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The California Transparency in Supply Chains Act of 2010 Compliance

On January 1, 2012, the California Transparency in Supply Chains Act of 2010 went into effect in the State of California. This law was designed to increase the amount of information made available by manufacturers and retailers regarding their efforts to address the issue 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.

Slavery and human trafficking can take many forms, including forced labor and child labor. Outlined below are the efforts Bakers has undertaken to ensure and verify the absence of forced labor and child labor in our supply chain.

Our Code of Conduct, which is signed by every vendor as a condition of doing business with Bakers, requires direct suppliers to certify that materials incorporated into their product comply with the laws regarding slavery and human trafficking of the country or countries in which they are doing business, as those terms are used in the California Transparency in Supply Chains Act of 2010, California civil code, section 1714.43. This Code of Conduct allows Bakers to maintain internal accountability standards and procedures for its employees or contractors who may fail to meet company standards regarding slavery and trafficking.

In addition, Bakers' Vice President of Logistics engages in annual periodic verification of product supply chains to evaluate and address risks of human trafficking and slavery. These planned audits are announced, with on-site verification of each factory that produces product for Bakers, and are conducted by our Vice President of Logistics, not an independent party, to evaluate supplier compliance with company standards for trafficking and slavery in supply chains.

Bakers is proud to be C-TPAT Validated and is continually working with Customs to do joint factory site visits overseas to ensure that the Bakers Supply Chain exceeds the minimum security standards.

The Vice President of Logistics at Bakers has received certification from the University of Delaware for the successful completion of Risks of Human Trafficking and Slavery: A Short Course for Supply Chain Professionals program. The Vice President of Logistics periodically trains other office personnel, including buyers, in identifying any mitigating risks within the supply chains of products during their multiple visits to direct suppliers' factories. The audits conducted by these individuals are unannounced as their main purpose for the visit is to purchase product.

Bakers is committed to ensuring that slavery and human trafficking are not part of its direct suppliers' supply chains.