California Transparency Act & UK Modern Slavery Act Statement
In compliance with the California Transparency in Supply Chains Act (SB 657) and the UK Modern Slavery Act of 2015, the following document discloses Stitch Fix’s policies and actions relating to slavery and human trafficking in business and the supply chain. As detailed below, we strive to operate all aspects of our business with the highest levels of integrity, and this commitment extends to how we manage our supply chain with vendor partners.
Stitch Fix, Inc., including its affiliates and subsidiaries (“Stitch Fix”), is reinventing the shopping experience by delivering one-to-one personalization to our clients through the combination of data science and human judgment. Stitch Fix was founded in 2011 and employs more than 10,000 employees. Since our founding, we’ve helped millions of men, women and kids discover and buy what they love through personalized shipments of apparel, shoes and accessories, hand-selected by Stitch Fix stylists and delivered to our clients’ homes. Information about Stitch Fix can be found at www.stitchfix.com. Stitch Fix is traded on the NASDAQ under ticker symbol SFIX.
In compliance with the UK Modern Slavery Act of 2015, this document covers the reporting period of 1 August 2020 to 31 July 2021. This information may also apply to past endeavors undertaken by Stitch Fix.
Stitch Fix is committed to providing clients with products that were manufactured legally, ethically and responsibly. We expect our vendors to respect workers and ensure fair, safe and healthy conditions in their manufacturing facilities. We require that our vendors comply with our manual that sets forth our business, legal and ethical standards and expectations in the following areas: transparency, integrity, legal compliance, prohibitions on child labor, forced labor, slavery and human trafficking, non-discriminatory hiring and promotion practices, coercion, harassment, occupational health and safety, working hours, wages and benefits, freedom of association, collective bargaining and protection of the environment.
Stitch Fix requires its vendors to adhere to labor and workplace standards that include employment of workers above the minimum working age who freely choose to work and who are regularly, legally compensated. We also require our vendors to warrant that any products sent to Stitch Fix were made in compliance with all applicable laws, including laws prohibiting child labor, forced labor and unsafe working conditions.
To verify that vendors meet our standards, we regularly work with external expert third-party auditors to assess and monitor working conditions in our vendors’ factories. All factories producing Stitch Fix’s private-label product are required to undergo an initial audit before production may begin. Once approved for production, factories are regularly monitored for ongoing compliance with our expectations and standards, which are based on local law and internationally accepted norms, in addition to guidance from the International Labor Organization. The auditors conduct unannounced and semi-announced (the factory is given a window of time during which the audit could occur) audits. To support and drive improvement in working conditions where needed, our team works with vendors to establish corrective action plans after audits.
Stitch Fix maintains internal accountability standards for employees and contractors, and we do not tolerate slavery or human trafficking by either. Additionally, we provide training to our executives and employees responsible for supply chain management in an effort to ensure they are knowledgeable and aware of how to recognize and mitigate risks of human trafficking and slavery in supply chains.
Risk and Effectiveness
While there are risks inherent with third-party production and manufacturing, we have established the procedures discussed herein to mitigate the risks of slavery and human trafficking in our supply chains. Though we have standards to which all of our vendors must agree, our enforcement is focused on our private-label vendors with whom we develop products directly. This is the level of the supply chain where we believe we have the most influence and can therefore be the most effective.
Stitch Fix has evaluated and continues to evaluate the effectiveness of our human trafficking and slavery eradication efforts. We regularly engage with industry associations and experts, and consult governmental reports, to ensure we have a current understanding of industry and country-level risk. We will continue to assess our business and supply chains to identify potential risks and target those areas with policies, procedures and training to ensure we maintain appropriate safeguards against the mistreatment of individuals within our business and supply chains.