PROPOSAL 6: SHAREHOLDER PROPOSAL
SUPPLY CHAIN POLICY ON PRISON LABOR
We received the
following proposal from NorthStar Asset Management, Inc. Funded Pension Plan, P.O. Box 301840, Boston, Massachusetts 02130, a beneficial owner of 819 shares of our common stock.
In accordance with SEC rules, we are reprinting the proposal and supporting statement in this proxy statement as they were submitted to us. The shareholder proposal is
required to be voted upon at the Annual Meeting only if properly presented at the Annual Meeting.
As explained below, your Board unanimously recommends that you
vote AGAINST the shareholder proposal.
Shareholder Proposal
WHEREAS:
Financial and operational risks related to the sale of goods produced with prison labor, including reputational damage, litigation, and
supply chain disruption, can adversely affect shareholder value;
Our companys Vendor Code of Conduct appears to prohibit forced prison labor:
Our vendors must not use involuntary or forced labor, whether in the form of prison labor, indentured labor, bonded labor, labor acquired through slavery or human trafficking, or otherwise;
However, prison labor in the United States and other countries where TJX goods are sourced can be both forced and voluntary. Although slavery and
involuntary servitude were abolished by the 13th Amendment, an exception was made for punishment for crime;
Some U.S. prisoners are paid
$0.23-$1.15
per hour, however in the U.S. and worldwide many inmates are often forced to work for no compensation, in unsafe or unhealthy conditions;
Companies enjoy low overhead costs when inmates make consumer products on their behalf, including furniture, clothing, food products, and packaging
materials;
Watchdogs assert that prison labor is often deployed in an inhumane manner, failing to balance company cost savings with prisoner
mistreatment. These issues can undermine a retailers reputation. In 2015, Whole Foods experienced significant backlash when customers learned that prisoner-made products were sold in stores;
Our Company has a factory auditing program which appears to only apply to factories manufacturing products that TJX designs, and it is unclear whether
the Company also surveys for
voluntary
prison labor or verifies the absence of all forms of prison labor in the entire vendor supply chain;
Careful review of our supply chain for voluntary and involuntary prison labor would help ensure that TJX suppliers are consistent with Company policies
and minimize risks to TJXs reputation and shareholder value.
RESOLVED:
Shareholders of TJX urge the Board of Directors to adopt a
policy committing the Company to: a) Survey all suppliers to identify sources of prison labor in the Companys supply chain; b) Develop and apply additional criteria or guidelines for suppliers regarding the use of prison labor; and c) Report
to shareholders no later than June 30, 2019, at reasonable cost and omitting proprietary information, on TJXs progress in implementing the policy.
SUPPORTING STATEMENT:
The Proponent recommends that the companys progress report include:
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Summary of results of the supplier survey, including actual and/or potential sources of prison labor identified, and in particular any use of:
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a) Suppliers using prison labor with compulsory, uncompensated, or severely undercompensated work programs,
b) Suppliers using prison labor from
privately-run
prisons;
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The TJX Companies, Inc.