I. Introduction: The University is committed to conducting its business affairs in a socially responsible manner consistent with its employment policies and educational mission and expects its licensees to conduct their business in a manner consistent with, and follow workplace standard that adhere to, this Code of Conduct (the Code).
II. Notice: This Code shall apply to all trademark licensees of the University. Throughout this Code the term "licensee" shall include all persons or entities who have entered a written Licensing Agreement with the University to manufacture products bearing the name, trademarks and/or images of the University. Additionally, this Code shall apply to all of the licensee's contractors. Throughout this Code, the term "contractor" shall include each contractor, subcontractor, vendor, or manufacturer that is engaged in a manufacturing process that results in a finished product or any component of a finished product. "Manufacturing process" shall include assembly, packaging, shipping and receiving.
As a condition of being permitted to produce and/or sell licensed products bearing the name, trademarks and/or images of the University, each licensee must comply with this Code and ensure that its contractors comply with this Code. All licensees and their contractors are required to adhere to this Code within six (6) months of notification of the Code and as required in applicable license agreements.
III. Remediation: If the University determines that any licensee or contractor has failed to comply with this Code, then the University will, upon consultation with the licensee, require that the licensee implement a corrective action plan on terms acceptable to the University. The remedy will, at a minimum, include taking all steps necessary to correct such violations including, and without limitation, paying all applicable back wages, or any portion of them, found due to workers who manufactured the licensed articles, and immediately reinstating workers illegally dismissed. The University reserves the right to terminate its relationship with any licensee that continues to conduct its business in violation of the corrective action plan. In such event, the University will provide the licensee with 60 days written notice.
Employees of licensees or their contractors are the third party beneficiaries of this Code and may enforce this Code against the licensee or its contractor in a forum of their choosing, such as a court of law, before any governmental agency with quasi-judicial powers, through binding arbitration, or by any other fair and impartial trier of fact in the countries in which they reside, including but not limited to recovery of unpaid wages and obtaining injunctions against violations of this Code.
IV. Standards: University licensees must operate workplaces, and ensure that their contractors operate workplaces, that adhere to the following minimum standards and practices:
A. Legal Compliance: University licensees must comply, at a minimum, with all applicable legal requirements of the country in which products are manufactured. Where this Code and the applicable laws of the country of manufacture conflict or differ, the higher standard shall prevail.
B. Environmental Compliance: Licensees will be committed to the protection and preservation of the local and global environment and the world's finite resources, and conduct business accordingly. They will protect residential areas around their factories, disposing of garbage and waste appropriately. Licensees will comply with local and national environmental regulations.
C. Ethical Principles: Licensees will commit to conduct their business according to a set of ethical standards which include, but are not limited to, honesty, integrity, trustworthiness, and respect for the unique intrinsic value of each human being.
D. Human Rights Standards: The University shall not conduct business with Licensees that operate or maintain subcontractors that operate in nations i) in which egregious human rights violations (including but not limited to forced labor, extra-judicial killing, rape, forced portering, arbitrary imprisonment and forced relocation) are committed by the government; and ii) where a range of local or international human rights organizations have called for a boycott of a nation due to its human rights abuses. Such cases include but are not limited to Burma and Tibet.
E. Employment Standards: The University will only do business with licensees whose workers are present at work voluntarily, are not at undue risk of physical harm, are fairly compensated and are not exploited in any way. In addition, the following specific guidelines must be followed:
1. Wages and Benefits: Licensees recognize that wages are essential to meeting workers' basic needs. Therefore, licensees must provide a living wage and benefits, which meet the basic needs of the average-sized family, as established by respected independent non-governmental human rights, university, and religious organizations, in consultation with local labor organizations. The living wage must meet basic food, housing, medical, clothing, educational and other essential needs, and provide a discretionary amount for workers to meet other needs and to reinvest in their communities. Licensees will also comply with all applicable laws and regulations, and which match or exceed the local prevailing wages and benefits in the relevant industry.
Deductions from wages for disciplinary measure shall not be permitted nor shall any deductions from wages not provided by national law and/or collective bargaining agreements be permitted without the expressed permission of the worker concerned. All workers shall be provided written and understandable information about the conditions in respect to wages and their conditions of employment before they enter employment and of the particulars of their wages for the pay period concerned each time they are paid.
2. Piece Rates: Recognizing that most apparel production operates under a piece-rate system, and that piece-rates are closely connected with a living wage, licensees will insure that the piece rate quotas are adjusted to what can reasonably be accomplished in and eight (8) hour period.
9. Women's Rights: Because the overwhelming majority of apparel workers are women, assuring and safeguarding women's rights is of particular importance for all parties. In addition to not discriminating on the basis of sex, pregnancy, marital status, or sexual orientation (as detailed above in section IV. D. 8), the following specific guidelines must be followed:
1. Women workers will receive equal remuneration, including benefits, equal treatment, equal evaluation of the quality of their work, and equal opportunity to fill all positions as male workers.
2. Pregnancy tests will not be a condition of employment, nor will they be demanded of employees.
3. Workers who take maternity leave will not face dismissal nor threat of dismissal, loss of seniority or deduction of wages, and will be able to return to their former employment at the same rate of pay and benefits.
4. Licensee shall provide appropriate services and accommodations to women workers in connection with pregnancy.
5. Workers will not be exposed to hazards, including glues and solvents, that may endanger their safety, including their reproductive health.
6. Worker's will not be forced or pressured to use contraception.
10. Harassment or Abuse: Every employee shall be treated with dignity and respect. No employee shall be subject to any physical, sexual, psychological or verbal harassment or abuse. No employee or prospective employee shall be subjected to involuntary use of contraceptives or pregnancy testing. Licensees will not use or tolerate any form of corporal punishment.
11. Freedom of Association: Licensees shall recognize and respect the right of employees to freedom of association and collective bargaining. Licensees shall allow union organizers free access to employees. Licensees shall recognize the union of the employees' choice.
V. Implementation and Public Disclosure of Information Provided by Licensees: The University seeks to foster an environment of labor standards compliance through ensuring adherence to the standards established by this Code.
A. Written reports. Sixty (60) days prior to the date of the annual renewal of a license agreement, the licensee shall be required to provide the following to the University, as set forth in the license agreement:
1. the company names, owners and/or officers, addresses, phone numbers, e-mail addresses and nature of the business association, including the steps performed in the manufacturing process, of all of the licensees' contractors and manufacturing plants which are involved in the manufacturing process of items which bear, or will bear, the name, trademarks and/or images of the University;
2. written assurances that it and its contractors adhere to this Code; and
3. a summary of the steps taken, and/or difficulties encountered, during the preceding year in implementing and enforcing this Code at each site. Such summary shall be published on the University's website not less than thirty (30) days prior to the date of the annual renewal of a license agreement.
B. Notification. All licensees and their contractors shall be required to notify their employees of the Code as follows.
1. All licensees and their contractors shall post the Code in prominent areas throughout the workplace, written in language(s) which employees understand. In addition, the Code shall be published in language(s) which employees understand and distributed to employees.
2. All licensees and their contractors shall conduct semi-annual meetings with all employees in each workplace, in language(s) which employees understand, to notify them about the Code. Such meetings shall be held on Company time, in a non-intimidating manner. Licensees, contractors and their managers shall not be allowed to attend such meetings. The University shall provide to those conducting the meeting a guide and checklist of issues to be covered in those meetings.
C. Pricing. The Licensee must assure that they are paying their contractors a sufficient price to meet production costs while complying with this Code and to make a reasonable profit.
VI. Disclosure: Information provided by the licensee, as described in Section V. Implementation, shall be considered public information. The Licensee shall be required to immediately report to the University any changes in its business operations which materially affect the application of this Code, such as the selection of a new factory.
VI Verification and Public Disclosure of Information Provided by Monitors: It shall be the responsibility of each the University licensee to ensure its compliance with this Code, and to verify that its contractors are in compliance with this Code.
A. Internal and External Monitoring: It is recognized that clearly defined methods of internal monitoring, training and independent external monitoring have not yet been determined by the University and licensee. Independent monitoring will be carried out by respected independent, local, non-governmental, church, women's and human rights organizations that are present in the countries where the factories are located. The University and licensee agree to undertake efforts to determine and clearly define the obligations associated with the development of adequate training and monitoring methods, including establishment of a reasonable time frame within which compliance measures, including internal monitoring and independent external monitoring, will begin. The University seeks to participate in the methods developed and agreed to by the White House Apparel Industry Partnership, or other selected group, provided that, among other things, there is a demonstrated commit!
ment to independent external monitoring. In this process, the University and licensee are committed to the following principles:
1. The University shall establish clear evaluation guidelines and criteria, which monitors shall follow.
2. a. Licensees shall create an informed workforce, and communicate the code to workers in their own language, both orally and by posting the Code in a prominent place in all factories at all times.
b. Licensee shall provide a reasonable opportunity for employees to report noncompliance with this Code in a manner that ensures they will not suffer retaliation for doing so.
3. Licensee shall grant access to their factories and those of their contractors, and to any records required for determining Code compliance, to independent external monitors selected by the University.
4. Monitors shall conduct periodic announced and unannounced visits, of a significant sampling (minimum 40 percent) of company factories and facilities of contractors to survey compliance with this Code,
5. Monitors shall certify their findings to licensees, their contractors, and to the University.
6. The University shall create a database of records and information required to determine compliance with this Code. The University shall make all data, records and information available to the public and all members of the University within thirty (30) days of receipt of such information from monitors,
7. Monitors will establish relationships with labor, human rights, religious and other local institutions, and
8. The University will publicize to consumers the content of this Code and the compliance by site with this Code by licensees, and making public the names and locations of factories, normal working hours, working conditions, workers' ages and wages.
9. Any further development of monitoring obligations or procedures shall be undertaken by the University in conjunction with students, faculty, staff and interested community members.
A. Public Accountability
1. The University shall establish a procedure for including students, faculty, and staff in the development of this Code and the oversight of its verification.
2. The University shall also establish a procedure for including interested community groups in the development of this Code and the oversight of its verification.
B. Funding
1. The University shall establish a budget sufficient to provide for the establishment of this Code, and to ensure its verification. Licensees may be required by the University to share in the cost of verification, but may not reduce the contract price for the production of their goods to manufacturers and contractors because of this requirement.