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January 2012 ICF Governance Board Meets in Hong Kong During Toy FairFourteen members of the ICP Governance Board met in Hong Kong on 10-13 January 2012. The meetings began with a visit to the Intex and Hi-Tech (Bluebox) factories in Dongguan, where board members were able to see first-hand the working environment in an ICP-certified factory. In what has now become a regular practice, the board meeting itself began with a panel discussion on topics of importance to the toy industry. This year, the subject was "The Environment in which the ICP is Operating Today," featuring Jeffrey Lam of the Legislative Council of Hong Kong speaking on the economic and regulatory environment, Dimitri Kessler of the Ethical Trading Initiative (ETI) talking about the NGO environment and David Horlock of ITC covering the factory auditing environment. Moderated by the Governance Board's Co-Chair, Maria Cattaui, the discussion and ensuing Q&A session focused on the growing emphasis on Corporate Social Responsibility in China and especially within government, the achievements of the ICP in the toy industry and the need for the ICP to communicate better -- more broadly and more frequently -- about what it has achieved. This has now been strengthened in the 2012 ICP Operations Agenda. During the board meeting, two new members were elected: Lisa Klein of Mattel and Shi Xiaoguang, Independent Board Member of Good Baby Child Products Co. Ltd., both in the active industry category. Board discussions focused on Education and Training programs, a revision of the working hour's policy, communications efforts and strategic planning. The next meeting will be of the Executive Committee in the UK in May, followed by a meeting of the full board in Hong Kong in January 2013. Factories Participate in Third Annual ICTI CARE Process SurveyTo better understand the changing circumstances and challenges that China's toy factories face, along with our member factories' expectations concerning monitoring, training and communication, ICP engaged INFACT Global Partners to conduct the third annual ICP factory member survey. More than 400 factories participated in the latest survey. Once analysis of the survey results is completed, a summary of the results, including new trends and constructive feedback by our factory members, will be published on the ICP website. Joint GIZ/DVSI/ICFAL Pilot Worker Training Program Successfully CompletedA pilot train-the-trainer program, which trained over 3,600 factory workers and managers in seven factories, was successfully completed in January 2012. The development partnership among ICTI CARE Foundation Asia Ltd (ICFAL), the German Toy Association (DVSI) and Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ) GmbH, co-financed by the German Federal Ministry for Economic Cooperation and Development (BMZ), trained staff to provide in-factory training to their own workers using the program's methods, materials and innovative training videos focused on three content areas:
Upon completion of the program, an in-depth assessment was carried out
by INFACT Global Partners. The results will be used to strengthen this
ICTI CARE Process training and capacity building program which will be
made available to more ICP factories in the future. For more information
about the factory worker training program and how it can be used to improve
social compliance, please contact the ICFAL
office. ICF and GIZ to Host Panel Discussion at Nuremberg Toy FairA panel discussion titled, "Advancing Social Compliance in Toy Manufacturing"
will be hosted by the ICTI CARE Foundation and Deutsche Gesellschaft für
Internationale Zusammenarbeit (GIZ) GmbH on Friday, February 3rd at 9:30am
at the Nuremburg Toy Fair/Spielwarenmesse Trade Show, Singapur Room, NCC
OST, Level 3. GIZ is a German development agency, funded by the Federal
Ministry of Economic Development. To view the program and register for
this free event click
here. First ICTI CARE Process Audits Conducted in Sri Lanka and IndiaSGS conducted three Certification Audits on behalf of the ICTI CARE Process (ICP) in Sri Lanka. These were the first ICP audits in that country. All three factories were audited in mid-December and belonged to the Toy/Electronic/Printing & Packaging industry. One factory was recommended for a Seal of Compliance, the other two require a desk top review follow-up. ICFAL's ICP technical team will also conduct its first Certification Audit in India in February with local support by a selected third party auditor. ICP Factories Conclude Joint Survey with Ethical Trading Initiative (ETI) MembersThe ICTI CARE Process participated in a multi-industry questionnaire-based workers' income and expense survey launched by Ethical Trading Initiative (ETI) in December 2011. The factories completed the survey before the Chinese New Year holiday, many of which responded with positive feedback and interest in the coming report that will compare results to other industries. Data entry will be completed in February 2012. The comprehensive cross-industry analysis report is expected by the end of Q1. A multi-level interaction and collaboration with factories is currently being developed through the ICTI CARE Process. Increasing Audit Transparency Through On-Site Record Inconsistency DisclosureThe ICTI CARE Process understands factory concerns when record inconsistencies are detected during the ICP audit process. To encourage greater transparency and audit effectiveness, record inconsistencies must be communicated to the factory before or during the closing meeting at all ICP audits beginning February 1st, 2012. Factories that choose to be transparent with third party ICP auditors or an internal technical team may provide authentic records prior to the end of the audit but with ONLY ONE opportunity. Auditors will note this in the 'Remarks' for ICP Technical Team Review. After the Operations' review, any factory that shows complete transparency on-site will be considered for the 'Probation' Seal. Seal of Compliance UpdateEffective 1 January 2012, the name of the appointed audit firm for certified
factories shall be printed on the Seal of Compliance document in both
English and Chinese in a blue color. New ICTI CARE Foundation "CARE" Card/PosterTo see our newly updated ICTI CARE Foundation Card/ Poster, please click
here to view the card (English,
Chinese)
and poster (English,
Chinese).
Refresher Training for ICP Accredited Auditors Will Take Place in Shenzhen and ShanghaiTo unify and update auditor understanding of the latest ICP auditing policies, three Refresher Training sessions will be conducted for over 130 auditors in February; two sessions will be held in Shenzhen (9 & 10 February) and one in Shanghai (date to be confirmed). Key topics that will be addressed at this training are:
Both the ICP Operations Head and the Technical Team will participate in this Refresher training. In the future, ICP will schedule the refresher training in the first two weeks after the Chinese New Year. Only auditors who participate in the refresher training may work on ICP audits in the coming year. At this event, ICP will announce the new 'Good Performance Awards' for
an ICP auditor, Technical Manager and Programme Supporter. ICFAL Staff Changes and Employment OpportunitiesTwo staff changes have taken place within our team. First, Ian Anderson, a trusted and valued advisor, retired from his duties as Senior Advisor in December 2011. Ian spearheaded the development of the ICFAL Hong Kong Operations office and team from 2009 to May 2011 as VP of Operations. Second, we would like to welcome Kevin Huang who joined ICTI CARE Foundation
Asia Limited (ICFAL) as the Assistant Training and Capacity Building Manager
in December 2011. He is responsible for developing training projects on
socially compliant management systems, coordinating training activities
and forecasting potential training demands. A key focus of the training
will be to support factory management as they make positive and sustainable
changes that enable compliance with ICTI CARE Process requirements, and
also to support their other business needs. With seven years' prior work
experience in the corporate social responsibility field, Kevin has solid
knowledge and skill in social management training and health and safety
assessment. He holds a Bachelor's Degree in Law from East China University
School of Law and Politics. In addition, we are currently recruiting for three new positions:
ICFAL Team Building at Hong Kong DisneylandThe ICFAL office held its annual team building event for the entire staff and their families at Hong Kong Disneyland. The full-day trip provided a great opportunity for everyone to play and enjoy some team building.
Upcoming Events
ICP Participated in ETI Survey In December 2011, ICTI "CARE" Process participated in a multi-industry questionnaire-based workers' income and expense survey launched by Ethical Trading Initiative (ETI). Through this survey, we aim to identify trends in workers' living condition and employment development. We also hope to explore issues like how much workers spend on dependents and leisure, how workers' perspective on long-term residence and employment is evolving, and the kinds of employment benefits employees would like to see from employers. With the support from China Toy & Juvenile Products Association (TJPA) and brands, we have sent invitation letter to 50 factories, in which half in the South and half in the North. In each factory, 40 workers, 5 supervisors and 5 office staff were randomly selected by the survey software from the employee roster at the opening meeting. This is a completely voluntary-based survey. The survey result shall not affect the factories' Seal of Compliance condition and it is not an audit nor worker interview. We hereby express our appreciation for the effort made by the factories and all involved parties. We look forward to working more with you in the year of 2012. ICFAL & ETI Survey Introduction Letter - Chinese Version ICFAL & ETI Survey Introduction Letter - English Version November 2011 ICTI CARE Foundation 2010 Report Now Available We are pleased to announce the release of our new report, "Because We CARE: Improving Labor Conditions for Workers", a Review of ICTI CARE Process Activities 2010. Click to read or download the report in English and Chinese. New Committee Formed to Develop ICF Programs and Grant Outreach The new Education, Training and Grants Committee, chaired by William Reese and reporting to the ICTI CARE Foundation Governance Board, had its first meeting in September. The members of the committee are Jane Nelson, Paul Rice and Auret van Heerden. This committee was established to focus fundraising efforts for the foundation's education and training programs. The committee ratified its Terms of Reference at the September meeting. Its first task is to develop a general education and training program followed by a grant outreach program. ICTI and ICP Meet with China Government Officials ICTI President Arnie Rubin, ICTI CARE Foundation Chairman Alan Hassenfeld, US Toy Industry Association President Carter Keithley and ICTI CARE Process President/CEO Christian Ewert went to Beijing last month to meet with senior officials at MOFCOM's Department of Foreign Trade, at the Ministry of Industry and Information Technology, the Department of Consumer Products and with AQSIQ's Department of Supervision and Inspection.
There were very constructive exchanges of information and the toy industry brought the government representatives up to date on ICTI CARE Process achievements and plans. These were the latest in a series of regular meetings conducted over the last 10 years. ICTI Annual General Meeting Held in Hong Kong ICTI held its 37th Annual General Meeting in Hong Kong this year. The meeting was originally scheduled to take place in Tokyo in April but was postponed and moved to Hong Kong following the tragic tsunami. At the meeting the national association leadership discussed the results of the strategic planning process and plans for implementation. The Annual ICTI Award for 2011 was presented to the Japanese Toy Library Association and to the Japan Toy Library Fund. The next meeting will be held in the United Kingdom in May 2012.
Meetings Held with Heads of China Toy Associations in Shanghai during the Shanghai Toy Fair Constructive meetings were held by Alan Hassenfeld, Christian Ewert, Rosie Zhang and Carter Keithley with the heads of the China Toy and Juvenile Products Association and major regional associations such as Dongguan, Shenzhen, Guangdong, Zhejiang and Shanghai to discuss the progress of the ICTI CARE Process, audit procedures, audit integrity and the Continuous Improvement Process. There was shared impression that the ICP is improving steadily through open dialogue, stakeholder engagement, and quality assurance. The transparent communication leveraged by the local toy associations contributes to a better understanding among the existing and potential ICP factories to enter and stay with the process. ICP Present at Successful China Toy Expo in Shanghai ICTI CARE Foundation President/CEO, Christian Ewert attended the China Toy Expo held in Shanghai during October. It is the largest toy fair held in mainland China and it is estimated that over the three day period, the expo, together with two concurrent events (China Kids Expo and China Licensing Show), reached a new record high attracting over 55,000 buyers, trade guests, retailers and visitors from around the world. Organized by China Toy & Juvenile Products Association (TJPA), the China Toy Expo provides a wide range of sourcing opportunities in toys, juvenile products, hobby and licensing. Juvenile products currently enjoy global buyers' market confidence and are an area in which the ICTI CARE Process will increasingly focus its monitoring activities. Mr. Ewert commented that, "It's encouraging to see that despite the rising costs of raw material and labor, Chinese enterprises are continually upgrading their product quality, innovation and market competitiveness." According to China's latest customs figures, total exports of Chinese toys reached 17.6 billion US dollars in the first nine months, a 17% increase over last year, among which ICP member factories contributed a good number. ICP Factories Demonstrate Steady Progress and First 22 Factories Received 18 Months Class "A" Seal There are 22 factories that have earned an extended A seal. Approximately 194 more have already obtained their A seal for the 2nd consecutive year, moving towards qualification for an 18 months extended A Seal. This required that there be no major faults, that there is full transparency as to wages and working hour practices, that the factory achieves a Class A Seal for two consecutive years and that it continuously maintain the Class A Seal. Factories that have obtained an A seal for two years, and which avoid backsliding and manage to demonstrate continued improvement over the third year, will be eligible to obtain a third Class A Seal during their third audit cycle. Factories that achieve a Class A Seal three years in a row will greatly benefit by having their audit cycle automatically extended from 12 months to 18 months, thereby reducing audit expense. We welcome the progress made by ICP factories and encourage them to maintain their positive efforts over the next year. 2011 Supplier Survey to be Launched As part of our ongoing efforts to improve the ICP monitoring, education and training programs, the third annual ICTI CARE Process Supplier Survey conducted by INFACT Global Partners will be disseminated to factories during November 2011. This year's survey will continue to assess worker satisfaction, wages and expenses, working hours and leisure, education and training, health and safety, grievance and helpline access and the audit process but will also include more questions about the environment and sustainability. It is also expected that the final analysis will incorporate more information about industry trends. ICFAL Hires New Technical Manager and CRM Database Support Administrator Two new staff joined the ICTI CARE Foundation Asia Ltd. (ICFAL) team adding valuable support for the ICTI CARE Process monitoring program.
Please join us in welcoming ICFAL's newest staff members.
July 2011 ICF and CLW to Conduct Factory Worker Survey The ICTI CARE Foundation and China Labor Watch will design a research project that will be conducted among 500 factory workers at 15 factories in China. The goal of the research project is to gain a better understanding of worker satisfaction with their factory working conditions, along with their expectations for future improvement. The research will take into account generational and gender differences. Questions will focus on two key areas of interest:
The interviews will take place outside of the factories. The survey results and analysis will be finalized in October and used to inform ICTI CARE Process policy development and auditing, education, training and capacity building programs put in place to improve working conditions. ICFAL Hires Two New Staff Auditors
May 2011
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Alex Cheung joined ICFAL in November as a Social Compliance Manager, directly reporting to the COO. He is leading the audit teams in both Hong Kong and China and is responsible for overseeing the ICTI CARE Process auditing process, as well as evaluating and monitoring the performance of ICP accredited audit firms. He has acquired good knowledge in China Labor Law and EHS. He was also involved in the early development phase of the ICTI CARE Process. Alex holds a Professional Diploma of Occupational Safety and Health and a Master's Degree in Environmental Engineering.
Chris Wan was also hired in November and is working as a CRM Database Support Administrator. She is responsible for providing front desk support service to both internal and external users of Enablon's database system. With many years of toy industry experience, Chris is knowledgeable about China factories and supply chain. She holds a Bachelor's Degree in Contemporary English Language and a Master of Science in Global Supply.
Recognizes ICTI CARE Process
The ICTI CARE Foundation today announced that effective June 1st Rosie Zhang will become the ICTI CARE Foundation Asia Limited’s new Chief Operating Officer. For the past 5 years Ms. Zhang served as the International Compliance Group’s Director of Asia Operations with responsibility for conducting social compliance audits and investigations throughout Asia, offering regional compliance solutions, managing ICG’s Far East operations and site offices in Shanghai, Shenzhen and Ho Chi Minh City, along with global strategic business development. Prior to that, she was employed as the Director of Operations at ALGI where she established its Shanghai and Shenzhen offices and developed new clients and service products. She additionally worked as an attorney for King & Wood PRC Lawyers specializing in Corporate Law, M&A and Employment Law.
The Swedish Retailers Association and the supplier’s organization have joined forces to strengthen and develop the industry. The new Chairman, Magnus Stuart, stated that, “We now have a powerful organization that can work on the industry's key issues while giving us a broad interface with government, other organizations and the media. This is a big step we have taken and I am especially pleased that we have prepared the merger so thoroughly.”