The Ethical Supply Chain Program is an independent,

not-for-profit organisation A not-for-profit or non-for-profit organization (NFPO) is a legal entity that does not distribute surplus funds to its members and is formed to fulfill specific objectives. While not-for-profit organizations and non-profit organizations (NPO ...

established in 2004 to safeguard and improve ethical and sustainability standards in the global

supply chain A supply chain is a complex logistics system that consists of facilities that convert raw materials into finished products and distribute them to end consumers or end customers, while supply chain management deals with the flow of goods in distri ...

. The Ethical Supply Chain Program, is the ethical

manufacturing Manufacturing is the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation. It is the essence of the secondary sector of the economy. The term may refer ...

program for the manufacturing industry. The Ethical Supply Chain Program (ESCP) is the most widespread labor and social standard, applicable to all manufacturing industries. The program is based on the ICTI Code of Business Practices. It is estimated that 70% of global toy sales are covered by the Ethical Supply Chain Program (ESCP).

History of the Ethical Supply Chain Program

Working conditions in Asian

toy A toy or plaything is an object that is used primarily to provide entertainment. Simple examples include toy blocks, board games, and dolls. Toys are often designed for use by children, although many are designed specifically for adults and p ...

factories A factory, manufacturing plant or production plant is an industrial facility, often a complex consisting of several buildings filled with machinery, where workers manufacture items or operate machines which process each item into another. Th ...

in the 1990s were under intense scrutiny, most notably following the Kader Toy Factory Fire in

Bangkok Bangkok, officially known in Thai language, Thai as Krung Thep Maha Nakhon and colloquially as Krung Thep, is the capital and most populous city of Thailand. The city occupies in the Chao Phraya River delta in central Thailand and has an estim ...

(

Thailand Thailand, officially the Kingdom of Thailand and historically known as Siam (the official name until 1939), is a country in Southeast Asia on the Mainland Southeast Asia, Indochinese Peninsula. With a population of almost 66 million, it spa ...

), considered the worst industrial factory fire in history, and a toy factory fire in

Shenzhen Shenzhen is a prefecture-level city in the province of Guangdong, China. A Special economic zones of China, special economic zone, it is located on the east bank of the Pearl River (China), Pearl River estuary on the central coast of Guangdong ...

(

China China, officially the People's Republic of China (PRC), is a country in East Asia. With population of China, a population exceeding 1.4 billion, it is the list of countries by population (United Nations), second-most populous country after ...

) in 1993 which together caused more than 250 deaths. As a reaction to the tragedy, the Hong Kong Toy Coalition was established and published the "Charter on the Safe Production of Toys" in the mid-1990s. In this charter, the Hong Kong Toy Coalition demanded the improvement of labor, social, and safety standards in Chinese

. Following the production of the charter, larger toy brands and retailers started to create their own

Codes of Conduct A code of conduct is a set of rules outlining the social norm, norms, rules, and responsibilities or proper practices of an individual party or an organization. Companies' codes of conduct A company code of conduct is a set of rules which is comm ...

Hasbro Hasbro, Inc. (; a syllabic abbreviation of its original name, Hassenfeld Brothers) is an American multinational corporation, multinational toy manufacturing and entertainment holding company founded on December 6, 1923 by Henry, Hillel and Herma ...

established its “Global Business Ethics Principles” in 1993, Zapf Creation a

code of conduct A code of conduct is a set of rules outlining the social norm, norms, rules, and responsibilities or proper practices of an individual party or an organization. Companies' codes of conduct A company code of conduct is a set of rules which is comm ...

in 1995,

The Walt Disney Company The Walt Disney Company, commonly referred to as simply Disney, is an American multinational mass media and entertainment conglomerate headquartered at the Walt Disney Studios complex in Burbank, California. Disney was founded on October 16 ...

its “International Labor Standards” in 1996,

Mattel Mattel, Inc. ( ) is an American multinational corporation, multinational toy manufacturing and entertainment company headquartered in El Segundo, California. Founded in Los Angeles by Harold Matson and the husband-and-wife duo of Ruth Handler, ...

its “Global Manufacturing Principles” 1997, and

LEGO Lego (, ; ; stylised as LEGO) is a line of plastic construction toys manufactured by the Lego Group, a privately held company based in Billund, Denmark. Lego consists of variously coloured interlocking plastic bricks made of acrylonitri ...

created a

in 1997. It is estimated that there were up to 70 different standards which made it difficult for toy factories to comply with varying standards and created significant amounts of duplication of

audit An audit is an "independent examination of financial information of any entity, whether profit oriented or not, irrespective of its size or legal form when such an examination is conducted with a view to express an opinion thereon." Auditing al ...

ing in

. Therefore, an industry wide ethical manufacturing standard was called for in the toy industry. The International Council of Toy Industries (ICTI) created the Code of Business Practices in 1995. In 2002 at the annual general meeting of ICTI, the member toy industry associations unanimously agreed to launch the ICTI CARE Process, a worldwide

ing process to implement the ICTI Code of Business Practices, drive convergence, and reduce duplication of social

ing in the global

industry

. In 2004, the ICTI CARE Foundation was created as a

non-profit organisation A nonprofit organization (NPO), also known as a nonbusiness entity, nonprofit institution, not-for-profit organization, or simply a nonprofit, is a non-governmental (private) legal entity organized and operated for a collective, public, or so ...

working completely independently of ICTI to oversee the ICTI CARE Process. In 2018, the organization became the ICTI Ethical Toy Program. Along with a new name, the next generation of the Ethical Toy Program was unveiled with an updated mission and strategy for the organization, a new membership model and a brand-new look and feel to deliver the changes. In 2024, the organization renamed to become the Ethical Supply Chain Program, to reflect its wider adoption in manufacturing industries globally. The organisation has also developed a number of tools, assessments and programs delivering beyond audit. Most recently, committing to supporting 30,000 children by the end of 2025 through its Family-Friendly Factory program, expanding from China to Vietnam and Mexico and funded primarily by LEGO and additional support from Spin Master and other supporters of the program supporters.

Ethical Supply Chain Program Certification Program

Ethical Supply Chain Program (ESCP) is an ethical

program specifically designed for the global

industry, based on the ICTI Code of Business Practices.

ICTI Code of Business Practices

The ICTI Code of Business Practices, upon which the Ethical Supply Chain Program is based, covers nine core principles: *

Working hours Working time or laboring time is the period of time that a person spends at paid labor. Unpaid labor such as personal housework or caring for children or pets is not considered part of the working week. Many countries regulate the work wee ...

must not be excessive &

overtime Overtime is the amount of time someone works beyond normal working hours. The term is also used for the pay received for this time. Normal hours may be determined in several ways: *by custom (what is considered healthy or reasonable by society) ...

must be voluntary * Legal and fair pay * No

child labor Child labour is the exploitation of children through any form of work that interferes with their ability to attend regular school, or is mentally, physically, socially and morally harmful. Such exploitation is prohibited by legislation w ...

* No forced or involuntary labor * No

discrimination Discrimination is the process of making unfair or prejudicial distinctions between people based on the groups, classes, or other categories to which they belong or are perceived to belong, such as race, gender, age, class, religion, or sex ...

Employees Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any othe ...

must be treated with

dignity Dignity is a human's contentment attained by satisfying physiological needs and a need in development. The content of contemporary dignity is derived in the new natural law theory as a distinct human good. As an extension of the Enlightenment- ...

and

respect Respect, also called esteem, is a positive feeling or deferential action shown towards someone or something considered important or held in high esteem or regard. It conveys a sense of admiration for good or valuable qualities. It is also th ...

* Employees'

right of association Freedom of association encompasses both an individual's right to join or leave groups voluntarily, the right of the group to take collective action to pursue the interests of its members, and the right of an association to accept or decline membe ...

must be observed * Individual written labor

contract A contract is an agreement that specifies certain legally enforceable rights and obligations pertaining to two or more parties. A contract typically involves consent to transfer of goods, services, money, or promise to transfer any of thos ...

s must be provided * Working conditions are safe and

employee Employment is a relationship between two party (law), parties Regulation, regulating the provision of paid Labour (human activity), labour services. Usually based on a employment contract, contract, one party, the employer, which might be a cor ...

health is not endangered

Certification

When a

factory A factory, manufacturing plant or production plant is an industrial facility, often a complex consisting of several buildings filled with machinery, where workers manufacture items or operate machines which process each item into another. Th ...

is awarded a certification by the Ethical Supply Chain Program this denotes their adherence to the ICTI Code of Business Practices.

References

External links