This disclosure is made in accordance with the California Transparency in Supply Chains Act (SB 567) which requires that companies disclose certain matters with respect to their efforts to ensure that their supply chains are free from slavery and human trafficking.
Masco Corporation and its subsidiaries have a longstanding commitment to the ethical and responsible sourcing of goods and supplies for Masco's family of companies. Masco's Supplier Business Practices Policy (SBPP), which is published at www.mascopurchasing.com, formalizes that commitment by requiring, among other things, that our suppliers respect our standards and those of our customers, including with regard to compliance with laws, human rights, child labor, human trafficking, slavery, wages and benefits, excessive working hours, corporal punishment, discrimination, safe and clean workplaces and other labor and employment standards.
VERIFICATION OF SUPPLY CHAINS
Verification of supply chains and auditing of suppliers to evaluate supplier compliance and address risks with respect to human trafficking and slavery.
Masco requires our operating units to have a formal system for reviewing and accepting new vendors. For vendors located outside the United States, Canada and Western Europe, this program requires a physical review of each new factory to ensure that it meets at least baseline requirements with respect to applicable laws and working conditions, including laws against human trafficking and slavery. Additionally, Masco's Purchase Order Terms and Conditions for Masco Companies (published at www.mascopurchasing.com) requires compliance with applicable laws as well as the standards and requirements set forth in the SBPP.
In addition to the process for selecting new vendors described above, Masco engages in verification of the practices of its existing supplier base (other than suppliers located in the United States and Western Europe) through periodic announced audits to assess risks and ensure compliance with applicable laws and conditions, including laws governing human trafficking and slavery. These audits are conducted by Masco employees for suppliers in China, Taiwan and Vietnam, and by third parties for suppliers located in other countries. If significant issues are raised by an audit, we may also conduct a follow-up unannounced audit to address the initial findings.
Masco maintains an internal scoring system with respect to its periodic audits of suppliers and records the results on an internal web site. Masco further investigates all reported instances of non-compliance and takes appropriate action to help ensure that our SBPP standards and applicable laws are observed. Masco's global compliance program is managed from Masco's Shenzhen, China office in conjunction with Masco's internal auditors located in Taiwan and Vietnam.