Dillard Department Stores Business Policy
Chapter V. Appendices
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Child Labor Report 2005

Appendix C: Codes of Conduct Provided by Companies Surveyed

Dillard Department Stores Business Policy


As we begin a new year, we at Dillard's believe it is appropriate to restate and reiterate the principles upon which our relationship with vendors and suppliers will be based.

For many years, Dillard's business relationship with its vendors and suppliers has been governed by terms and conditions contained on our purchase order form as supplemented by communications with our merchants. These terms and conditions have also been applicable to electronic transactions. The terms and conditions have historically contained various commercial requirements as well as directives requiring compliance with various laws. These various business conditions have been re -evaluated and have resulted in the preparation of a document entitled Dillard Department Stores, Inc. Purchase Order Terms, Conditions and Instructions, a copy of which is attached hereto. These terms apply to all orders placed with you; and acceptance of Dillard purchase orders, whether in writing or by electronic means, expressly constitutes your acceptance, as a vendor or supplier, of the terms, conditions, and instructions contained in the attached document as it may be supplemented from time to time. Without strict compliance with the elements of the attached Dillard Department Stores, Inc. Purchase Order Terms, Conditions and Instructions, we will be unable to establish or continue a business relationship.

Dillard's particularly calls to your attention the portion of the attached which deals with the manner in which our merchandise is manufactured and shipped. Recent negative industry publicity has motivated us to restate and emphasize our longstanding philosophy and policy that all Dillard merchandise must be manufactured and shipped in compliance with all laws. We particularly wish to emphasize to all of our domes tic and foreign vendors and suppliers that no Dillard merchandise will be manufactured or shipped by use of illegal forced labor, illegal convict labor, or illegal child labor. Further, all domestic or foreign suppliers of Dillard merchandise must conduct their business in compliance with all other laws and regulations relative to employment, manufacturing, shipping, customs and environment practices.

Compatible with the above, we are also re-negotiating our agreements with our foreign buying agents. These new buying agency agreements will include prohibitions against illegal child labor and other forms of illegal employment, manufacturing, shipping, customs and environmental practices identical to those contained in the enclosed. Our buying agents will be required to periodically spot check compliance with these standards. In addition, corporate representatives of Dillard's will be making periodic inspections of manufacturing facilities to insure compliance.

We believe that these high standards are compatible with our philosophy of bringing quality products to our customers.

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Companies Surveyed

Dayton Hudson Corporation

Dillard Department Stores

The Dress Barn, Inc.

Family Dollar Stores

Federated Department Stores

Fruit of the Loom

The Gap

Hartmarx Corporation

JC Penney Company

Jones Apparel Group

Kellwood Company

Kmart Corporation

Land's End, Inc.

Levi Strauss & Company

The Limited

Liz Claiborne

Mercantile Stores Company

Montgomery Ward Holding Company



Oxford Industries

Phillips-Van Heusen

Price Costco

Ross Stores, Inc.

Russell Corporation

Salant Corporation

Sara Lee Corporation

Sears Roebuck & Company

Spiegel, Inc.

Stage Stores, Inc.

The Talbots, Inc.

Tultex Corporation

Venture Stores

VF Corporation

Wal-Mart Stores

Warnaco Group

Woolworth Corporation

Child Labor Report 2005

Child Labor

This report was developed and provided by the U.S. Labor Department http://www.dol.gov/iLAB/media/reports/iclp/apparel/main.htm

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