"2. AUDITING, We regularly conduct independent, unannounced and semi-unannounced audits using third party service providers against ascena’s Code of Conduct for responsible sourcing. We survey our suppliers to assess their use of migrant and foreign contract workers. Our service providers follow procedures to identify non-compliance issues found specifically within these classes of workers, such as hiring process issues and access to grievance systems. An important aspect of the auditing process is worker interviews, conducted both on-site and off-site. Whenever serious issues are found, suppliers are expected to engage in remediation and training which includes a corrective action plan and a series of e-learning modules specifically designed to address the risk in their supply chain. In addition, we apply our rating system, ascena Scale, which impacts business volumes, and provides guidance to Sourcing, assisting them in placing business with suppliers that achieve favorable compliance scores, and reducing business for poor performers. We have and will terminate factories with significant issues when there is insufficient evidence of improvement."