Disney has developed their own International Labor Standard and holds their global suppliers accountable for meeting their Code of Conduct for Manufacturers. Disney performed or received over 10,000 social compliance audits in 2014 to evaluate factories’ adherence to their standards.
Suppliers that fail to meet certain aspects of Disney’s Code of Conduct run the risk of losing Disney as a customer. If you import or manufacture products for Disney, here are a few key areas of Disney’s Code of Conduct for Manufacturers that could put you out of business:
Disney strictly prohibits their suppliers from employing child and compulsory labor:
The term “child” refers to a person younger than 15 (or 14 where local law allows) or, if higher, the local legal minimum age for employment or the age for completing compulsory education.
Disney also specifies that manufacturers must respect workers’ rights to lawfully organize and collectively bargain without penalty or interference.
Suppliers must demonstrate that their facilities maintain a safe working environment for all employees and comply with related local laws. Disney specifically cites the following areas of concern:
Disney also requires suppliers to meet these requirements in any housing they provide employees.
Suppliers and subcontractors often don’t enforce correct use and disposal protocols for harmful chemicals used in the manufacturing process. Disney’s Code of Conduct compels suppliers to meet any and all local environmental laws that apply to manufacturing in their jurisdiction.
You may be especially vulnerable to environmental law enforcement at your suppliers’ factories if you manufacture in China. China’s Ministry of Environmental Protection recently fined or jailed officials in more than 80,000 polluting factories in a single year.
Whether you manufacture children’s toys, promotional goods or other products, if you supply Disney, you’re subject to meeting Disney’s ILS standards. And supplier risk is growing. Disney announced they increased the percent of unannounced audits in China from 24 percent to 60 percent in 2009 alone.
How can InTouch help you limit your risk of losing Disney as a customer?
A pre-audit, or “mock audit”, is one of the best ways you can prepare for an official Disney audit. InTouch compliance auditors will visit your supplier’s facility, identify any violations on site and issue you a detailed report of their findings complete with photos.
We also provide the factory with a corrective and preventative action plan (CAPA) with suggested steps for remedying any Disney compliance violations we find.
InTouch can also train your supplier’s staff to become compliant if you already know they don’t meet Disney’s Code of Conduct for Manufacturers.
Our compliance experts will travel to your supplier’s factory to discuss the CAPA with management on site. They’ll coach staff in specific improvements toward Disney ILS compliance. We can also continue to audit or train your supplier to maintain compliance.
Training is particularly helpful if you’re expecting an official audit from Disney. Our standard rate for Disney compliance training is US$600 per man-day plus travel expenses.
If you’re ready to talk with an expert about Disney pre-audits or training, click the button below to contact us.
You guys are quite efficient in making sure that you are in constant communication with our vendors to set up a time and day to have inspections handled... InTouch definitely pushed to make sure that inspections would be done in a timely manner. Any corrective actions that had to take place were executed well before the exit factory date.
Director of Production, Betabrand
Since InTouch does a more detailed inspection than what we had depended on with the factories, the quality of the products has improved. Where before when we might find 25 AQL defects, now it's down to three or four,because the factory knows that we want that cut back and InTouch is going to find it.
Administrative Assistant, Linstol
InTouch’s auditing reduced the level of risk, whether known or unknown, to our company. From the audit findings provided by InTouch, we were much more equipped to make the correct business decision with regard to an acceptable level of risk. The InTouch audit secured our decision making process.
Vice President of Purchasing, MJS Packaging
One of our customers had been through multiple suppliers year after year and had been let down with returns and rejections. With InTouch as our eyes and ears on the ground, we retained that business for 5 years without one single rejection or complaint.
Director of Operations, MMI Textiles
The speed that we get the reports is always good. We had an experience with some other inspectors where we had to wait an extra day to get the reports. Getting the report as soon as we can is very important, so we can make a decision and give feedback back to the factory.
Operations and Engineering Manager, Juku Gear
From beginning to end, InTouch is so easy to work with. The inspection report is literally there the next morning when I come into work. It really makes my job easier.
Inside Sales Specialist, MJS Packaging