Social Compliance Audit Report: Click Here To Enter A Date

Social Compliance Audit Report
Audit ID #: SHCJ23077-02 Audit Report Date: 29/07/2014
Factory Information
Factory ID No. ---

Factory Name: Shanghai Chuangshi Industry Group Co., Ltd
Street Address Line 1: No. 388, Zhangliantang Road, Liantang Town, Qingpu District, Shanghai
City, China
Street Address Line 2: N/A
City: Shanghai State/Province: Shanghai
Zip Code: 201716 Country: China
Contact Person Name: Mr. Pan Yunguang Telephone: 86-21-31166566-8829
Contact Person Title: Quality Manager Fax: 86-21-31166561
Compliance Audit Report
Document Completed By: Audit Entered By Title: Date Audit Entered:

(Name):
Click here to enter a date.
Factory Audited By: Audit Conducted By Audit Date Audit
(Name): Organization: Conducted:
Jimmy Zhao, Jolie Zhu Intertek Testing 25/07/2014
Services
Audit Type: Tentative Audit Date:
Initial 1st Follow-Up 25/07/2014
2nd Follow-Up 3rd Follow-Up
Number of Factory Unable to Determine 101-250 1001-2500

Workers:
1-50 251-500 2501-5000
51-100 501-1000 Over 5000
Audit Report Date: 29/07/2014
Overall Rating: Needs Improvement Acceptable
Agreed to and Yes No

signed Corrective
Action Plan Comments: Mr. Pan Yunguang/ Quality Manager
Acknowledgement
Report (CAPAR):
1 (Rev. 3/21/2014)
Compliance Audit Report (Continued)
Access to Facility: Accepted Denied
If denied, explain: Predetermined Comments:

1. Acceptable
2. Auditors attempted to conduct an audit and were denied access.
3. Other
Comments: None
SKIP THIS SECTION – No longer applicable

Partial Access
Denied?: Do not enter any data in this field in Lotus Notes
Percentage of the 0% 31-40% 71-80%

Factory’s capacity
devoted to 1-10% 41-50% 81-90%
production of
11-20% 51-60% 91-100%
Disney Products:
21-30% 61-70%
Overall Assessment Process

Assessment:
Assessment Type (Spot Check, Unannounced, Announced, GIFW, Observed
Assessment): Announced
Specify Code of Conduct Assessed (ex. Disney, ICTI or SA8000): Disney
Monitoring Firm: Intertek Testing Services
Number of Monitors (ex. Due to the schedule conflict/limited manpower
resources, the auditors from the audit team of the previous audit cannot
conduct this follow-up audit): Two auditors
Name and Title of Others Present (ex. Translators, observers, trainees): Jane
Zhuang (Observer)
Status of Disney’s Ethics Policy (Presented and explained, Signature Block
Completed): Presented and explained, Signature Block Completed
Number of Testing: 10
Months of Work Attendance Records Reviewed: 12 months and 24 days'
(from July 1, 2013 to July 24, 2014) electronic attendance records were
provided for review.
Months of Payroll Ledgers Reviewed: 12 months' payroll records (from July
2013 to June 2014) were provided for review
Number of Employees Interviewed: 10
Number of Employees/Group Interviewed: 0
Signing of the Confidentiality Agreement (Y / N): N
Resources Received from Facility (i.e. transportation, meals): Free lunch was
provided by the facility.
Report Disney approved or not approved deviations from the ILS Audit Scope
and Procedures and who, what, and why details (ex. number of auditors,
2 (Rev. 3/21/2014)
different auditors assigned from previous audit, different number of testing
from the requirement, and different number of interviews from the
requirement, etc): None
Facility Overview Information
Facility Address: No. 388, Zhangliantang Road, Liantang Town, Qingpu
District, Shanghai City, China
Contact Person: Mr. Pan Yunguang/ Quality Manager
Month and Year of Establishment: November in 1994
Numbers and Purpose (Administrative / Production / Dormitory) of Buildings:
The facility consists of four 3-storey buildings used as office and production
workshops and warehouse, one 4-storey building used as Research &
Development, one flat building used as chemical warehouse. Additionally, the
canteen was located on the 1F of one of above four 3-storey buildings and no
dormitory was provided in the facility.
Product Type: Ice / hot pack
Production Processes: Preparing, Mixing, Filling, Printing, Inspection and
Packing.
Current / Normal Employee Size by Employee Type: Totally 347 employees
in the facility with 66 local employees and 281 migrant employees /195
production employees and 152 non-production employees /205 female
employees and 142 male employees.
Current / Past percentage of Disney Production: 0.5% / 1%
Other Brands Present: Not provided
Peak / Low Production Months: Not obvious
Facility Regular Hours / Shift: All employees work for 5 days a week in one
shift, which is from 8:30 to 17:00 with half hour’s lunch break from 12:00 to
12:30
Pay Date: 10th-15th of each month
Name of the Licensee / Vendor: MZB World Time Limited
Does the audit scope include additional locations? (Explain) Not applicable.
No additional locations for the facility.
Are these locations under the same business license? (Explain) Not
applicable. No additional locations for the facility.
Violations Categories: Overtime Hours, Health & Safety, Protection of the
Environment, Subcontracting and Other Laws.
Comments / Observations:
The address on business license of the facility was at Room 2729, Lane 6188,
Zhufeng Road, Liantang Town, Qingpu District, Shanghai City, While the
facility’s actual operation site was at No. 388, Zhangliantang Road, Liantang
Town, Qingpu District, Shanghai City. The facility management explained
that the former address was only used as registration address when the
facility was established in 1994 and the facility had totally moved to the new
address No. 388, Zhangliantang Road, Liantang Town, Qingpu District,
Shanghai City since 2012. Meanwhile, the facility management claimed that
the address update for its business license was being in process and a
written explanation was provided for review in this audit.
3 (Rev. 3/21/2014)
Communicated Discussions regarding the Corrective Action Plan occurred with
Findings with:
Mr. Pan Yunguang/ Quality Manager (Name & Title).
Child Labor: Acceptable Needs Improvement N/A Unable to Verify

Comments: No apparent violation
Current Child Labor:

Acceptable Needs Improvement N/A Unable to Verify
Predetermined Comments:
1. Acceptable
Young Persons
1. Acceptable
Other:
1. Acceptable
4 (Rev. 3/21/2014)
Involuntary Labor: Acceptable Needs Improvement N/A Unable to Verify
Prison, Bonded, Indentured, Forced Labor:

1. Acceptable
Mandatory Overtime:
1. Acceptable
Other:
1. Acceptable
5 (Rev. 3/21/2014)
Coercion and Acceptable Needs Improvement N/A Unable to Verify
Harassment:
Physical Abuse or Sexual Harassment:

1. Acceptable
Other:
1. Acceptable
6 (Rev. 3/21/2014)
Non- Acceptable Needs Improvement N/A Unable to Verify
Discrimination:
1. Acceptable
7 (Rev. 3/21/2014)
Association: Acceptable Needs Improvement N/A Unable to Verify
1. Acceptable
Minimum Wage: Acceptable Needs Improvement N/A Unable to Verify
1. Acceptable
Remark:
1) The local minimum standard set at RMB 1820 per month, equivalent to
RMB 10.46 per hour since April 1, 2014 and RMB 1620 per month,
equivalent to RMB 9.31 per hour before April 1, 2014.
2) 12 months’ payroll records (from July 2013 to June 2014) were provided
for review.
Overtime Wage: Acceptable Needs Improvement N/A Unable to Verify
8 (Rev. 3/21/2014)
1. Acceptable
Overtime Hours: Acceptable Needs Improvement N/A Unable to Verify
6. Employees worked in excess of six consecutive days without a day of

rest.
8. Employees worked in excess of the legal monthly overtime hour limit.
Comments:
1. OH.#6 Auditors noted that from reviewing May 2014(random month)
timecard records, 4 out of 5 selected employees worked for 7 consecutive
days without 1 day off every week.
PRC Labor Law article 38, the employing unit shall guarantee that its staff
and employees have at least one day off in a week.
2. OH.#8 Auditors noted that:

1) The monthly overtime hours of 9 out of all 10 randomly selected
employees were 66 hours in June 2014 (current month);
2) The monthly overtime hours of 4 out of all 5 randomly selected employees
were 66 hours in May 2014 (random month);
3) The monthly overtime hours of 4 out of all 5 randomly selected employees
were 74 hours in August 2013 (random month).
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.
Remark:
1. 12 months and 24 days' (from July 1, 2013 to July 24, 2014) electronic
attendance records were provided for review.
2. All interviewees stated that they worked overtime on voluntary basis.
3. According to the attendance records provided by the facility:
a) For June 2014 (current month), the average number of hours worked in a
week for the 10 randomly selected samples were 54.4 hours. Maximum
working hours per week were 56 hours (9 out of 10 selected samples).
The maximum monthly overtime hours were 66 hours (9 out of 10
selected samples);
b) For May 2014 (random month), the average number of hours worked in a
week for the 5 selected samples were 52.8 hours. Maximum working
hours per week were 56 hours (4 out of 5 selected samples). The
9 (Rev. 3/21/2014)
monthly overtime hours was 66 hours (4 out of 5 selected samples);
c) For August 2013 (random month), the average number of hours worked in
a week for the 5 selected samples were 53.2 hours. Maximum working
hours per week were 58 hours (4 out of 5 selected employees). The
monthly overtime hours were 74 hours (4 out of 5 selected samples).
Social Benefits Acceptable Needs Improvement N/A Unable to Verify
1. Acceptable
Remark:
Through document review and employees interview, auditors noted that
there were total 347 employees in the facility, and 341 employees had
participated in all 5 types of social insurance, the rest 6 employees were
new employees hired by the facility during July 2014.
10 (Rev. 3/21/2014)
Other Acceptable Needs Improvement N/A Unable to Verify
Compensation
1. Acceptable
Monitoring and Acceptable Needs Improvement N/A Unable to Verify

Compliance:
Transparency:
1. Acceptable
Ethics:
1. Acceptable
Insufficient or Inadequate Records:

1. Acceptable
Other:
11 (Rev. 3/21/2014)
1. Acceptable
Health and Safety: Acceptable Needs Improvement N/A Unable to Verify

Comments: Refer to relevant sub-section
Medical & First Aid:

1. Acceptable
Personal Protective Equipment (PPE):

1. Acceptable
Fire & Emergency Safety:

78. The fire service certificate provided does not include all buildings.
Comments:
1. HS.FES. #78 Auditors noted that no fire service inspection certificate or

record for one flat building used as chemical warehouse was obtained
and provided for review.
PRC Fire Prevention Law article 11 The Ministry of Public Security of the State
Council prescribes: for those densely populated places and special
construction works, design documents shall be submitted to public
security organs for safety review. Public security fire control institutions
12 (Rev. 3/21/2014)
shall be responsible for the result.
Article 13 the project completed with fire control design in accordance with
the requirements of the State Technical Standards on Fire Control for
Engineering Construction shall go through acceptance check and filing as
stated below:
1. As is stated in Article 11, construction units shall apply to the public
security fire control institutions for fire control acceptance check.
2. Other construction works and construction units shall file with public
security fire control institutions and public fire control institutions shall
conduct random inspection.
Construction projects which are supposed to go through fire control
acceptance check but do not or considered unqualified shall not be put
into use. Other projects considered unqualified after acceptance check in
accordance with law shall not be put into use.
Machine & Electrical Safety:

1. Acceptable
Hazardous Material:
15. Material Safety Data Sheets (MSDS) are not available for chemicals.
16. Secondary containment is not provided for chemicals.
Comments:
1.HS.HM.#15.
Auditors noted that no MSDS was provided for the chemical used in the filling
workshop by the facility.
Regulations on the Safety Management of Dangerous Chemicals, Article 15

Enterprise manufactures hazardous chemicals shall supply the Material
Safety Data Sheet (MSDS) in full accord with hazardous chemicals
produced, and affix or post the safety signs for chemicals in full accord
with hazardous chemicals on the packing materials including outer
packing materials. The contents of MSDS and safety signs shall meet the
requirements of National Standards.
When finding new hazardous characteristics of hazardous chemicals
manufactured, the enterprise manufactures hazardous chemicals shall
make the public announcements forthwith, and revise the MSDS and
safety signs in time.
2.HS.HM.#16.
Auditors noted that facility did not have safety devices such as anti-leakage
for its dangerous chemical materials such as three buckets bactericide
stored in the burdening warehouse.
13 (Rev. 3/21/2014)
Regulation for Safety of Dangerous Chemical article 20 requires that the
units producing, storing dangerous chemicals shall, according to the
categories and hazardous characteristics of the dangerous chemicals
they producing, storing,set up the corresponding safety facilities and
equipments for monitoring, aeration, protection against exposure to sun,
temperature adjusting, fireproof, fire fighting, flameproof, pressure
discharging, prevention of toxicants, neutralization, moisture proof,
protection against thunder, protection against static, antisepsis,
prevention of leakage, protection dams or segregated operations, etc..
In addition, the units shall carry out maintenance and caring regularly
according to the national standards, industrial standards or the relevant
provisions of the State, thus to guarantee the safety operations of
facilities and equipments.
Sanitation:
1. Acceptable
Other:
14. Employees do not receive periodic occupational health examinations.
Comments:
1.HS.O.#14.
Auditors noted that the facility did not provide the relevant occupational
health examination reports for 15 employees (contact with
methylbenzene) working in the printing workshop. The facility
management claimed that the relevant occupational health examination
was in process, the report had not been obtained.
PRC Law of Prevention and Control of Occupational Diseases article 36, the
employer shall conduct regular occupational health examination for those
laborers who are engaged in using or contacting noxious articles in their
working process as required by medical administrative department under
the State Council. The occupational health examination should be
conducted before laborers start to take work post, in the course of the
work post and after leave the work post and employer should inform the
laborersof the result of the occupational health examinations. The
expense of the occupational health examination should be borne by
employers.
Employer should not arrange laborers without the occupational health
examination to be engaged in the work with using or contacting noxious
articles, or laborers with any occupational prohibitions to be engaged in
the prohibited work from them.
Once the occupational health examination indicates that employee is
suffering from the occupational disease in relation to his or her
occupation, the employer shall transfer such a laborer out of his or her
14 (Rev. 3/21/2014)
original work post, and allocate him or her in aproper way. Employer
should not rescind or terminate the contracts signed with those
employees without the occupational health examination at time of
leaving the work post.
The occupational health examination should be conducted by the medical
organizations authorized by the medical administrative department
above province-level.
15 (Rev. 3/21/2014)
Dormitories: Acceptable Needs Improvement N/A Unable to Verify
2. N/A
Comments: Not applicable.
Through facility tour, management interview and employees’ interview, the
facility did not provide dormitory to any employees.
16 (Rev. 3/21/2014)
Protection of the Acceptable Needs Improvement N/A Unable to Verify
Environment:
6. The facility has not conducted an atmospheric analysis.
10. The environmental impact assessment approval reports have not
been obtained.
11. The environmental protection acceptance check for the completed
construction project has not been obtained.
Comments:
1.PE.#6.
Auditors noted that the facility did not monitor its atmospheric pollutants
generated from the printing workshop regularly.
Measures for the Administration of Environmental Surveillance Article 21 A

discharging unit shall self-monitor the situation of pollutant discharge
according to the requirements of environmental protection departments
above county level and the technical manual of state environmental
surveillance.
If a discharging unit, conforming to technical manual of state environmental
surveillance, is inspected by the environmental surveillance institution
under the environmental protection department above county level to
meet the requirements on capability and technical conditions, its
surveillance data can be used as the basis for identification of the
varieties and quantities of pollutants discharged.
A discharge unit, without ability for environmental surveillance, shall
commission an environmental surveillance institution under the
environmental protection department or environmental surveillance
institution identified by the environmental protection department at
provincial level for surveillance; expenditure of the surveillance
performed by an environmental surveillance institution after accepting
the commission should be borne by the commissioning party, in
accordance with the relevant state regulations.
An environmental surveillance institution identified by the environmental
protection department at provincial level refers to an institution engaged
in environmental surveillance but not under an environmental protection
department, which can voluntarily apply to an environmental protection
department at provincial level of the locality for the identification that it
obtains the appropriate capability of environmental surveillance; if
recognized to be qualified, the institution can be regarded as an
environmental surveillance institution identified by the environmental
protection department at provincial level.
An environmental surveillance institution identified by the environmental
protection department at provincial level should accept supervision and
inspection by the environmental surveillance institution under the
environmental protection department of the locality.
2.PE. #10.
Auditors noted that the facility did not obtain environmental impact
assessment approvals from authorized environmental protection
department.
PRC Environmental Impact Assessment Law article 22: the construction unit
shall submit the environmental impact assessment documents of the
17 (Rev. 3/21/2014)
construction project to the authorized environmental protection
administrative department in charge in accordance with the regulations
of the State Council for examination and approval. For those
administrated by the trade’s administrative department, the
environmental impact report or the environmental impact report form
shall be submitted to the authorized environmental protection
administrative department for examination and approval after pre-
examination by the trade’s administrative department in charge.
Remark: the facility management claimed that the environmental impact

assessment approval was in process.
3.PE. #11.
Auditors noted that the facility did not obtain the environmental protection
acceptance check report for their completed construction project.
Measures for Administration of Environmental Protection Acceptance Check

upon Completion of Construction Project article 17, For construction units
accord with the acceptance check conditions prescribed in Article 16,
competent departments of environmental protection administration shall
approve the application report of environmental protection acceptance
check, application form of environmental protection acceptance check or
registration card of environmental protection acceptance check.
For construction projects with a registration card of environmental protection
acceptance check upon completion of project completed, competent
departments of environmental protection administration shall, after
checking, give the opinions on the registration card of environmental
protection acceptance check and make approval decisions.
Construction projects without official approval on the application report,
application form or registration card of environmental protection
acceptance check upon completion of projects shall not be put into
production or use.
Remark: the facility management claimed that the environmental protection

acceptance check report was in process.
Subcontracting: Acceptable Needs Improvement N/A Unable to Verify
5. All or some production processes are subcontracted to another facility
without Disney's written consent.
Comments:
Sub.#5. Auditors noted that the following subcontracted facilities were used
by the audited facility but without Disney’s express written consent:
1. Facility Name: Changzhou City Hongtai Printing Co., Ltd.

Address: No. 17, Hexiang Road, Economic Development Zone, Wujin County,
Changzhou City, Jiangsu Province, China.
Contact Person: Jiang Feng
Tel: 13606119999
18 (Rev. 3/21/2014)
Fax: 86-519-86537777
Process Type: External packing Bag
Remark: The Disney Logo was on the production.
2. Facility Name: Shanghai Jiachen Printing & Packing Material Co., Ltd.
Address: No. 700, Xingsheng Road, Heqing Town, Pudong New District,
Shanghai City, China
Contact Person: Cai Fuxiang
Tel: 13601641351
Fax: 86-21-68909484
Process Type: Paper card
Remark: The Disney Logo was on the production.
The Disney Code of Conduct: Manufacturers could not using subcontractors

for the manufacture of Disney merchandise or components thereof
without Disney’s express written consent, and only after the
subcontractor has entered into a written commitment with Disney to
comply with this Code of Conduct.
19 (Rev. 3/21/2014)
Other Laws (if Acceptable Needs Improvement N/A Unable to Verify
applicable):
Comments:Refer to relevant sub-section
Labor Contract:
5. Employment contracts do not include information on potential
occupational disease hazards and prevention.
Comments:
1.OL.LC.#5
Auditors noted that all relevant employees’ labor contracts such as
employees (contact with methylbenzene) working in the printing
workshop did not include the information on potential occupational
disease hazards, the consequences in the course of work, the measure
for prevention.
Article 34 of Law of the People’s Republic of China on Prevention and Control

of Occupational Diseases (extracted) requires that When signing with the
workers labor contracts (including contracts of employment), the
employer shall truthfully inform the workers of the potential occupational
disease hazards the consequences in the course of work, the measures
for prevention of such diseases and the material benefits, and it shall
have the same clearly put down in the contracts; it may not conceal the
facts or deceive the workers.
Other:
6. The business license has not been updated to reflect the most current
facility information.
Comments:
1.OL.O.#6
Auditor noted that the address on the business license of the facility was
different from the operation address of the facility. The address on
business license was at Room 2729, Lane 6188, Zhufeng Road, Liantang
Town, Qingpu District, Shanghai City. However, the facility’s actual
operation site was at No. 388, Zhangliantang Road, Liantang Town,
Qingpu District, Shanghai City.
Regulations of the PRC For Controlling The Registration of Enterprises As

Legal Persons Article 17: An enterprise as a legal person shall apply for
making changes in its registration whenever it changes its name,
residence, site, legal representative, economic nature, scope of business,
mode of operation, registered capital or duration of operation and
whenever it increases or disbands its branches.
Remark: The facility management claimed that the address update for its
business license was in process and the written explanation was provided
20 (Rev. 3/21/2014)
in this audit.
Publication: Acceptable Needs Improvement N/A Unable to Verify
1. Acceptable
Comments:No apparent violation
21 (Rev. 3/21/2014)

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Social Compliance Audit Report

Audit ID #: SHCJ23077-02 Audit Report Date: 29/07/2014

Factory ID No. ---

Compliance Audit Report

Document Completed By: Audit Entered By Title: Date Audit Entered:

2nd Follow-Up 3rd Follow-Up

Number of Factory Unable to Determine 101-250 1001-2500

Audit Report Date: 29/07/2014

Overall Rating: Needs Improvement Acceptable

Agreed to and Yes No

Access to Facility: Accepted Denied

If denied, explain: Predetermined Comments:

SKIP THIS SECTION – No longer applicable

Percentage of the 0% 31-40% 71-80%

Overall Assessment Process

Child Labor: Acceptable Needs Improvement N/A Unable to Verify

Current Child Labor:

Prison, Bonded, Indentured, Forced Labor:

Physical Abuse or Sexual Harassment:

Minimum Wage: Acceptable Needs Improvement N/A Unable to Verify

Overtime Wage: Acceptable Needs Improvement N/A Unable to Verify

Comments: No apparent violation

Overtime Hours: Acceptable Needs Improvement N/A Unable to Verify

6. Employees worked in excess of six consecutive days without a day of

2. OH.#8 Auditors noted that:

Social Benefits Acceptable Needs Improvement N/A Unable to Verify

Monitoring and Acceptable Needs Improvement N/A Unable to Verify

Insufficient or Inadequate Records:

Health and Safety: Acceptable Needs Improvement N/A Unable to Verify

Medical & First Aid:

Personal Protective Equipment (PPE):

Fire & Emergency Safety:

1. HS.FES. #78 Auditors noted that no fire service inspection certificate or

Machine & Electrical Safety:

Regulations on the Safety Management of Dangerous Chemicals, Article 15

Measures for the Administration of Environmental Surveillance Article 21 A

Remark: the facility management claimed that the environmental impact

Measures for Administration of Environmental Protection Acceptance Check

Remark: the facility management claimed that the environmental protection

Subcontracting: Acceptable Needs Improvement N/A Unable to Verify

1. Facility Name: Changzhou City Hongtai Printing Co., Ltd.

The Disney Code of Conduct: Manufacturers could not using subcontractors

Article 34 of Law of the People’s Republic of China on Prevention and Control

Regulations of the PRC For Controlling The Registration of Enterprises As

Publication: Acceptable Needs Improvement N/A Unable to Verify

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