Supply Chain

Building Industry Knowledge to Aid Licensees

Disney often collaborates with industry colleagues to develop approaches to key issues related to international labor standards. This year, we joined with Business for Social Responsibility (BSR), the International Licensing Industry Merchandisers’ Association (LIMA), and a handful of other entertainment and toy companies that are licensors to develop and disseminate a labor standards survey.

The goal of the survey was to understand licensees’ knowledge of supply chain labor standards and the expectations of licensors in this regard. The survey results acknowledged a number of overarching themes, including:

  • Licensees seem to well understand licensors’ expectations
  • Compliance challenges remain pervasive
  • Licensees and suppliers are trying to take a more collaborative approach to building supply chain compliance
  • Opportunities exist for building licensees’ capacity to meet labor standards

As a result of the survey findings, the working group developed and delivered an online training program to approximately 70 representatives of licensing organizations to help them better understand and improve the social compliance of their supply chains.

To read more from the summary report, click here.

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Integrating Health and Safety in Chinese Facilities

In response to a 2009 public report alleging labor standards violations at a facility in China (learn more online at our 2009 update and 2010 update), we recognized the importance of reviewing our approach to health and safety compliance in light of the current labor standards environment. We contacted the Hong Kong Worker Health Center (HKWHC), a civil society organization based in Hong Kong, for their assistance in improving workplace safety and health standards. In response, we developed a project to explore an effective way to improve and sustain workplace health and safety standards.

Through this initiative, we collaborated to establish and train Health and Safety Committees in each of eight facilities in China participating in the project. We selected 111 committee members, and provided training for 600 facility workers on health and safety matters. The results included:

  • Identifying 186 health and safety issues, while generating 154 solutions
  • Improving health and safety awareness from 68% to 78%
  • Improving workers’ satisfaction from 63% to 83%

All participating facilities’ workplace standards have shown improvement based on the comparison of the benchmarks before and after the project. Improvements include both tangible results, such as what we can see from the production floor, and intangible results, such as workers’ awareness of the importance of the issue and their knowledge of the issue. We are now reviewing the results to determine how the project can be expanded. We are also in dialogue with our sourcing teams to further evaluate correlations between top health and safety performers and top performers on traditional sourcing metrics (price, quality and delivery among, other metrics).

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