How can I be sure that Hasbro's products are safe? Hasbro has a deep and long-standing commitment to product safety. All of our products meet or exceed applicable federal and international regulations, and we set rigorous standards that apply to our own factories as well as our vendor factories, wherever they may be located, including China. To ensure compliance with our high standards, Hasbro requires tests and quality control checks at multiple stages of the manufacturing process. These procedures, which have been in place for years, have always included - and continue to include - independent, third-party testing of our products. Over the past several years, we have not issued any recalls of products due to lack of compliance with our manufacturing processes and safety standards. However, as a safety conscious company, Hasbro has voluntarily recalled products in other circumstances where we believed such action was appropriate to protect consumers. In the event that Hasbro determines that a recall or other corrective action is necessary for any one of our products, we take prompt action. In these circumstances, Hasbro has a comprehensive system in place to advise consumers, retailers, and applicable authorities across the globe, as necessary. What about the recent publicly - reported problems that other companies in the toy industry have had with lead paint? Hasbro has long had a comprehensive, global quality assurance program designed to prevent lead paint and other quality and safety issues. We believe this is why Hasbro was not one of the companies that had to recall products due to lead paint during the summer of 2007. Our programs in this area include: paint testing processes (for paint prior to its application to Hasbro products), safety and quality control checks at multiple stages of the manufacturing process, and independent, third-party testing of products imported from China. In light of the problems experienced by some of the other companies in the toy industry, out of an abundance of caution, and to further confirm that our safety procedures are being closely followed, Hasbro has intensified the frequency of its random product testing, stepping up the number of unannounced inspections of factories, and implementing additional spot checks of products before they are delivered to retailers. Should I be concerned about PVC and/or phthalates in Hasbro's products? In considering this issue, it is important to remember that PVC can be found in a wide variety of everyday products, including plumbing pipes, drinking water supply lines, medical devices (e.g. blood bags, catheters, dialysis equipment, examination gloves, etc.), vinyl siding and vinyl flooring for homes, car interiors, upholstery, shower curtains and clothing. With respect to toys and childcare items, Hasbro has carefully considered the science, together with the toy industry and the U.S. Consumer Product Safety Commission through its Chronic Hazard Advisory Panel (CHAP), and the European Union Commission's Chemicals Bureau Agency, and firmly believes that toys and childcare articles made from PVC and softened with phthalates pose no health risk to children. Nevertheless, Hasbro¡¯s toys and childcare items are designed to comply with all applicable laws and regulations, including the European Union Phthalate Directive. Should I be concerned about Hasbro products imported from Chinese factories? Hasbro products are manufactured in a number of countries - including in the United States and Ireland (in our own factories), as well as in China (in vendor factories). Our rigorous safety standards apply to all of our products, wherever in the world they are made. With respect to China, Hasbro has a team of quality control engineers and inspectors who are trained to ensure that our quality and safety systems are being followed. This team, based in Hong Kong and China, is integrated within Hasbro¡¯s U.S.- based global Quality Assurance, Safety, and Audit organization, and its role is to ensure that these vendors are producing products that comply with our high safety and quality standards. The Hasbro team in China has many responsibilities, among which are performing on-site factory visits and audits, particularly during the manufacturing process. What is Hasbro's response to claims of sweatshop conditions in toy factories? Hasbro takes manufacturing ethics very seriously and we have had a program in place to monitor and improve workplace conditions since the early 1990s. Factories selected to manufacture Hasbro product must comply not only with Hasbro's Global Business Ethics Principles but also with the International Council of Toy Industry Code of Business Practices. These factories are regularly audited by an independent, third party audit firm to ensure that products are being produced under humane and safe working conditions. If an instance of non-compliance within a factory is brought to our attention, Hasbro promptly investigates the issue and determines the appropriate corrective action for the factory, with a goal of not only maintaining the integrity of our ethics policies but also causing the least amount of disruption to workers. Where a supplier is ultimately unwilling or unable to meet our corrective action plan, we discontinue our relationship with the non-conforming factory. What kinds of problems do you find in third party factories that manufacture your products? A recurring problem we come across in factories in Asia is inaccurate record keeping, making the verification of proper wages and working hours difficult. In addition, due to the detailed nature of our health and safety requirements, it is not uncommon for a factory to need improvement in this area. When instances of non-compliance are found, Hasbro works with factories to address the issues and prevent further non-compliance. Once again, however, if a supplier demonstrates an inability to address shortfalls and meet our standards, we terminate our relationship with that factory. Why don't you disclose the names and locations of your factories? We have two factories that we own and operate - one located in East Longmeadow, Massachusetts, USA and the other located in Waterford, Ireland. Both factories are principally focused on production of our puzzles and board games. We also manufacture products using third party vendors that we do not own. We have developed a network of these preferred factories over many years and view this information as proprietary and competitively sensitive. Why hasn't Hasbro issued a formal Sustainability Report? We have long recognized the importance of communicating with key stakeholders on issues of sustainability and have programs in place to ensure the appropriate level of disclosure and transparency on these important issues. To date, we believe that our communication programs and ongoing discussions have allowed us to be both responsive and efficient. We have recently taken our communication a step further, with enhanced detail now provided on our website. We believe the information provided will answer the questions we typically receive from our stakeholders on issues relating to corporate social responsibility and sustainability. What is Hasbro doing about climate change? As a charter member of the U.S. Environmental Protection Agency (EPA) Climate Leaders Program in 2002, Hasbro pledged to reduce Greenhouse Gas Emissions from U.S. operations by 30% from 2000 to 2007. Hasbro is proud to have achieved and even exceeded its goal by reducing emissions by 43.4%. These reductions were achieved by implementing energy conservation measures, along with facilities consolidation. Energy conservation measures include behavioral modifications, building envelope upgrades, lighting efficiency improvements, and HVAC and compressed air system improvements. Measures range from simple activities such as the installation of motion detectors for lighting control to complex controls projects, which monitor and adjust the building environment to minimize energy usage. Additional emission reduction initiatives in our operations include our container load maximization program and our utilization of a train line in China to move containers to port instead of numerous truck haulers. Who is responsible for Corporate Social Responsibility (CSR) at Hasbro? Hasbro has a Corporate Social Responsibility Committee made up of Hasbro's senior management, and chaired by Hasbro's Chief Executive Officer. This Committee meets regularly to review Hasbro¡¯s performance on CSR issues and to make policy decisions on CSR related matters. Hasbro also has employees dedicated to CSR related issues on our human resources, community relations, and legal teams as well as our global operations group, which includes quality, ethical manufacturing, and environmental, health, and safety departments. Hasbro¡¯s policies and procedures relating to health, safety, the environment and manufacturing ethics have been in place for many years, and dedicated Hasbro personnel - both in the U.S. and abroad - are responsible for auditing and ensuring compliance with these standards. |