Supporting Human Rights in our Supply Chain through Global Social Compliance
Our philosophy towards social compliance mirrors our culture, and just as we are committed to honesty, integrity, and treating others with dignity and respect, we expect those with whom we do business to do the same. Our Global Social Compliance Program aims to respect human rights by helping to protect workers in our supply chain through a variety of measures and reinforces our expectations related to the treatment of workers in our supply chain.
Our Global Social Compliance approach includes:
Vendor Code of Conduct
Our Vendor Code of Conduct serves as the foundation for our Global Social Compliance Program and includes our expectations on child and forced labor, ethical business standards, wages and benefits, environmental expectations, and more. Our purchase order terms and conditions include a requirement for merchandise vendors to comply with our Vendor Code of Conduct, including any factories or subcontractors they use.
Factory Auditing
The factory auditing portion of our Global Social Compliance Program, which we have expanded in recent years, focuses on factories where we have more influence in bringing products to market.
Training
We conduct formal training sessions biennially for TJX Associates involved in the buying and/or development of merchandise. In addition, we offer training sessions on a regular basis to buying agents, vendors, and factory management within our factory auditing program, typically in multiple locations around the world every year.
Stakeholder Engagement
We engage with industry associations and various audiences on topics related to human rights and supply chain risk management as we believe this collaboration can help advance improvements in supply chain practices overall and supports TJX's efforts. Learn more about our approach to stakeholder engagement, in addition to a list of industry associations we participate in, on our Approach to Corporate Responsibility page.
In addition to the program components outlined above, we are committed to providing a variety of stakeholders access to a grievance mechanism, The TJX Helpline. Our Associates, merchandise vendors, factory workers in our supply chain, and others can report suspected violations of our policies and standards through an online submission or via a dedicated phone line. The TJX Helpline is available 24/7 in 13 languages, and suspected violations and concerns can be reported anonymously. We publish information about the Helpline in a variety of places, including the Vendor Code of Conduct, which is available below and on our vendor website, as well as our TJX Global Code of Conduct for Associates.
Factory Auditing
FY24 Factory Audits
3,100+ Factories
On a worldwide basis, in Fiscal 2024, we sourced merchandise from a universe of more than 21,000 vendors and more than 100 countries around the world. As an off-price retailer, the majority of the products we sell are high quality, fashionable, brand name, and designer merchandise, which we acquire through a wide array of opportunities, including department store cancellations, a manufacturer making up too much product, a closeout deal when a vendor wants to clear merchandise at the end of the season, and more. Sometimes when what we see in the marketplace is not the right value for our customers, meaning the right combination of brand, fashion, price, and quality, we may help design or develop merchandise to be manufactured just for us.
As part of our Global Social Compliance Program, we regularly monitor a portion of our merchandise supply chain through our factory auditing program. In recent years, our factory auditing program has expanded. The program is generally focused where we have more influence in bringing the products to market. We take this approach because it is where we believe we are most likely to have a meaningful impact as we typically have direct or indirect relationships with the factories.
Factories in our auditing program are required to undergo periodic audits to evaluate adherence to our Vendor Code of Conduct and local laws. In Fiscal 2024, we audited, or received audit reports from, more than 3,100 factories in about 30 countries. Working hour violations, health and safety violations, and various benefits-related violations were among the most common infractions identified.
We reviewed audits in Fiscal 2024 from factories in Bangladesh, Cambodia, Canada, China, Egypt, Germany, Hong Kong, India, Indonesia, Italy, Kenya, Macedonia, Malaysia, Mauritius, Mexico, Morocco, Myanmar, Pakistan, Peru, Philippines, Poland, Portugal, Sri Lanka, Taiwan, Thailand, Turkey, Ukraine, United Kingdom, United States, and Vietnam. The majority of these audits were conducted by auditors rated at the Registered Auditor (RA) or Certified Social Compliance Auditor (CSCA) level by the Association of Professional Social Compliance Auditors (APSCA), a leading industry association for social compliance auditing. Through their APSCA membership, these auditors agree to adhere to all quality and ethical requirements outlined in APSCA’s Code and Standards of Professional Conduct.
FY24 Factory Audits
3,100+ Factories
Auditing Process
In recent years, industry collaboration has resulted in increased numbers of factories that can provide us with recent audit reports from BSCI, WRAP, and SEDEX for our review. We believe this industry collaboration is beneficial as it can help reduce audit fatigue among factories, while helping companies obtain important information to evaluate their supply chain.
We also continue to work with third party service providers, like UL, Intertek, and Omega, to conduct audits on behalf of TJX, especially when a BSCI, WRAP, or SEDEX report is unavailable. We have developed comprehensive compliance program guidelines for those audits conducted on our behalf. We hold annual meetings with these partners during which we hear about evolving social compliance issues and trends, and may work together to modify guidelines based on these updates.
Together with our third-party representatives, we work closely with our buying agents and vendors within our factory auditing program so that they understand our Global Social Compliance Program, our Vendor Code of Conduct, and our factory auditing process. Our internal teams, including Associates in many of our buying offices, also play an important role in educating these vendors on our expectations and encouraging vendors to make improvements at their facilities, when necessary.
We expect factories to cooperate fully with us and our auditors and to provide access to facilities and documents. Our TJX Global Social Compliance Manual contains, among other important guidance, an audit procedure outline and factory evaluation checklist to help prepare the factory for the audit process. This tool is available in seven languages and offers detailed information designed to help agents, vendors, and factory management in our audit program better understand the expectations of our Vendor Code of Conduct, as well as our monitoring and remediation processes. We require our buying agents to disseminate this manual to their entire TJX vendor base. We also have the manual posted to our vendor website, which is available to all vendors.
When third parties like UL, Intertek, and Omega conduct audits on behalf of TJX, the audits generally include one to two full working days at each audited factory and cover the following components:
Our Assistant Vice President (AVP), Global Social Compliance, and certain Associates that support our program in buying offices around the world participate in shadow audits with auditors. Shadow audits are practiced with an intent to gain a better understanding of the compliance audit process and challenges, and to better aid TJX in our review of both our audit results and, more broadly, our program’s effectiveness.
Corrective Action and Remediation
Factory audit reports, whether an industry accepted report or a third-party audit conducted on behalf of TJX, are reviewed by TJX and assigned a rating of satisfactory, needs improvement, or unsatisfactory.
Satisfactory rating:
meets the minimum requirements of our Vendor Code.
Needs improvement rating:
generally complies with most of our minimum requirements, with some lesser infractions identified.
Unsatisfactory rating:
more serious infractions of our Vendor Code of Conduct have been identified.
When critical violations of our Vendor Code of Conduct are identified through our factory auditing program, we require our vendor to immediately terminate the use of that factory for any product manufactured for us. Critical violations of our Vendor Code include infractions such as bribery/corruption; child labor, forced or slave labor, and prison labor; human trafficking; maintaining a facility with all doors and/or exits locked; use of chemicals banned in the region; and failure to pay wages.
Factories with a Satisfactory rating are audited biennially while those with a Needs Improvement rating receive a corrective action plan (CAP) and are expected to show proof of remediation within 180 days. Factories with an Unsatisfactory rating also receive a CAP and are expected to undergo a reaudit within 180 days. If a factory receives multiple successive unsatisfactory ratings, it could face more serious consequences.
Encouraging Compliance with Environmental Laws
Audits conducted on behalf of TJX include a review of factory policies, practices, and procedures concerning the handling of chemicals and other hazardous waste, and a review of the factory’s compliance with applicable environmental laws and regulations.
In addition, our Vendor Code of Conduct strongly encourages our vendors to share our commitment to protecting the environment by operating in a sustainable manner where possible, for example by conserving and protecting resources, such as water and energy, and taking into consideration environmental issues that may impact local communities. Our social compliance training program covers the protection and conservation of water, as well as an overview of the legal requirements on the use of chemicals and hazardous materials in the regions where products are both manufactured and sold. Training includes case studies to assist vendors and factory management in better understanding our expectations and our Vendor Code of Conduct requirements in this area.
Mitigating Our Impact
Pursuing initiatives that are environmentally responsible and smart for our business.
Learn MoreMitigating Our Impact
Pursuing initiatives that are environmentally responsible and smart for our business.
Learn MoreSocial Compliance Training
Providing training is an important way we reinforce our expectations to respect the rights of workers in our supply chain.
TJX Associates involved in the development and buying of merchandise are expected to undergo formal social compliance training biennially. These trainings are typically conducted by both our SVP, Chief Risk and Compliance Officer and our AVP, Global Social Compliance.
The interactive training reviews the expectations set forth in our Vendor Code of Conduct along with examples of both good management practices and what violations may look like. The training also discusses our factory auditing program, including the process and ratings.
In addition, through informal meetings and discussions, our AVP, Global Social Compliance continues to share learnings, updating our merchandising Associates on the requirements of TJX’s Global Social Compliance Program.
We also routinely train buying agents, vendors, and factory management within our factory auditing program, and we strongly encourage all new factories in our factory auditing program to participate in such training. Typically, we hold an average of 8-12 training sessions a year, focusing on locations that are regionally close to factories included in our factory auditing program. After a period of remote learning following the pandemic, we returned to conducting in-person training sessions during Fiscal 2024.
Our training sessions are conducted by representatives from UL Solutions, one of our third-party auditors, in partnership with our AVP, Global Social Compliance. We believe the presence of our management at these sessions demonstrates to factory management, buying agent management, and vendors that TJX is committed to our Global Social Compliance Program. Over time, our training sessions have been held in various locations and have included the following topics:
- TJX’s Vendor Code of Conduct and the expectations contained in this Code
- Local labor laws and anti-bribery laws (including the Foreign Corrupt Practices Act and the U.K. Bribery Act)
- Regulations on chemicals and hazardous materials, Material Data Safety Sheets, hazardous waste management, and required environmental permits
- Business ethics
- TJX’s policy against forced and involuntary labor, including slavery and human trafficking
- Fire safety
- Water conservation recommendations
- TJX’s fur practices
- Factory compliance best practices
- Case studies to help demonstrate how to embed management remediation systems
- Open discussions with vendors and factory management on compliance challenges
Designated Associates at various buying offices around the globe also provide instruction to vendors and factory management on our ethical sourcing expectations. We plan to continue to devote resources to these important training initiatives and to review and update these initiatives as appropriate.
In Fiscal 2024, we were pleased to offer new training to vendors both within our factory auditing program and outside of the program through our participation in the Responsible Business Alliance’s Responsible Labor Initiative. Through this program, we were able to offer access to forced labor training modules to all of our merchandise vendors.
Vendor Code of Conduct
We expect high ethical standards from anyone with whom we do business and are committed to respecting the rights of all workers involved in making products to be sold in our stores or on our e-commerce sites. Our Vendor Code of Conduct aims to reflect our belief that the interests of those workers be protected and serves as the foundation of our Global Social Compliance Program, setting forth our standards, including human rights, labor rights, and anti-corruption standards, among other expectations.
TJX's purchase order terms and conditions include a requirement for merchandise vendors to adhere to our Vendor Code of Conduct. While the specific requirements contained in the Code were developed with merchandise vendors in mind, we expect all the companies and individuals with whom we do business to act with integrity and adhere to the basic principles that underlie each Code requirement. Those basic principles include a commitment to act in accordance with all applicable laws and regulations; respect the human rights and well-being of all people; and consider one’s impact on the environment.
As with all our corporate responsibility programs, we are committed to continuous improvement. As the Code has evolved over the years, we have reviewed and taken inspiration from the United Nations Guiding Principles on Business and Human Rights and the International Labour Organization Declaration on Fundamental Principles and Rights at Work, as well as the results of benchmarking our Code against those of industry peers, and feedback from other stakeholders. In recent years, we have made changes to our Code that provided more specificity around our expectations on important issues like child labor and forced labor, wages and benefits, freedom of association, and ethical business standards. We also made additional enhancements to our Code that focused on employee safety, among other things, and added grievance mechanism details, including a website and phone number for anyone wanting to report concerns. We plan to continue to evaluate further potential amendments we may want to make in the future.
We encourage anyone with questions or concerns relating to our Vendor Code of Conduct to contact us at complianceofficer@tjx.com.
The TJX Companies, Inc. Vendor Code of Conduct
TJX requires that all products offered for sale in our stores be produced in facilities that meet specific criteria, as set forth below:
Compliance with Applicable Laws & Regulations
Our vendors and the factories in which the merchandise they sell us is manufactured must comply with all applicable laws and regulations, including, but not limited to, animal protection laws.
Ethical Business Standards
Our vendors must not engage in or attempt to engage in bribery, corruption, or similar unethical business practices in dealing with government officials or private individuals or entities. This includes, but is not limited to, avoiding all situations where they may have or appear to have a conflict of interest and prohibits offering gifts, entertainment, or anything else of value with the intent to gain a favorable business advantage.
Health & Safety
Our vendors must provide their workers with safe and healthy conditions, including in any living facilities that may be provided.
Fire Safety
Our vendors must abide by all applicable laws and regulations related to fire safety. All appropriate measures must be in place to safeguard the health and safety of workers in the event of a fire.
Child Labor
Our vendors must not use child labor. The term "child" is defined as anyone younger than 15 years of age (or younger than 14 years of age where the law of the country of manufacture allows 14-year-olds to work). At all times our vendors must respect compulsory education laws. Workers under the age of 18 must not perform hazardous work.
Forced Labor
Our vendors must not use voluntary or involuntary prison labor, indentured labor, bonded labor, labor acquired through slavery or human trafficking, or any forms of involuntary or forced labor. Our vendors must not require workers to surrender any identity papers as a condition of employment; such documents may only be temporarily held to verify a worker's employment eligibility. Our vendors must reimburse their workers for any recruitment or hiring fees that are paid.
Wages & Benefits
Our vendors must abide by all applicable laws relating to wages and benefits, and must pay the legally prescribed minimum wage or higher. Workers must be provided with a written contract which clearly describes their employment and wage terms prior to acceptance of employment. Our vendors must not make any deductions from wages as a disciplinary measure.
Working Hours
Our vendors must not require their employees, on a regularly-scheduled basis, to work in excess of 60 hours per week (or fewer hours if prescribed by applicable laws and regulations). All overtime must be voluntary and must be fully compensated in accordance with the requirements of local law, and except in extraordinary circumstances, employees must be entitled to at least one day of rest in every seven-day period.
Harassment or Abuse
Our vendors must respect the rights and dignity of their employees. We will not tolerate human rights abuses, including physical, sexual, psychological or verbal harassment or abuse of workers.
Discrimination
Workers must be employed, retained, and compensated based on their ability to perform their jobs, and must not be discriminated against on the basis of gender, race, color, national origin, religious, ethnic or cultural beliefs, age, sexual orientation, or any other prohibited basis.
Freedom of Association
Our vendors must respect the rights of their workers to choose (or choose not) to freely associate and to bargain collectively where such rights are recognized by law. We prohibit harassment, retaliation, and violence against trade union members and representatives.
Environment
Our vendors must be in compliance with all applicable environmental laws and regulations, including maintaining current environmental permits. Our vendors must be in compliance with all laws related to the handling, storage, and disposal of chemicals and other hazardous materials. Our vendors must adopt reasonable practices, where possible, to conserve and protect resources, such as water and energy; and mitigate negative environmental impacts to local communities.
Subcontractors
Our vendors must ensure that all subcontractors and any other third parties they use in the production or distribution of goods offered for sale in our stores comply with the principles described in this Code of Conduct. Additionally, our private label vendors must disclose to TJX's third-party auditors the names of all such subcontractors, and third parties before social compliance audits are scheduled.
Monitoring & Compliance
TJX or its designated third-party auditor or agent shall have the right to monitor and assess compliance with these principles. Our vendors must be transparent and honest in all communications with TJX, our auditors and agents. A violation of this Code of Conduct may result in required corrective action, cancellation of purchase order(s), and/or termination of the business relationship.
Reporting
Violations of this Code of Conduct can be reported through the TJX Helpline at TJXethicsline.ethicspoint.com or by calling (US #) 800-TJX-6488 (800-859-6488).
Related Content
Supplier Diversity
The value we place on diversity extends into our supplier relationships, including our Supplier Diversity Program dedicated to broadening supplier options for not-for-resale goods and services.
Learn More
Responsible Sourcing
We believe in the importance of responsible and ethical sourcing in our supply chain and focus on initiatives including social compliance, the environmental impact of certain products and packaging, and chemicals management within our operations.
Learn More
Our Approach
Corporate Responsibility has been a part of the fabric of who we are from day one, and our global efforts reflect our core values of honesty, integrity, and treating each other with dignity and respect.
Learn More1amfori's Business Social Compliance Initiative (BSCI), Worldwide Responsible Accredited Production (WRAP), and Sedex Information Exchange Limited (SEDEX).
Updated May 2024