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Supplier Responsibility

Tiffany & Co. facilities—including diamond cutting and polishing, jewelry crafting and distribution—operate at the highest standards. Rigorous standards are also used to evaluate Tiffany & Co. vendors. All of our suppliers are expected, at a minimum, to conduct business in an ethical manner and to comply with all applicable laws and regulations. Tiffany & Co. established a multidimensional Social Accountability Program that includes comprehensive guidelines for the manufacturing processes of the finished goods, components, leather, polished diamonds and packaging materials we procure, designed to ensure that vendors are held to the exacting standards that Tiffany & Co. is proud to uphold.

For example, the Tiffany & Co. Social Accountability Program helps to ensure that our suppliers protect basic human rights. This program reviews our suppliers’ performance in relation to: hours of work, wages and benefits, health and safety, freedom of association and collective bargaining, transparency, child labor, forced labor, harassment or abuse, disciplinary practices, discrimination and environmental protection.

To ensure that a supplier meets our rigorous demands, suppliers in the Social Accountability Program must abide by the Tiffany & Co. Vendor Code of Conduct—a document which communicates our values and expectations for our business partners. We hold our vendors to these same standards for their sub-contractors, which are disclosed and monitored through our Vendor Code of Conduct.

The Social Accountability Program includes a three-tier assessment process of suppliers:

  1. Vendors are required, when applicable, to complete an annual self-assessment of their performance against our Vendor Code of Conduct.
  2. Tiffany & Co. performs internal audits of our vendors.
  3. Tiffany & Co. contracts with a third-party social responsibility auditing firm to perform audits on our vendors.

Tiffany & Co. audits are conducted over a two-year cycle, and the current audit cycle is 2012-2013. In 2012, 61% of high risk vendors in the program were audited, and the remaining high risk vendors will be audited in 2013. The risk classification is determined by a vendor self-assessment, industry and geographic location.

When suppliers are found to be in noncompliance with Tiffany & Co. requirements, every effort is made to work with the vendors to correct their noncompliance. If the vendor continues to fail to meet our requirements, the relationship is terminated.

In 2012, Tiffany & Co. began an internal assessment of the Social Accountability Program, as our business and global supply chains continue to evolve. This ongoing process involves redefining and clarifying the scope of the program, criteria for inclusion and the process for introducing new vendors into the program, which will help us to further identify and assess risks in our global supply chain. We plan to report on our progress in our 2013 Sustainability Report.

CALIFORNIA TRANSPARENCY IN SUPPLY CHAINS ACT (SB657)
As referenced above, Tiffany has a comprehensive supply chain auditing program which addresses the risks of human trafficking and slavery for suppliers in the Social Accountability Program. Our audits are conducted both internally and by a third party. Third-party verification is required of all of our high-risk suppliers in the Social Accountability Program, determined by a vendor self-assessment, industry and geographic location.

Audits are conducted to evaluate compliance with the Tiffany Vendor Code of Conduct as well as local and international labor laws and regulations.

If a nonconformance is found, we have a corrective actions process to resolve the nonconformance. If nonconformances persist, Tiffany ceases to do business with the supplier.

Tiffany supply chain management have received training on our Social Accountability Program, which includes mitigating risks of human trafficking and slavery within our supply chain.