california transparency in supply chains act of 2010
Revised as of October 2011
The California Transparency in Supply Chains Act of 2010 (SB 657) requires California businesses to disclose their efforts to address the issues of slavery and human trafficking, thereby allowing consumers to make better, more-informed choices regarding the products they buy and the companies they choose to support.
Gucci has taken steps to evaluate the risks of forced labor in our supply chain. Within Gucci, procurement falls into two broad categories: (1) sourcing of raw materials such as gold, diamonds, precious stones, textiles, and leather; and (2) procurement of other types of goods and services to support the day-to-day running of our operations, such as energy, manufacturing, and office equipment. Although the social impact of the goods and services that Gucci purchases often lies outside our direct control, where possible, we have taken proactive steps to ensure the absence of slavery and human trafficking in our supply chain.
Gucci is part of PPR Luxury Group (formerly known as “Gucci Group”), which has certified several of its businesses under Social Accountability International’s (SAI) SA8000 standard [link]. SA8000 sets out a strong approach concerning forced labor and provides guidance to our suppliers and business partners regarding responsible sourcing. SA8000 includes an endorsement by the International Labour Organisation (ILO) Conventions and the Universal Declaration of Human Rights. Among other issues, SA8000 specifically forbids the use of forced or involuntary labor as defined in ILO Convention 29, including employment of people under the age of 15, unless a higher age is required by law, in which case the higher age applies. While several of PPR Luxury Group’s businesses have certification under SA8000, the Group continues its commitment to bring all of its businesses into compliance with SA8000 and obtain certification.
As part of SA8000, Gucci’s suppliers, subcontractors and subsuppliers are required to make a written commitment to all SA8000 requirements, participate in monitoring activities as requested by Gucci, promptly resolve any nonconformance with SA8000, and notify Gucci concerning any relevant business relationships. Moreover, by virtue of our adherence to SA8000, Gucci will be subject to announced and unannounced audits to determine compliance with the SA8000 standard, and Gucci’s suppliers are subject to the same. PPR Luxury Group’s standard supply agreements already refer to and adopt the SA8000 requirements, obligating its suppliers to confirm compliance with the standard. The brands of PPR Luxury Group also often use several of the same suppliers, subcontractors and subsuppliers, so to the extent that businesses of the Group are already certified, other businesses of the Group that are not yet certified have been well positioned to be in compliance with SA8000 and obtain certification.
Gucci also addresses slavery and human trafficking through our involvement in the Responsible Jewelry Council (RJC). The RJC was established in 2005 to promote responsible ethical, human rights, social, and environmental practices in the diamond and gold supply chains. Gucci became a member in November 2009. As a member, Gucci has committed to efforts to address slavery and human trafficking and is subject to RJC audits concerning our own compliance. Moreover, Gucci is pursuing RJC certification and expects to complete that process soon. The certification process is rigorous, including independent audits regarding the member’s compliance with human rights standards. Many of Gucci’s suppliers are also members of the RJC and complete their own RJC certification. RJC has grown to include some 300 members since its founding, from miners to retailers. Additional information on RJC can be obtained here: [link]
PPR Luxury Group’s internal policies also articulate the Group’s determination to rid its supply chain of human trafficking and forced labor. For example, PPR Luxury Group’s Code of Business Practices Ethics Guide states that its businesses will not tolerate child or forced labor in the production of their products. President and CEO Patrizio di Marco recently affirmed the company’s commitment to social responsibility with the issuing of Gucci’s Social and Environmental Policy [link]. The policy confirms Gucci’s determination to pursue full compliance with all applicable Laws, Regulations and Directives, such as the United Nation’s Universal Declaration of Human Rights and relevant ILO Conventions. It specifically addresses Gucci’s dedication to eradicating child labor and forced labor from the company’s supply chain.
Gucci expects and depends on our managers and employees to uphold a zero-tolerance policy regarding forced labor. As such, Gucci has taken steps to increase employee awareness and compliance regarding slavery and human trafficking issues. PPR Luxury Group’s Business Practices Ethics Guide is provided to all employees and suppliers. Employees are encouraged to report violations of the Business Practices Ethics Guide. Moreover, as part of SA8000 certification, the standard will be displayed at business locations to inform personnel about PPR Luxury Group’s voluntary commitment to this standard and its requirements. The PPR Luxury Group will provide a confidential way for Gucci personnel to report nonconformance with SA8000 to management and, where appropriate, Gucci provides and requires specific training programs regarding supply chain issues.