Our Products
Manufacturing Ethics
Approach
An integrated strategy
Our strategy in manufacturing ethics is comprehensive and dynamic. We have developed a system that takes the best of industry standards and incorporates our own verification measures to ensure ethical practices throughout our supply chain.
At a minimum, we require all factories be in compliance with local laws. However, in many cases, complying with Hasbro’s Global Business Ethics Principles and the International Council of Toy Industries (ICTI) Code of Business Practices require sites to go beyond legal requirements.
ICTI CARE Audits
The ICTI CARE process is composed of an auditing system whereby approved factories gain the ICTI Seal of Compliance. It seeks to provide “fair, thorough, and consistent” monitoring through the use of highly trained and qualified auditors.
Every current third party factory located in an area where the ICTI CARE program operates is required to maintain a Seal of Compliance from the program.
If auditing of a factory reveals significant areas of non-compliance, the factory is required to fix the problem area(s) and is put on probation for one year. During the probationary period, the factory will undergo regular unannounced audits to ensure improvements have been made and sustained.
For more information, visit the ICTI CARE website.
ICTI CARE audits assess a factory’s standing in the following areas:
- Working hours
- Wages and compensation
- Child labor
- Forced labor and Prison labor
- Disciplinary practices
- Discrimination
- Employee representation
- Facilities
- Fire prevention
- Environmental Health and Safety
- Employee welfare (dormitories, cafeteria services, medical).
We also actively promote ICTI’s Continuous Improvement Process (CIP) on Wages and Working Hours, a program aimed at improving factory compliance with wage and working hour requirements. Working hours are a difficult issue to address and this process is an important part of the ICTI CARE seal evaluation program.
Hasbro reports the status of its third party factories in the ICTI tiered seal program. See our performance in this area here.
"We are a family owned business that has been working with Hasbro for three generations. Starting with small orders, we worked to build our reputation for being reliable and innovative, winning more business from Hasbro U.S. and building a close partnership. Today, our three factories in Guangdong, China, make action figures, PLAY-DOH and other games, and employ 5,150 people.
Working with Hasbro is in some ways challenging because we must meet their stringent quality requirements, which exceed national standards. However, this helps us strive for further excellence.
We collaborate to resolve any problems. For example, Hasbro provides assistance to balance the peak and low seasons by placing advanced production orders. This eases the problems of labor shortages that can overload workers in peak season."
Verification and Remediation
Oversight Factory Audits
Our oversight audit processes ensure the robustness of our third party factory compliance programs and serve as an additional check to verify the audit process conducted by ICTI CARE. In 2010, we conducted additional, oversight audits (above and beyond the ICTI CARE audits) on more than 30% of our third party factories.
We require third party factories making Hasbro products be inspected regularly, without prior notice to factory management. Experienced local Hasbro staff conducts unannounced oversight audits as needed.
Audit areas include but are not limited to manufacturing areas, back-office operations areas and dormitories. The process involves:
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Initial Management Interview
Hasbro staff meets with factory management to facilitate an understanding of the requirements. We hear from each factory about its approach, challenges, and best practices in manufacturing ethics and safety. -
Physical Inspection
We conduct walk-throughs in all areas of the factory grounds, including production facilities and dormitories (if applicable). Walk-throughs allow Hasbro auditors to check for numerous health and safety requirements and assess the overall factory work environment. -
Record Review
Factory records are reviewed to assess the level of compliance. For example, auditors may ask to see time cards, payroll records, factory policies, worker orientation materials, personnel files, worker contracts, accident records, fire drill log records, and production/shipment records. Factories are required to keep all records on site and available for review. -
Confidential Employee Interviews
Auditors select workers and supervisors for confidential interviews without factory management present. Information gathered is reported in a way that ensures participants’ confidentiality. Retaliation against workers for sharing information with auditors is a serious violation of Hasbro’s code and cause for termination of the business relationship. -
Management Review Meetings
Our representatives hold confidential meetings with factory senior management and/or factory owners to address concerns and to seek commitment to improved performance. Upon audit completion, we meet with factory management to review audit findings, address areas of non-compliance, and set up a Corrective Action Plan (CAP) if necessary.
Corrective Action Plan (CAP)
When areas of non-compliance are identified in a factory, a Corrective Action Plan (CAP) is required. Commonly found problems include inconsistent records, working hour violations and health and safety violations. The severity of non-compliance determines whether or not the factory is allowed to continue to receive orders from Hasbro and/or ship product.
A CAP typically includes the following procedures:
- Description of the audit noncompliance violation
- Action plans to address the violation and prevent future occurrences
- Person accountable for action plan and anticipated completion dates
- Documentation needed to support the corrective action
A follow-up audit will then be conducted to ensure the CAP has been implemented.
We recognize that factories are not perfect workplaces. Hasbro firmly believes in working with factories to ultimately raise standards and improve conditions for all. If, however, a factory is unwilling or unable to remediate instances of non-compliance and cannot meet our standards, we will terminate production.