But now we need to make sure that our cut-and-sew providers are getting confirmation from their suppliers about where they’re buying the materials from — that they’re not bringing them in from restricted countries. So on a small piece relative to the total garment, the rule is adding a lot more complexity relative to the actual making of the product.
How much deeper do you have to look into your supply chain than you did before?
In the past we’ve given specifics about the materials we need to have. But we’ve never had to actually go out and ask, “OK, is this coming out of China, India, Malaysia?” We’ve never really gotten to that level of specifics before. But now we need to understand the origin of all the materials in finished goods to make sure we’re still in compliance.
Why are you making this effort, even though you’re not a public company and thus not, strictly speaking, subject to SEC reporting rules?
Being part of Berkshire, we are public even though we’re not directly reporting. And from a policy standpoint, we’re going to do what the right thing is. We want to make sure that we’re not buying materials from an organization that the government deems illegal.
And, within our compliance and within our company, we’re not in favor of human slavery or human trafficking. Whether it’s an SEC rule or not, we want to make sure we’re not buying things that are harmful to people in other parts of the world.