JCPenney Factory Audit Supplier Guidelines

What are the contents of JCPenney's factory audit supplier guidelines ? Do suppliers have to strictly abide by these contents? What are the consequences if they violate JCPenney's factory audit supplier guidelines? Many factories that have not received JCPenney's factory audit should have many questions about this. Let's take a closer look at the contents of JCPenney's factory audit supplier guidelines.

The details of JCPenney's factory audit supplier guidelines are as follows:

1. JCPenney Suppliers and Their Selection

JCPenney is in the business of buying and selling merchandise. We do not manufacture the merchandise we sell. Instead, we purchase goods from independent suppliers, who operate or contract with thousands of factories in the United States and thousands around the world. JCPenney does not own or operate any of these factories, nor do we control their production capabilities, which are available to customers from other manufacturers. In selecting supplier companies, JCPenney attempts to identify companies that are willing and able to conduct their business in compliance with all applicable legal requirements and the high ethical standards that JCPenney upholds.

2. JCPenney's Contract Requirements

JCPenney's new purchasing contracts explicitly require suppliers to comply with all applicable laws and regulations, including those of the United States and any foreign country in which the merchandise is produced or exported. Our contracts also require all suppliers to have the same obligations as contractors.

A single failure by a supplier, or its contractors, to comply with all applicable statutory requirements will constitute a breach of JCPenney's new contract with the supplier, entitling us to cancel the contract and seek compensation for any resulting costs or losses. In addition, serious or repeated breaches of such requirements by a supplier or its contractors will result in the termination of the supplier's business relationship with JCPenney.

3. Foreign Procurement Issues

JCPenney requires that merchandise purchased from suppliers meet all applicable laws and regulations, both U.S. and foreign. JCPenney will not accept merchandise that does not meet applicable requirements. To address special concerns in the area of ​​foreign sourcing, we have stated in our JCPenney foreign sourcing requirements that we will not knowingly allow merchandise to be imported into the United States or knowingly accept merchandise that is:

No accurate country of origin marking;

is manufactured as convict, forced or indentured labour;

is unlawful in manufacturing with child labor; or in manufacturing in violation of any other applicable labor, workplace safety or environmental laws and regulations.

For each foreign-produced good, we require our foreign suppliers and our suppliers of U.S. imported goods to obtain a manufacturer's certificate certifying that the good was produced in a designated facility (identifying the name, location, and country) and confirming compliance with each of our requirements. In addition, we require suppliers of diamonds and diamond jewelry to certify that their goods do not contain conflict diamonds and comply with the requirements of the Clean Diamond Trade Act and the Kimberley Process Certification Scheme.

IV. Consistency of JCPenney Supplier Responsibilities

JCPenney expects all of its suppliers to take all necessary steps to ensure that they produce JCPenney merchandise in legally required factories, regardless of whether the factory is operated by them or by a contractor.

We require all foreign and domestic suppliers of JCPenney branded merchandise, as well as all foreign suppliers of merchandise purchased and sourced by JCPenney's new sourcing subsidiary, JC Penney Purchasing Corporation, to participate in a detection program for compliance with legal requirements at JCPenney's new factories when importing. Under this program, before a supplier can use a factory in either the United States or abroad, the factory must first conduct a self-survey of critical legal requirements and workplace safety issues and then be inspected by a specially trained JCPenney associate. If deficiencies are found, the factory is given 30 days to correct them. If the factory does not correct the deficiencies, or if our supplier decides to abandon the factory as a contractor, the factory is placed on the JCPenney New Factory Suspension List and may not be used by any JCPenney supplier. U.S. suppliers of JCPenney branded merchandise whose imports are also subject to random audits by JCPenney to inspect their import documents. >>> Jcpenny JCPenney factory audit notes

In addition, JCPenney requires suppliers to comply with the following guidelines:

5. Comply with labor laws

JCPenney expects all of its suppliers to take extra care, through monitoring or other means, to ensure that they and their contractors comply with applicable labor laws. This expectation is reflected in the terms of our purchasing contracts.

We require all domestic suppliers to certify that each shipment they make to JCPenney is in compliance with the Fair Labor Standards Act and applicable regulations and orders of the U.S. Department of Labor. For suppliers of JCPenney branded merchandise, we additionally require them to identify all factories and contractors, domestic or foreign, that they plan to use to produce such merchandise and to certify in writing that each factory operates in compliance with all applicable labor laws.

If we receive notification from the U.S. Department of Labor or any state or foreign government labor department that a factory for any JCPenney supplier is in violation of applicable labor laws and has not corrected the violation, we will instruct an immediate suspension of all shipments of merchandise to JCPenney from that factory. Any resumption of shipments will be subject to verification that the supplier has the necessary monitoring procedures in place to ensure compliance with all applicable labor laws.

JCPenney will not accept the application of labor laws in violation of the production of goods. We will not hesitate to terminate our relationship with any supplier with whom we do not have the willingness or ability to meet our requirements.

VI. Education

JCPenney regularly communicates with our suppliers on compliance issues through our supplier website, supplier information bulletins, supplier summits and almost daily communications with supplier representatives. We also actively support industry efforts and government guidance on these issues. We expect our suppliers to cooperate in such efforts and take the necessary steps to ensure contractors are fully informed.

VII. Environmental Initiatives

In our A Matter of Principle: JCPenney and the Environment Principles, we commit to continually reviewing our actions to assess their potential impacts and taking steps to eliminate or minimize significant threats to the environment and human health and safety.

We expect our suppliers, domestic and foreign, to respect and maintain the same commitment with their operations and ensure that contractors do the same.

What are the consequences of violating the JCPenney Supplier Code? If there is credible evidence that one of our suppliers, or one of its contractors, is violating the legal terms of the contract, JCPenney may take one or more of the following actions:

Cancel outstanding orders;

· suspend until the supplier’s or contractor’s current business activities are in full compliance and we ensure that the supplier has taken the necessary steps to prevent future occurrences;

· terminate the relationship with that supplier; or

· Place a factory on our factory suspension for violations from the JCPenney Prohibited Supplier List;

Report illegal activities to appropriate legal authorities

· Investigation Procedures: Whenever JCPenney discovers or learns of a potential legal violation by a supplier or its contractors, we will notify the supplier, fully investigate the situation, and take corrective action if we determine that the allegation is supported by credible evidence. If the supplier does not cooperate with the investigation, we will terminate our relationship with that supplier.

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JCPenney believes that their approach is balanced and fair, and they are committed to being suppliers and manufacturers who abide by the law. If you have any questions about the above JCPenney factory inspection supplier guidelines or want to have a comprehensive understanding of the factory inspection information, you can make detailed inquiries through the online customer service on our website, or you can have a one-to-one communication with our factory inspection experts by phone. Our professional factory inspection instructors will answer your factory inspection questions for free and make 100% efforts to help factories pass the factory inspection smoothly!