MASHINIi

Restoration Hardware.

RH.US | Retail sale of electrical household appliances, furniture, lighting equipment and other household articles in specialized stores

Restoration Hardware (RH) is a luxury retailer in the home furnishings marketplace. The company offers a curated assortment of high-quality furniture, lighting, textiles, bathware, décor, outdoor and garden products. RH operates retail galleries, outlet stores, and a direct-to-consumer business thro...Show More

Ethical Profile

Mixed.

Restoration Hardware (RH) has faced product safety concerns, including 2017 recalls for dining tables allegedly linked to lead poisoning in four children, and 2019 recalls for fire-hazard robes. Critics like PETA highlight transparency issues in RH's down sourcing, raising animal welfare concerns, despite some products being Responsible Down Standard (RDS) or Global Traceable Down Standard (GTDS) certified, which prohibit live plucking. RH pledges to source down ethically. RH's CEO pay ratio of 24:1 is better than the S&P 500 average (268:1), yet Glassdoor reviews suggest high turnover and 2.9/5 worker engagement. Data on environmental impact, fair trade, and community engagement is largely insufficient.

Value Scores

Better Health for All-20
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect-20
-100100
Fair Trade & Ethical Sourcing20
-100100
Honest & Fair Business-10
-100100
Kind to Animals-40
-100100
No War, No Weapons0
-100100
Planet-Friendly Business0
-100100
Respect for Cultures & Communities0
-100100
Safe & Smart Tech0
-100100
Zero Waste & Sustainable Products0
-100100

Better Health for All

-20

Four children experienced elevated blood lead levels linked to recalled metal top dining tables.

1
The company had 4 product recalls between 2017 and 2019, including dining tables, race car mobiles, Venetian mirrors, and Ultra-Soft Turkish robes due to fire hazard.
2
RH issued recall notices for these products, which were also publicized by the CPSC.
3
The company maintains a product safety and compliance program.
4
Vendors are required to allow unrestricted access for inspections and audits.
5
RH's vendors must adhere to environmental laws, and the company diverted 708,000 pounds of waste from landfills in 2024.
6
Label STEP conducts periodic weaver empowerment programs in the supply chain, offering medical camps and health guidance.
7
RH initiated multiple team member giving campaigns, matching donations up to $250,000, in collaboration with organizations like World Central Kitchen and the American Red Cross for disaster relief.
8
An Employee Assistance Program is offered to eligible team members.
9
The company monitors hazardous chemicals.
10

Fair Money & Economic Opportunity

0

RH.US is described as a luxury home furnishings retailer. The provided articles discuss the company's financial performance, stock metrics, and supply chain, but do not contain any information related to financial services, lending, deposit services, or specific initiatives concerning financial inclusion or economic opportunity for underserved populations. As the ethical value 'Fair Money & Economic Opportunity' specifically assesses activities that lend, insure, move, or store money, and no evidence of such activities by RH.US is present, all KPIs are omitted due to lack of relevant data.

Fair Pay & Worker Respect

-20

The company's CEO to median employee pay ratio for 2024 was 24:1.

1
However, none of RH.US's team members are represented by a union.
2
The overall employee satisfaction rating on Glassdoor is 3.2 out of 5, based on 312 reviews, which translates to an engagement score of 64 out of 100.
3
RH provides health insurance benefits for eligible employees, including medical, dental, and vision coverage, and offers a comprehensive 401(k) plan in the US.
4
Other benefits include an Employee Assistance Program, team member discounts, and paid time away.
5
The company states it is an equal opportunity employer with a non-discrimination policy and a commitment to team member safety, health, and well-being.
6
RH also requires its vendors to adhere to a Vendor Code of Conduct and monitors compliance with labor standards through a Social and Product Partner Compliance Program, leveraging third-party organizations and audits.
7

Fair Trade & Ethical Sourcing

20

RH requires all its suppliers to adhere to its Product Partner Code of Conduct, which includes robust ethical terms such as prohibitions on child and forced labor, requirements for fair treatment, non-discrimination, and compliance with labor, employment, and environmental laws.

1
Vendors are required to certify compliance.
2
RH leverages third-party organizations to monitor key product partners and conducts inspections and audits of vendor facilities.
3
Violations of the code can result in immediate order cancellation or business termination without penalty.
4

Honest & Fair Business

-10

The company reported one financial restatement in early 2023, affecting several 2022 periods, due to errors in calculating net income per share

1
. This restatement was triggered by an SEC comment letter
2
and involved a material weakness in internal control over financial reporting, with disclosure controls and procedures deemed ineffective
3
. In terms of regulatory fines, the company incurred one workplace safety or health violation fine of $8,287 in 2022
4
. RH maintains a comprehensive anti-corruption policy that requires compliance with the U.S. Foreign Corrupt Practices Act and international anti-corruption laws, prohibiting undue influence and requiring prior approval from the Chief Compliance Officer for facilitating payments
5
. Product partners are also required to certify compliance with anti-corruption standards
6
. The company has a comprehensive whistleblower policy, including an anonymous hotline and website, multiple reporting channels, and a prohibition against retaliation for good-faith reports of misconduct related to accounting practices, internal controls, or auditing matters
7
.

Kind to Animals

-40

PETA exposés in 2022 in Poland, Russia, and Vietnam revealed severe animal mistreatment in the down supply chain, including geese being hacked up to seven times before decapitation, inadequate stunning, and prolonged suffering.

1
Despite these findings, RH's Board of Directors recommended against a 2023 shareholder proposal urging a report on down procurement to determine compliance with animal welfare laws and address risks, stating it was not necessary to divert corporate resources for such a study.
2
PETA representatives noted that RH offers no transparency regarding whether its monitoring process has confirmed suppliers’ compliance with animal welfare law.
3
RH states it requires vendors to conduct sourcing in compliance with local and internationally recognized laws and best industry practices and does not condone mistreatment of animals.
4
RH agreed to stop selling mohair after a PETA video exposé revealed cruelty to goats.
5
The company offers a down alternative for nearly all its bedding and upholstery but continues to sell down inserts for decorative pillow covers.
6
RH also monitors bans on the sale of fur in certain states and municipalities.
7
The company does not engage in animal testing.
8

No War, No Weapons

0

No evidence was found in the provided article that is specific to RH.US or relevant to the 'No War, No Weapons' ethical value. The article pertains to D-Wave Quantum Inc.'s conflict minerals sourcing policy.

1

Planet-Friendly Business

0

No specific, quantitative, or qualitative data regarding RH.US's environmental performance, policies, or initiatives could be found in the provided articles. The articles either discuss the EPA's sustainability efforts

1
, are marketing materials for a PR firm
2
, or are non-functional links
3
, none of which contain information relevant to RH.US.

Respect for Cultures & Communities

0

No specific evidence was found in the provided articles regarding RH.US's performance on any of the KPIs related to Respect for Cultures & Communities. The articles discuss general human rights due diligence, ESG reporting trends in Canada, the importance of human rights in ESG investments, and a general violation of Indigenous Peoples' rights related to a mine permit

1
, but none of this information is specific to RH.US.

Safe & Smart Tech

0

No specific, concrete data points or evidence regarding RH.US's data protection, cybersecurity, or responsible AI practices were found in the provided articles. The articles either discuss general industry trends, other companies, or the company's business and product offerings without detailing its security or privacy measures. , RH.US's privacy policy, explicitly states it contains no quantitative data, regulatory information, certifications, awards, or comparisons to industry benchmarks relevant to the specified metrics.

1

Zero Waste & Sustainable Products

0

No specific, quantitative data for RH.US (Restoration Hardware) regarding waste diversion rates, product recyclability, packaging sustainability, recycled content, single-use plastic reduction, take-back programs, circular design principles, waste reduction initiatives, hazardous waste management, product durability, repairability scores, waste audit frequency, zero-waste certifications, waste disposal violations, material efficiency, packaging-to-product ratios, waste reduction targets, supplier waste requirements, or customer waste education was found in the provided articles. The articles discuss general industry trends, sustainability concepts, or provide data for other companies like Walmart

1
or Rheem,
2
which are not RH.US.

Own Restoration Hardware?

Upload your portfolio and see how all your holdings score across 11 ethical dimensions.

Audit My Portfolio

AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.