The California Transparency in Supply Chains Act of 2010 (SB 657) (“Act”) will go into effect in the state of California on Jan. 1, 2012. The Act seeks the elimination of slavery and human trafficking from product supply chains and requires that companies disclose their efforts to ensure that their supply chains are free from slavery and human trafficking.

Lowe’s obligates its vendors by contract to comply with all applicable laws, including safety, labor and employment laws, as well as our Vendor Code of Conduct. Lowe’s Vendor Code of Conduct states as follows:
Vendors shall not use any form of forced, bonded, indentured, trafficked, slave or prison labor, with the exception of government approved programs that utilize convicts or prisoners on parole, supervised release or on probation or in any penal or reformatory institution. All work must be voluntary and workers shall be free to leave work or terminate their employment with reasonable notice. All workers must not be required to surrender any government-issued identification, passports or work permits as a condition of employment.
Lowe’s reserves the right to verify our vendors’ compliance with our Vendor Code of Conduct. Lowe’s confirms compliance with Lowe’s Vendor Code of Conduct through various methods, including third-party certifications and unannounced, on-site audits of vendors by an independent party.

In the event that Lowe’s becomes aware of any actions or conditions not in compliance with our Code of Conduct, Lowe’s reserves the right to demand corrective measures. Lowe’s also reserves the right to terminate an agreement with any vendor who does not comply with Lowe’s Vendor Code of Conduct and to secure any and all other rights and remedies available to Lowe’s.

Additionally, all employees must acknowledge and adhere to Lowe’s Code of Business Conduct and Ethics. Lowe’s Code of Business Conduct and Ethics includes a requirement to comply with all applicable domestic or foreign governmental laws, rules and regulations and compels all Lowe’s employees who have information or knowledge of any actual or contemplated transaction that violates Lowe’s Code of Business Conduct and Ethics to report the matter. Failure of Lowe’s employees to comply with our Code of Business Conduct and Ethics will result in disciplinary action.

Lowe’s conducts periodic internal training on Lowe’s Code of Business Conduct and Ethics to ensure that we provide our employees with standard and guidance for conducting business ethically and with integrity. Lowe’s also provides internal training of our supply chain management to ensure that they are aware of the issues relating to human trafficking and slavery and how to mitigate such risks.