We hold ourselves to high ethical standards everywhere we do business, and we expect the same from those who manufacture and supply our products. Lowe’s sources products from all over the world through LG Sourcing (LGS), a wholly owned subsidiary of Lowe’s. LGS works with more than 500 vendors in 19 countries, with the largest concentration in Asia, and provides clear guidelines for product quality and safety, and social responsibility by manufacturers.

LGS uses internal and third-party quality assurance teams to help validate that our vendor partners operate safe and ethical factory environments and produce safe, reliable, high-quality products.

Our global sourcing policies prohibit the use of child or prison labor in the production of material we sell. Vendors and suppliers are expected to comply with all applicable laws and regulations in the conduct of their business with Lowe’s, and their products must meet regulatory and industry standards. Lowe’s Code of Business Conduct and Ethics prohibits conflicts of interest in our dealings with vendors and holds vendors to conduct expectations similar to those of Lowe’s employees.

With more than 750 factories producing products for Lowe’s, LGS ensures compliance with these standards with the help of operations in the United States, China, Hong Kong, Taiwan, Mexico and India. LGS uses internal and third-party quality assurance teams to help validate that our vendor partners operate safe and ethical factory environments and produce safe, reliable, high-quality products.

As part of our sustainable and socially responsible sourcing strategy, LGS worked with independent consultants and other experts to create an enhanced social accountability and environmental audit. Launched last August, the new framework incorporates best audit practices and provides an expanded evaluation of social performance and environmental compliance. Every active factory and new factory is audited at least once a year.

In 2011, LGS performed more than 900 factory certifications and more than 600 random social compliance audits. In addition, more than 16,000 product and packaging tests were conducted at independent third-party testing facilities, with many of our products pulled from production lines for testing during random production audits. LGS also inspects orders at facilities before approving them for shipping, and in 2011 conducted more than 11,000 pre-shipment inspections.

Driven to provide high-quality products produced by socially responsible vendors, we’ll continue to review our sourcing policies to ensure we have the best practices in place.

View Lowe’s California Transparency in Supply Chains Act Disclosure.