The world-wide community of toy industries released its revised and expanded Code of Business Practices today. The new International Council of Toy Industries (ICTI) code goes beyond the 1996 version and now also includes three new appendices: a methodology for evaluating compliance, a detailed audit checklist and a corrective action plan. ICTI is the international toy trade organisation with a membership of twenty toy associations around the world.

In the code, ICTI upholds the principles that no underage, forced, or prison labour should be employed; that no one is denied a job because of gender, ethnic origin, religion, affiliation or association and that factories comply with laws protecting the environment. Supply agreements with firms manufacturing on behalf of ICTI members must also provide for adherence to these principles.

ICTI President David A Miller said, "Toy industries the world over are committed to the lawful, safe and healthful operation of toy factories, as demonstrated by the release of the new version of ICTI's Code of Business Practices. The revised code and its new supporting documents, along with the industry's educational efforts, make clear that toy companies require that the factories making their toys meet the industry standard. We also want to make clear that the code is not punitive and that the industry is willing to work with those factories committed to full compliance."

The purpose of the revised code is to "establish a standard of performance, to educate and to encourage commitment to responsible manufacturing, not to punish." The corrective action plan is therefore a key element. To determine adherence, the code specifies that ICTI member companies evaluate their own facilities as well as those of their contractors. They are to examined books and records and conduct on-site inspections of the facilities and request that their contractors follow the same practices with sub-contractors. An annual statement of compliance with the code must be signed by an officer of each manufacturing company or contractor. Contracts for the manufacture of toys should provide that a material failure to comply with the code or to implement a corrective action plan on a timely basis is a breach of contract for which the contract may be cancelled.

Mr Miller explained that the role of ICTI is to inform, educate and survey its members so that individual member companies can adhere to its Code of Business Practices. As an association, it also acts to encourage local and national governments to enforce wage and hour laws and factory health and safety laws. ICTI met, for example, with the Chinese Ministry of Labour on 12th November to discuss labour laws in China and to encourage the Ministry's continued participation in toy and factory safety seminars co-sponsored by the toy industry and Chinese government. The fourth such conference will be held this spring in Guangzhou, China, resulting in a total of more than 1,000 Chinese toy manufacturers and testing officials reached through these events over the past three years.

In addition, ICTI members discussed aspects of the world-wide toy industry code at its second World Toy Conference in London, where a panel discussion on "Responsible Manufacturing: The Needs for and Limits of an Industry Code of Business Practices" took place. The event was held in June 1997 and was attended by 166 senior toy executives from 22 countries. This energetic discussion sought to raise awareness and flesh out the issues surrounding labour conditions and codes of conduct, describe what the toy and other industries are doing in response to these issues and the heightened interest of consumers and governments and encourage the toy industry to be responsible. The panel included presentations by the International Confederation of Free Trade Unions, Business for Social Responsibility, World Federation of the Sporting Goods Industry and toy company executives.

The revised code and compliance alternatives will also be discussed at a seminar for quality assurance executives to be held this February during the American International Toy Fair in New York.

In ICTI's revised code, the specific operating conditions that member companies are expected to meet and obtain contractor agreement in advance are outlined. They include working hours, wages and overtime pay, minimum age of workers, benefits and the elements of a safe working environment.

Because of the great diversity in the kinds of toys manufactured and the manufacturing methods used, as well as the wide range in factory sizes and numbers of employees, three annexes are attached to the code to provide guidelines for determining compliance. This includes a 27-page audit checklist that provides guidance on what should be considered when evaluation compliance, but it is stressed that rule of reason be used to determine applicability. It is also suggested that the code be posted or available for all employees in the local language.

The International Council of Toy Industries, founded in 1974, is an organisation of twenty toy manufacturing associations from around the world, including those in Argentina, Australia, Brazil, Canada, Colombia, Denmark, France, Hong Kong, Italy, Japan, Korea, Mexico, Philippines, Spain, Sweden, Taiwan, Thailand, United Kingdom, United States and Venezuela. China's application for membership is in progress.

ICTI has had a Code of Business Practices since 1995.