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"Skechers requires that the manufacturing factories (Tier 1) and material suppliers (Tier 2) through which the Company produces its product understand and legally acknowledge its Supplier Code of Conduct annually, and provides these factories and suppliers with Supplier Code of Conduct trainings. Tier 1 factories are also required to monitor Tier 2 suppliers and complete reports to ensure compliance."

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"Supply Chain Verification and Evaluation

It is a requirement for all manufacturers doing business with Skechers to comply with Skechers’ Guidelines for Responsible Factory Operation. Compliance with the Guidelines for Responsible Factory Operation is mandatory and is required in order to do business with Skechers. Manufacturers are also required to post these Guidelines, as well as all labor laws and other internal policies in the workplace, in both English and the local language(s) where they may be seen by employees. Skechers further requires that all manufacturers certify that they do not employ, in whole or in part, convict labor, forced labor, indentured labor or child labor at any stage of the manufacturing process.

Skechers uses the manufacturer certifications as well as audits of all manufacturers’ conformity with these Guidelines in order to verify its product supply chains and to address and reduce risks of human trafficking and slavery. Skechers performs this verification through a third party as well as its internal Corporate Social Responsibility team, which is responsible for implementing the Company’s Supplier Code of Conduct. The CSR team meets daily, and regularly confers with Skechers’ corporate management teams throughout the year."