Ethan Allen Interiors Inc. (ETD) 2018年CSR報告「NYSE」.pdf

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1、CORPORATE RESPONSIBILITY REPORTA WO R L D O F Q UA L I T YWHEN YOU ASK PEOPLE WHAT THEY KNOW ABOUT ETHAN ALLEN,ONE WORD COMES UP AGAIN AND AGAIN:QUALITY.When it comes to the products we make and sell,weve set the industry standard for quality,and we always will.Quality is something we expect at ever

2、y step,from the moment a product is designed to the moment it arrives at your home.Honoring our planet,preserving our communities,and respecting the artisans who craft everything we make and sellthese principles are as fundamental to our definition of“quality”as the handcrafted details that make our

3、 products so exceptional.A WORD FROM OUR CEOFarooq Kathwari Chairman and CEO Ethan Allen Interiors Inc.These principles also help us preserve a world of quality for future generations.By leveraging our vertically integrated business structure,we conserve resources and minimize our carbon footprint.B

4、y working alongside suppliers as partners,we ensure that all of our associates and theirsthe people who pour their creative vision and passion for craftmanship into every product we make and sellare treated with respect and dignity.In the pages of this corporate responsibility report,we invite you t

5、o take a fresh look at Ethan Allen:what we do,where we operate,who we are,and what we value.Explore our work as leaders in sustainable manufacturing.Learn about the socially responsible business practices that set us apart.Like our commitment to craftsmanship,our commitments to sustainability and so

6、cial responsibility define us,and they are unwavering.We stand ready to meet the challenges of the coming decadeand beyond.12WE MAKE THE MOMENT18SAFETY,FAIRNESS&OPPORTUNITY3WHO WE ARE6ETHAN ALLEN IN THE WORLD8THE HOME WE ALL SHARE1020102019 HIGHLIGHTS12THE CLIMATE CHALLENGE14OUR ENVIRONMENTAL IMPACT

7、22PRODUCT SAFETY FROM DESIGN TO DELIVERY24MANUFACTURING CODE OF CONDUCT20SAFETY AT WORKTA B L E O F CO N T E N T S26TEACHING OUR STANDARDS28OUR ASSOCIATES30WE THE PEOPLE OF ETHAN ALLEN31OUR LEADERSHIP PRINCIPLES2WE MAKETHE MOMENTIF YOU ASK AN ETHAN ALLEN DESIGNER WHY THEY LOVE THEIR JOB,YOURE GOING

8、TO HEAR ABOUT“THE MOMENT.”ITS THAT MAGICAL INSTANT WHEN A CLIENT WALKS INTO THEIR NEW ROOM AND SEES IT FOR THE FIRST TIME.The magic begins the instant our product designers put a pencil to paper.We take furniture from concept to prototype,passing each piece into the hands of the master craftspeople

9、who build,assemble,paint,stain,lacquer,detail,and stitch.We photograph each piece,both within rooms and up close,and we share these images on paper and online.They have one purpose:to show you the possibilities.To inspire you to create a moment of your own.Our designers take it from here.They meet w

10、ith you in Design Centers or in your home.They listen to your design needs and challenges.They measure your space.They help you choose furniture and customize it with the perfect fabric,leather,or finish.They design window treatments or help you choose that one perfect accessory.They help as little

11、or as much as you like,and their help is always complimentary.One by one,the pieces of the moment fall into place.Furniture is built,inspected,and tested for uncompromising quality.Handcrafted accessories are made by master artisans.Packages are carefully put together until everything is ready for d

12、elivery.The big day arrives.Our delivery associates pack their truck and plan their route.They arrive at your home,bring in and unpack each piece,and assemble it.Your designer steps in,placing every accessory in its just-right place.And then its time for the big reveal.The beauty of the moment is in

13、 watching your eyes widen in happy surprise.The smile that breaks over your face and then transforms into a single syllable:“wow.”The hug you share with your partner,your child,and then,if you feel like it,with your designer.Making the moment is what we live for at Ethan Allen.Join us for an in-dept

14、h look at how its done.3WHAT WE MAKE AND SELLWHO WE AREEthan Allen is both an interior design company and a manufacturer and retailer of quality home furnishings.Our designers1,500 in North America and 500 internationallyare based in our retail Design Centers,of which we have approximately 300 in th

15、e United States and abroad(144 operated by the company and 158 independently owned and operated).Our international headquarters is located at 25 Lake Avenue Extension,Danbury,CT 06811.OUR PRODUCTS Upholstered seating in fabric and leather Case goods for living room,dining room,media room,home office

16、,and bedroom Functional accent tables Soft goods,including duvet covers,quilts,bedding essentials,decorative pillows,and throws Drapery and drapery hardware Lighting Rugs Outdoor furniture and accessories,including patio umbrellas,outdoor upholstery,and concrete fire tables Artwork and wall dcor,inc

17、luding custom-framed artwork and custom mirrors Decorative accents,including clocks,florals and trees,baskets,bottles and jars,decorative boxes,candleholders,sculptural pieces,planters and urns,trays,and vases WallpaperUPHOLSTERY47%CASE GOODS31%ACCENTS20%OTHER 2%4YOUR PERSONAL INTERIOR DESIGNER“Clie

18、nts are looking for functionality and well-constructed pieces that are worth their investment.They often come to us because they need that extra help to ensure that they are making the right decisions.”Nancy Saeedi,Ethan Allen interior designer,Tustin,CAEthan Allen offers complimentary design servic

19、es in any Design Center.You can also schedule in-home appointments with any designer.Its their job to help you select and purchase individual furnishings or decorative accessories;to create decorative focal points,like custom window treatments;and to develop comprehensive design plans for individual

20、 rooms,entire homes,and select commercial projects.They personalize projects to an exceptional level of detail,drawing on our extensive fabric and finish options as well as decorative flourishes,like stylish trims and dual fabric or leather combinations.Some of our designers are wonderful artists wh

21、o draw photorealistic detailed floor plans by hand;others love the incredible detail they can show you during a virtual walk-through of your space,using Ethan Allens proprietary 3D room planner.They can develop both 2D and 3D floor plans and then share the images with you.You can also bring your own

22、 ideas to our designers.Tear pages out of magazines,take pictures with your phone,sketch your dream room on paper,or take Freeze Frames in the EA InHome augmented reality app.Whether you dont know where to start or just need a little help to flesh out your ideas,our designers have you covered,and th

23、eir help is always free.EA InHome augmented reality app3D room planner (available in Design Centers)5MAKING YOUR MOMENTWhen youre deciding what to order,you can choose in-stock products for faster delivery or custom products,which are made to order.Items that are in stock in our distribution or serv

24、ice centers are either shipped to you via UPS or Parcel Post (in North America),or theyre delivered to your home via Premier In-Home Delivery.Quick Ship upholstery pieces,for which we stock a select number of frames and fabrics,are tailored by hand and delivered in 30 days or less.Delivery times may

25、 vary based on location.Custom-made items are made to order by Ethan Allen artisans,who tailor upholstery pieces by hand,assemble frames using time-tested craftsmanship techniques,and apply finishes and decorative touches by hand.These items are delivered via Premier In-Home Delivery and take a litt

26、le longer to makebut theyre worth the wait.If youd rather make your moment online,youll find our products on and ethanallen.ca;in the United States,we also offer design services via online chat.WHERE YOU CAN FIND USEthan Allen operates the following facilities around North America:MANUFACTURING PLAN

27、TSNATIONAL DISTRIBUTION CENTERSREGIONAL HOME DELIVERY SERVICE CENTERS Akron,OH Albuquerque,NM Allentown,PA Amesbury,MA Asheville,NC Aurora,CO Baton Rouge,LA Bedford,NH Belleville,MI Billings,MT Boise,ID Brentwood,MO Bristol,PA Buffalo,NY Calgary,Alberta,CAN Calstadt,NJ Centerville,OH Chester Springs

28、,PA Columbia,SC Delta,British Columbia,CAN Erlanger,KY Fort Walton Beach,FL Grapevine,TX Hagerstown,MD Hayward,CA Houston,TX Kent,WA Lenexa,KS Linden,NJ Maiden,NC Margate,FL Maryville,TN Medina,OH New Orleans,LA Newburgh,NY Newtown,CT North Andover,MA Oakdale,MN Ormond Beach,FL Phoenix,AZ Pomona,CA

29、Pooler,GA Redding,CA Reno,NV Sandy,UT Sanford,FL Tampa,FL The Colony,TX Tualatin,OR Tucker,GA Vaughan,Ontario,CAN Victor,NY Virginia Beach,VA Wausau,WI Wilmington,NC Worthington,OH Youngstown,OH Orleans,VT Beecher Falls,VT Maiden,NC Guanajuato,Mexico Cortes,Honduras Atoka,OK Dublin,VA Old Fort,NC Ma

30、iden,NC Cambodia Canada China Jordan Kuwait Philippines Qatar Romania Saudi Arabia South Korea Thailand Taiwan United Arab Emirates United StatesWe also operate retail Design Centers throughout North America,Europe,Asia,and the Middle East:6ETHAN ALLEN IN THE WORLDIn addition to serving retail and c

31、ontract clients,Ethan Allen generates wholesale revenue through the sale and shipment of products to a network of both company-owned and independently operated Design Centers.Adjacent to our headquarters in Danbury,youll find the Ethan Allen Hotel and Conference Center,which houses about 200 guest r

32、ooms and is owned and operated by us.United States 178 Design CentersCanada(6 Design Centers)7 We sell contract furnishings under the EA+Hospitality brand name.Were the preferred hospitality furnishings partner for Margaritaville Hotel and Resorts properties.We also developed furnishings,alongside d

33、esigners from Disney,for the Disney Grand Californian Hotel.Were a leading supplier of interior furnishings for 275 U.S.State Department embassies and consulates.KEYManufacturing PlantsDistribution CentersService CentersDesign CentersSaudi Arabia(1 Design Center)Romania(1 Design Center)Kuwait(1 Desi

34、gn Center)United Arab Emirates(1 Design Center)Qatar(1 Design Center)Jordan(2 Design Centers)South Korea(4 Design Centers)Taiwan(1 Design Center)Thailand(2 Design Centers)Philippines(3 Design Centers)Cambodia (1 Design Center)China 100 Design Centers8Our commitment to protect this world,rather than

35、to treat it with disregard,is a commitment thats good for the heart and even better for business.Finding ways to use less electricity,water,and other resources,as well as ways to reduce the amount of waste we put into landfills,helps us find ways to fine-tune our processes and deliver more value to

36、our clients and shareholders.New ideas and new technologies not only lessen our environmental impact but also further improve our profitability,our products,and our standing in the marketplace.ETHAN ALLEN CREATES FURNISHINGS FOR THE HOME IN WAYS THAT HONOR THE HOME WE ALL SHARE.THERES NO HOME TO WHI

37、CH WE AS A COMPANY ARE MORE COMMITTED BECAUSE THE STAKES HAVE NEVER BEEN HIGHER:THE WAY WE TREAT OUR WORLD NOW WILL DETERMINE THE COURSE OF HUMANITYS FUTURE.THE HOME WE ALL SHARE9Carbon Footprint-30%10.5 MILLIONREDUCEDpounds of CO2eElectricalUsage-7%2.6 MILLIONREDUCEDkW hoursWaterUsage-33%11.9 MILLI

38、ONREDUCEDgallonsLandfill Waste-35%1 MILLIONREDUCEDpoundsGreenhouseGases-25%10 MILLIONREDUCEDpounds of CO2eRecycling+4%59,742INCREASEDpoundsOUR SUSTAINABILITY SUCCESS STORYDomestic Manufacturing 2018 compared to our 2010 baseline yearAn ongoing focus on sustainability helps us do the things we alread

39、y to a higher level;for example,when we replace a boiler at a manufacturing plant with an energy-efficient model,were doing the repairs we would have done anyway,and were setting ourselves up for major cost savings at the same time.We launched our first environmental health and safety initiative in

40、2010.The work was immediately productive,and those efforts were noticed.20132018:Named a Vermont Business Partner by Vermonts Department of Environmental Conservation20122018:New Jersey Department of Environmental Protection,Certificate of Environmental Stewardship2012:Sage Awards Honorable Mention,

41、American Home Furnishings Alliance2012:Environmental Excellence Award,American Home Furnishings Alliance;continuing membership in consortium through 20182012:Congressional Certificate of Special Recognition,Representative Chris Murphy(CT5)2011:Northeastern Loggers Association,Outstanding Use of Wood

42、 Award2011:Environmental Merit Award,U.S.Environmental Protection Agency,New England Office 2009,2013:Vermont Governors Award for Environmental ExcellenceOUR ACHIEVEMENTS 1020102019HIGHLIGHTSBROWNFIELDS CLEANUP The project:Rehabilitation of an old railroad site near the Vermont-Canada border,includi

43、ng asbestos and lead paint disposal and cleanup of a 15,000-gallon above-ground diesel tank.The outcome:Reduced contamination risk for our plant,for associates homes and for the Connecticut River.We even donated a preserved locomotive turntable to a local railroad museum.SHRINK SMART The project:The

44、 development of Shrink Smart,a machine that could cut custom lengths of shrink wrap for Ethan Allen upholstery packaging.The outcome:Led by purchasing manager Barry Willis,the Shrink Smart project cut shrink wrap usage by 132,238 yardsenough to stretch more than 75 miles and saved$101,891.WOOD WISE

45、The project:Making our Orleans plant,which runs without#4 fuel oil by burning recycled wood chips and sawdust generated by our Beecher Falls sawmill,even more fuel efficient.The outcome:By keeping wood dry before burning it rather than storing it out in the open,we were able to generate nearly twice

46、 as many BTUs of energy from an already green fuel source.11COMMUNITY SERVICE The project:To transform our Pomona service center into a regional recycling hub.The outcome:Led by service center manager John Barbao,Pomona has kept more than 2.2 million pounds of material out of local landfills since 2

47、015.They have also donated like-new furnishings to Habitat for Humanity,changing lives in their community.POWER MOVES The project:To cut energy usage at our Beecher Falls sawmill by relamping with LED bulbs.The outcome:Big electricity savings,thanks to bulbs that use 60%to 80%less energy,elimination

48、 of hazardous waste from disposal of fluorescent bulb ballasts,and better visibility for assessment of wood quality.CHEMISTRY CLASS The project:To lower hazardous air pollutant(HAP)emissions by reformulating chemicals and putting self-imposed limitations on permits.The outcome:By exceeding regulator

49、y standards early,we were ready for the EPAs Maximum Achievable Control Technology(MACT)standards;the cost of coming into compliance with these standards put many other furniture companies out of business.For our efforts,we received an Environmental Merit Award from the U.S.Environmental Protection

50、Agency,New England Office.12THE CLIMATE CHALLENGEClimate change is undeniable and well underway.Our commitment to lowering greenhouse gas emissions and reducing our carbon footprint is unwavering,but we also know these efforts wont be enough to stop the changes to come.We see global climate change a

51、s a challenge we need to address both by increasing efficiencies in operations and by reducing emissions,so we can do our part to impact the 2C scenario goals for the global climate pact established in the Paris Climate Accords at the UN Framework Convention on Climate Changes(UNFCCC)Conference of P

52、arties(COP21).PHYSICAL RISKS RELATED TO CLIMATE CHANGEMORE INTENSE STORMS Damage from wind,flooding,and storm surge poses risks to our properties,to our suppliers facilities,and to our clients homes and businesses.Potential consequences include property loss,disruption to our supplier networks(parti

53、cularly in South Asia and China),and transportation disruptions over land,over water,and at ports of entry.DROUGHT&WILDFIRE Water shortages and increased risk of wildfire pose a risk to forests,to our facilities,and to our associates who live in affected communities.Potential consequences include pr

54、operty loss from wildfire,pressures on our associates due to drought-induced migration(particularly in Honduras and Mexico),and changes to our supplier network in world migration hotspots like Southeast Asia.RISING SEA LEVELS Permanent flooding of coastal population centers poses a risk to ports of

55、entry,to our properties,and to our client base.Rising sea levels also pose a risk to suppliers in China,India,and Southeast Asia.EXTREME PRECIPITATION Increasing global temperatures cause heavier downpours during extreme precipitation events.According to the Union of Concerned Scientists,these event

56、s now drop 67%more precipitation in the northeastern U.S.,31%more in the Midwest,and 15%more in the Great Plains than they did 50 years ago.13DELIVERY DELAYSCHALLENGES:Property damage and transportation network disruptions could result in production and delivery delays.These delays could result in c

57、anceled orders in the short term,and client dissatisfaction could affect long-term customer relationships.OPPORTUNITIES:As we plan for disruption,we can also examine our current transportation routes,looking for opportunities to minimize greenhouse gas emissions and CO2e as well as delivery disrupti

58、on.POSSIBLE CLIMATE CHANGE IMPACTSPROPERTY DAMAGECHALLENGES:Property damage to our plants,distribution and service centers,and Design Centers could require significant capital expenditures and could result in income disruption for our associates.OPPORTUNITIES:We can harden existing buildings and sei

59、ze opportunities during new construction to create more energy-efficient buildings and to use sustainable materials.INVENTORY LEVELSCHALLENGES:An increase in adverse weather events and natural disasters can create significant pockets of demand from clients.Because most of our furnishings are made to

60、 order,it could be challenging to mobilize our manufacturing and delivery resources to meet that demand.OPPORTUNITIES:We can further help our suppliers implement more sustainable manufacturing methods and improve labor conditions to increase their production capacities.POPULATION SHIFTSCHALLENGES:Cl

61、imate-related changes that impact our clients,like disruptions to agriculture in the central U.S.,could significantly affect local communities.OPPORTUNITIES:Where population shifts result in insufficient demand to support current Design Center locations,we can anticipate closures and plan for reloca

62、tions and new openings.14THE CARBON FOOTPRINT CALCULATOR The Carbon Footprint Calculator is the core tool that Ethan Allen uses across every location,from Design Centers to manufacturing plants to headquarters,to record environmental data and analyze it.It was created based on the EPAs Waste Reducti

63、on Model(WARM),which was designed to help businesses quantify how smarter materials use,recycling,and other activities affect greenhouse gas emissions,create energy savings,and impact economic activities.Weve updated the calculator several times over the past decade to reflect a better understanding

64、 of our environmental profile:how our companys unique mix of air emissions and waste products add carbon and other greenhouse gases to our atmosphere.To measure CO2e,for example,we multiply the emissions of six greenhouse gases,plus other fuel emissions(such as emissions from the type of fuel our lo

65、cal electrical supplier uses to generate power)by each compounds global warming potential(GWP),or carbon factor.Every facility at Ethan Allen has its own environmental goals,targets,and responsibilities related to emissions,waste disposal,and electricity and water usage.A designee at each location r

66、ecords the data in the Carbon Footprint Calculator and submits it quarterly.The data is then reviewed annually by Ethan Allens corporate EH&S team,who compare it to data from the appropriate baseline year to measure our progress toward environmental goals.To reduce the amount of electricity we use t

67、o heat our work spaces and dry our lumber,our plants burn scrap wood to make steam.At some locations,we also use that same steam to cogenerate the electricity,heat,and air pressure needed to run our production equipment.We use energy-efficient lighting,and weve implemented coordinated startups of ou

68、r heavy equipment to reduce peak electrical demand.In 2018,we reduced electrical usage by 2.6 million kilowatt hours compared to our 2010 baseline year.ELECTRICITYOUR ENVIRONMENTAL IMPACTELECTRICAL USE IN KWH PER SALES DOLLAR.070.060.050.040.030.020.010.000201020112012201320142015201620172018Domesti

69、c ManufacturingUpholstery ManufacturingAccents ProductionCase Goods Manufacturing15At Ethan Allen,we consider clean water a basic human right,and we expect our business partners and vendors to act accordingly,in compliance with water standards and regulations.All of our manufacturing plants are loca

70、ted in low to medium water-related risk areas,as defined by the World Resource Institute(WRI)Water Risk Atlas,and all of our plants meet or exceed regulatory requirements.To control and reduce water use,we have installed low-flow restroom fixtures in our facilities.We also use flow restrictors to li

71、mit water use in certain operations.Logs,for example,must be kept moist until milled,to prevent cracks or splits;flow restrictors ensure logs are sprinkled with a just-right amount of water.Additionally,steam leak surveys have helped us prevent the escape of steam into the air,further reducing water

72、 waste.In 2018,we decreased our water usage by almost 11 million gallons compared to our 2010 baseline year.WATERWATER USAGE IN GALLONS PER SALES DOLLAR.070.060.050.040.030.020.010.000201020112012201320142015201620172018Domestic ManufacturingUpholstery ManufacturingAccents ProductionCase Goods Manuf

73、acturing16CARBON EMISSIONS IN POUNDS PER SALES DOLLAR201020112012201320142015201620172018.060.050.040.030.020.010.000-.010When we launched our environmental initiative in 2010,we set a goal to reduce our CO2 and greenhouse gas emissions by 10%in our first decade.We have significantly exceeded that g

74、oal:we have cut CO2 emissions by 30%,and weve reduced total greenhouse gas emissions by 25%.To meet our carbon footprint reduction goals,we continually review and investigate ways to reduce our CO2 emissions in our operations.We set annual carbon footprint reduction goals for our domestic manufactur

75、ing division as a whole,based on data compiled from each upholstery,accessory,and case goods manufacturing facility.In 2018,we reduced CO2 emissions by over 10.5 million pounds compared to our 2010 baseline year.CO2e AND GREENHOUSE GAS EMISSIONSDomestic ManufacturingUpholstery ManufacturingAccents P

76、roductionCase Goods Manufacturing17GREENHOUSE GAS EMISSIONS IN POUNDS PER SALES DOLLAR.070.060.050.040.030.020.010.000201020112012201320142015201620172018Our greenhouse gas(GHG)reduction effort is supported by our carbon footprint reduction efforts.The emissions we measure include the regulated emis

77、sions from our industrial processes.We focus on lowering our energy use,using cogeneration to produce heat and power,making process improvements,and deploying of GHG reduction technologies wherever possible.Domestic ManufacturingUpholstery ManufacturingAccents ProductionCase Goods Manufacturing18SAF

78、ETY,FAIRNESS&OPPORTUNITY AT ITS CORE,ETHAN ALLENS STORY IS THE STORY OF A SMALL FAMILY BUSINESS THAT BECAME A QUINTESSENTIAL AMERICAN BRAND.WE GOT OUR START WHEN TWO BROTHERS,NAT ANCELL AND TED BAUMRITTER,BOUGHT A SAWMILL IN BEECHER FALLS,VERMONT,AND STARTED MANUFACTURING HOME FURNISHINGS.The dream

79、our founders had then is the dream so many small business owners have today:They wanted to devote their lives to a craft they loved,benefiting themselves,their workers,and their community.Their hard work catapulted Ethan Allen from small family business to the multinational,publicly traded,world-ren

80、owned furniture brand that it is today.Weve generated billions in economic revenue over our nearly 90 years in business.Ethan Allen is where it is today because furniture retailers of yesteryear gave us a shot:They were willing to partner with a small vendor that manufactured furniture in a remote c

81、orner of a small state.Just as they worked with us,as a way of paying it forward,we now work with emerging businesses,both in the U.S.and around the world.We believe in the dignity of work and the satisfaction that comes from a job well done.Employment contributes to financial prosperity and boosts

82、individual self-esteem and community well-being.We believe that people who craft products for us,no matter where they are in the world,should work in a safe environment and receive fair wages and benefits.We believe that when we use a communitys natural resources,we should harvest them responsibly,w

83、ith good stewardship and renewability in mind.19IT STARTS CLOSE TO HOME Seventy-five percent of what Ethan Allen sells is still manufactured in our North American workshops.We still use wood milled from logs in our Beecher Falls sawmill,and we still manufacture wood furniture in Orleans,Vermont.AND

84、EXTENDS AROUND THE WORLD.When we seek out partnerships with international suppliers and vendors,we look for artisans who use traditional methods,source local materials,and have a reputation for being the best at what they do.We feel a sense of responsibility both to the communities we serve and to t

85、he workers who manufacture our products.No matter where we do business around the world,our values remain the same.20SAFETY AT WORK A commitment to social responsibility begins with a commitment to the safety of our associates.We have well-established programs,guidelines,policies,and training materi

86、als on a range of environmental health and safety(EH&S)policies.In addition to receiving safety training during their orientation,associates receive periodic,ongoing training to minimize injuries,occupational diseases,and work-related risks.Each of our locations posts a daily metric:the number of da

87、ys without time lost because of an accident.In recent years,our Maiden,North Carolina,plant earned recognition for having over 1 million payroll hours without lost time.TRACKING INCIDENTS Our EH&S team collects and analyzes workplace accident information across all company-owned locations.We classif

88、y incidents by seriousness,based on both quantitative metrics like lost time,and qualitative metrics,like types of medical treatment required beyond first aid.In addition,we work with our insurance providers to aggregate information that helps us get to the root causes of injuries.To prevent future

89、incidents,we then take steps to make our physical spaces and our procedures more safe.COMMON INJURIES BY FREQUENCY,20162018LOW-COST,HIGH-FREQUENCY CLAIMSShoulderLower TrunkWrist/HandKneeHeadShoulderLower TrunkWrist/HandElbowKneeFoot/AnkleLegWrist/HandFingerBackLower TrunkWrist/Hand/FingerArmElbowKne

90、eFoot/AnkleLegOBSTRUCTIONSolution:Inspect walking and work surfaces,clear aisles,and remove clutter from the work area.SLIP/TRIP/FALLSolution:Clear obstructions and install non-skid walking surfaces.CUT/PUNCTURESolution:Require cut-resistant gloves,inspect for sharp tools,and train associates to cut

91、 away from the body.SPRAIN/TEARSolution:Create a more ergonomically sound work environment,train workers on proper lifting,reduce product weight,and develop better engineering controls.INFLAMMATIONSolution:Develop local programs that encourage movement for ongoing mobility.Face/OtherShoulderWrist/Ha

92、ndArmElbowKneeToeLegFingerINJURIES:CAUSES AND SOLUTIONS21MONITORING PROGRESS As part of our standing agenda,we review both accidents and close calls within our facilities during monthly and quarterly conference calls.Reviews include both a listing of accidents and an open discussion of potential roo

93、t causes and contributing factors.22PRODUCT SAFETY FROM DESIGN TO DELIVERYHOW ETHAN ALLEN PRODUCTS ARE MADEDesign Concept:Designers start with a new product conceptthe driving core and backbone of each productwhich includes the base material,such as wood or metal.Step 1Step 3Step 4Step 5Step 6Step 7

94、Step 2Design Drawing:Design engineering staff develop a detailed CAD drawing of the new product,including important details that contribute to the integrity and quality.The drawing explains product specifications to an extraordinary level of detail,so our manufacturers know exactly whats expected.De

95、sign Package:Compliance staff create a detailed packet for each design that includes testing procedures,including regulatory chemical testing and responsible labeling guidelines.The packet is sent to the designated factory for review and development.Factory Sample:While the first sample is built,the

96、 factorys engineering and quality control team members remain in constant communication with both designers and compliance staff.Construction Review:New products are submitted to performance testing to ensure quality and regulatory compliance.Final Review:New products and test results are sent to Et

97、han Allen headquarters for review.Designers and compliance staff send detailed comments and corrective recommendations back to the manufacturing facility.Final Approval:Factories review and execute corrective action.They retest each product,submit reports to Ethan Allen,and start manufacturing the f

98、inal product upon approval.Step 8Step 9Quality Control:Factories inspect products at all stages,relying on trained employees who then communicate their findings to factory management and take corrective action as needed.Responsible Packaging and Labeling:Products are labeled so that all government r

99、egulations,plus care and assembly instructions,are clear and informative.Ethan Allen ensures that suppliers package products securely,so they arrive safe and intact in client homes.Ethan Allen has always had a strong reputation for delivering a quality product to its clients.A well-defined quality c

100、ontrol program documents testing and product inspection,improves product quality,and ensures client satisfaction.Our compliance team works with in-house merchants,manufacturing facilities,and international suppliers to make sure all Ethan Allen products meet uniform product standards.This work invol

101、ves key personnelengineering,quality control,and inspection staffand a commitment to quality from the instant a product is designed to the moment its delivered to a client.Most of our furniture is custom-made,mostly in our North American plants.When we do work with import vendors,we ensure the produ

102、cts they make meet the same quality standards as those in our North American plants.We expect plants to conduct regular factory inspections and rigorous product testing.23All Ethan Allen products begin with clear-cut design specifications and a compliance packet that includes detailed testing proced

103、ures we expect vendors to follow.When factories build the first sample of a product,their engineers and quality control team members stay in constant communication with both Ethan Allen designers and compliance staff about the results of their inspections and product tests.Here are some examples of

104、inspections an Ethan Allen vendor may perform:TIP-OVER TESTING We follow all ASTM(American Society for Testing and Materials)International standards,which includes subjecting all clothing storage units,like dressers,to tip-over testing to ensure they remain stable.We also include tip restraint kits

105、with each storage piece.LIGHTING CONSTRUCTION REVIEW When we introduce new lamps into our product assortment,a third party conducts an initial construction review.Lamps are inspected at the factory before shipment,both for performance and workmanship.LUMBER INSPECTION When milled lumber comes into a

106、 factory where we manufacture wood furniture,we inspect the lumber for quality before sending it to the floor to be used in building furniture.In addition to conducting inspections for product quality,we test all products to ensure they comply with state,federal,and provincial laws.We require suppli

107、ers to document that every product passes tests for both workmanship and performance standards;from furniture to lighting,any product bearing our name meets or exceeds safety standards.We expect suppliers to set up and maintain a quality control system that encourages two things:teamwork and a commi

108、tment to always raise the bar on delivering a high-quality product.Quality reviews and insights are constantly evaluated,and factory personnel implement changes when needed to maintain a high standard of quality.QUALITY ASSURANCE AFTER THE SALE Despite rigorous testing,there are times a clients prod

109、uct may not perform as expected.Our compliance team works closely with Ethan Allens Client Services department to address issues that come up after the sale.Client Services holds regular conference calls with our merchandising,factory operations,compliance,and retail teams,letting them know what ser

110、vice requests theyve received regarding products.The entire Ethan Allen teammanufacturing,merchandising,and compliancethen gets to the root cause of any quality issues,working with vendors to create corrective action plans so the issues dont continue to happen.INSPECTIONS AT ALL STAGESPRODUCT TESTIN

111、G24MANUFACTURING CODE OF CONDUCTMANUFACTURING CODE OF CONDUCTMONITOR WITH TRANSPARENCYENSURE NON-DISCRIMINATIONMAINTAIN ONGOING COMPLIANCEPROTECT THE ENVIRONMENTFOLLOW LOCAL AND NATIONAL LAWSPROVIDE FAIR COMPENSATIONGUARANTEE FREEDOM OF ASSOCIATIONPREVENT COERCION AND HARASSMENTENFORCE SUBCONTRACTIN

112、G STANDARDSENSURE HEALTH AND SAFETYPROHIBIT CHILD LABORPROHIBIT INVOLUNTARY LABOREthan Allen merchants travel all over the world searching for products and crafts that they want to bring back to our clients:things our clients wont find anywhere else.That journey has led to an unbeatable product sele

113、ction,from rugs hand-loomed in India to sculptures crafted from marble in Indonesia.It has also led to relationships with vendors whove never worked with large companies.Ethan Allen published its Manufacturing Code of Conduct in 2016.Its the standard against which Ethan Allen,in partnership with thi

114、rd-party auditors,measures vendor compliance related to ethical business practices and the fair treatment of workers.We are committed to working with and educating our supplier network as a way of improving labor conditions worldwide.For our business partners,following our Manufacturing Code of Cond

115、uct is just as important as meeting our product quality standards.To assess vendor compliance at individual production facilities,Ethan Allen partners with industry-recognized third-party auditing companies known for their professionalism,consistency,and credibility.Between 2016 and 2018,ven-dors li

116、ke Bureau Veritas and Elevate conducted over 120 labor compliance audits in eleven countries on our behalf.These audits provide independent,impartial assessments of factory performance against our Manufacturing Code of Conduct.We tailor factory assessments to each facilitys unique production challen

117、ges,addressing the continuous improvement plans that factory managers have developed through ongoing dialogue with our compliance team.Our goal is to obtain 100%compliance;as we work to meet that goal,we address the root causes of noncompliance within each facility.Our team also attends labor compli

118、ance seminars and meetings,where we can collaborate across international and industry lines to address labor compliance topics throughout the global supply chain.THIRD-PARTY AUDITS25WHAT IS AUDITEDFACILITY INTEGRITY Vendor follows anticorruption standardsPERSONNEL RECORDS Employee ages to ensure no

119、child labor Full-time vs.part-time status of workers Worker country of origin(to ensure proper documentation for migrant workers)Working hours,including regular hours,overtime,and rest days Payroll,compensation,and benefits Production-related documentationLICENSES&PERMITS Vendor has appropriate fact

120、ory business license,equipment licenses,and health certificates and permitsENVIRONMENTAL STANDARDS Safe chemical labeling,storage,and emergency procedures Appropriate disposal of wastewater and solid waste Safe disposal of waste from industrial processes Clean air emissionsFACILITY ACCESS Vendor all

121、ows auditor to access documents and talk to workersPOLICIES&PROCEDURES No forced labor Freedom of association Nondiscrimination No tolerance of harassment Minimum legal worker age Wages and hours worked,including systems and procedures for recordingHEALTH&SAFETY Clean air and ventilation Potable dri

122、nking water Personal protective equipment First aid kits Access to medical treatmentWHEN AUDITS HAPPENFACILITY PERFORMANCE AUDIT FREQUENCY ACCEPTABLEEVERY YEARVERY GOODEVERY TWO YEARSONGOING CORRECTIVE ACTION PLANEVERY THREE MONTHS TO ONE YEAR26TEACHING OURSTANDARDSVendor education is an essential p

123、art of Ethan Allens relationship with suppliers.In one-on-one conversations and through training programs,we give vendors the chance to outline the steps they plan to take to achieve compliance and then to take corrective action where needed.Compliance is always a moving target,especially since supp

124、lier business practices are always evolving.Ethan Allen works with auditors who offer continuing education opportunities,in the vendors country and in the vendors own language.These include yearly seminars,conducted by training staff from the third-party company in the vendors own language;and addit

125、ional compliance training for factory managers that explains the need for transparency,capacity building,and improvement in their labor compliance systems.In addition to offering educational opportunities,we help vendors take ownership of their own compliance programs by encouraging employee partici

126、pation.Within Ethan Allens program,each factory appoints its own compliance coordinator.Many also develop committees,staffed by employees and owners,to oversee ongoing topics,like health and safety,or to work with factory management on production schedules.As factories advance toward their complianc

127、e goals,owners grasp the core value of getting on board:They become a much more attractive supplier to a wide range of brands.27LABOR COMPLIANCE TRAINING MODELSAFETY We point out best practices for fire safety,machine safety,proper chemical management,and safe working conditions.We expect managers t

128、o communicate and maintain these standards daily.RECORD KEEPING We help suppliers develop management processes for proper documentation:employee records and credentials,licenses,regulatory requirements,and benefits information.REGULATIONS We make suppliers aware of local regulations covering both en

129、vironmental impact and worker health and safety.CORRECTIVE ACTION PLANS We require suppliers to develop corrective action plans,supported by continuous self-audit and review,so they maintain standards and continue to progress.28OUR ASSOCIATESEthan Allen is an Equal Opportunity Employer committed to

130、diversity and a welcoming atmosphere in the workplace.In some ways,weve met that commitment,especially in terms of our associates intergenerational makeup.Were also proud to note that 40%of our executives are women.At the same time,we have room for improvement,especially in terms of recruiting a mor

131、e ethnically diverse workforce.29 MALE43%FEMALE57%60+24.6%3039 13.9%505930.1%404920.3%ETHAN ALLEN ASSOCIATES(LOCATED IN THE UNITED STATES)AGEYEARS OF SERVICEGENDER1829 11.1%04 47.9%5918.8%1014 12.1%15+21.2%30WE THE PEOPLE OF ETHAN ALLENEthan Allen was a Revolutionary War hero and pioneer.His pioneer

132、ing spirit is in our DNA;we are proud to carry his name.Being a pioneer means breaking new ground,and thats something our company has always done.We created the first furniture gallery showrooms in our industry,staging furnishings not in rows of like items but in real room arrangements that allowed

133、our clients to picture their new furniture in their homes.We were also among the first furniture retailers to offer complimentary interior design service.At Ethan Allen,our people share that pioneer spirit.They take responsibility for both themselves and the role they play in making our business suc

134、cessful.Our corporate social responsibility commitment is an entrepreneurial endeavor,guided by our ten leadership principles.311LE A D E R S H I POur first environmental management system began with a policy developed by our Environmental Health&Safety director,Paul Kaminski,and approved by our cha

135、irman and CEO,Farooq Kathwari.Expectations set at our headquarters are only a starting point.Our associates own this effort,leading from the grassroots,in big and small ways.C H A N G ERooted in their entrepreneurial spirit,our associates lead change from the ground up.They dont wait to be told what

136、 to do;they take initiative,from developing recycling programs to volunteering in their communities.3ACC E SS I B I LIT YIn an Ethan Allen plant,youll find managers for our environmental programs.Youll also find associates who volunteer to be point persons for tracking our carbon footprint,or who pa

137、rticipate in their plants safety committee.Their ownership keeps efforts local and ensures that decision-makers are accessible to anyone.4S PE E DAccessibility and a local focus breed agility in our corporate citizenship efforts.When our associates see that something needs to happen,they can feel em

138、powered to take action immediately,with the support of local managers and leaders.2OUR LEADERSHIP PRINCIPLES325C LI E N T FOC USEthan Allen keeps clients at the forefront of every decision we make.Our clients,in this sense,arent just people who pay for an Ethan Allen product;theyre associates who tr

139、ust us to keep conditions safe or people who live in a community that we serve.6H A R D WO R KEnvironmentally friendly purchasing,efficient operations,chain of custody,compliant product testing,waste management,and more are part of the job description for corporate leaders,merchants,and our complian

140、ce team.7E XC E LLE N C E +I N N OVAT I O NWhen it comes to corporate citizenship,we foster an entrepreneurial environment.We encourage individuals or on-site teams to come up with innovative ideas that they can implement locally.These ideas often become best practices that other locations throughou

141、t the company can use.338PR I O R IT I E SAn entrepreneurial attitude breeds a lot of new ideas,but setting priorities requires a framework that keeps us focused.As we look forward to the next decade,were deepening our commitment to sustainability and social responsibility by setting specific goals

142、related to our carbon footprint and resource usage.9CO N F I D E N C EOur sustainability and social responsibility efforts have earned a range of honors (see page 9).We take pride in our achievements,even as we acknowledge theres more work ahead 10J US T I C EThe reason we do all of this is simple:W

143、e care about the communities in which we live and work.Taking care of those communitiespreserving the quality of their landfills,groundwater,and air quality,for the sake of our children and for our neighborsis the right thing to do.Printed on Rolland Enviro Print,100 lb text.This paper contains 100%post-consumer fiber and is manufactured using renewable biogas energy.It is certified FSC,Processed Chlorine Free and Ancient Forest Friendly.2019 Ethan Allen Global,Inc.,Danbury,CT.All rights reserved.Printed in USA.100%