Some of the information on this Site may contain projections or other forward-looking statements regarding future events or the future financial performance of Escalade, Incorporated. We wish to caution you that these statements are only predictions and actual events or results may differ materially. This forward-looking information is based on management's current expectations and involves a number of risks and uncertainties. These risks and uncertainties may include but are not limited to:
These and certain other risks and uncertainties are detailed in Escalade’s periodic reports, including quarterly reports on Form 10-Q and annual reports on Form 10-K, as filed with the Securities and Exchange Commission, copies of which may be accessed and reviewed by going to Investor Relations. In addition, Escalade undertakes no obligation to update or revise any forward-looking statements on this Site, including any information contained in our press releases, messages to shareholders, or SEC filings, whether as a result of new information, future events, or otherwise. Escalade's future financial performance could differ materially from the expectations of management contained in such press releases, messages to shareholders and SEC filings.
The California Transparency in Supply Chains Act of 2010 (SB 657) requires manufacturers and retailers above a certain size doing business in California to disclose their efforts to eradicate human trafficking and slavery from their direct supply chains. As required by law, this disclosure explains Escalade Sports’ efforts in each of the following areas:
Verification. In order to verify that our product supply chains do not use goods produced by forced or child labor, factories are required to go through a rigorous initial approval process before they join our supply chain to ensure they meet company standards. In addition, we regularly visit our factories and review updates to the U.S. Department of Labor’s List of Products Produced by Forced or Indentured Child Labor. We also self-conduct annual verification of our product supply chain to evaluate and address risks of human trafficking and slavery through various means including, but not limited to, reviewing factory profile information and external resources such as the U.S. Department of State’s Trafficking in Persons Report and other information provided by third party trade associations.
Audits. Each year Escalade Sports audits a significant percentage of our factories to determine if they are in compliance with our standards, which in addition to requiring compliance with local laws on working hours, wages and health and safety concerns, also prohibit forced, slave or child labor. We reserve the right to inspect factories for compliance with applicable laws and to suspend or terminate the relationship with any vendor for a failure to comply with applicable laws or to cooperate in any such inspection. Audits are performed by Escalade Sports compliance personnel using a detailed questionnaire, with on-site visits as required. In general, we do not conduct audits of vendor compliance using independent third parties or unannounced inspections, although we reserve the right to do so and certain key customers require this auditing procedure. Annual and follow-up audit frequency is determined in accordance with our policy and is based in part on the level of risk and non-compliance determined by previous audit results and questionnaire responses.
Certification. We require our product manufacturers and most other vendors to certify that: (1) materials incorporated into the product produced for us comply with the laws regarding slavery and human trafficking of the country in which they are doing business, and (2) they will comply with all other applicable laws and regulations including, but not limited to, labor, wages, and workplace health and safety.
Internal Accountability. Escalade Sports prohibits any form of forced labor, including slavery and human trafficking. This is a zero-tolerance issue. If evidence of this issue was to be found in our supply chain, immediate remediation would be required and possible disciplinary actions would be taken, including possible termination of employment or the business relationship. Aside from serious, unpremeditated zero-tolerance issues, it is the policy of Escalade Sports to form long-term relationships and work with our contracted factories, in the spirit of continuous improvement.
Training. All Escalade Sports employees who have direct responsibility for supply chain management are required to take the human trafficking training course created by the U.S. Department of Homeland Security, followed by a mandatory discussion regarding the risks of human trafficking in the supply chain and actions that can be taken to mitigate those risks. In addition, our employees with direct responsibility in supply chain management review white papers and other educational materials and seminars provided by various business organizations. We also plan to provide human trafficking awareness resources to our suppliers in the near future.