Ethical Supply Chain Guidelines

In 2008, Deckers engaged in a multi-step process to establish objectives, policies and procedures that guide the company’s corporate responsibility programs, with a particular emphasis on responsible supply chain practices. A cross-functional Ethical Supply Chain (ESC) team was created to develop guidelines which govern the environmental and social practices of our supply chain business partners.

Implementation of the ESC Guidelines is the primary responsibility of the ESC Team, led by a Steering Committee that holds final accountability for ESC Guideline implementation. The ESC Team consists of representation from UGG® Australia, Teva® and Simple® Shoes, Executive Office, Supply Chain, Customer Service, Marketing, Legal, Product Development, Materials Sourcing and the China office.

The ESC team established the following five-year objectives to guide their efforts:

• Design products that minimize our impact on the environment,
• Partner with manufacturing and material suppliers to create workplaces that are fair, safe, and desirable places for our employees to work,
• Continually engage stakeholders to learn more about how we can improve our product while protecting working conditions and reducing our environmental footprint, and
• Create a culture in which we constantly seek ways to collaborate to expand the impact of our individual brand efforts.

Our ESC Guidelines

As our business grows, it is important to our organization to responsibly address the impact we have on all aspects of our business operations. As one important step in this effort, we have created Ethical Supply Chain (ESC) Guidelines to ensure the values we hold in our corporate offices carry throughout our entire value chain. Read our ESC Guidelines to find out more. We monitor the behaviors of our factory partners on at least a quarterly basis. We provide quantitative feedback to the factories on key issues and what must be done to address them, including detailed root cause analysis and monitoring of progress. Our ESC Guidelines have the following objectives:

• To set standards for our company and our trading partners in terms of expected behaviors and consequences,
• To focus our efforts on key priorities for ESC compliance so that we can direct resources to achieve our goals in a productive manner,
• To communicate our standards and practices to our trading partners, our employees and our community so that the effort has clarity of purpose and measures of success, and
• To demonstrate our commitment to achieving these standards and continuously improving our performance on ethical compliance.