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Disney ILS (International Labor Standards) Pre-audit – Evaluation

The International Labor Standards of Walt Disney Company aims to foster a safe, friendly and respectful working environment at any place that Disney-branded products are manufactured. These International Labor Standards is an important part of The Walt Disney Company's Responsible Citizenship and Supply Chain.


History of the ILS Disney program

  • Disney’s ILS Program was established in 1996 to monitor compliance with labor standards in the vast supply chain for Disney-branded products because Disney is primarily a licensor of intellectual property and does not own or control production facilities.
  • Disney-branded products, ILS program has implemented several unique evaluation programs to improve working conditions wherever those products are manufactured.

Disney’s International Labor Standards program are managed by a dedicated team of 120 professionals from 12 countries around the world.

The content of ILS Disney

Disney's Code of Ethics (the "Disney Code") sets Disney standards for the production of Disney-branded products. As described below, the principles expressed through the Disney Code are following the conventions of the International Labor Organization. Disney’s International Labor Standards program (“ILS Program”) requires all Licensees and Contractors to conduct ILS Audits before regular production and ILS Audits as well as provide ILS Audit Reports regularly, as described in this ILS Program Manual. This regulation aims to entitle Disney and Licensees and Contractors of Disney enhance the transparency of working conditions of the Facilities where Disney-branded products are produced, and promote a continuous improvement process to meet the provisions of the Disney Code and the goals of the ILS Program in fostering a safe, friendly and respectful working environment.

As a Licensee or Contractor of Disney, you must ensure that Disney – branded products Disney-branded products are manufactured in compliance with the ILS Program. This ILS Program Manual outlines the rules for Licensees and Contractors and provides references to help you fulfill your obligations. We would like to encourage you to carefully review this ILS Program Manual and ensure that you have the appropriate knowledge, experience, and competence to meet ILS Program expectations.

ILS Disney’s general rules

1: Select suitable production units and find sources from licensed countries
Do not produce Disney-branded products or find providing components sources from countries that are not listed on Disney's List of Authorized Sourcing Countries. Besides, manufacturing and finding sources from certain Authorized Sourcing Countries are also subject to the conditions and restrictions you must comply with.
2: Publicize all production units and send the required documents promptly:
Before starting any activity to produce Disney – branded products, you must disclose each manufacturing facility, regardless of where it is located by sending Disney sending an application of Facility and Merchandise Authorization (“FAMA”) promptly.
3: Get permission from Disney before production begins:
Before starting to produce Disney-branded products at any facility that you plan to use, you must obtain a signed FAMA from Disney.
4: Manage current compliance and meet the requirements of periodic ILS audits if necessary:
Implement pre-audit courses for facilities that are expected to be used and currently used concerning the rules of the Code, MCS, and ILS Program. As a Licensee or Contractor, you must provide the Code of Conduct to each of your facilities and ensure that your facilities fully understand Disney's requirements and regulations.
5: Fix violations of compliance regulations and stop production if necessary:
One of the conditions to keep using a production unit is that you as well as Licensees and Contractors who are employing this production unit must handle MCS violations within the specified time in the ILS Program. You also need to encourage the improvement of working conditions and compliance with “the Code of Conduct”
6: Promptly notify Disney of production unit changes:
You must notify Disney on time (and within no more than 30 days) when you (1) stop using a Facility for any reason and have no reasonable intention of Use that facility within 12 months.

Benefits of Disney ILS program

ILS program help to promote the safety and integrity of the workplace at any place the Disney -branded products are produced. The ILS team includes more than 100 people from 12 countries that focuses on policy development, education, supervision, remediation, participation and communication with external stakeholders.

  • Working conditions at Disney ILS products factories are stable and sustainable.
  • Employees are comfortable and secure about the welfare and morality regime when working in supply chain factories.
  • The Disney ILS Program helps unify and manage the entire supply chain of Disney-branded factories in a better way.
    ILS analysts have reported to the manage the entire supply chain of Disney-branded factories in a better way.

ILS analysts have reported to the manager and are the main point of contact for all licensees / Suppliers / Business Units in the relevant market. ILS Analysts are responsible for communicating ILSS program requirements to internal business units, addressing ILS-related concerns resulting from supplier and supplier contacts, issuing and interpreting audit findings related to ILS communications, assisting the development and implementation of reports, and maintaining plants and accurate license/supplier information in the ILS database.

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