A letter from our CEO
Over the past few years, Fanatics has transformed the sports fan gear landscape, offering multi-channel access to premier quality team apparel and jerseys aligned with the 24/7 on-demand expectations of today’s mobile-friendly consumers. Our “By Fans, For Fans” approach to making and distributing fan gear relies on a complex supply chain of owned and contracted manufacturing facilities that plays a vital role in ensuring customers have quick access to great product.
While the success of this global network hinges on many factors, one paramount factor is that workers throughout the supply chain are treated fairly and respectfully and without discrimination. We believe that social compliance, aside from being the right way to treat a workforce, recognizes the growing interest among consumers to purchase products that are made in socially responsible working conditions.
As a part of our compliance commitment, some divisions of Fanatics have an affiliation with the Fair Labor Association (FLA), an organization that brings together brands, suppliers, civil society organizations and universities that are dedicated to responsible labor practices throughout supply chains. Fanatics has also developed a social compliance program, designed to meet FLA standards, and regularly evaluates factory operations to identify and sustainably remediate any issues, and to positively impact working conditions and incorporate best practices throughout our business.
The development of a social compliance program is a continuous journey towards enhanced transparency, collaboration, and sustainable improvement. Fanatics is dedicated to this process, which is essential to the success of the brand, but more importantly, to the welfare of those individuals around the world working to bring Fanatics’ “The Brand of the Fan” vision to life.
Fanatics Social Compliance Overview
Fanatics recognizes the importance of a socially responsible supply chain. We understand that worker welfare and the creation of high-quality products are not mutually exclusive. As sports fans ourselves, we believe we are uniquely in-tune with our sports fan customer base, and we also recognize the growing interest among consumers to purchase products that are made in socially responsible working conditions.
Fair Labor Association
As a part of our compliance commitment, certain divisions of Fanatics are affiliated with the Fair Labor Association (FLA), an organization that brings together brands, suppliers, civil society organizations and universities that is dedicated to responsible labor practices throughout supply chains. In connection with this affiliation, Fanatics Brands has created The Fanatics Workplace Code of Conduct (the “Fanatics Code”), which defines and describes the standards that we have for ourselves and for our supply chain partners. The Fanatics Code is based on the FLA Code, International Labor Organization (ILO) standards and internationally recognized labor practices. We leverage these standards to evaluate working conditions and collaborate with factories and suppliers if improvements are required.
Social Compliance Program
Fanatics Brands has developed a social compliance program, designed to both regularly evaluate and analyze factory conditions and also establish brand-level management systems that minimize unnecessary pressures placed upon suppliers. Like many apparel industry leaders, it is our goal to understand how to positively impact factory working conditions, how to sustainably remediate any new issues, and how we can incorporate best practices into our core business operations.
Selecting the Right Supplier Partners
Fanatics is also dedicated to implementing a screening and evaluation process for selecting and working with suppliers. Fanatics Brands will conduct a risk assessment for any potential third party that will be manufacturing apparel, headwear or other products on behalf of Fanatics Brands before we approve production of any products by such party. For any such manufacturer, whether new or existing, for which we identify any Fanatics Code violations, the supplier must work to identify the root cause of such violations and implement a comprehensive Corrective Action Plan (CAP) that includes issues to be addressed in the short-term, as well as preventative measures to ensure compliance for the long-term.
Once a manufacturer enters the Fanatics Brands source base, we continue to monitor working conditions, as well as benchmark their improvement and incorporation of social compliance best practices over time. It is our goal that future business is conditioned on (among other factors) social compliance performance and commitment throughout the relationship.
Commitment to Continuous Improvement
The development of a social compliance program is a continuous journey towards enhanced transparency, collaboration, and sustainable improvement. Fanatics is dedicated to this goal. It is not only essential to the success of the brand, but also to the welfare of those individuals working hard to create premier Fanatics product every day.
Global Supplier List
The Fanatics Brands Supplier List is updated annually and includes all finished product Tier 1 suppliers, including any Fanatics-owned facilities and contract suppliers, as well as any suppliers sourced through agents. The suppliers listed are responsible for manufacturing the vast majority of the brand’s products, however, this list does not include raw material suppliers or sub-licensee suppliers. The Fanatics Brands Supplier List was last updated September 21, 2020.
California Transparency in Supply Chains Act of 2010 (SB 657)
California’s Transparency in Supply Chains Act of 2010 requires certain retailers to provide increased visibility into their efforts to address the global issues of slavery and human trafficking to allow consumers to make more informed choices regarding their purchasing decisions. Fanatics, Inc., through one or more of its subsidiaries (“Fanatics”), including Fanatics Apparel, LLC and the Fanatics Licensed Sports Group, LLC (Fanatics Apparel, LLC and Fanatics Licensed Sports Group, LLC collectively, “Fanatics Brands”), is committed to improving fair labor practices throughout its direct supply chain.
Fanatics International Limited Slavery and Human Trafficking Statement
This is Fanatics’ statement on slavery and human trafficking on behalf of Fanatics International Limited and its subsidiaries (the “Fanatics Group”) as required under the Modern Slavery Act 2015 (the “Act”). Fanatics Group is committed to ensuring that it, complies with all applicable legal requirements in relation to the Act, and any other applicable law related to slavery and human trafficking.
Code of Conduct
Fanatics has adopted a Code of Conduct which we expect our partners to follow. We publish it in multiple languages for global access.
COVID-19 Response Efforts
Fanatics Brands’ Efforts to Support Supply Chain Workers- The COVID-19 pandemic has had widespread health and economic impacts across the globe. During these unprecedented times, Fanatics Brands is committed to working closely with our supplier partners, not only to identify ways to promote business continuity, but also to lessen negative impacts on workers.
As part of these efforts, Fanatics Brands currently plans to pay in full for finished and in-process orders from all supplier partners globally.
Additionally, we are tracking national health and safety directives, as well as compensation requirements regarding COVID-19, within our countries of manufacture. In this process, we are engaging with our supplier partners both to reinforce an understanding of, and adherence to, these directives and requirements, so that the health and safety of workers, as well as legally mandated compensation and benefits, are prioritized.
Finally, Fanatics Brands endorses the International Labor Organization (ILO) Garment Industry Call to Action. Fanatics remains committed to engaging with global industry stakeholders with whom we partner, including brands, multi-stakeholder organizations, and others, to support supply chain workers during these uncertain times and beyond.
Masks & Gowns for Healthcare Workers- In times of crisis, Fanatics believes that leaders across industries have an obligation to help those in need. To that end, and in response to the shortage of masks and gowns for frontline workers battling COVID-19, Fanatics converted its 360,000 sq. ft. manufacturing plant in Easton, PA that makes the official Major League Baseball uniforms into a building that produces masks and gowns from the very same materials used to outfit MLB players. In a little over one month, Fanatics produced and donated more than 500,000 masks and gowns to hospitals and emergency personnel in eight states with more states to follow.
ALL IN Challenge – Fighting Hunger – After getting the mask and gown program off the ground, Fanatics quickly turned its attention to the next overwhelming need that COVID-19 was exposing – hunger. Fanatics founder and executive chairman Michael Rubin saw the staggering number of people now affected by lack of food resources – children who received meals in schools that are now closed, the elderly and the tens of millions people newly unemployed – and knew that something had to be done immediately. Fanatics sits at the unique crossroads of working with nearly every league, team and athlete, while having many connections to entertainers and celebrities who are also sports fans. Understanding this, Michael created the ALL IN Challenge, which united the biggest names in sports, entertainment and business to offer up incredible prized possessions and once-in-a-lifetime experiences available for online auction or enter-to-win giveaways to benefit the leading organizations battling food insecurity. The entire Fanatics organization worked tirelessly to launch the ALL IN Challenge and in the midst of a global crisis raised nearly $60 million to feed those in need impacted by the COVID-19 pandemic.
Fanatics’ Statement on Xinjiang
We are deeply concerned by the reports of forced labor and other human rights abuses involving Uyghur and other ethnic minorities in the Xinjiang Uyghur Autonomous Region (XUAR) and elsewhere. Per our policies, forced labor is considered a zero-tolerance (Threshold) issue and any confirmed instance of forced labor by our suppliers may result in termination of the business relationship.
The Fanatics Workplace Code of Conduct and Benchmarks prohibit any type of prison, forced, bonded or indentured labor (including specific provisions on freedom of movement), as well prohibits discrimination based on ethnic background or religion. Fanatics continues to evaluate our supply chain to verify that all suppliers adhere to these requirements. This evaluation includes enhanced upstream due diligence consistent with advice from industry experts, stakeholders and other organizations to ensure there are no supply chain linkages to XUAR, or to the export of forced labor from this region.
Fanatics’ efforts have included, and will continue to include, close engagement with the Fair Labor Association, which has directed its affiliates to produce timebound plans to address forced labor risks related to Xinjiang.