Supply Chain Monitoring Disclosure
Pursuant to the California Transparency in Supply Chains Act of 2010
Culp, Inc. is committed to compliance with all laws applicable to its operations. This includes a commitment to compliance with laws and regulations regarding labor rights, including laws against slavery and human trafficking. We have adopted policies to prohibit the use of slavery and human trafficking in our supply chain.
Before we engage a supplier, our personnel conducts a comprehensive announced quality and compliance audit at overseas locations, including a review of working conditions that would include an assessment of compliance with standards to prevent slavery and human trafficking.
These reviews do not utilize independent or unannounced audits, but suppliers are subject to additional inspections or audits by our personnel, and failure to comply with laws and regulations is cause for termination as a supplier to Culp, Inc.
We continually engage in risk-based assessments of various components of our supply chain to identify potential areas of concern. These assessments are conducted by our internal staff and not by third parties, but make use of third party data and risk profiles provided by trade associations within our industry to assess supply chain areas of greatest risk.
We are in the process of developing a comprehensive Supplier Code of Conduct that imposes duties on our direct suppliers to comply with labor rights laws, including laws related to slavery and human trafficking. We will communicate the requirements of this code to our management personnel within our supply chain, and continue to take steps to heighten awareness in our supply chain personnel about issues surrounding labor rights and the requirement that significant suppliers be provided with a copy of the Culp, Inc. Supplier Code of Conduct. The company will continue to communicate to direct suppliers of tangible goods that it has no tolerance for violations of labor rights laws, including slavery and human trafficking, requiring that suppliers comply with the Culp, Inc. Supplier Code of Conduct.