California Supply Chain Disclosure

As one of the most recognized brands in consumer-electronics retailing, RadioShack Corporation has developed policies that reflect responsible business practices across the organization and throughout the global community of business partners and stakeholders.

RadioShack has a longstanding corporate Code of Ethics Policy and a Supplier Code of Conduct that set clear boundaries for the relationships and practices with our suppliers and other business partners. Under these policies, RadioShack strives to do business with high moral, ethical and legal standards. RadioShack’s goal is to forge relationships with those suppliers who share our commitment to these standards.

In compliance with the California Transparency in Supply Chains Act of 2010, effective Jan. 1, 2012, RadioShack is providing consumers with a summary of our practices covered by the Act so they are equipped to make informed choices about supporting RadioShack as a community-based retailer of innovative technology products and services.

Disclosure

RadioShack is committed to compliance with all federal, state and local laws, rules and regulations that apply to its business. This compliance extends to RadioShack’s efforts to require that its suppliers comply with all applicable laws and, likewise, participate in the global effort to eradicate human trafficking and other instances of forced labor.

RadioShack enters into binding, written supply contracts with suppliers who wish to conduct business with RadioShack. The primary document used for this purpose is RadioShack’s Vendor Agreement, which incorporates RadioShack’s applicable policies in the Vendor Guide and Supplier Code of Conduct. As required by these policies, suppliers must comply with all applicable U.S. federal and state laws, rules and regulations, as well as applicable foreign laws, regulations and rules. RadioShack has the right to refuse any product offered by a supplier that fails to comply with all such laws and regulations.

As required by the Vendor Guide’s Supplier Code of Conduct, RadioShack’s suppliers must provide safe working conditions, treat their employees with respect and dignity, must not subject any employee to any physical or other form of abuse, and must engage in fair and reasonable practices relating to hiring, training, wages, benefits, discipline, termination and retirement, consistent with local standards and applicable law.

RadioShack’s Supplier Code of Conduct explicitly forbids use of forced, bonded, indentured or prison labor by its suppliers and also includes requirements concerning minimum age and compliance with other related local laws.

RadioShack requires that its suppliers must not employ or conduct business with any persons or entities that are blocked by U.S. agencies, including purchase of components, products or services from those countries or vendors that may be blocked or embargoed as a result of labor practices. RadioShack requires our suppliers to monitor changes in status on various lists published by federal agencies such as the U.S. Department of State and the U.S. Department of Commerce.

Further, RadioShack’s suppliers are to implement, maintain and enforce appropriate policies, record-keeping practices and procedures to promote compliance with the Supplier Code of Conduct and applicable laws.

Supply Chain Verification and Audits

RadioShack retains third-party auditing firms to evaluate and verify compliance with its Supplier Code of Conduct. RadioShack reserves the right to conduct these visits and audits unannounced, and will do so should the need arise. RadioShack is committed to ongoing dialogue with our suppliers concerning local labor practices in the interest of continuing to improve the quality and transparency of our global supply chain.

Internal Accountability

If any of these facility visits or audits identifies deficiencies, the supplier must promptly develop and implement corrective actions to eliminate the identified deficiencies. RadioShack closely monitors the implementation of the necessary corrective action plan. The supplier’s failure to eliminate any identified deficiency in accordance with the Vendor Agreement, Vendor Guide and Supplier Code of Conduct may result in RadioShack’s termination of any and all applicable business relationships.

Training

In addition to annual employee training on its ethics standards, RadioShack also conducts annual training sessions to inform all employees who are directly involved with global sourcing activities of the definitions of forced labor, human trafficking, common illegal labor practices, and RadioShack’s policies and procedures, as well as RadioShack’s reporting responsibilities concerning these activities. Properly educating these employees is a key element of RadioShack’s efforts to maintain and promote responsible practices in the global supply chain.

RadioShack is committed to conducting its business and operations consistent with legally recognized standards for corporate responsibility. RadioShack expects each of our suppliers in our direct supply chain to similarly conform to these standards and to fulfill the goals of responsible corporate citizenship.

Last updated 7/27/12