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New Balance is committed to working through this unprecedented public health crisis with our suppliers in a responsible way. We will continue to pay the full negotiated price for orders that are completed or in production. To the extent that we must cancel orders due to decreasing consumer demand, we will ensure that suppliers can recover all associated material and component costs already incurred for those orders. Our suppliers also have access to preferred credit and discounting programs to enable them to preserve cash flow. While we anticipate significant challenges and difficult decisions ahead, we will continue to seek negotiated solutions that enable shared recovery and strong future business relationships.
The health and safety of the people who make our products remains paramount during this time. We have instructed suppliers to adhere to all local, national, and international requirements regarding safe operations for workplaces that continue to operate, and to follow all legal requirements if and when workplaces are instructed by local officials to close. New Balance has also communicated detailed guidance to our suppliers on global health & safety best practices to help prevent the spread of COVID-19 in workplaces that remain open as well as those that resume operations after a period of closure.
New Balance is working with global industry, civil society, and government stakeholders to identify meaningful ways to support factory workers during this period of uncertainty. We are also exploring broad-based solutions to underpin and enable the longer-term health and resiliency of the global footwear and apparel supply chain.