Effective January 1, 2012, the California Transparency in Supply Chains Act of 2010 requires retailers and manufacturers doing business in California to disclose efforts to eradicate slavery and human trafficking from its direct supply chain. Rush Enterprises, Inc. (and its subsidiaries, collectively "Rush") is committed to conducting business in an ethical manner and in compliance with the laws of the jurisdictions in which we do business. The following paragraphs are intended to satisfy the disclosure requirements of the California Transparency in Supply Chains Act of 2010.
Rush engages in a verification of its product supply chains to evaluate and address the risks of human trafficking and slavery. Rush accomplishes this using internal resources and does not engage a third party to conduct this verification. Suppliers from countries with an increased risk of human trafficking and slavery are required to acknowledge receipt of Rush's Supplier Code of Conduct, which states that suppliers shall not use any indentured or forced labor, slavery, servitude or any other practice that could encourage human trafficking. Rush does not require suppliers to certify that materials incorporated into products sold by Rush comply with laws addressing human trafficking and slavery.
Rush will conduct informal audits of suppliers to evaluate compliance with Rush's Supplier Code of Conduct. These audits will be conducted by Rush employees in connection with regular visits to suppliers' facilities, which will generally be scheduled ahead of time. At this time, Rush does not plan to use independent third parties to conduct formal audits of suppliers. If a supplier fails to comply with the provisions of Rush's Supplier Code of Conduct, Rush will terminate its business relationship with such supplier unless such supplier takes immediate action to cure its non-compliance with Rush's Supplier Code of Conduct.
Rush intends to provide training on slavery and human trafficking, including training on mitigating related risks in supply chains, to employees and management with direct responsibility for supply chain management.