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. IBS Supplies, Inc. supports the goals of the California Transparency in Supply Chains Act of 2010, and IBS Supplies, Inc. enjoys a long history of being committed to the protection and advancement of human rights, and to conducting business in an ethical manner. IBS Supplies, Inc. long history of promoting ethical business practices is reflected in our Policies on Business Conduct, which is distributed to each new employee, and re-distributed to all IBS Supplies, Inc. employees on a bi-annual basis. All IBS Supplies, Inc. employees are required to acknowledge and adhere to our Policies on Business Conduct, and we routinely offer training on these policies to all employees.
To help implement our commitment to human rights and ethical business practices within our supply chain, IBS Supplies, Inc. makes its Policies on Business Conduct available to all our suppliers and requires that all of our suppliers abide by those policies. We also require our suppliers to abide by IBS Supplies, Inc. published Supplier Standards, which require all suppliers to adhere to relevant laws relating to fair compensation, working hours, child labor and forced labor, and many other regulations designed to support human rights. Furthermore, our standard supply contracts and terms and conditions of doing business require all of IBS Supplies, Inc. suppliers to fully comply with all applicable laws, which include laws regarding the prohibition of slavery and human trafficking. IBS Supplies, Inc. reserves the right to verify that its suppliers are in constant compliance with these terms and conditions, and to terminate relationships with any suppliers who do not comply.
IBS Supplies, Inc. predominantly relies on suppliers located in the United States, and we typically do not engage suppliers from countries with an increased risk of human trafficking and slavery. IBS Supplies, Inc. monitors supplier behavior and compliance through our own internal resources, and we typically do not use third-party auditors to monitor supplier behavior. IBS Supplies, Inc. purchasing employees are trained to identify and respond to supply chain risks, including issues such as slavery and human trafficking. For our largest 150 suppliers, we use a detailed scorecard review system to ensure that those suppliers comply with all of IBS Supplies, Inc. expectations, including compliance with all applicable laws.
IBS Supplies, Inc. Supplier Standards clearly state that IBS Supplies, Inc. expects all of its suppliers to take a proactive role to ensure that they comply with the California Transparency in Supply Chain Act of 2010, and in December 2011, IBS Supplies, Inc. sent letters to 1,200 suppliers requesting that those suppliers certify their compliance with the Act. IBS Supplies, Inc. believes that these actions, as well as our overall commitment to human rights and business ethics will help prevent slavery and human trafficking within our supply chain.