Hasbro sells many toys made out of or packaged with PVC plastic. Shareholders are concerned about the exposure of consumers, factory workers (see Occupational Safety), and surrounding communities where PVC toys are being produced. In the US, cities such as San Francisco are already calling for the prohibition of the sale, distribution and manufacture of baby products containing certain levels of phthalates (plasticizers used in PVC products that mimic the body’s hormones causing cancers and birth defects).

In 2007 shareholders filed a Sustainability resolution asking Hasbro about its use of PVC in children’s toys. This resolution received 44% of the vote – an extraordinarily high vote for a first-year social resolution. In 2008, shareholders withdrew their planned resolution in exchange for a dialogue with the company which has included face-to-face meetings and conference calls with senior management.

In 2008 our dialogue with Hasbro has focused on the safety testing and removal of phthalates, lead, and other toxins found in children’s toys. Company senior management described its product safety procedures which include detailed safe chemical lists and policies, factory certification that only Hasbro-approved chemicals are used, and independent random testing of products to confirm that they meet these standards. Hasbro says it takes a precautionary approach to safety standards for the design and manufacture of its products which may account for the fact that it avoided major toy recalls in 2007.