When customers choose Hasbro toys and games, it’s an act of trust that our products are manufactured safely, under fair labor conditions, and without ethical compromises. We honor this trust by requiring all Hasbro products to be manufactured in accordance with rigorous ethical standards. We combine industry best practices, strategic partnerships, and strict auditing standards to respect the safety, well-being, and dignity of workers. To make this happen, we work in partnership with our third-party factories and licensees. All factories must comply with Hasbro’s requirements in areas including wages, health and safety, and the prohibited use of forced or child labor. At a minimum, we require all factories to be compliant with local laws. However, in many cases, complying with Hasbro's Global Business Ethics Principles and our ethical sourcing program require sites to go beyond legal requirements.
The toy manufacturing industry faces challenges due to numerous factors, including short lead times, seasonal deliveries, and complex inventory management systems, which can contribute to long working hours across supply chains. We strive to achieve high ethical standards in all factories that manufacture Hasbro products; we believe this is essential to our long-term growth. We partner with factories on implementing best practices, and we support training that helps build capacity and promotes ethical performance.
For more than 20 years, Hasbro has pioneered company-wide initiatives and industry standards for better working conditions. In 1993, we implemented the industry-leading Hasbro Global Business Ethics Principles, which remain in effect today. These require all factories manufacturing Hasbro products to meet applicable laws and standards for workplace issues including forced labor, child labor, working hours, compensation, health and safety, abuse and discrimination, and freedom of association. In 1994, we were the first toy company to develop a fire safety manual for factories that ended up becoming the industry standard. By 1995, we were partnering with others in the industry to develop a code of conduct for factories manufacturing our products, and in 1996, the International Council of Toy Industries (ICTI) rolled out its initial Code of Business Practices. In the years following, Hasbro has continued to evolve its ethical sourcing program and partners with leading organizations to continue advancing working conditions internationally.
In 2016, Hasbro became the first toy and game company to join the Electronic Industry Citizenship Coalition (EICC), a nonprofit group of leading companies working together to improve efficiency and social, ethical and environmental sustainability in the global supply chain, and we will begin requiring third-party factories globally to meet EICC certification.
Ensuring compliance by third-party factories around the world is a continuous process that requires careful monitoring. At Hasbro, our process for ensuring compliance includes prequalification, monitoring, oversight of our factory base, transparency, capacity building, and partnerships.
Our overarching vision is to practice sound ethical sourcing principles throughout the supply chain by engaging with factory management and internal and external stakeholders. We utilize a set of requirements to help guide and measure our progress in this critical area.
Charting Our Progress and Path Forward
100% of new third-party factories were prequalified in 2015.
100% of third-party factories in the Far East were audited through Hasbro's ethical sourcing program or equivalent system in 2015.
Hasbro has ethical sourcing meetings with 100% of new vendors’ management teams prior to any audits or production taking place.
Hasbro supports capacity-building initiatives through its ethical sourcing program.
Strengthened Hasbro’s Global Business Ethics Principles in 2015 to address modern forms of slavery as well as to reinforce that freedom of association also includes the right to collective bargaining.
Partnered with key vendors in 2015 to pilot worker collaboration tool in third-party factories.
As we continue to diversify our third-party factory base beyond our current geographic focus in China. we will face new challenges and opportunities in meeting our commitment to ethical sourcing. As we have in Asia, we will seek business relationships with third-party vendors who will partner with us to improve working conditions and share our commitment to continuous improvement. Additionally, in 2016, Hasbro will join the Electronic Industry Citizenship Coalition (EICC) and begin requiring third-party factories globally to participate in the EICC Validated Audit Process (VAP).