CLC is committed to improving workplace conditions throughout the world and has been at the forefront of corporate responsibility/labor code issues since they became a focus for many collegiate institutions in the mid-1990s. Since that time, corporate responsibility (“CR”) competency for both the licensed company and throughout its supply chain has become extremely important to many CLC institutions. These standards are set by the highest office on many university campuses and are a requirement, regardless of the other favorable factors that might positively affect an application for licensure. A company’s current and on-going commitment to CR throughout its supply chain, as well as its ability to meet the requirements and/or the compliance with the investigations of the Fair Labor Association (www.Fairlabor.org) and/or the Worker’s Rights Consortium (www.Workersrights.com) will be considered by many institutions as an essential part of the approval and renewal process.
If seeking to obtain a license with institutions that have codes of conduct for corporate responsibility requirements, companies will be required to demonstrate a commitment and capacity for ensuring that collegiate products are made under safe, healthy, and respectful conditions.
If approved as a licensee, most companies will be required to sign and implement CLC’s Special Agreement Regarding Labor Codes of Conduct. At this time, the requirements of the Code Agreement essentially involve the following:
1. Commit to and adopt throughout a company’s supply chain standards and practices that meet or exceed those established by the institutions, the FLA, and/or the WRC.
2. Provide public disclosure of all factories/suppliers of collegiate products, including suppliers of blank goods.
3. Communicate labor code standards within the licensed company and with all factories/suppliers used as a source for collegiate product. All factories/suppliers must agree to adhere to these standards.
4. Audit all factories on an annual basis utilizing appropriately trained internal staff or approved external monitoring organizations.
5. Where required, register and comply with all FLA requirements, including the payment of annual fees, auditing of all factories/suppliers of collegiate product annually, and establishing remediation protocol if problems are found. Note that some schools may also require auditing through the WRC program.