The TMS Group is a long standing member of the United Nations Global Compact and fully embraces its policies and principles. The organization remains committed to aligning operations, strategies and our complete supplier network with the ten universally accepted principals in the areas of human rights, labor, environment and anti-corruption.
Furthermore, this includes our adoption of the Business Social Compliance Initiative (BSCI) as the base standard for corporate social responsibility for our supply chain partners.

In our 2013 Communication on Progress, we summarize our business processes, corporate philosophy, strategies and actions taken that continue to build and yield a robust social commitment to our customers, suppliers, and employees. All of the combined efforts are consistent with upholding the United Nations Global Compact mission and charter.

Joerg Kornblum
Chief Financial Officer

Principle 1 - Businesses should support and respect the protection of internationally proclaimed human rights

Human Rights: Our Commitment - Through our highly structured social compliance program, and associated business processes we ensure workers rights are soundly protected and advanced consistent with respective local and international laws, while simultaneously maintaining the respect for human dignity to the fullest extent.

Principle 2 - Businesses should ensure they are not complicit in human rights abuses

Human Rights: Our Commitment - The TMS Group supports and upholds to the fullest extent the protection and enforcement of human rights. This extends to our suppliers and our employees. TMS Group employees who are in constant contact with our suppliers are made aware of their required adherence to the TMS Group policies, and United Nations Global Compact principles. This is incorporated in their initial employment agreement and through annual refresher training.

Principle 1 - Businesses should support and respect the protection of internationally proclaimed human rights

Processes and Systems:
We continue to strengthen and expand our corporate social audit program combined with the Business Social Compliance Initiative (BSCI) Standards. The combination of the two ensures all members of our supply chain network accept and adhere to the highest standards. This includes the establishment of verifiable and transparent measurement of:

(1) Promoting and maintaining work place safety and health conditions
(2) Supporting workers’ rights for freedom of association for labor unions
(3) Non-discriminatory employment practices
(4) Zero tolerance with respect to child labor and forced labor practices
(5) Providing access to adequate health care

Actions implemented in the last year / planned for next year

We have reiterated that our formal efforts are embedded with the core actions of continuous education and training, and verification. For 2012 we achieved our goals SA 8000 auditor certifications for our social compliance officers.

Furthermore, we have expanded training and education for our suppliers to include new seminars/workshops with WRAP and Better Work organizations. These new additions augment the existing training partnerships with global 3rd party organizations such as SGS, and Intertek Services. This remains part of an on-going effort.

Finally, we have continued our surveillance audits process, which for 2012 included 70% of second-tier authorized suppliers within the audit processes.

Principle 2 - Businesses should ensure they are not complicit in human rights abuses

Processes and Systems:
As stated in each annual CoP, our TMS Group Business Standards are executed with 100% of suppliers/factories within our network, prior to commencing any business relationship. Furthermore, we have re-engaged suppliers with a follow-up annual signing/execution of these initial agreements. These agreements remain an integral part of a parallel process which consists of social compliance and verification audits.

Actions implemented in the last year / planned for next year

The BSCI framework has been adopted and implemented as our corporate standard and overall program for supplier qualifications. Quarterly supplier education and training remains a key component of this process for the forthcoming years of 2013 to 2014.

Principle 1 - Businesses should support and respect the protection of internationally proclaimed human rights

Measurement of outcomes:
For calendar year 2012 and the previous years since 2005, there have been zero reported issues within our supply chain - either informally or formally.

Principle 2 - Businesses should ensure they are not complicit in human rights abuses

Measurement of outcomes:
In 2012, the TMS Group continued to strengthen and employ the combined approach training and education, along with verification via surveillance audits throughout our extensive supplier network. The effectiveness of these efforts is manifested in tangible results from independent third party auditors. There have been zero cases prior to participation in the Global Compact, and since our affiliation in 2005.

Principle 3 - Businesses should uphold freedom of association & effective recognition of the right to collective bargaining

Labor Rights : Our Commitment - The upholding of anti-labor practices is clearly delineated within our Business Standards which also incorporate the Global Compact’s 10 principles. This commitment to anti-labor practices is further demonstrated by internal and third party social audit requirements with our suppliers, combined with the adoption of the BSCI Code of Conduct.

Principle 4 - The elimination of all forms of forced and compulsory labor

Labor Rights: Our Commitment - The abolition of forced and compulsory labor is clearly delineated within our Business Standards which also incorporate the Global Compact’s 10 principles. This commitment to eliminating forced labor is further demonstrated by internal and third party social audit requirements with our suppliers, combined with the adoption of the BSCI Code of Conduct. Mandatory supplier qualification for BSCI further ensures adherence.

Principle 5 - The effective abolition of child labor

Labor Rights: Our Commitment - The upholding of zero tolerance for child labor practices is clearly delineated within our Business Standards which also incorporate the Global Compact’s 10 principles. This commitment to eliminating child labor is further demonstrated by internal and third social audit requirements with our suppliers, combined with the adoption of the BSCI Code of Conduct. Mandatory supplier qualification for BSCI further ensures adherence.

Principle 6 - Eliminate discrimination in respect of employment and occupation

Labor Rights: Our Commitment - The TMS Group has demonstrated a firm commitment, and put forth concrete and verifiable polices against discriminatory employment practices based upon, race, gender, creed or religion. These specifics are clearly outlined in our Business Standards, and verified via internal audit processes with suppliers. The signing and acknowledgment of our business standards is executed annually with all suppliers in order reinforce the critical nature of its content.

Principle 3 - Businesses should uphold freedom of association & effective recognition of the right to collective bargaining

Processes and Systems:
The continued long-standing adoption of the BSCI standard and utilization of our TMS Compliance system serves for surveillance and verification of suppliers’ actions.

Actions implemented in the last year / planned for next year

Our policies, programs and actions are aligned with a “continuous improvement” strategy for our suppliers. The approach is three-fold and incorporates unannounced audits, training and education, combined with a mentoring approach with our suppliers. The collective efforts have yielded sustained results of zero infractions or abuses in these areas. Transparency for these issues is enhanced through accredited third party regulatory audits.

Principle 4 - The elimination of all forms of forced and compulsory labor

Processes and Systems :
The TMS Group has implemented our internal corporate social compliance program and the BSCI standards throughout all operational regions.

Actions implemented in the last year / planned for next year

Our policies, programs and actions are aligned with a “continuous improvement” strategy for our suppliers. The approach is three-fold and incorporates unannounced audits, training and education, combined with a mentoring approach with our suppliers. The collective efforts have yielded sustained results of zero infractions or abuses in these areas. Transparency for these issues is enhanced through accredited third party regulatory audits.

Principle 5 - The effective abolition of child labor

Processes and Systems:
The TMS Group Compliance and BSCI audit standards are implemented and enforced throughout all regions. Primary suppliers and subcontracted entities must submit to surveillance audits by the TMS Group, customers and nominated third party entities. This approach preserves the integrity of the audit process through transparent structure.

Actions implemented in the last year / planned for next year

Our policies, programs and actions are aligned with a “continuous improvement” strategy for our suppliers. The approach is three-fold and incorporates unannounced audits, training and education, combined with a mentoring approach with our suppliers. The collective efforts have yielded sustained results of zero infractions or abuses in these areas. Transparency for these issues is enhanced through accredited third party regulatory audits.

Principle 6 - Eliminate discrimination in respect of employment and occupation

Processes and Systems:
Our corporate Business Standards were revised in year 2011 and reviewed again in 2012 to ensure they remain consistent with changes in BSCI initiatives, and local/regional laws. The reviews and annual acknowledgments required by suppliers provide an added layer of transparency and adherence.

Actions implemented in the last year / planned for next year

Our policies, programs and actions are aligned with a “continuous improvement” strategy for our suppliers. The approach is three-fold and incorporates unannounced audits, training and education, combined with a mentoring approach with our suppliers. The collective efforts have yielded sustained results of zero infractions or abuses in these areas. Transparency for these issues is enhanced through accredited third party regulatory audits.

The TMS Group uses measurable and tangible methods as one aspect for success criteria. This is evidenced by BSCI qualifications, and zero instances of infractions in these areas within our extended supply base. However, as part of on-going education and training provided, this is also enhanced by 75% of suppliers adopting new and best practices to thwart these occurrences.

Principle 7 - Businesses should support a precautionary approach to environmental challenges

Environment: Our Commitment - The TMS Group remains an environmental advocate and develops partnerships with our suppliers and customers, that promote both environmentally and sustainably sound practices

Principle 8 - Undertake initiatives to promote greater environmental responsibility

Environment: Our Commitment - As a conscientious, global corporate citizen, The TMS Group continues to organize and promote greater environmental impact awareness for both our employees and supplier network,

Principle 9 - Encourage the development and diffusion of environmentally friendly technologies

Environment: Our Commitment - As part of a continuous improvement strategy, The TMS Group drives collaborative efforts with key suppliers to enhance their understanding, and access to low cost, eco-friendly technology which have proven to reduce carbon footprints and operating costs.

Principle 7 - Businesses should support a precautionary approach to environmental challenges

Processes and Systems:
TMS Group internal and BSCI audit verification processes require suppliers to provide environmental risk assessments and minimizing measures. These risk assessment meet or exceeds local laws and requires structured and verified processes to address these issues.

Actions implemented in the last year / planned for next year

For 2012, we achieved all targets for supplier training for environmental safety and sustainability.

Principle 8 - Undertake initiatives to promote greater environmental responsibility

Processes and Systems:
In 2012 our suppliers were challenged with the development of new eco-friendly processes.

Actions implemented in the last year / planned for next year

The 2012 goals included challenges to our suppliers for development of plans for reduction of energy consumption and carbon footprints. Measurable results will be obtained throughout 2013-2014.

Principle 9 - Encourage the development and diffusion of environmentally friendly technologies

Processes and Systems:
Continue to create supplier awareness and generate programs that promote the usage of alternatives to fossil fuel sources, and the reduction of energy consumption within supplier operations.

Actions implemented in the last year / planned for next year

We met the goal for 2012 which included adding 4 key suppliers into the pilot program of alternative energy sources to include solar, wind and bio-fuel. Measurable results will be obtained throughout 2013-2014. Success criteria will be based upon total energy consumption, costs reductions and minimizing environmental impact (carbon footprints).

Principle 7 - Businesses should support a precautionary approach to environmental challenges

Measurement of outcomes:
In 2012, for the fourth consecutive year, 100% of suppliers met or exceeded local environmental standards.

Principle 8 - Undertake initiatives to promote greater environmental responsibility

Measurement of outcomes:
In 2012, the goal was for 25% of suppliers to launch their own “Green Campaign” of education/awareness, and reducing energy consumption. We achieved this goal and target 50% of the supply base for the year 2013.

Principle 9 - Encourage the development and diffusion of environmentally friendly technologies

Measurement of outcomes:
In 2012, we collaborated with several key suppliers that introduced new production processes and chemical alternatives in both finishing and the laundry process of garment production cycles. This program will continue throughout the year 2013 to develop best practices for proliferation.

Principle 10 - Businesses should work against all forms of corruption, including extortion and bribery

Anti-Corruption: Our Commitment - The TMS Group has a zero tolerance policy towards all forms of corruption. Polices and regulations are clearly stated in our Business Standards executed by all suppliers. This is amalgamated with provisions set for in the adopted BSCI Code of Conduct. Furthermore, annually all TMS employees also sign acknowledgments regarding polices prohibiting corrupt activities.

Principle 10 - Businesses should work against all forms of corruption, including extortion and bribery.

Processes and Systems:
The TMS Group Compliance and BSCI audit standards are implemented and proactively address this issue.

Actions implemented in the last year / planned for next year

Our policies, programs and actions are aligned with a “continuous improvement” strategy for our suppliers. The approach is three-fold and incorporates unannounced audits, training and education, combined with a mentoring approach with our suppliers. The collective efforts have yielded sustained results of zero infractions or abuses in these areas. Transparency for these issues is enhanced through accredited third party regulatory audits.

Principle 10 - Businesses should work against all forms of corruption, including extortion and bribery.

The year 2012 marked a continuation of zero instances of infractions or allegations in these areas from our employees and suppliers. 100% of employees and suppliers have participated in training and education in this area.