CSR - Human Rights and Ethical Sourcing

Human Rights and

Ethical Sourcing

Treating people with dignity and respect and operating ethically are core values at Hasbro. We demonstrate these deep beliefs in the way we treat our employees and in the expectations and requirements we have of those with whom we do business.

LEARN MORE ABOUT OUR PROGRESS

At Hasbro, we believe all people are entitled to fundamental rights and freedoms. We regard safety, well-being and dignity — of our employees, the workers in our supply chain and children everywhere — as deeply held obligations.

Working with partners and suppliers around the world on human rights and ethical sourcing issues is complex, but we remain vigilant in our commitment to ensure everyone in our supply chain is treated in accordance with the law and our rigorous ethical requirements. Specifically, we work with our third-party factories, licensees and stakeholders to address social compliance and help ensure our products are manufactured in working conditions that are fair, safe and legal for workers and that support local communities.

Our Human Rights Policy

We assessed and mapped human rights risks and opportunities across our company, which ultimately led us to focus on three primary constituencies: employees, supply chain workers and children. Each of these groups is essential to Hasbro’s success and we developed specific actions to meet their needs.

EMPLOYEES We implement our employees’ human rights protections through our Guide to Corporate Conduct, our human resources policies and our Environment, Health and Safety Policy. Furthermore, Hasbro employees are expected to uphold the company’s commitment to human rights throughout our business operations.
CHILDREN We see protecting children’s well-being and dignity as part of our role as a global play and entertainment company. We respect children’s human rights through our strong commitment to providing safe products and content, community investments in children-based initiatives, and our compliance with applicable conflict minerals regulations.
SUPPLY CHAIN WORKERS We contractually require facilities involved in the production of Hasbro products or licensed products comply with Hasbro’s Global Business Ethics Principles (GBEP). These facilities include third-party suppliers, Hasbro owned and operated warehouses, and licensees. Additionally, our suppliers and licensees are contractually required to ensure their major suppliers and subcontractors adhere to Hasbro’s GBEP. Facilities are expected to provide fair, safe, and legal working conditions for workers and to treat their employees with dignity and respect. Enforcement of compliance with the GPEP is exercised through Hasbro’s Ethical Sourcing program which includes at least annual audits as well as a factory rating system tied to follow-up audit timelines and business consequences. We implement our human rights commitment in our supply chain through not only our GBEP, which is the foundation of our ethical sourcing program, but also through the RBA social compliance program, which we require for all vendors, their major subcontractors, and our owned and operated warehouses. For licensees across various product categories, including footwear and apparel, we require reputable third-party social compliance audits.

We ensure that Hasbro employees and workers have channels to report and address human rights concerns. Our global ethics helpline and two confidential mailboxes allow employees to report issues anonymously and without fear of retaliation. For third-party factory workers, we are exploring best practices to further strengthen the anonymous grievance mechanism accessible through our social compliance program.

Managing Ethical Sourcing in Our Supply Chain

Ensuring social compliance in our supply chain around the world is a continuous process that requires careful monitoring. At Hasbro, our process for ensuring compliance within our factory base includes prequalification, monitoring, oversight, transparency, capacity building, and partnerships.

Our Ethical Sourcing program is designed to support our current and expanding sourcing model. We engage directly with Hasbro third-party vendors and licensees to drive social and environmental compliance and require them to do the same within their supply chains, including auditing and monitoring of subcontractors.

For a full list of Hasbro vendors and third-party factories, see our 2018 list.

In 2016, Hasbro expanded its ethical sourcing commitment and collaborations beyond our industry and became the first toy and game company to join the Responsible Business Alliance, formerly the Electronic Industry Citizenship Coalition. Responsible Business Alliance (RBA) is a nonprofit group of leading companies from the retail, automobile, electronics, and other sectors working together to improve efficiency and social, ethical and environmental performance in the global supply chain. We require 100 percent of our global supply chain to undergo annual RBA social compliance audits. Our 100 percent annual requirement is best-in-class and goes well beyond the RBA requirement that 25 percent of high-risk factories be audited.

Conflict Minerals

Ethical sourcing includes efforts to ensure that specific minerals (tin, tantalum, tungsten and gold, or “3TG”) come from conflict-free sources, as profits from mining these minerals in certain locations in the Democratic Republic of Congo (DRC) and in designated surrounding countries (the “Covered Countries”) are used to finance the ongoing violence and humanitarian crisis in that region.

Each year, Hasbro files a conflict minerals disclosure form as required by the U.S. Securities and Exchange Commission. We also conduct a Reasonable Country of Origin Inquiry (RCOI) to determine if necessary 3TG minerals were sourced from the Covered Countries. All contract manufacturers of products believed to contain 3TG were surveyed about the source of these minerals.

The results of our due diligence on the 3TG used in our in-scope products are noted here:

Hasbro Conflict Minerals 3TG Due Diligence Results

Hasbro Conflict Minerals
2018 Smelters	Tin	Tungsten	Tantalum	Gold	Total
Total number of smelters	61	13	2	61	137
Number (%) of smelters listed as conformant by RMI	61 (100%)	13 (100%)	2 (100%)	57 (93%)	133 (97%)
Number (%) of smelters not sourcing from Covered Countries (RMI)	48 (79%)	8 (62%)	0 (0%)	51 (84%)	110 (85%)
Number (%) of smelters that are conformant not sourcing from the Covered Countries	61 (100%)	13 (100%)	2 (100%)	57 (93%)	133 (97%)