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USC Enforces Guidelines for Vendors

09/18/07
USC’s strict standards for social responsibility result in 88 retail product licensees being dropped from the university’s rolls.
By James Grant
USC is taking steps to ensure fair labor conditions.

Photo/Dietmar Quistorf
USC has implemented a strict new requirement of vendors supplying USC licensed products for retail: Conduct an audit or lose your contract with the university.

The guidelines – among the strongest in the nation for higher education – are meant to ensure that companies with which the university does business are socially responsible in regards to workers’ rights.

The new standard was announced in a message to the USC community from Senior Vice President Todd R. Dickey and Michael L. Jackson, vice president of student affairs.

“USC has for many years had a workplace code of conduct that sets standards and controls to help ensure that the workers creating products bearing our name receive fair compensation and enjoy decent working conditions,” said Dickey and Jackson in their message. “Requiring these vendors to perform an audit as a condition of receiving a contract is one more step we are taking to show we mean business about fair labor conditions.”

Under the program, every USC licensee is required to submit to a third-party audit to monitor compliance with the USC Workplace Code of Conduct. In an outreach to vendors, USC provided a list of acceptable third-party auditors as well as a list of countries with which the university allows business operations.

Prior to implementing this new initiative, USC had about 250 vendors on its licensed retail product rolls – creating everything from USC-branded mustard (for tail-gate parties) to clothing at the USC bookstore. This past summer, the university dropped 88 vendors after the firms failed to sign agreements to produce independent audits to ensure decent conditions for workers creating the products.

The vendors still working with USC either already have supplied audits or pledged to complete them in a timely fashion.

USC officials underscored that they have no reason to believe that the 88 vendors dropped from the list are in non-compliance with USC’s labor code but that verification is needed.

Elizabeth Kennedy, director of Trademarks and Licensing, said: “Some of our vendors looked at their arrangements with USC and decided not to implement an audit. But we are very encouraged to have the participation of more than 120 licensees: We want every branded USC product to be created in fair labor conditions.”