CSR-SA企业社会责任ITS验厂报告实例

Report #: SZX-16652-01 Audit Date: March 31, 2009

To: From: Kam Yuen Cheung

Intertek Testing Services Shenzhen

Fax: 86-755-2602-0899

Name of Vendor:

Name of Manufacturer: Harmoni Plastics Products Co., Ltd.

Name of Facility: Harmoni Plastics Products Co., Ltd.

Physical Location Address:Block 27, Tricon Industrial, Fumin Industrial Zone, Pinghu Village,

Longgang District, Shenzhen City, Guangdong Province, China. Mailing Address: Same as above

Please review information above, make changes on form if necessary.

ACCESS TO FACILITY:9 Accepted Denied

If denied, explain:_______________________________________________________________________ OVERALL RATING: 9Needs Improvement Acceptable

AUDITED BY:

Name of Company: Intertek Testing Services Shenzhen Ltd.

Name of Auditor: Lynn Shao and Sunny Wong

Signature: Sunny Wong Date: April 7, 2009

Report #: SZX-16652-01 Audit Date: March 31, 2009

Overall Assessment:

Background

Harmoni Plastics Products Co., Ltd. is located in Block 27, Tricon Industrial, Fumin Industrial Zone, Pinghu Village, Longgang District, Shenzhen City, Guangdong Province, China. The total land area occupied by the facility is about 2000 square meters. They have started their operation at the existing location since February 2009. The main products manufactured by the factory cover Plastics products.

In view of the facilities, the factory consists the first, third and fourth floor of one 4-storey building, which is used as production and warehouse; the third, fourth and fifth floor of one 5-storey building, which is used as dormitory. One kitchen and canteen are available for employees. The main production processes are listed as follows:

Injection, Silk-printing, Tempo printing, drying, Inspection and Packing

A total of 220 employees are currently working in the factory, which includes 160 production employees and

60 non-production employees. There is no local employee in the factory. The employees work for 5 days a week in one shift expect processing department. The normal working hour is one shift which is from 8:00 to 17:30 with one hour and thirty minutes’ lunch break from 12:00 to 13:30. Workers in processing department work in two shifts. The first shift is from 8:00 to 17:30 with one hour and thirty minutes’ lunch break from 12:00 to 13:30, and the second shift is from 21:00 to 05:00 of next day with thirty minutes’ break from 23:30 to 24:00.

Employees’ wages are calculated on an hourly-rate basis. The peak season is not obvious in this factory as per management interview.

Audit Process

This initial audit was conducted by Intertek. A team of two auditors assessed / verified the factory’s operations against the Crocs Code of Conduct and local legislations on a sampling basis.

Overall Findings

In view of the findings raised, non-compliances were covered in the areas of Health and Safety, Dormitories (if applicable), Hours of Work/ Overtime and Environment. Details of the findings are listed in following sections. For other areas, no violations were noted.

Other brands produced: Nil

NUMBER OF EMPLOYEES INTERVIEWED: 25

Percentage of the facility’s capacity devoted to production of Crocs Hong Kong Limited products: 100%

Recommended Corrective Action:

Please refer to the corresponding sections.

Report #: SZX-16652-01 Audit Date: March 31, 2009

Agreed to and signed Corrective Action Plan Acknowledgement Report (CAPAR):

Yes 9No

If no, explain: _______________________________________________________________________

Plan for Follow-up Activity:

To be advised by the client.

Report #: SZX-16652-01 Audit Date: March 31, 2009

A. Forced Labor:Needs Improvement 9Acceptable Exceptions:

Nil

B. Child Labor:Needs Improvement 9Acceptable Exceptions:

Nil

TOTAL EMPLOYEES: 220AGE RECORDS CHECKED: 25

C. Harassment and Abuse:Needs Improvement 9Acceptable Exceptions:

Nil

D. Nondiscrimination:Needs Improvement 9Acceptable Exceptions:

Nil

E. Minimum Wage:Needs Improvement 9Acceptable Exceptions:

Nil

Remarks:

1. Attendance records from March 2008 to March 31, 2009 and payrolls from March 2008 to February 2009 were reviewed.

2. Local minimum wage is set at RMB 750 per month equivalent to RMB 4.31 (750/21.75/8) per hour before July 1, 2008, and at RMB 900 per month equivalent to RMB 5.17 (900/21.75/8) per hour since July 1, 2008.

3. Payroll records and attendance records of 25 workers in February 2009 were reviewed and payroll records and attendance records of 5 workers in April 2008 and payroll records and attendance records of 5 workers in September 2008 were reviewed.

TOTAL EMPLOYEES: 220WAGE RECORDS CHECKED: 25

Report #: SZX-16652-01 Audit Date: March 31, 2009

F. Overtime Wage:Needs Improvement 9Acceptable Exceptions:

Nil

Remark:

1. Attendance records from March 2008 to March 31, 2009 and payrolls from March 2008 to February 2009 were reviewed.

2. Local minimum wage is set at RMB 750 per month equivalent to RMB 4.31 (750/21.75/8) per hour before July 1, 2008, and at RMB 900 per month equivalent to RMB 5.17 (900/21.75/8) per hour since July 1, 2008.

3. Payroll records and attendance records of 25 workers in February 2009 were reviewed and payroll records and attendance records of 5 workers in April 2008 and payroll records and attendance records of 5 workers in September 2008 were reviewed.

G. Social Benefits:Needs Improvement 9Acceptable Exceptions:

Nil

H. Other Compensation:Needs Improvement 9Acceptable Exceptions:

Nil

I. Health and Safety:9Needs Improvement Acceptable Exceptions:

1. In accordance with the PRC Fire Service Law article 14(6), enterprises and business units shall ensure that all evacuation passages and emergency exits are clear, and affixed with fire safety evacuation signs.

It was noted that no exit sign was affixed on one emergency exit in grinding room which was about 120 square meters.

It is recommended that exit sign should be affixed on mentioned area.

2. In accordance with Fire Safety of Building Design Regulation (GB50016-2006) article 11.

3.3, lamps for emergency shall be installed on the upper part of walls, the ceilings or the top of exits.

It was noted that no emergency light was installed at one emergency exit in grinding room which was about 120 square meters.

Report #: SZX-16652-01 Audit Date: March 31, 2009

It is recommended that emergency light should be installed at the above area.

3. In accordance with the Safety Manufacturing Law article 37, manufacturing units shall provide personal protective equipment to employees. Manufacturing units shall supervise and train employees to ensure they properly wear and use the personal protective equipment.

It was noted that the factory did not provide earplugs for the workers working in the dripping glue department. It is recommended that factory should provide earplugs for the workers who working in the dripping glue department.

J. Dormitories (if applicable):9Needs Improvement Acceptable Exceptions:

1. In accordance with the PRC Food Hygiene Law article 27, the unit operating with the connection to food, must pass the hygiene check and get the hygiene certificate before the operation.

It was noted that the factory did not provide the hygiene certificate for its kitchen for review.

Remark: The factory applied the examination in the board of health on March 30, 2009, and the factory had provided the relevant return receipt for review in this audit.

It is recommended that the factory should pass the hygiene check before operating its kitchen.

2. In accordance with the PRC Fire Service Law article 14(6), enterprises and business units shall ensure that all evacuation passages and emergency exits are clear, and posted with fire safety evacuation signs.

It was noted that the passage connecting 2 exits was locked on the second floor, third floor and fourth floor in the dormitory building, and 2 out of 3 exits leading to the roof were locked in the dormitory building.

It is recommended that the factory should ensure all passages and emergency exits are clear and unlocked at all times.

K. Hours of Work/ Overtime:9Needs Improvement Acceptable Exceptions:

1. In accordance with the PRC Labor Law article 41 The employing unit may extend working hours due to the requirements of its production or business after consultation with the trade union and laborers, but the extended working hour for a day shall generally not exceed one hour; if such extension is called for due to special reasons, the extended hours shall not exceed three hours a day under the condition that the health of laborers is guaranteed. However, the total extension in a month shall not exceed thirty-six hours.

It was noted that the monthly overtime hours of 25 out of 25 randomly selected workers ranged from 58-104 hours in February 2009 (Most current month), 4 out of 5 ranged from 46.5-63 hours in September 2008 (randomly selected month), 3 out of 5 ranged from 86.5-96.5 hours in April 2008 (randomly selected month). And the daily overtime hours of 3 out of 5 randomly selected workers ranged from 3.5-5.5 hours in April 2008

Report #: SZX-16652-01 Audit Date: March 31, 2009

It is recommended that the factory should reduce the overtime hours to ensure it is within 36 hours per month and within 3 hours per day.

2. In accordance with the PRC Labor Law article 38, the employing unit shall guarantee that its staff and workers have at least one day off in a week.

According to time records of September 2008, 4 out of 5 selected workers worked for 7-8 consecutive days without 1 day off.

It is recommended that the factory should ensure every worker enjoy at least 1 day off in a week.

3. In accordance with The Crocs Social Compliance Code of Conduct, While permitting flexibility in scheduling, we will identify local legal limits on work hours and seek Partners who do not exceed them except for appropriately compensated overtime. While we favor Partners who utilize less than 60 hours a week, we will not use Partners who, on a regular basis, require in excess of 48 hours per week and 12 hours overtime per week, or as permitted by applicable law, whichever is lower. Except in extraordinary circumstances, employees must receive at least one uninterrupted, 24-hour rest period after every 6 consecutive days worked.

The factory obtained the approval of local Labor Bureau which regulated the maximum weekly work hours shall not exceed 72 hours. But through review the attendance records in September 2008, it was noted that, 3 out of 5 randomly selected workers worked 74-77 hours per week for one week.

It is recommended that the factory should reduce the working hours to comply with the Crocs’ requirement. Remark:

1. Attendance records from March 2008 to March 31, 2009 and payrolls from March 2008 to February 2009 were reviewed.

2. Payroll records and attendance records of 25 workers in February 2009 were reviewed and payroll records and attendance records of 5 workers in April 2008 and payroll records and attendance records of 5 workers in September 2008 were reviewed.

3.The working hour statistics were as follows:

1)For February 2009 (current month), the average number of hours worked in a week for the 25 selected

samples were 63.8 hours. Max working hours per week were 66 hours (5 out of 25 selected samples).

2)For April 2008 (randomly selected month), the average number of hours worked in a week for the 5

selected samples were 68.2 hours. Max working hours per week were 72 hours (2 out of 5 selected samples).

3)For September 2008 (randomly selected month), the average number of hours worked in a week for

the 5 selected samples were 63.5 hours. Max working hours per week were 77 hours (2 out of 5 selected samples).

L. Environment:9Needs Improvement Acceptable

Report #: SZX-16652-01 Audit Date: March 31, 2009

1. In accordance with The Environmental Impact Assessment Law of the People’s Republic of China article 24, after the approval of the construction projects’ Environmental Impact Assessment Documents, in case of any changes in the nature, scale, site, production process or measures of preventing pollution and ecological damage, construction units concerned shall re-submit the construction projects’ Environmental Impact Assessment Documents for the application.

It was noted that factory did not re-submit its Environmental Impact Assessment Documents after their expanded newly added production process. (Such as newly added silkscreen printing and tempo printing production process)

It is recommended that factory should re-submit its Environmental Impact Assessment Documents if any changes in the nature, scale, site, production process or measures of preventing pollution and ecological damage. M. Monitoring and Compliance:Needs Improvement 9Acceptable Exceptions:

Nil

N. Other Laws (if applicable):Needs Improvement 9Acceptable Exceptions:

Nil

DISCLAIMER:

"This report is for the exclusive use of the client of Intertek named in this report (“Client”) and is provided pursuant to an agreement for sevices between Intertek and Client (“Client Agreement”). This report provides a summary of the findings and other applicable information found/gathered during the audit conducted at the specified facilities on the specified date only. Therefore, this report does not cover, and Intertek accepts no responsibility for, other locations that may be used in the supply chain of the relevant product or service. Further, as the audit process used by Intertek is a sampling exercise only, Intertek accepts no responsibility for any non-compliant issues that may be revealed relating to the operations of the identified facility at any other date. Intertek's responsibility and liability are also limited in accordance to the terms and conditions of the Client Agreement. Intertek assumes no liability to any party, for any loss, expense or damage occasioned by the use of this information other than to the Client and in accordance with the Client Agreement and these disclaimers. The disclaimer should be read in conjunction with the Terms and Conditions of Intertek.”