The California Transparency in Supply Chains Act of 2010 (SB 657) requires that effective January 1, 2012, retailers and manufacturers with $100 million of annual worldwide revenue and doing business in the state publically disclose their efforts to eliminate slavery and human trafficking from their direct supply chains for tangible goods offered for sale. The purpose of this law is to allow consumers to make better, more informed choices regarding the products they buy and the companies they choose to support.
As outlined in our Standards of Business Conduct, LSI is dedicated to conducting business in a lawful and ethical manner and it is our expectation that our suppliers also conduct themselves in a similar socially responsible manner. LSI acknowledges and implements the Electronic Industry Citizenship Coalition (EICC) Code of Conduct which defines performance, compliance, auditing and reporting guidelines across five areas of social responsibility: (1) Labor, (2) Health and Safety, (3) Environmental, (4) Management Systems and (5) Ethics. This code also reflects international labor and human rights standards such as the rights to: freely choose employment; join or be represented by labor unions or workers’ councils in accordance with local laws; and a workplace free of harassment and unlawful discrimination. The requirement to comply with the EICC Code of Conduct is cascaded to all our suppliers that manufacture or process LSI products through our Supplier Corporate Social Responsibility (CSR) Requirements. Awareness training on LSI’s process to ensure our subcontract manufacturers meet social responsibility requirements which includes but is not limited to a ban on human trafficking and slavery is appropriately communicated to responsible managers and is reflected in LSI’s Employee EH&S Handbook.
To verify compliance with LSI and EICC Code of Conduct requirements prohibiting forced labor and child labor, we require that our subcontract manufacturers complete our Web-based Supplier Evaluation for Social Responsibility and Environmental Performance assessment questionnaire. Responses to the questionnaire are internally reviewed and verified through announced audits conducted as part of LSI’s internal audit program. Findings which do not meet our requirements are addressed through corrective action programs.