pertaining to the restrictions on "Young Workers," who are defined as being all employees under the age of 18. Young Workers shall not be employed at night or in hazardous conditions.
Harassment and Abuse: Crocs' Business Partners shall treat their employees with respect and dignity. Work environments must be free of intolerance, retribution for grievance, and corporal punishment. No employee will be subject to any physical, sexual, psychological, or verbal harassment or abuse.
Non-discrimination: Crocs firmly believes people are entitled to equal opportunity in employment. Although the company recognizes that cultural differences exist, Crocs' Business Partners shall not discriminate against their employees in employment, including hiring, salary, benefits, advancement, discipline, termination, or retirement on the basis of gender, race, religion, age, disability, sexual orientation, nationality, marital status, political opinion, trade union affiliation, social or ethnic origin, or any other status protected by country law.
Wages and Benefits: Crocs' Business Partners' employees are timely paid at least the minimum wage required by country law and provided legally mandated benefits, including holidays and leaves, and statutory severance when employment ends. Employment practices such as training or apprenticeship wages, pre-employment fees, deposits, or other practices that effectively lower an employee's pay below the legal minimum wage are not permitted. Wages will be paid at least on a monthly basis.
Health and Safety: Crocs' Business Partners shall ensure a safe and healthy workplace. Crocs' Business Partners shall provide written safety and health policies and procedures that minimize negative impacts on the workplace environment, reduce work-related injury and illness, and promote the general health of employees. Crocs' Business Partners shall maintain systems to detect, avoid, and respond to potential risks to the safety and health of all their employees. Crocs' Business Partners must provide training and adequate equipment to ensure workplace safety practices. This requirement also applies to residential facilities provided, if any.
Hours of Work/ Overtime: Crocs' Business Partners' employees shall not work more than sixty (60) hours per week, or more than the maximum amount of hours set by the law of the manufacturing country, whichever is less. Any overtime hours are consensual and compensated at a premium rate. Employees are only allowed to work a maximum of six (6) days per week.
Environment: Crocs' Business Partners will protect human health and the environment by meeting applicable regulatory requirements, including air emissions, solid/hazardous waste, and water discharge. Crocs' Business Partners will adopt reasonable measures to mitigate negative operational impacts on the environment and strive to continuously improve environmental performance.
Freedom of Association: To the extent permitted by the laws of the manufacturing country, Crocs' Business Partners shall respect the right of their employees to freedom of association and collective bargaining. This includes the right to form and join trade unions and other worker organizations of their own choosing without harassment, interference, or retaliation.
Our Business Partners all confirm that they have received this Social Compliance Code of Conduct and agree to comply with all standards and business practices listed. However, if Crocs discovers that a Business Partners has violated any of this Social Compliance Code of Conduct, Crocs may choose to cancel any outstanding orders, terminate the business relationship, and/or pursue legal action. This Social Compliance Code of Conduct must be posted in a prominent location inside the Business Partner's factory in the local language of the workers.