“We believe that remediation best serves the interests of workers by enabling the supplier to develop safe, compliant and respectful workplaces. Therefore, if an audit reveals that a factory has failed to comply with our standards, policies or other requirements, we typically work with the factory to remediate the issues. We engage

factory managers in an open discussion on the findings, exploring root causes, and support them in developing corrective action plans (“CAPs”). In addition, we meet with our suppliers between audits to review their progress in implementing remediation activities and to provide further guidance”

work closely withfactories to remediate any identified deficiencies and, when necessary, terminate supplier factories that fail tocomply with our policies, procedures or guidelines.2

Remediation: We believe that remediation best serves the interests of workers by enabling the supplier to developsafe, compliant and respectful workplaces. Therefore, if an audit reveals that a factory has failed to comply withour standards, policies or other requirements, we typically work with the factory to remediate the issues. We engagefactory managers in an open discussion on the findings, exploring root causes, and support them in developingcorrective action plans (“CAPs”). In addition, we meet with our suppliers between audits to review their progress inimplementing remediation activities and to provide further guidance.3

Termination: We will generally terminate a relationship with a supplier or factory if (i) it fails to successfullyremediate issues uncovered by an audit or (ii) we identify what we would consider an egregious violation of ourpolicies or guidelines and remediation is not appropriate or feasible.3