1  STATEMENT OF PRINCIPLES

The Code of Conduct for Suppliers is applicable to all suppliers who sell products to any Toys “R” Us Division for the purpose of resale.

As Toys “R” Us and its operating divisions operate in the global community, there is continuing concern about working conditions in many nations, including the United States, that fall below the basic standards of fair and humane treatment.

The Code of Conduct for Suppliers program enables Toys “R” Us to source products in a manner that is both profitable and socially responsible.

The Code of Conduct for Suppliers and its’ monitoring program strives to enhance the quality of life of workers, especially children, and insure all suppliers adhere to the provisions contained within the code.

Implementation of the Code of Conduct enables Toys “R” Us and its business partners to continually improve performance on workers rights, labor standards, and other human rights issues integral to the manufacturing process.

Participation in this program and compliance to all provisions is mandatory for manufacturing and service suppliers.

Toys “R” Us will terminate its’ business relationship with any supplier who elects not to participate in this program, or fails to abide by any of its’ stated provisions including compliance with local law related to all areas covered by the Toys “R” Us Code of Conduct Inquiries about the Toys “R” Us Code of Conduct for Suppliers program should be directed to Al Kaufman, Vice President of Quality Assurance, Safety and Packaging, at the address shown below; by telephone at 973‐617‐5751; by fax at 973‐617‐4017; or via e‐mail at al.kaufman@toysrus.com

2 CHILD LABOR

Toys “R” Us will not purchase any product(s) from any supplier, which utilizes child labor or forced child labor. In accordance with International Labor Organization (ILO) convention 138, every employee must be at least fifteen (15) years of age. The age of fourteen (14) would apply to developing countries as defined by the ILO.  No employee of whatever age, including apprentices or vocational students, may be employed in breach of local minimum age laws for employment or mandatory schooling. Toys “R” Us supports suppliers with workplace apprenticeship and work‐study programs aimed at providing young employees educational opportunities.

3  FORCED LABOR

Toys “R” Us will not purchase any product(s) from any supplier which utilizes any prison, slave, indentured, forced labor, or forced child labor, in the production of any product, including labor required as a means of political coercion or punishment for expression of

political views.

4 HEALTH & SAFETY

Toys “R” Us will only purchase product(s) from suppliers who provide workers a safe and healthy work environment including appropriate and adequate facilities and protection from hazardous materials or conditions.  Supplier provided housing for workers must also be maintained in a clean and safe fashion.  

5 ENVIRONMENTAL

All suppliers shall comply with applicable environmental laws and regulations including those related to emissions, discharge, and disposal of waste including chemicals.

6 HARASSMENT & ABUSE

Toys “R” Us will only do business with suppliers who treat all workers with dignity and respect.  Toys “R” Us strictly forbids the use of cruel and unusual disciplinary practices in the workplace. Supplier’s facilities must comply with all applicable local laws and regulations governing worker conditions.

7 DISCRIMINATION

Toys “R” Us will only do business with suppliers who employ workers based on ability to perform a job task, not on the basis of race, creed, gender, personal characteristics or beliefs, or any form of discrimination.

8 WAGES

Toys “R” Us will only do business with suppliers who ensure that wages paid for all hours worked meet at least the legal minimum wage, overtime wage or the local industry minimum standards for compensation, whichever is higher. The employer shall also provide all legally mandated benefits.

9 HOURS OF WORK

Toys “R” Us seeks suppliers whose wages address the basic needs of the worker. The supplier shall ensure all applicable laws that pertain to hours or work are followed. 

Furthermore, overtime work hours plus regular work hours shall not exceed sixty (60) hours in any seven (7) day period.   Employees shall also be given at least a twenty four (24) hour rest period per seven (7) days. No exceptions to these parameters will be permitted unless pre‐authorized. 

10 SUBCONTRATING

All suppliers that outsource or subcontract work (including homework) shall obtain prior authorization for doing so.  If work is done at another location, the outsourcing employer shall be responsible for assuring that the subcontractor is in compliance with the Toys “R” Us Code of Conduct for Suppliers. 

11.  FREEDOM OF ASSOCIATION

Workers shall be free to join associations of their choice, and be free to lawfully organize and bargain collectively without fear of interference or restriction.

12.  MANAGEMENT SYSTEMS

Management Systems shall be effectively documented, implemented, maintained, communicated and accessible in a comprehensive manner to all applicable employees to ensure ongoing compliance with Toys “R” Us Code of Conduct for Suppliers. 

13.  MONITORING & COMPLIANCE

Integral to the success and enforcement of the Toys “R” Us Code of Conduct for Suppliers, is the integration of a 3rd party monitoring program. Highlights of the monitoring program