APPENDIX 14
SAMPLE CORRECTIVE ACTION PLAN
The following is a sample of a Corrective Action Plan (“CAP”) that is sent to Licensees and Vendors as a result of an ILSAudit conducted by Disney. The CAP and accompanying e mail serve as written notice to Licensees and Vendors that a Facilityhas not met Disney’s Minimum Compliance Standard (“MCS”) under the Disney Code of Conduct for Manufacturers.
[Date]
This letter is being provided to all Disney licensees and vendors currently authorized to produce Disney branded products in this facility. As a courtesy, this letter is also being provided to licensees and vendors that have applied for authorization to produce in this facility.
On [date audit received], Disney received an audit of [Facility Name (ILS#)], located in [City], [Country]. Results of thisaudit indicate that this facility does not meet Disney’s Minimum Compliance Standard (MCS) under the Code of Conduct for Manufacturers.
MCS VIOLATIONS – MUST BE ADDRESSED IMMEDIATELY
The MCS violations identified below must be corrected immediately. Failure to take the necessary corrective action will result in the loss of authorization to produce Disney-branded merchandise at this facility.
1. Health and Safety/ Fire and Emergency Safety
Emergency exits are locked or obstructed.
2. Involuntary Labor
Facility management retains employees’ identification documents.
NON-MCS VIOLATIONS – SHOULD BE ADDRESSED PROMPTLY
The following is a list of all non MCS violations of the Disney Code of Conduct. All non MCS code violations should be cor rected promptly as part of our continuing effort to improve working conditions.
1. Compensation
Employees are not properly compensated for overtime.
2. Health and Safety/ Hazardous Material
Safety warning signs are not posted as required where hazardous materials are handled.
As the licensee/vendor, it is your responsibility to ensure that all MCS violations are remediated immediately as a condition of continued use of this facility. All other violations should be addressed promptly.
Failure to remedy MCS violations in accordance with this letter will result in the loss of authorization to produce Disney- branded merchandise at this facility. In such case, ALL licensees and vendors will be required to cease Disney branded production at this facility promptly and remove all inventories from this facility (not to exceed 30 days following notification by Disney or otherwise required by law).
An audit dated after [date audit conducted] demonstrating MCS compliance must be submitted to Disney within 90 days from the date of this letter.
? If an audit is not submitted as required, all licensees and vendors will no longer be authorized to produce
Disney-branded products in this facility until an audit meeting MCS is provided.
? If the subsequent audit submitted fails to meet MCS, the facility will be ineligible for Disney-branded
production for a minimum of 12 months following its loss of production authorization from Disney.
You may wish to coordinate any necessary auditing activities through the Facility.