OUR CORPORATE SOCIAL RESPONSIBILITY (CSR)

Established as one of North America’s leading corporate apparel suppliers, Ash City is a privately owned company with offices in Canada, U.S.A, Malaysia and Bangladesh.

At Ash City, we believe in doing the right thing. Leading the way in Corporate, Social and Environmental responsibility, you can be assured that we are fully committed to operate in a way that fosters positive business practices throughout our global organization, specifically in the areas of ethical sourcing, the environment, health and safety, community support and associate development. We hold ourselves to the highest ethical standards in our dedication to act as a responsible corporate citizen and are committed to taking responsibility for the impact our activities have on customers, employees, communities and our surroundings.

As such, our Corporate Social Responsibility agenda has been developed with comprehensive principles that describe our commitments, guiding us in our everyday business decisions, from how we choose our suppliers to the charitable foundations we support.

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SOCIAL COMPLIANCE

Ash City is firmly committed to selling products that are manufactured under legal, safe and fair working conditions and to ensuring that all its employees are treated fairly worldwide. We believe we have a responsibility to all workers around the globe producing merchandise bearing the Ash City name to ensure internationally recognized labor practices and social compliance standards are being upheld. To this end, we have a well established labor code of conduct and health and safety policy that serves as the basis of our vendor relationships. These policies are actively communicated and monitored through an onsite internal monitoring process in all the countries where we operate, supplemented by collaborative efforts with other companies and organizations.

Ash City’s Code of Conduct Policy

Child Labor. Ash City does not accept child labor. All employees in the factory must have reached the minimum age prescribed by law in the host country or not be younger than the age for completing compulsory education in the country of manufacture.

Forced or Compulsory Labor. All workers must accept their employment voluntarily. There shall not be any use of forced labor, whether in the form of prison labor, indentured labor, bonded labor or otherwise.

Harassment or Abuse. Every employee shall be treated with respect and dignity. No employee shall be subject to any physical, sexual, psychological or verbal harassment or abuse.

Freedom of Association. Employers shall recognize and respect the right of employees to freedom of association and collective bargaining.

Non-discrimination. No person shall be subject to any discrimination in employment, including hiring, salary, benefits, advancement, discipline, termination or retirement, on the basis of gender, race, religion, age, disability, sexual orientation, nationality, political opinion, or social or ethnic origin.

Wages and Benefits. Employers recognize that wages are essential to meeting employees’ basic needs. Employers shall pay employees regularly, on-time and be fair in respect of work performance. The legal minimum wages as required by local law should be a minimum, but not a recommended level. All other benefits legally mandated should also be provided.

Hours of Work. Workers shall not be required to work more than the specified normal and overtime hours allowed by the law of the country of manufacture. Workers should be entitled to at least one day off every seven-day period. The workers should be entitled to avail their stipulated annual leaves and sick leaves without any form of restriction or repercussion. The female workers should be allowed to avail their stipulated maternity leave in case of pregnancy. Dismissal of pregnant female workers will not be tolerated.

Overtime Compensation. In addition to their compensation for regular hours of work, employees shall be compensated for overtime hours at such premium rate as is legally required in the country of manufacture or, in those countries where such laws do not exist, at a rate at least equal to their regular hourly compensation rate. Workers must have the right to refuse working overtime.

Health and Safety. Employers shall provide a safe and healthy working environment to prevent accidents and injury to health arising out of, linked with, or occurring in the course of work or as a result of the operation of employer facilities.

Ash City conducts onsite factory audits and full evaluations of our fabric suppliers and garment vendors when selecting our business partners, including ISO-certified manufacturers, and to ensure long-term relationships Ash City continually evaluates its vendors and factories in an effort to uphold these standards.

Ash City mandates that any contracted supplier or sub-contractor must follow our corporate Code of Conduct Policy, which in addition to above, includes principles for Legal Requirements and a Policy Agreement Document. Ash City expects its entire supplier base to respect the above Code of Conduct Policy and to actively do their utmost to achieve our standards. Each contracted factory or their suppliers shall ensure that it is in full compliance with all national and local laws, rules and regulations relevant to their business operation, including those which are related to labor practices, human rights, the environment, safety, sanitation codes and building safety codes. Should we find that a supplier does not comply with our Code of Conduct Policy, we will terminate our business relationship if corrective measures are not taken within an agreed-upon time limit.

Factory Audits & Evaluation:

Ash City selects and evaluates all Factory partners. All suppliers must agree and adhere to the Ash City Code of Conduct. The majority of manufacturing partners in our supply chain are ISO certified (International Organization for Standardization) with many being WRAP certified (Worldwide Responsible Accredited Production) and have well developed management processes and procedures that follow all of the ISO standards. Our recognized suppliers and vendors must demonstrate the highest quality control processes and procedures across all facets of the manufacturing of their products. Our trained Ash City team is responsible for conducting factory audits and evaluations in all the countries where we operate. We also partner with Third party certification organizations to ensure that our factory partners are complying with all policies. On the domestic front, monthly audits are conducted at our Canadian facility by the Ministry of Labour, and independent audits by major fortune 500 companies are conducted at our U.S.A. facility.

Additionally, as a participating member of the Fair Labor Association (FLA), we seek to cooperate only with suppliers that are committed to compliance of social and legal requirements as stipulated by law which are relevant to the conduct of their business. The FLA is a non-profit organization dedicated to protecting workers’ rights and improving working conditions in factories worldwide, based on the labor standards of the United Nations International Labor Organization (ILO). Additional information is available at www.fairlabor.org.

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STANDARDS for PRODUCT TESTING & CERTIFICATION:

At Ash City, we take great pride in ensuring our products are tested and certified to the highest level to consistently deliver top quality product to our customers, helping to protect their brand and reputation by offering compliance with the highest product standards in the market. Our commitment involves the strict adherence of the following:

Fabric Testing and Certification:

Garment Testing & Inspection:

Ash City has established internal Quality Standards and Color Standards to control and ensure the highest quality products are delivered to our customers with our primary focus on consistency. Ash City ensures the highest QC standards regarding workmanship, color, function, size specifications and packing details by enforcing strict inspection policies and procedures.

Our Global Quality Assurance team, located overseas, executes regular factory evaluations, pre-production inspections, interim production inspections and final random inspections are conducted at all stages within the supply chain.

Ash City production Inspectors execute 3 stages of pre-shipment inspections, all based on our Acceptable Quality Level (AQL) standards:

Under the Workwear category, Hi-Visibility products are certified by the American National Standards Institute (ANSI) and Canadian Standards Association (CSA) in compliance with health and safety apparel regulations.

Quality Assurance and Product Safety:

All Ash City products imported into the United States follow strict adherence to the Consumer Product Safety Improvement Act (CPSIA), Federal Hazardous Substances Act (FHSA) and are supported with a Certificate of Conformity (COC). We ensure each shipment is compliant to COC. Tracking labels and many other safety considerations are also implemented for all Youth products.

All labeling and product information complies with the Textile Fiber Products Identification Act (TFPIA) as set out by the U.S.A. Federal Trade Commission (FDA) and the Textile Labeling Act (TLA) as set out by the Canadian Competition Bureau.

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HEALTH AND SAFETY:

Ash City promotes the health, safety and well-being of our employees. Every member of our team plays an important role in establishing and maintaining a safe and healthy workplace.

Protection of employees from injury or occupational disease is a major continuing objective. A Joint Health and Safety Committee and a First Aid Committee Code 8 Team comprising of representatives from management and non-management groups exist within Ash City. Any concerns about the safety of working conditions must be brought to the attention of the immediate Manager or Supervisor, Human Resources or the committee. All supervisors and workers are ultimately responsible for worker health and safety.

Supervisors will be held accountable for the health and safety of workers under their supervision. Supervisors are responsible to ensure that machinery and equipment are safe and that workers work in compliance with established safe work practices and Ash City’s procedures. Workers must receive adequate training in their specific work tasks to protect their health and safety.

Every worker must protect his or her own health and safety as well as that of co-workers by working in compliance with the law and with safe work practices and procedures established by Ash City.

It is in the best interest of all parties to consider health and safety in every workplace activity. Commitment to health and safety regulations must form an integral part of this organization. No one is exempt from following good safety practices and procedures.

All employees, contractors and visitors have the responsibility to work safely and report hazardous conditions.

This policy is justified on the grounds that preventing injuries and incidents makes sound moral and business sense.

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BORDER SECURITY:

Ash City is committed to continuous efforts of securing our operations and our global supply chain against possible compromise or threat of terrorist or terrorist weaponry, and of maintaining a high level of compliance in Customs-related areas.

In 2002, Ash City received the Customs-Trade-Partnership Against Terrorism (C-TPAT) certification from the U.S. Customs & Borders Protection (CBP), a division of the Department of Homeland Security. The C-TPAT program is a joint initiative between the U.S. government and certified businesses to cultivate cooperative relationships based upon the integrity of a company’s security practices. These practices are vital in maintaining an overall efficient and compliant supply chain and strengthened border security. As a benefit for participating, Customs has committed to providing “fast-lane” processing of our cross border transfers. Additional information about the C-TPAT Program is available at the U.S. Customs and Border Protection website.

All Ash City suppliers, vendors and forwarders are required to follow C-TPAT requirements.

In 2008, Ash City received the Partners in Protection (PIP) certification from the Canada Borders Services Agency (CBSA). The PIP program enlists the cooperation of private industry to enhance border and trade chain security, combat organized crime and terrorism and help detect and prevent contraband smuggling. It is a voluntary program with no membership fee that aims to secure the trade chain, one partnership at a time. Industry strongly supports the PIP program and greatly values the commitment of PIP members to do their part, together with the CBSA, to secure the supply chain and facilitate legitimate trade. CBSA has signed an agreement with the U.S. CBP which enhances cross-border security as both countries now apply similar security standards and similar site validations when approving companies for membership in their respective trade security programs. Additional information about the PIP program is available at the Canada Border Services Agency website.

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ENVIRONMENTAL CONSERVATION EFFORTS:

At Ash City, we are committed to taking steps to preserve our natural resources and adopting eco-friendly practices from the ground up. We believe every little bit helps. From complying with all environmental regulations and laws in the countries we manufacture, to substantial efforts in reducing paper consumption, managing waste, recycling efforts and energy reduction at our head office and distribution centers, and providing an eco-friendly line of merchandise, we can make significant reductions in our reliance on the environment.

Our Paper Consumption:

As a company whose main selling tool is its catalog, we are committed to accepting responsibility for careful management of our paper resources. As an ongoing initiative, Ash City is significantly reducing paper consumption by sending a limited quantity of catalogs to customers and subsequently monitoring distribution very closely.

Through this commitment, we have reduced our catalog paper consumption by more than 30% over this past year alone, saving trees, water and energy. We’ve accomplished this through a number of efforts and we are constantly improving our technology to achieve even greater gains in this area.

Ash City believes in the responsible use of natural resources. Our goal is to source paper through credible certification systems, using paper with a minimum of 10% recycled fiber. As such, our mandate is to work with suppliers that practice sustainable forestry. Ash City’s printed marketing materials are printed on Forest Stewardship Council (FSC)-certified paper, most containing recycled content. By 2010, 100% of our printed marketing materials will contain a minimum of 10% recycled content. Our commitment also includes supporting the revitalization of the industry we rely on for paper materials. For every ton of paper we use to print catalogs, three seedlings are planted in remote areas of North America which will never be harvested for paper production.

Ash City has extended this commitment to the packing boxes we use to ship our products to our customers. We have been using corrugated cardboard with 80%-90% recycled content since 2004.

Our Waste Management and Recycling:

We currently have a broad range of waste management and recycling initiatives at our corporate office to address paper products, aluminum cans, glass and plastic, as well as printing operations, maintenance operations, disposal of non-recyclables and water management. We consistently monitor our efforts in each of these areas and continuously look for improvements.

Every two days, Ash City recycles 1.5 tons of corrugated cardboard. All of our corrugated products, cutting trims, wooden pallets and garment polybags are either recycled or reused.

Our Energy Reduction:

Ash City has ensured its facilities are designed and built with preservation of the environment in mind. Water saving measures have been implemented at our corporate office with the installation of motion-sensor faucets and a grey-water system which collects rainwater from the roof and parking lot in underground water reservoirs to irrigate surrounding landscaping. All newer equipment, appliances and computers are Energy Star rated. Our energy reduction efforts don’t stop there. We also utilize the latest technology of ‘thin client’ terminals that consume about 50% less energy than a traditional desktop PC. A rooftop chilled water system keeps the servers in our data center cool in the winter months. In place of air conditioning units, we have equipped our distribution centers with numerous circulation fans & fresh air systems to significantly reduce electricity use.

Our Eco-Friendly Product Line:

Introduced in early 2007, Ash City brought 2 polo styles to market made from polyester yarns engineered with bamboo charcoal nano-particles and thus our e.c.o (ecological clothing options) collection was officially born. The market was receptive to this product, and a growing collection of eco-friendly merchandise designed on the principle of Reduce, Recycle and Reuse continued. Over the course of the past few years, our e.c.o line has grown to an impressive 50+ styles, with plans for continued growth in this niche market. This innovative collection uses fabrics derived from organic, sustainable, renewable and recycled fibers. The product line includes styles from almost every category of merchandise sold by Ash City, namely Knits, Wovens, Fleece, Outerwear and Accessories. Natural and man-made fibers used in the fabric production of these styles include:

All Ash City e.c.o fabrics are certified and supported with lab test reports from our trustworthy supply chain, from the yarn supplier to the fabric supplier. To view our complete e.c.o collection, visit www.ashcity.com.

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COMMUNITY INVOLVEMENT:

Since the beginning, Ash City has built a strong heritage of giving and making a difference in the communities in which we live and work. We have been actively involved in national and local communities through various organizations and charities and are proud to be corporate donors to many worthy foundations.

Sadly, too many of us have found our lives touched by women afflicted with breast cancer, including members of our families, our friends, our co-workers and our customers. At Ash City, we are passionate about the need to find a cure for the disease women fear most. That’s why we are proud to support the Breast Cancer Society of Canada (BCSC) and the American Breast Cancer Foundation (ABCF) through our “We’re Going Pink” and our “We’re Thinking Pink” campaigns. It is our opportunity to give something back to the many women who have supported us. Additional information on our campaigns is available at www.ashcity.com. For more information on these non-profit Cancer Foundations, visit www.bcsc.ca, and www.abcf.org

Ash City conducts fund-raising and food drives throughout the year and collects toys and gifts annually for underprivileged families during the holiday season. Year-round, the company makes clothing donations to many charitable foundations. For more than 10 years, we have made regular clothing donations to Windfall, a registered charity that provides new clothing and other basic necessities to more than 64,000 Torontonians who are living in poverty, through partnerships with 100 shelters and programs. A staggering 1/3 of these people are children. Additional information is available at www.windfallbasics.com. In 2005, Ash City shipped thousands of clothing items to victims of Hurricane Katrina. Not only do these donations help those in need, tons of material is diverted away from landfills and incinerators.

In support of its efforts to build a world fit for children, Ash City is a regular contributor of charitable donations to UNICEF. UNICEF’s focus areas include Child Survival and Development, Basic Education and Gender Equality, Child Protection, and many more services. Additional information is available at www.unicef.org

Ash City is proud to support the Canadian Red Cross, the leading humanitarian organization through which people voluntarily demonstrate their caring for others in need, with services such as Disaster Management, International Relief, Restoring Family Links, First Aid, Violence and Abuse Prevention, Homecare Services and Health Equipment Loan Programs. Additional information is available at www.redcross.ca

For many years, Ash City has given back to its local communities by sponsoring local associations and sports leagues, to support youth recreational, learning and after-school programs. Corporate sponsorships are also provided to professional athletes in the PGA and LPGA, and in June 2009 Ash City became the new presenting sponsor of the Ontario PGA Elite Apprentice Championship.

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ASSOCIATE DEVELOPMENT:

At Ash City, we believe in improvement through training. As a responsible employer, we recognize the importance of providing the necessary training required to empower each associate at every level throughout our organization. Through a full spectrum of dedicated in-house training workshops and on-line learning programs, we can enhance associates’ skills, providing them with the tools to reach their goals and thrive within our company.

Led by an internal team of knowledgeable and trained facilitators, our learning opportunities include:

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