1. R.J. McCARTHY LIMITED'S COMMITMENT TO SOCIAL RESPONSIBILITY

“Any infringement on human rights, especially the rights of children, is intolerable. As president of R.J. McCarthy, which was founded by my father, Bob McCarthy, and as the father of young children myself, I share this concern about the quality of life of all individuals. McCarthy's remains committed to this concern being reflected in our purchasing practices. We demand the same high standards from our suppliers, and as a result, have developed McCarthy's Code of Conduct for Manufacturers.”
Martin McCarthy
President

While factories throughout the world operate in different legal and cultural environments, this Code sets forth the requirements that all Vendors must meet in order to do business with R.J. McCarthy. Should these vendors fail to meet these requirements, R.J. McCarthy. will not conduct business with them. To address human rights issues with clothing manufacturers, R.J. McCarthy has developed a Code of Vendor Conduct based on the principals of the Universal Declaration of Human Rights adopted by the General Assembly of the United Nations. Our company will not support any organization or company that compromises this Code of Vendor Conduct by infringing upon the human rights of any individual.

2. VENDOR COMPLIANCE AND MONITORING

a. Code of Vendor Conduct

General Principle:
Factories that produce goods for R.J. McCarthy shall operate in full compliance with the laws of their respective countries and with all other applicable laws, rules and regulations.

Freedom of Association and Collective Bargaining

R.J. McCarthy stipulates that Management of Vendors must respect and support the rights of individual employees to free association and collective bargaining where applicable.

Discrimination
Factories shall employ workers on the basis of their ability to do the job, not on the basis of their personal characteristics or beliefs.
-The factory employs workers without regard to ethnicity, colour, gender, nationality, political opinion, sexual orientation, religion, age, maternity or marital status.
-The factory pays workers' wages and provides benefits without regard to ethnicity, colour, gender, nationality, political opinion, sexual orientation, religion, age, maternity or marital status.

Child Labor

Factories shall employ only workers who meet the applicable minimum legal age at which compulsory school has ended, or are at least 15 years of age, whichever is greater. Factories must also comply with all other applicable child labour laws related to hiring, wages, hours worked, overtime and working conditions. R.J. McCarthy supports legitimate educational apprenticeship programs provided that the apprentice is not exploited or given dangerous tasks. No child of compulsory school age may be employed during school hours and the combined time spent on school, transportation, and at work must not exceed 10 hours a day.

Wages & Hours

Factories shall set working hours, wages and overtime pay in compliance with all applicable laws. Workers shall be paid at least the minimum legal wage or a wage that meets local industry standards; whichever is greater. Workers' wages must be high enough to meet the basic needs of both themselves and their families within their national economic condition. While it is understood that overtime is often required in garment production, factories shall carry out operations in ways that limit overtime to a level that ensures humane and productive working conditions.

Health & Safety

R.J. McCarthy will only enter into agreements with Vendors who provide a safe and healthy work environment for their employees to the extent that factories comply with all applicable local laws and regulations regarding working conditions. Additionally, factories producing goods for R.J. McCarthy must provide, well-lit and ventilated workstations, clean restrooms, fire exits and safety equipment, first aid supplies, proper storage and disposal units for hazardous materials, and ensure that all machinery and equipment is well maintained and in good working condition. The same conditions and parameters apply to worker housing when provided by the Vendor.

Forced Labour, Harassment and/or Abuse

R.J. McCarthy requires that all factory workers of Vendors be treated with respect and dignity. All employment must be on a voluntary basis. Vendors must respect each employee's right to decide to work or not work and shall not use corporal punishment, threats of violence, sexual harassment, verbal abuse or any other form of physical or psychological coercion. R.J. McCarthy is particularly sensitive to women's issues, especially sexual discrimination.

Environmental Specification

R.J. McCarthy asks that Vendors conduct their business using their country's most progressive environmental practices and take active steps to preserve and protect the integrity of the environment.

b. Monitoring and Compliance Process

Vendors that want to sell products to R.J. McCarthy must pass an initial evaluation. Those that do not pass this review cannot do business with us. R.J. McCarthy regularly visits the factories of approved Vendors and meets with factory workers, owners and supervisors to assess the overall conditions of the facility. We also request that each Vendor submit their Code of Conduct for our review. If Vendor factories are not maintaining conditions set forth in the R.J. McCarthy Code of Conduct, and subsequently not attempting to take corrective action, we will either suspend our placement of future orders until conditions are improved or, in a situation where conditions are not improved, stop doing business with that Vendor altogether.