The Walt Disney Company's ILS program occasionally prohibits the manufacture of Disney-branded products in certain countries. In 2005, Disney launched a pilot program in Cambodia to re-evaluate the Company's manufacturing prohibition in that country. The program was conducted in conjunction with the Better Factories Cambodia (BFC) project, a multistakeholder initiative led by the International Labor Organization (ILO) designed to improve working conditions in Cambodia's export garment factories through independent monitoring of factory conditions supplemented with factory worker and management training.

Based on the pilot results, in early 2007 Disney began to allow the manufacturing of Disney-branded garment and textile products in Cambodia with certain restrictions. Licensees and vendors sourcing in Cambodia will utilize the monitoring and remediation resources offered by the ILO as a condition of sourcing Disney-branded products in Cambodia. Disney is also an active participant in the Better Factories Cambodia Buyers' Group, a forum for brands to provide input on the operation of the BFC program. More information on the ILO initiative is available at www.betterfactories.org