World Federation of the Sporting Goods Industry CODE OF CONDUCT - GUIDING PRINCIPLES

INTRODUCTION
The World Federation of the Sporting Goods Industry (WFSGI) was formed in 1978 to promote the world's sporting activities, to standardize the size of equipment and the rules of sport, to improve the standards of quality for sporting goods and to promote fair trade in sporting goods internationally.

WFSGI currently consists of a diverse membership from over 50 countries including large international sports companies and small national companies; companies that serve as suppliers to other companies and companies that market directly to consumers. Also represented are the federations of the sporting industries of individual countries whose members contribute to a total of over 12,000 enterprises - employing many hundreds of thousands of people -, which are affiliated to WFSGI in some way.

The WFSGI's Committee on Ethics and Fair Trade (CEFT) developed a Model Code of Conduct in 1997 following consultation with its constituent federations and other members, and on going dialogue with international agencies and non-governmental organizations. The Code was designed as a model for companies committed to ensuring that their operations satisfy the highest ethical standards in the global marketplace, and since 1997 many members companies have introduced their own codes and are monitoring compliance with those codes using internal and external monitors. In view of developments in thinking and dialogue on international trade since 1997, and as a result of further dialogue with external organizations representing the rights of workers and children, WFSGI has decided to revise the Code in 2000.

PREAMBLE
The ideals of the WFSGI are the ideals of sport, and the organization seeks to promote fairness, honesty, mutual understanding and high ethical standards not only on the sports field but also in the factories which make sports products. WFSGI members recognize the important role they play in the global economy and their influence on the social and economic conditions under which sporting goods are manufactured and produced. That influence is exercised both through their actions as employers and far more profoundly through their decisions as customers of companies that serve as suppliers of goods and services.

The relationship between WFSGI member companies and their suppliers, and in turn any sub contractors involved in the production process, must be based on trust, mutual respect and common values. WFSGI is committed to fostering sports industry in which member companies actively build business partnerships with those who share the values of sport and take responsibility for making the values real through active engagement.

These Principles are based on the international labour standards outlined in the relevant Conventions of the International Labour Organization (ILO). WFSGI also acknowledges that companies operate under different legal, economic, social and cultural environments and these differences merit understanding and respect. Members must ensure that all activities related to the production of their goods at least comply with all relevant applicable mandatory legal requirements.

LEGAL COMPLIANCE
Member companies and the companies that produce goods for them ("employers") should operate in full compliance with national and local laws, rules and regulations relevant to their business operations.

WORKING CONDITIONS
Local industry standards should prevail when higher than the local legal requirements. In countries where the legal requirements fall short of internationally recognized standards, it is recommended that members should apply the following minimum criteria:

Forced Labour
Employers shall not use forced labor, whether in the form of prison labor, indentured labor, bonded labor, or otherwise. No employee can be compelled to work through force, the threat of force, or intimidation of any form.

Nondiscrimination
No person shall be subject to any discrimination in employment, included in hiring, salary, benefits, advancement, disciplines, termination or retirement, on the basis of gender, race, religion, age, disability, sexual orientation, nationality, political opinion, or social or ethnic origin.

Freedom of Association and Collective Bargaining
Employers shall recognize and respect the rights of workers to join workers organizations and associations of their own choosing, and to bargain collectively. Where the right to freedom of association and collective bargaining is restricted under law, the employer shall consider the development of parallel means for independent and free association and bargaining.

Wages
Employers recognize that wages are essential to meeting employees' basic needs and that employees should be fully compensated for all time worked. In all cases, wages must equal or exceed the minimum wage or the prevailing industry wage, whichever is higher.
In addition to their compensation for regular hours of work, employees shall be compensated for overtime hours at the premium rate legally required in the country of manufacture or, in those countries where such laws do not exist, at a rate exceeding their regular hourly compensation rate.

Hours of Work
Workers shall not be required, except in extraordinary business circumstances, to work in excess of 60 hours per week, including overtime, or the local legal requirement, whichever is less. Employees shall be entitled to at least one day off for every seven day period.

Benefits and Leave
Each employee will be provided all legally mandated benefits. These may include meals or meal subsidies; transportation or transportation subsidies; other cash allowances; health care; child care; emergency, pregnancy or sick leave; religious, or bereavement leave; and contributions for social security and other insurance, including life, health and employees compensation.

Child Labour
No person shall be employed at an age younger than 15 (or 14 where the law of the country of manufacture allows) or younger than the age for completing compulsory education in the country of manufacture where such age is higher than 15.

Health and Safety
A safe and hygienic working environment shall be provided, and occupational health and safety practices which prevent accidents and injury to health arising out of, linked with, or occurring in the course of work or as a result of the operation of employer facilities shall be promoted.
This includes protection from fire, accidents, and toxic substances. Lighting, heating and ventilation systems should be adequate. Employees should have access at all times to sanitary facilities, which should be adequate and clean.
The factory must have safety and health policies and procedures that are clearly communicated to the workers. These should apply to employee residential facilities, where provided by employers.

Harassment or Abuse
Every employee should be treated with respect and dignity and have the right to a workplace free from physical, sexual, psychological or verbal harassment or abuse.

ENVIRONMENT
Members should aim for progressive improvement in their environmental performance, not only in their own operations, but also in their relationships with partners, suppliers and subcontractors.
This includes:

• Integrating principles of sustainability into business decisions.
  
• Responsible use of natural resources such as land, soil, energy and water.
  
• Reducing, minimizing and avoiding pollution and waste including solid, liquid and atmospheric conditions.
  
• Designing and developing products, materials and technologies according to the principles of sustainability.