Duke University Code of Conduct for Licensees
(complete text, as issued on March 9, 1998)
        I       Introduction:  Duke University is committed to conducting
     its business affairs in a socially responsible manner consistent with
     its health care and educational mission.  Duke University expects
     nothing less of its licensees.  Therefore, Duke University licensees
     will conduct their business in a manner consistent with, and follow
     work place standards that adhere to, this Code of Conduct (the Code).
        II      Notice:  The following Code of Conduct shall apply to all
     licensees of Duke University.  Throughout this Code the term
     "licensee" shall include all persons or entities who have entered a
     written Licensing Agreement with The Collegiate  Licensing Company
     (CLC) to manufacture products bearing the name, trademarks and/or
     images of Duke University.  Additionally, this Code shall apply to all
     of the licensee's contractors.  Throughout this Code the term
     "contractor" shall include each contractor, subcontractor, vendor, or
     manufacturer that is engaged in a manufacturing process that results
     in a finished product for the consumer.  "Manufacturing process" shall
     include assembly and packaging.
        As a condition of being permitted to produce and/or sell licensed
     products bearing the name, trademarks and/or images of Duke
     University, each licensee must comply with this Code and ensure that
     its contractors comply with this Code.  This Code constitutes a
     requirement for licensees pursuant to Paragraph 24 of the Licensing
     Agreement.  Accordingly, all licensees and contractors are required to
     adhere to this Code within 6 months.
     III        Remediation:  If Duke University determines that any
     licensee or contractor has failed to remedy a violation of this Code,
     then Duke University will consult with the licensee to examine the
     issues and determine the appropriate  measures to be taken.  The
     remedy will, at a minimum, include taking all steps necessary to
     correct such violations including, and without limitation, paying all
     applicable back wages, or any portion of them, found due to workers
     who manufactured the licensed articles.  If consultation and agreed
     upon measures fail to adequately resolve the violations within a
     specified time period, then Duke University and licensee will
     implement a corrective action plan on terms acceptable to Duke
     University.  Duke University reserves the right to terminate its
     relationship with any licensee that continues to conduct its business
     in violation of the corrective action plan.  In such event, Duke
     University will provide the licensee with 120 days written notice.
     IV Standards:  Duke University seeks licensees who take a leadership
     role on these issues and, to the extent practical, exceed the
     standards in this Code.  Duke University licensees must operate work
     places, and ensure that their contractors operate work places, that
     adhere to the following minimum standards and practices:
        A.      Legal Compliance:  Duke University licensees must comply
     with all applicable legal requirements in conducting business related
     to, or involving, the production or sale of products or materials
     bearing the name, trademarks and/or images of Duke University.  Where
     there are differences or conflicts with this Code and the applicable
     laws of the country of manufacture, the higher standard shall prevail.
        B.      Environmental Compliance:  Licensees will be committed to
     the protection and preservation of the global environment and the
     world's finite resources, and conduct business accordingly.
        C.      Ethical Principles:  Licensees will be committed in the
     conduct of their business to a set of ethical standards which include,
     but are by no means limited to honesty, integrity, trustworthiness,
     and respect for the unique intrinsic value of each human being.
        D.      Employment Standards:  Duke University will only do
     business with licensees whose workers are present at work voluntarily,
     not at undue risk of physical harm, fairly compensated and not
     exploited in any way.  In addition, the following specific guidelines
     must be followed:
                1.      Wages and Benefits: Licensees recognize that wages
     are essential to meeting employees' basic needs.  Licensees must
     provide wages and benefits which comply with all applicable laws and
     regulations, and which match or exceed the local prevailing wages and
     benefits in the relevant industry.
                2.      Working Hours: Except in extraordinary
     circumstances, employees shall (i) not be required to work more than
     the lesser of (a) 48 hours per week and 12 hours overtime or (b) the
     limits on regular and overtime hours allowed by the law of the country
     of manufacture and (ii) be entitled to at least one day off in every
     7-day period.
                3.      Overtime Compensation: In addition to their
     compensation for regular hours of work, employees shall be compensated
     for overtime hours at such a premium rate as is legally required in
     that country, but not less than at a rate equal to their regular
     hourly compensation rate.
                4.      Child Labor:  No person shall be employed at an age
     younger than 15 (or 14, where, consistent with International Labor
     Organization practices for developing countries, the law of the
     country of manufacture allows such exception).  Where the age for
     completing compulsory education is higher than the standard for the
     minimum age of employment stated above, the higher age for completing
     compulsory education shall apply to this section.  Licensees agree to
     work with governmental, human rights, and non-governmental
     organizations, as determined by Duke University and licensee,  to
     minimize the negative impact on any child released from employment as
     a result of the enforcement of this Code.
                5.      Forced Labor:  There shall not be any use of forced
     labor, whether in the form of prison labor, indentured labor, bonded
     labor or otherwise.
                6.      Health and Safety:  Licensees must provide workers
     with a safe and healthy work environment.  If residential facilities
     are provided to workers, they must be safe and healthy facilities.
                7.      Nondiscrimination: Licensees shall employ
     individuals solely on the basis of their ability to perform the job.
                8.      Harassment or Abuse:  Every employee shall be
     treated with dignity and respect.  No employee shall be subject to any
     physical, sexual, psychological or verbal harassment or abuse.
     Licensees will not use or tolerate any form of corporal punishment.
                9.      Freedom of Association: Licensees shall recognize
     and respect the right of employees to freedom of association and
     collective bargaining.
                10.     Labor Standards Environment: In countries where law
     or practice conflicts with these labor standards, licensees agree to
     work with governmental, human rights, labor and business organizations
     to achieve full compliance with these standards.  Licensees further
     agree to refrain from any actions that would diminish the protections
     of these labor standards.  In addition to all other rights under the
     Licensing Agreement, Duke reserves the right to refuse renewal of
     Licensing Agreements for goods made in countries where: (a) progress
     toward implementation of the employment standards in the Code is no
     longer being made; and (b) compliance with the employment standards in
     the Code is deemed impossible.  Duke University shall make such
     determination based upon examination of reports from governmental,
     human rights, labor and business organizations and after consultation
     with the relevant licensee.
     V  Compliance and Disclosure:  Sixty (60) days prior to the date of
     the annual licensee renewal, licensee shall provide the following to
     Duke University:
        A.      the company names, owners and/or officers, addresses, phone
     numbers, e-mail addresses and nature of the business association for
     all of the licensees' contractors and manufacturing plants which are
     involved in the manufacturing process of items which bear, or will
     bear, the name, trademarks and/or images of Duke University;
        B.      written assurances that it and its contractors adhere to
     this Code (except that in the initial phase-in of the Code, licensee
     must provide such written assurances within 6 months of receipt of
     this Code); and
        C.      a summary of the steps taken, and/or difficulties
     encountered, during the preceding year in implementing and enforcing
     this Code at each site.
        Note:   Licensee shall immediately report to Duke University when
     changes occur that materially affect the application of these labor
     standards, such as the selection of a new factory.
     VI Verification:  It shall be the responsibility of each Duke
     University licensee to ensure its compliance with this Code, and to
     verify that its contractors are in compliance with this Code.
        A.      Internal and External Monitoring:  It is recognized that
     clearly defined methods of internal monitoring, training and
     independent external monitoring have not yet been determined by Duke
     University and licensee.  Duke University and licensee agree to
     undertake efforts to determine and clearly define the obligations
     associated with the development of adequate training and monitoring
     methods, including establishment of a reasonable time frame within
     which compliance measures, including internal monitoring and
     independent external monitoring, will begin.   Duke University seeks
     to participate in the methods developed and agreed to by the White
     House Apparel Industry Partnership, or other selected group, provided
     that, among other things, there is a demonstrated commitment to
     independent external monitoring. In this process, Duke University and
     licensee are committed to the principles of:
                1.      establishing clear evaluation guidelines and
                2.      creating a database of records and information
     required to determine compliance with this Code,
                3.      creating an informed workforce, including
     communicating this Code to workers in their own languages, both orally
     and by posting the Code in a prominent place at the factories,
                4.      access, on a confidential basis, to the
     manufacturing facilities and information required to determine
     compliance with this Code by independent external monitors selected by
     Duke University and agreed to with the licensee,
                5.      conducting periodic announced and unannounced
     visits, on a confidential basis, of an appropriate sampling of company
     factories and facilities of contractors to survey compliance with this
                6.      opportunity for employees to report noncompliance
     with this Code in a manner that ensures they will not suffer
     retaliation for doing so,
                7.      establishing relationships with labor, human
     rights, religious and other local institutions, and
                8.      publicizing to consumers the content of this Code
     and the compliance by site (excluding proprietary information) with
     this Code by licensees.

Jim Wilkerson
Director of Trademark Licensing and Stores Operations
Duke University, Durham, North Carolina 27708-l0850
fax: 919 684-6411
email: Jim.Wilkerson@duke.edu

Human Rights for Workers:
Robert A. Senser, editor

Copyright 1998
hrfw@senser.com. (Send e-mail)

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