At Liz Claiborne Inc., we know our consumers demand a high quality product at a good value. But we also know our obligation to consumers doesn't end there. Our products must also be made under fair and decent working conditions. In today's world, where companies do business with fewer contractors and factories but are expanding into more countries both in the US and abroad, it requires a serious commitment to improve working conditions. What follows is a brief summary of some of the things we do to ensure fair treatment of our workers:

Code of Conduct
Suppliers must adhere to Liz Claiborne's Standards of Engagement. Among other things, these strict standards prohibit child labor, restrict working hours and require payment of the minimum wage or prevailing industry wage, whichever is higher.

Worker Education
Educating workers about their rights is an essential step. The better workers understand their rights, the easier they will find it to speak up to defend them. That's why suppliers must post our Standards of Engagement, which we have translated into workers' native languages. And that's why we are also reaching out to on-the-ground human rights groups and other local organizations. Because they know the local languages and cultures, they will be able to help us make sure workers understand their rights.

Factory Monitoring
We regularly inspect factories to make sure our code is upheld. And, as participants in the Fair Labor Association (FLA) monitoring program, we have agreed to allow unannounced visits by FLA accredited independent monitors. The FLA grew out of the Apparel Industry Partnership (AIP), a White House task force dedicated to improving working conditions. The FLA's diverse membership includes leading apparel and footwear companies as well as consumer, labor and human rights groups.

In May 2005 the FLA accredited Liz Claiborne Inc.'s compliance program, along with those of five other member companies. This followed an extensive performance review based upon independent factory monitoring and verification reports of supplier facilities conducted by accredited external monitors and a thorough audit of the required monitoring protocols, training programs and auditing systems in their programs.

Informing Consumers
As participants in the FLA monitoring program, summaries of independent auditor's findings are disclosed to the public on www.fairlabor.org. The result: consumers will be better able to make informed purchasing decisions.