This statement covers the fiscal year 2022

About Us

Founded in 1979, MGA Entertainment Inc. is one of the World’s fastest growing toy manufacturers. Our range of brands include L.O.L. Surprise!, NaNaNa!, Bratz and Rainbow High. MGA Entertainment Inc along with its subsidiary The Little Tikes Company, and affiliated companies (collectively “MGA”) has built a reputation of creating top consumer brands across a wide variety of consumer product categories, continually providing innovative play patterns that appeal to girls & boys of all ages.

MGA is headquartered in our corporate campus in Chatsworth, California, USA. Our products are produced primarily in China by a series of contract vendors, as well as our Little Tikes specialist owned and operated factories in California and Ohio, USA and Słupsk, Poland. MGA has 9 core manufacturing partners in China and Hong Kong SAR, along with 14 subsidiary facilities.

Our Policies & Risk Assessment

MGA strives to conduct its business in accordance with high ethical and business standards, and seeks to have its vendor, supplier and licensee partners (“Partners”) conduct themselves in the same manner. MGA wants consumers to have confidence that the products bearing the MGA name are manufactured in accordance with these principles and are not made under inhumane or exploitative conditions. Participation in this program and adherence to these principles is mandatory for all MGA Partners.

MGA Entertainment has developed a Code Of Business Practices Agreement that reflects the principles of established codes such as the International Council of Toy Industries (ICTI) Ethical Toy Program and amfori BSCI . On file, we have signed agreements with all and each of our contract vendors in China. These agreements include requirements for our objectives in issues such as:

1. Forced Labor– There will not be any use of forced, prison or indentured labor in the production of MGA products. All employment shall be on a voluntary basis.
2. Child Labor– The use of child labor is prohibited. No person shall be employed in a factory that produces or manufactures any MGA product at an age younger than sixteen, or younger than the age for completing compulsory education in the country of manufacture where such age is higher.
3. Working hours and compensation– Partners must comply with all applicable national and local laws, including minimum wage laws, or shall be consistent with the prevailing industry wage standards, if higher. Employee benefits shall be provided in accordance with national and local requirements. Normal working hours shall not exceed forty-eight (48) hours/week with one day off in every seven-day period. Overtime work in necessary business circumstances shall be conducted in such a way as to adequately compensate workers for all work performed beyond the normal working hour standard.
4. Health and Safety– Partners shall operate their facility in such a way as to ensure that all employees have a healthy and safe environment. MGA expects its Partners to promote awareness of health and safety issues surrounding fire prevention, emergency evacuation, proper use of safety equipment, basic fire-aid and the proper use and disposal of hazardous waste materials.
5. Abuse; Discrimination– Partners shall treat employees with dignity and respect. No employee shall be subjected to abuse, cruel or unusual disciplinary practices or discrimination in employment or hiring.
6. Communication of principles– Partners will communicate these principles to employees in an appropriate oral and written fashion and will undertake efforts to educate employees about these principles on a periodic basis.
7. Acceptance of Advantages– MGA will not tolerate Partners who do not conduct business in an ethical and proper manner or who use bribes, kickbacks or provide gifts to gain a competitive advantage with MGA.
8. Freedom of Association– MGA recognizes all employee’s rights to choose (or not) to affiliate with legally sanctioned organizations or associations without unlawful interference.
9. Compliance with Applicable Laws– Partners are required to comply with the national laws of the country in which they are conducting business, any local laws, regulations or standards applicable to their business and the industry standards which have been established in their location.

MGA requires a written statement from Partners, confirming compliance with our code. MGA requires that contract vendors are audited frequently, typically through third parties, to review working and living conditions, including audits of production records and practices of wage, hour and payroll information maintained by Partners, to review and ensure compliance with recognised international codes of conduct. Although MGA retains its rights to terminate its relationship if a vendor or business partner violates these principles, MGA will endeavour to work with Partners to promptly address any problems discovered in the course of its review or audit. MGA will require the implementation of an acceptable written corrective action plan for problems found during an audit. Failure to address items in the corrective action plan may also result in the termination of the business relationship.

Due Diligence & Key Performance Indicators

MGA strongly supports and endorses the industry efforts to improve factory working conditions. In an effort to bring consistency to this initiative MGA references the International Council of Toy Industries Ethical Toy Program (ICTI ETP) checklist, guidance and corrective action documents, as a basis for monitoring factories in the United States, and the amfori BSCI organization in Europe. MGA further expects its Partners to apply for and achieve social compliance certification by an approved third-party auditing company. While MGA typically accepts ICTI and BSCI certification by an approved auditing company, we retain the right to conduct our own on-site verification.

Throughout the year, we constantly update our list of approved factories, checking each is in compliance with recognised international codes of conduct or ensuring there is a plan to bring them into compliance. Our core contract vendor base all have up to date ICTI ETP certification or certification from another recognised audit scheme.

Training

To ensure adherence to the code of business principles, appropriate training is provided to both internal staff and external Partners as needed.

Closing Statement

MGA recognizes Modern Slavery is a crime and has a devastating impact on human lives, families, children and the vulnerable. As such, we are committed to ensuring the highest standards in our supply chain that do not tolerate modern slavery, human trafficking, or any form of servitude, forced or compulsory labor and ensuring that our Partners share this in this commitment.

Signed on behalf of the Officers and Management of MGA Entertainment, Inc.:

Elizabeth Risha

Elizabeth Risha

General Counsel