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Walt Disney Co.

Toys, apparel, and footwear products bearing characters from Walt Disney Co. films and television shows are made under contract with several thousand licensees at many facilities in 50 countries worldwide. We have been in dialogue with Disney for many years to encourage fair treatment of workers in the company's contract supplier chain.

Since we initiated dialogue with the company, it has made several positive changes, including development of an International Labor Standards program with policies and practices aimed at protecting workers engaged in the manufacture of Disney merchandise. The company developed an extensive database enabling it to consolidate and actively manage information gathered through its monitoring program. The system maintains records on approximately 40,000 factories, 6,000 licensees and vendors, and many company business units operating around the world. The Disney Co. says it has conducted more than 40,000 factory audits and is currently monitoring supplier facilities in 50 countries around the world.

The company has taken a first step towards greater public transparency by posting basic information about its International Labor Standards Program. This is the first time the company has disclosed substantive information about its vendor standards compliance program outside of its proxy statement. We have asked the company to go further and develop system-wide public reporting on vendor standards compliance throughout its contract supply chain.

The focus of our work with Disney at present is a collaborative effort on Project Kaleidoscope, a project to improve and sustain compliance with corporate codes of conduct at 10 Disney and McDonald's supplier factories.



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