Factory and labor conditions have been a hot topic in China for a while. It peaked last summer when product safety recalls focused the spotlight on China, and the recent implementation of the labor law has looked to push reforms into the system that protect industry.

Labor conditions and code of conduct have traditionally been a black hole for CSR reporting. Companies rarely highlight the fact that they have problems proactively, and if these issues are reported on it is because someone was caught doing something wrong.

So, when I was passed a link to the Project Kaleidescope report, I was intrigued as it was a chance to learn about these issues as the ongoing process they are, rather than as a moment in crisis. A partnership between McDonald’s, Disney, and Domini Social Investments, it follows a topic that has received a lot of attention over the last year in China:

Project Kaleidoscope was a collaborative effort initiated and guided by a multi-stakeholder Working Group consisting of representatives of the McDonald’s Corporation and The Walt Disney Company and other organizations that work on international labor issues. We, the Working Group, sought to improve working conditions in facilities that produce products for corporate supply chains. We believe this is not only a worthwhile objective in and of itself, but also a way to help protect against reputational risk and to enhance long-term shareholder value.

At 56 pages, this report offers a very comprehensive look into a process where real collaboration can occur. It is the best document I have seen to date on the issues, and how to proactively address them through a collaborative process.

So, if you are CSR manager, a purchasing manager, a risk analyst, HR specialist, etc I suggest you read this. These problems are not the problems or the responsibilities of a single department, so make sure that oyu read this and review it together.

full report can be downloaded here