Corporate Responsibility

The Company also focuses on the environment of the workplace and is committed to the promotion and maintenance of responsible labor practices in Disney’s licensing and direct sourcing operations throughout the world. Toward this end, Disney has implemented a wideranging International Labor Standards (ILS) program that includes policies, practices and protocols designed to protect the interests of workers engaged in the manufacture of Disney merchandise, whether for licensees or for direct sale at Disney properties. These policies are outlined in the Disney Code of Conduct for Manufacturers, which is translated into 50 languages and outlines minimum working conditions and standards in factories making Disney-branded products. The code is reinforced through key programs designed to provide and support education, cooperation, monitoring and collaboration efforts. Remediation plans are developed and communicated in cases where improvements should be implemented.

Disney continues to expand its collaborative efforts and interactions aimed at responsible labor practices at key levels of influence, from factories and industries to institutions and governments, allowing Disney to play a greater role in the advancement of policy and practice. To follow the progress of Disney’s ILS group, please visit www.DisneyLaborStandards.com.

Throughout its operations, Disney is focused on delivering value to its shareholders. As such, the Company monitors developing practices in corporate governance and adopts changes that are determined to be in the best interests of shareholders. Over 70% of Disney’s directors are currently independent, including its new chairman, John E. Pepper, Jr., former Chairman and CEO of Procter & Gamble. Other highlights of Disney’s corporate governance policies include:

• the separation of the chairman and CEO,
• a majority election policy in its Governance Guidelines,
• an anti-greenmail bylaw, and
• the annual election of all directors.

Disney was recognized as a leader in corporate governance practices in the 2006 Corporate Governance Quotient ranking established by Institutional Shareholder Services (ISS), the world’s leading corporate governance advisory service. For more details about Disney’s corporate governance practices, please visit: http://corporate.disney.go.com/corporate/governance.html.

This represents only a brief summary of what The Walt Disney Company does to serve the interests of its many and varied stakeholders. The one aspect all these programs share in common is that they are dynamic and changing. As Disney stakeholders’ interests evolve, so do the Company’s approaches to serving them. And so, with its eye on the future, the Company strives to meet the high expectations evoked by the Disney name and all it stands for.