Corporate Responsibility

Capri Designs is a family owned, family operated, and family friendly business, where we’ve pursued this wonderful adventure of product design, development, and production. It is only through our growing network of employees, designers, licensing partners, suppliers, and customers that our company has experienced success, and we consider each and every one of the stakeholders a part of the Capri Designs family and inherently valuable. We are committed to supporting an environment that emphasizes the respect and dignity of every person we engage with, including the employees within our own workplace and those of our manufacturers and suppliers.

Capri Designs is committed to social and environmental responsibility, and our belief in giving back to the communities in which we live and work is not only critical to our long-term success, but very much the right thing to do. We recognize that sustainable growth comes from operating with absolute integrity and in a way that respects our customers, employees, suppliers, and communities. We do not tolerate corruption, discrimination, harassment, or forced or child labor in any form. We believe we have a responsibility to enrich our business practices in the way we carry out our operations, in the products and services we offer, and in community engagement and service.

CODE OF CONDUCT

ONE SOURCE NETWORK, INC. / CAPRI DESIGNS IS DEDICATED TO PROVIDING ITS CUSTOMERS WITH QUALITY PRODUCTS, DELIVERED ON TIME AND AT A COMPETITIVE PRICE. IN ORDER TO ACHIEVE THESE REQUIREMENTS, WE BELIEVE THAT ONE SOURCE NETWORK, INC. / CAPRI DESIGNS, ITS BUSINESS PARTNERS, MANUFACTURERS, AND SUPPLIERS, MUST OPERATE IN AN ETHICAL AND CONFIDENTIAL MANNER, AND MANAGE ALL BUSINESS TRANSACTIONS WITH DUE RESPECT FOR EMPLOYEES AND THEIR RIGHTS, HEALTH, SAFETY, WORK ENVIRONMENT, AND FAIR COMPENSATION.

ETHICS

We always conduct our business operations and services honestly and honorably, and we expect our customers and suppliers to do the same.

CONFIDENTIALITY

We are committed to maintaining the highest degree of integrity in all of our dealings with potential, current, and past customers. We are committed to maintaining the protection of all personal information received in our business dealings, with standard business confidentialities extended to all of our customers, suppliers, and associates. Our manufacturers and suppliers shall preserve the integrity and confidentiality of the information they may receive in their dealings with One Source Network, Inc. / Capri Designs.

DUTY OF CARE

Our business operations, actions, and advice will always conform to relevant law. One Source Network, Inc. / Capri Designs, its manufactures and suppliers, certify that all of our merchandise is manufactured at the factory designated, its location and country of origin, and neither convict labor and / or forced labor and / or indentured labor and / or illegal child labor is used in the production or manufacture of our merchandise. Our manufacturers and suppliers shall manufacture all merchandise in compliance with all other applicable labor and workplace safety and environmental laws and regulations.

TRACEABILITY OF PRODUCTION

Manufacturers and suppliers shall not assign any work to third parties without the prior authorization of One Source Network, Inc. / Capri Designs. Those who outsource any work shall be responsible for the enforcement of the applicable rules of conduct, here enclosed, by these third parties and their employees.

QUALITY ASSURANCE

We are committed to maintaining the highest quality possible for our manufactured goods through ongoing factory reviews, independent inspections, and product testing. All goods manufactured shall comply with all relevant Consumer Product Safety Act rules and guidelines. Our manufacturers and suppliers shall submit to announced or unannounced inspection by One Source Network, Inc. / Capri Designs representative or its third-party designees.

ENVIRONMENTAL STANDARDS

Our manufacturers and suppliers shall be committed at all times to protect the environment and shall thusly comply with all applicable country environmental regulations.

HEALTH AND SAFETY

Our manufacturers and suppliers shall operate its facilities in a manner that protects the health and safety of its employees and in compliance with applicable laws and regulations relating to the same.

COMPENSATION AND BENEFITS

Our manufacturers and suppliers shall comply with legally mandated minimum wage laws and shall compensate employees for overtime according to local laws. They shall comply with applicable local regulations for legally mandated benefits. Our manufacturers and suppliers shall comply with local limits on hours worked and days off, and they shall not discipline employees with fines or monetary sanctions or withholding of employee compensation.

FREEDOM OF ASSOCIATING, COLLECTIVE BARGAINING, AND GRIEVANCE RESOLUTION

Our manufacturers and suppliers shall allow, where permitted by law, employees to join organizations of their choice and engage in collective bargaining. One Source Network, Inc., its manufacturers and suppliers shall implement mechanisms for employees to voice grievances without fear of retaliation.

DISCRIMINATION AND HARASSMENT

We always strive to be fair and objective in our business dealings and actions, and we are never influenced in our decisions, actions, or dealings by issues of gender, race, nationality, color, age, marital status, or personal disability. Our manufacturers and suppliers shall treat all employees with dignity and respect. They shall not subject their employee and shall not permit corporal punishment, threats of violence, verbal harassment, psychological intimidation, or sexual abuse.

CORPORATE RESPONSIBILITY FACTORY AUDIT PROTOCOLS

For new suppliers and manufacturers, at the time general product styling is to Capri Designs’ and / or customer’s liking, initialize a pre-source audit with the 1-day WCA quick scan. Focus will be on zero tolerance issues, including:

• Child Labor
• Bonded Labor and Inhumane Treatment:
  • Not allowing workers to leave the workplace against their will, including when they are forced to work overtime against their will
  • Use of violence or the threat of violence to intimidate workers to force them to work
  • Inhumane or degrading treatment, corporal punishment (including sexual violence), mental or physical coercion and/or verbal abuse
• Occupational Health and Safety
• Unethical Behavior
  • Attempted bribery of auditors
  • Intentional misrepresentation in the supply chain
  • For suppliers supporting perpetuating product runs with general category applicability, initiate full social compliance audit

For full unregulated factory audits (audit type and auditing group unspecified), full WCA audit, addressing:

• Labor (Child/Forced Labor, Discrimination, Discipline, Harassment/Abuse, Freedom of Association, Labor Contracts)
• Wages and Hours (Wages and Benefits, Working Hours)
• Health and Safety (General Work Facility, Emergency Preparedness, Occupational Injury, Machine Safety, Safety Hazards, Chemical and Hazardous Material, Dormitory and Canteen) • Management Systems (Documentation and Records, Worker Feedback and Participation, Audits and Corrective Action Process)
• Environment (Legal Compliance, Environmental Management Systems, Waste and Air Emissions)

For regulated factory audits requested by high volume customers and buying groups, BCSI or SMETA 2P or 4P audits – based on customer requirements and report convertibility

Corrective Action:
For non-compliance issues addressed through desktop review...

• The factory shall action its non-compliance and document its progress
• The audit body or Capri Designs HK office (based on the severity of the non-compliance) shall verify its actions

For non-compliance issues not easily addressed through desktop review...

• The factory shall action its non-compliance and document its progres
• The factory will be subject to a follow-up audit to verify its actions

The audit process is to be repeated every 1, 2, or 3 years depending on the severity of the findings and non-compliance issues

Audit Calendar Time Frame: 20-30 calendar days

We are committed to integrating continuing CR practices within our business strategy. As we explore how CR topics align with the different parts of our business, we will continue to pursue the growing avenues through which CR supports our stragegic business goals. We at Capri Designs want a business driven by future excellence, and we will continue to operate with a focus on our strategic priorities, including:

Building On Our Strong Core: We will continue to maintain long-term and strategic partner relationships with our vendors and suppliers to maintain quality and proven sourcing options.
Maintaining Our Customer Service Strength: We operate in a customer driven market, and our superior customer service has been a cornerstone of our operating principles. We will continue to maintain best practices to maintain this all important business goal.
Pursue New Opportunities: The market is ever evolving, and it is in the best interest of our company to respond to these changes in trends. We are committed to developing new and trend-right products to meet our customers needs.

It is within these core values and upon the foundation of FAMILY, TRUST, INNOVATION, and EXCELLENCE that we can realize our growth potential and further develop the material CR topics of CUSTOMER SATISFACTION, RESPONSIBLE SOURCING, ECO-FRIENDLY PRODUCT DEVELOPMENT, and COMPLIANCE AND BUSINESS ETHICS to operate as a socially responsible business and meet one of today’s most relevant business demands.