PPB September 2015

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into California and having annual world-
wide gross receipts of more than $100 mil-
lion (as defined in California’s Revenue and
Tax Code Section 25120) are subject to this
law. The California Franchise Tax Board has
provided a list of all companies required to
comply based on tax returns filed after
January 1, 2011, to the California attorney
general for enforcement purposes.
Thousands of companies have received a let-
ter from the attorney general in 2015 indi-
cating the commencement of their enforce-
ment program.
Under the UK Act, it is not yet certain
which companies have an obligation to com-
ply. While the California act clearly estab-
lished a threshold for compliance, the UK
Act has deferred the UK secretary of state’s
determination of the threshold (termed the
“total turnover,” equivalent to the gross
receipts concept in California law) to further
implementation. The UK Act could apply to
much smaller companies with as low as $50
million (£36 million) in total turnover, or
much larger, with as high as $1 billion.
Establish And Communicate Your
Values
Code Of Conduct
• Establish a code of conduct for your com-
pany and share your code with end buyers.
• Adopt the PPAI Code of Conduct. Make
that commitment in proposals and RFP
responses, post it on your website and
include a link to it in email signatures.
Proudly proclaim your organization’s val-
ues and make sure everyone in your
organization aligns day-to-day decisions
with those values. Find the code at
. Click on Inside PPAI, then
on Corporate Responsibility and on
Social Responsibility.
Vet Your Suppliers
Establish processes and procedures to
properly vet your suppliers.
• Determine where their strengths and
weaknesses are regarding corporate
responsibility.
• Require proof of compliance for any claims
they make.
• Stay away from firms which don’t know or
don’t care.
Understand The End Buyer’s Corporate
Responsibility Position
Research the end buyer’s mission state-
ments, corporate responsibility statements,
values statements, and community service
initiatives. This information can generally
be found on company websites, brochures
and catalogs.
Engage In The Conversation
The conversation begins with sharing the
basics of corporate responsibility. The intent
is to create awareness and demonstrate value.
Let buyers know that when regulations
exist—product safety laws related to chil-
dren’s products, for example—that compli-
ance is required by law. Help them to under-
stand that these regulations do not apply only
to promotional products. They should discuss
this with your competitors and with all of
their vendors.
Share with end buyers that you and your
organization take seriously the responsibility
entrusted to you for protecting their brand’s
reputation.
• Make clear that you have an obligation to
follow the law and protect their brand, and
you both have an obligation to protect the
ultimate users of the products.
• Working together to develop a workable
distribution plan inclusive of using the
right product for the right audience can
and will create a memorable, engaging
and long-lasting program, while at the
same time protecting their brand’s good
name.
Ask The Customer
Product responsibility is smart business.
Asking the right questions can mitigate risks
and help to avoid incidents in the future.
And, by asking the questions that no one else
is asking, you can differentiate yourself from
the competition.
Start with the questions that relate
directly to key product responsibility issues
like the Consumer Product Safety
Improvement Act (CPSIA) or California
Proposition 65:
• Who is the intended audience?
• Will or could the items be distributed to
children?
• How will the products be distributed?
• Where will the products be distributed?
• What kind of logo do you intend to use?
• Do you plan to distribute all the items at
once or keep some for future events?
• Do your preferred products have child-like
appeal or playful elements?
• Will the product serve the end buyer’s
intended purpose or end up in the trash?
Ask The Supplier
After gathering information from the
end buyer it is imperative to share this
information with the supplier and ask perti-
nent questions in order that they are able to
help you provide the right product for the
intended purpose.
• Do you consider the item to be a children’s
product? Why or why not?
• What regulations apply? Why or why not?
• Does the product comply with all applicable
regulatory requirements?
• How has compliance been determined?
• Request a copy of all related test reports.
• Request a copy of the General Conformity
Certificate (GCC) or Children’s Product
Certificate (CPC).
• Was all product made at the same factory?
• Was all product made from the same lot of
materials?
• Will the modifications (e.g. imprint inks)
you plan to make to the product affect the
product’s compliance?
• If a children’s product, will there be a track-
ing label? What does the tracking label
76 • PPB • SEPTEMBER 2015 THINK
Product responsibility is smart business. Asking the right questions can mitigate
risks and help to avoid incidents in the future. And, by asking the questions that
no one else is asking, you can differentiate yourself from the competition. “
”