Social Compliance Code of Conduct
Those who contribute to building the Crocs brand are integral to the Company’s success. To ensure that they are provided safe, fair and informed employment opportunities, Crocs makes it a priority to work with Business Partners who share and uphold the Company’s values and policies.
The principles outlined below make up Crocs’ Social Compliance Code of Conduct. They help us hold ourselves and our Business Partners accountable to ensure that issues are addressed as they arise and that employment initiatives are advanced.
Crocs intends to work with Business Partners that understand that meeting these minimum standards in this document is a critical baseline from which manufacturing leadership, continuous improvement, and self-governance must evolve. Beyond this Code of Conduct, Crocs expects our Business Partners to share Crocs’ commitment to doing the right things for our people and our environment. We share goals of reducing waste, using resources responsibly, supporting workers’ rights, and advancing the welfare of workers and communities. We believe that partnerships based on transparency, collaboration, and mutual respect are critical to our long term success.
Our Partners commit to this Social Compliance Code of Conduct by signing a copy of these standards and business practices. This commitment will be updated and agreed upon on an annual basis. Crocs utilizes an independent external resource and an internal monitoring team to conduct unannounced periodic Social Compliance audits of our Business Partners and Crocs owned supply chain facilities to evaluate and address risks pertaining to slavery and human trafficking. Crocs also has a broad social compliance-training program in place that covers the topics of human trafficking and slavery, particularly with respect to mitigating risks within the supply chains of products. Additionally, the Social Compliance team includes a role to actively monitor and assess our Business Partners and internally owned factories. Any failure for employees or Business Partners to abide by the Social Compliance Code of Conduct will result in corrective action or termination of employment or contract.
Business Partners (including but not limited to agents, vendors, manufacturers, factories, suppliers, and subcontractors) must comply fully with all legal requirements relevant to the conduct of their businesses. The language to be used for purposes of notice and interpreting the meaning of these guidelines shall be English along with the local languages of Crocs business partner locations.
Our Workforce Standards: Voluntary and Age Appropriate
Crocs’ Business Partners must not use forced labor, including prison labor, indentured labor, bonded labor, or other forms of forced labor. Business Partners’ employees shall not be required to lodge ‘deposits’ or identity papers upon commencing employment with the Business Partner or as a condition of employment. Employees are free to leave the Business Partner after giving reasonable notice. The Business Partner is responsible for employment eligibility fees of foreign workers, including recruitment fees. Crocs’ Business Partners certify that they will comply with the laws regarding slavery and human trafficking of the country or countries in which they are doing business.
Crocs’ Business Partners will abide by the governing laws of the labor age requirements in which the products are produced. Where no age requirement is specified, the minimum age will be set at 16 years of age. Furthermore, Business Partners must comply with all local laws pertaining to the restrictions on “Young Workers,” who are defined as being all employees under the age of 18.
Our Employment Values: Respect, Dignity and Equal Opportunity
Crocs’ Business Partners will treat their employees with respect and dignity. Work environments must be free of intolerance, retribution for grievance, and corporal punishment. Physical, sexual, psychological, or verbal harassment or abuse of employees will not be tolerated.
Crocs firmly believes people are entitled to equal opportunity in employment. Crocs’ Business Partners will not discriminate against their employees in employment, including hiring, salary, benefits, advancement, discipline, termination, or retirement on the basis of gender, race, religion, age, disability, sexual orientation, nationality, marital status, political opinion, trade union affiliation, social or ethnic origin, or any other status protected by country law.
Our Compensation Commitment: Timely & Fair
Crocs Business Partner employees will be paid promptly and earn at least the minimum wage required by country law and provided legally mandated benefits, including holidays and leaves, and statutory severance when employment ends. Employment practices such as training or apprenticeship wages, pre-employment fees, deposits, or other practices that effectively lower an employee’s pay below the legal minimum wage are not permitted. Additionally, wages will be paid on a monthly basis, at a minimum.
Our Work Environment: Safe, Healthy & Balanced
Crocs’ Business Partners will ensure a safe and healthy workplace. Crocs’ Business Partners will promote safe practices by providing written safety and health policies and procedures that minimize negative impacts on the workplace environment, reduce work-related injury and illness, and promote the general health of employees. Crocs’ Business Partners must maintain systems to detect, avoid and respond to potential employee health and safety risks. Crocs’ Business Partners must provide training and adequate equipment to ensure workplace safety practices. This requirement also applies to residential facilities provided, if any.
Crocs Business Partners will abide by the governing laws for working hours as prescribed by the country in which the product is produced. Any overtime hours are consensual and compensated at a premium rate.
Crocs’ Business Partners will protect human health and the environment by meeting applicable regulatory requirements, including those covering workplace safety, air emissions, solid/hazardous waste, and water discharge. Crocs’ Business Partners will adopt reasonable measures to mitigate negative operational impacts on the environment and strive to continuously improve environmental performance.
To the extent permitted by the laws of the manufacturing country, Crocs’ Business Partners shall respect the right of their employees to freedom of association and collective bargaining. This includes the right to form and join trade unions and other worker organizations of their own choosing without harassment.
Our Business Partner employees are encouraged to contact Crocs confidentially in the event one of our Partners is violating employee rights as laid out in this Social Compliance Code of Conduct. Please reach us at (011) 1-855-223-1557 or Compliance@crocs.com.
Our Business Partners all confirm that they have received this Social Compliance Code of Conduct and agree to comply with all standards and business practices listed. If Crocs discovers that one of its Business Partners has violated any of this Social Compliance Code of Conduct, Crocs may choose to cancel any outstanding orders, terminate the business relationship, and/or pursue legal action. This Social Compliance Code of Conduct must be posted in a prominent location inside the Business Partner’s factory in the local language(s) of the workers.