California Transparency in Supply Chains Act

Ethan Allen manufactures and/or assembles approximately 70% of its products in its own North American plants (as of December 2011). These facilities along with our associated Distribution and Service Centers and Retail Design Centers are within our control and do not engage in human trafficking and/or slavery. Ethan Allen is committed to and operates in accordance with its Leadership Principles, by which it expects all affiliates and employees to abide, and all suppliers and contractors to embrace. Ethan Allen is engaged, at all levels, in a continuous improvement process and strives to maintain and establish a supply chain that conforms to Ethan Allen’s high ethical and legal standards. Our Supply Chain Code of Conduct and Supplier Survey are sent out from our domestic supply chain team members to all of our suppliers. These documents inform our suppliers of our expectations and enable us to inquire about our suppliers’ activities regarding socially responsible business practices. We are currently developing a more formalized verification and auditing program for all third-party suppliers to ensure that they operate in accordance with our code of conduct and all applicable laws and regulations. Ethan Allen does not condone the use of slavery or human trafficking and does not knowingly do business with any supplier who engages in such practice. Further, Ethan Allen does not maintain any long-term contracts or commitments with its suppliers and is free to take its business elsewhere should a supplier fall short of our expectations; however, we have established long-standing relationships with most of our suppliers, and we believe that our business relationships are grounded on a foundation of integrity, honesty, and fairness. We develop relationships with carefully selected suppliers who are committed to responsible business practices.

To assist in verifying our vendor operations, members of our merchandising, design, resourcing, and quality teams periodically perform announced visits of these facilities. We do not currently use any third party to audit or verify third-party suppliers.

Ethan Allen maintains internal standards of accountability for all our associates and failure to meet company standards concerning human trafficking and slavery is not tolerated. Ethan Allen provides formal training to all associates on Ethan Allen’s Code of Conduct, which includes information on action(s) to take in the event of a violation by an associate or supplier.