Forced Labor in Canadian Supply Chains in Compliance with Bill S-211

Annual Report

California Transparency in Supply Chains Act of 2010

The California Transparency in Supply Chains Act of 2010 requires many companies manufacturing or selling products in California to disclose their efforts to address the issues of slavery and human trafficking, thus allowing consumers to make more informed choices about the products they buy.

Weyco Group, Inc. designs and markets quality footwear for men, women, and children under a variety of well-known brands, including Florsheim, Nunn Bush, Stacy Adams, Bogs, and Forsake. Weyco Group has built a reputation for integrity and honesty, and for acting in good faith in all of its dealings, and we expect our suppliers to be honest, transparent, and committed to making continuous improvements, in addition to complying with local laws and regulations.

The Weyco Group’s Responsible Sourcing Program is made of the following components and underpinned by the goal of protecting and promoting healthy and sustainable working conditions as well as identifying and addressing modern slavery and human trafficking.

Code of Conduct

Code of Conduct Document

Verification.

Weyco assesses its suppliers and their subcontractors for risk relative to human trafficking and slavery. While Weyco may conduct its own compliance audits, in connection with initial, follow-up and renewal audits we also accept credible certifications from the Ethical Trading Initiative (ETI), the Fair Labor Association (FLA), and Social Accountability 8000 (SA 8000), among others. Weyco may consider other companies' audit reports, as well, depending on factors such as the factory's country of origin, audit firm, audit results, and the brand's reputation for corporate social responsibility. Weyco reserves the right to reject the documentation provided by a supplier and may also conduct announced or unannounced verification audits either directly by the company or indirectly by third party auditors specializing in that service.

Audits

All of Weyco's suppliers are required to agree and adhere to Weyco Group's Supplier Code of Conduct, disclose all factories and subcontractors intended for productions of Weyco's goods, implement self-compliance audits, and submit to announced or unannounced compliance audits by Weyco or by third party auditors specializing in that service.

Weyco conducts audits of its direct suppliers and qualified subcontractors to evaluate compliance with the Company's Supplier Code of Conduct, which specifically addresses human trafficking and slavery.  To determine factory selection for audit priority, Weyco considers factors such as factory country of origin, existing certification, current audit reports, and business volume.  Weyco uses unaffiliated third-party audit firms to conduct both announced and unannounced compliance audits.  Zero Tolerance violations, such as forced labor, slavery, etc. are grounds for immediate\ termination of a supplier under the Supplier Code of Conduct.

Certifications

Weyco requires that all of its suppliers and their subcontractors comply with applicable laws and regulations within their respective countries regarding forced labor, slavery, and human trafficking. Suppliers are further required to maintain current and detailed records that enable Weyco to determine their compliance with the Supplier Code of Conduct and all applicable laws of the country where the merchandise is produced. Suppliers agree that they will submit to and cooperate with compliance audits and will correct any deficiencies within a reasonable timeframe.

Accountability

Weyco has a rigorous Code of Business Ethics that provides a clear statement of the Company's standards for legal, ethical, and fair behavior. The Code is provided to all Weyco Group employees and is also applicable to the Company's non-employee directors. In addition, the Supplier Code of Conduct says that Weyco Group reserves the right to cease doing business with suppliers who fail to comply with the requirements of that code and do not demonstrate the willingness to make continuous improvements where needed.

Training

All Weyco Group employees and non-employee directors receive the Code of Business Ethics, and those who contract with product suppliers receive the Supplier Code of Conduct. Any Weyco employee can report violations of laws, rules, regulations, or the Company's Code of Business Ethics through our management structure without fear of retaliation.
Further, Weyco is committed to working with its suppliers by providing compliance training sessions to educate suppliers on Weyco's Social and Environmental Compliance Program, the Supplier Code of Conduct, and highlight common deficiencies and best practices relative to industry or location. It is Weyco's expectation that invited suppliers attend these training sessions.