About Our Supply Chain
There are currently two tiers of manufacturing factories around the world; Hasbro third-party vendors and factories and licensee factories.
We maintain close partnerships with our third-party vendors and factories, the majority of which are located in China, and require that they adhere to our Global Business Ethics Principles. In 2013, we identified additional factories outside China where we expect to begin production during 2014. A list of Hasbro's third-party vendors and factories is available here.
In addition to producing our own products, Hasbro out-licenses use of our brands to licensee partners around the globe. They manufacture Hasbro branded products, like apparel, footwear, home goods, health and beauty products, food, and printed items including coloring books. While we do not directly select licensee factories or have a direct business relationship with them, we require licensee factories to meet Hasbro’s Global Business Ethics Principles.
Hasbro uses a proprietary, standardized online Licensing Approval System (LAS) to evaluate and process approvals for factories and the licensed products they produce. This system incorporates product quality testing and social compliance requirements. Licensees also receive information on Hasbro’s ethical sourcing policies and procedures through this online system.
Licensees are contractually obligated to submit preproduction audits for factories in countries considered to be at medium and high risk of ethical violations and annual audits thereafter for Hasbro's review. To identify risk, we utilize third-party research that takes into consideration United Nation Human Development Index data points, corruption data, labor rights, and economic and political freedom data, as well as audit history. The latest risk assessment, conducted in 2012, guides our approach to factory monitoring and permitted source countries.