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Human Trafficking and Slavery on the Supply Chain

Macy’s requires all of its suppliers to comply with the applicable laws and regulations of the United States and those of the respective country of manufacture or exportation. In accordance with the California Transparency Supply Chain Act of 2012 (CASB 657), Macy’s efforts to address human trafficking and slavery in the direct supply chain, which includes both private and market brands, are described herein. In addition to the efforts described, the company maintains an open dialogue with NGOs and socially responsible investor groups regarding developments in this arena.

Code of Conduct (the "Code")
All Macy’s suppliers agree to adhere to the Macy’s Vendor and Supplier Code of Conduct (the "Code"), which includes language strictly prohibiting human trafficking and slavery. The Code incorporates local laws and is based on international standards, such as International Labor Organization (ILO) and United Nations (UN) regulations. The Code states that all suppliers must also comply with the country of manufacture’s labor laws, whichever is stricter. Macy’s also includes these requirements in its purchase order terms and conditions and Macy’s sends periodic communications to suppliers making them aware of new laws or revisions to existing laws as appropriate.

Compliance and Auditing
Independent third party monitors conduct annual compliance audits to identify possible areas of non-compliance with the "Code" or potential risks in Macy’s private brands supply chain. Macy’s will not tolerate and will quickly investigate any reports alleging human trafficking and slavery in the supply chain. Swift and decisive action is taken against any supplier for non-compliance, resulting in possible termination of the business relationship. An integral part of Compliance audits include a focus on monitoring for human trafficking and slavery within the supply chain. Human trafficking and slavery verbiage is also included in the Macy’s Merchandising Group, Inc. Master Contract. Suppliers that produce Macy’s private brands agree to comply with the Code through confirmation and acknowledgement in writing. By acceptance of each and every purchase order, Macy’s suppliers confirm their understanding and agreement to the Standards set forth in the Code. Macy’s provides translated versions of the Code in the local language to be posted in their factories.

Macy’s Associates (Employees)
Macy’s expects all associates and independent contractors to comply with the Code. The Human Resources department is responsible for insuring that associates are aware of its existence and will address any claim of non-compliance by an employee. Macy's employees are responsible for supply chain-related decisions will be required to complete training to educate them on identifying and addressing human trafficking and slavery in Macy’s supply chain.

Our Policy in Action
Macy’s commitment to addressing human trafficking and slavery in the supply chain is illustrated by our relationship with GoodWeave™ Rugs.

In spring 2011, Macy’s introduced a collection of decorative area rugs that have been certified by GoodWeaveâ„¢, an international organization that works to ensure rugs made by hand in Nepal and India are free of child labor. The collection is carried in 10 Macy’s stores nationwide. By buying a beautiful hand-crafted rug at Macy’s with the GoodWeave label, shoppers are helping to support families and build sustainable communities in Nepal and India, nations where poverty is widespread. GoodWeave-certified rugs are woven by skilled adult artisans, permitting educational opportunities for children who otherwise might be required to work. More information about GoodWeave is available at www.goodweave.org.