California Supply Chain Act

California Transparency in Supply Chains Act of 2010 (Senate Bill 657) Disclosure

On January 1, 2012, the California Transparency in Supply Chains Act of 2010 (the “Act”) went into effect in the State of California. This law was designed to increase the amount of information made available by manufacturers and retail sellers regarding their efforts (if any) to address the issue of slavery and human trafficking thereby allowing consumers to make more informed choices regarding the products they buy and the companies they choose to support through their purchases.

Future Foam is made up of a team of innovators who manufacture the best in foam materials and products. Its products range from premium carpet cushion, mattress toppers and pillows, to gutter guards. Future Foam has manufacturing facilities strategically placed around the world with distribution to retailers and merchants in the U.S. Its locations feature pouring, fabrication and carpet-cushioning capabilities along with varied specialties like marine, medical, research and development, and recycling.

Future Foam’s direct, downstream supply chain involves acquiring materials necessary for the operation of its manufacturing facilities. Future Foam’s products are manufactured from various raw chemical materials, and scrap materials that are recycled and used in the manufacture of carpet cushion. Future Foam’s supply chain also includes prefabricated components that it purchases and incorporates into finished products.

Within its own business operations and with respect to its supply chain, Future Foam recognizes and respects all laws designed to protect its and its suppliers’ employees, including, but not limited to, those laws that require it and its suppliers to treat workers fairly, to provide a safe work environment, and to protect the quality of the workers’ working conditions. Future Foam is committed to working with its supply chain to meet Future Foam’s high standards for business ethics, integrity and values, and respect for human rights.

  1. Verification of Supply Chain. To ensure that its supply chain reflects Future Foam’s high standards for business ethics, integrity and values, and respect for human rights, Future Foam relies on suppliers who are expected to comply with all applicable federal, state, national and international laws, which may include, among others, laws that require them to treat workers fairly and to provide workers with a safe and healthy work environment. At this time, Future Foam does not verify its supply chain to evaluate and address risks of human trafficking and slavery. Instead, as discussed below, it relies on audits of and certifications from members of its direct, downstream supply chain.
  2. Auditing of Supply Chain. Future Foam periodically, and no less than once per year, monitors its direct, downstream suppliers located in the U.S. for compliance with applicable federal and state laws and regulations through Future Foam’s own internal auditors who perform unannounced and announced audits. Future Foam’s internal auditors are trained to recognize and report non-compliance with federal and state laws and regulations, as applicable, as part of their hiring process and on-going training. If and when an auditor reports an instance of abuse, Future Foam then either elects to no longer do business with the supplier or, alternatively, informs the supplier of the reported instance of abuse and directs it to bring its business operations into compliance with all federal and state laws and regulations, as applicable. If Future Foam elects the latter course of action, Future Foam’s own internal auditors will perform unannounced audits to confirm that appropriate, corrective action has been taken. Future Foam also requires the suppliers to agree to permit an accredited third party verification agency to conduct on-site announced and unannounced audits of their facilities. As noted below, Future Foam may also offer training to help members of its supply chain to understand the applicable laws and how to identify and respond to supply chain-related issues.

Future Foam relies on members of its supply chain to self-audit, as contemplated by Future Foam’s purchase orders used with its suppliers and the supplier’s own code of conduct. In addition, Future Foam periodically, and no less than once per year, monitors its direct, downstream suppliers located in China and the European Union for compliance with applicable national and international laws through Future Foam’s own internal auditors who perform announced and unannounced audits. Future Foam’s internal auditors are trained to recognize and report non-compliance with national and international laws and regulations, as applicable, as part of their hiring process and on-going training. If and when an auditor reports an instance of abuse, Future Foam either elects to no longer do business with the supplier or, alternatively, informs the supplier of the reported instance of abuse and directs it to bring its business operations into compliance with all applicable national and international laws. If Future Foam elects the latter course of action, Future Foam’s own internal auditors will perform unannounced audits to confirm that appropriate, corrective action has been taken. Future Foam also requires the suppliers to agree to permit an accredited third party verification agency to conduct on-site announced and unannounced audits of their facilities. As noted below, Future Foam may also offer training to help members of its supply chain to understand the applicable laws and how to identify and respond to supply chain-related issues.

  1. Certification by Supply Chain. Future Foam’s purchase orders with members of its direct, downstream supply chain located in the U.S. include a certification that the supplier will abide by all applicable federal and state laws aimed at eradicating slavery and human trafficking, and that all materials and products incorporated into the products supplied to Future Foam comply with all such applicable laws. In addition, Future Foam’s purchase orders with members of its direct, downstream supply chain located in China include a certification that the supplier will abide by all applicable national and international laws aimed at eradicating slavery and human trafficking, including, but not limited to Provisions on Prohibition of Child Labor (禁止使用童工规定) and Labor Protection Supervision Regulations (劳动保障监察条例), and that all materials and products incorporated into the products supplied to Future Foam comply with all such applicable laws. Future Foam is in the process of revising its purchase orders used with members of its direct, downstream supply chain located in the European Union to include a certification that the supplier will abide by all applicable national and international laws aimed at eradicating slavery and human trafficking, and that all materials and products incorporated into the products supplied to Future Foam comply with all such applicable laws.
  2. Internal Accountability. Future Foam is committed to ensuring its suppliers engage in responsible and ethical business practices, and reserves the right to refuse to purchase materials or products from all members of its direct, downstream supply chain if it learns that the supplier is or may be violating an applicable federal, state, national or international law or regulation designed aimed at eradicating slavery and human trafficking. To monitor members of its supply chains’ compliance with the certifications included in its purchase orders, Future Foam reserves the right to require the suppliers to permit Future Foam and/or an accredited third party verification agency to conduct on-site announced and unannounced audits of your facilities. Future Foam may also offer training to help members of its supply chain to understand the applicable laws and how to identify and respond to supply chain-related issues.

With respect to its own employees, Future Foam maintains accountability procedures for and demands commitment to its “Vision,” which sets forth Future Foam’s standards for business ethics, integrity and values by each of its employees, including, but not limited to, requiring all employees to conduct themselves with integrity and respect for others. Future Foam’s Vision is part of its day-to-day business operations and a message that it shares not only with its employees but with members of its direct, upstream and downstream supply chain. Any employee who violates the spirit or letter of Future Foam’s Vision is subject to disciplinary action up to and including termination of his/her employment.

  1. Training. Future Foam’s Vision is part of its day-to-day operations and a message that it shares with its employees and members of its direct, upstream and downstream supply chain. Annually, all employees are required to undergo training on Future Foam’s Vision and, more specifically, on applicable federal, state, national and international laws and regulations aimed at eradicating slavery and human trafficking. This training also includes information on laws and regulations that require Future Foam to treat its workers fairly and to provide them with a safe and healthy work environment health, and labor and employment best practices, and confirms that employees are expected to report deviations from Future Foam’s Vision. This includes reporting suspicious activity, including, but not limited to, the treatment of workers and the quality of the worker’s work environment. The training is performed either by a third-party that specializes in training on compliance with federal, state, national and international laws and regulations, as applicable, governing environmental, labor and employment laws, or by a Future Foam employee that has received specialized training on compliance with laws and regulations designed to protect employees.

 

 

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