Sustainability 
Glossary Of Responsible Sourcing Terms
OPENING PARAGRAPH:
To establish a baseline understanding of responsible sourcing and other relevant phrases for compliance and corporate responsibility efforts (inclusive of social, environmental and product responsibility) in the promotional products industry, PPAI has assembled the following list of commonly used terms and definitions, as well as common standards and certifying agencies.
A
Acceptable Risk
The level of loss or risk of injury considered to be tolerable for a specific user group based on societal values and economic cost versus benefit.
Accreditation
Recognition by an independent accrediting body that a certifying body adheres to specific standards.
Age Grading
Method of ensuring that products are appropriate and safe for particular stages of a child’s development. Age grading should determine the physical and mental ability needed in order to play with and understand a product.
ASTM / American Society for Testing and Materials
Founded in 1898, ASTM is one of the oldest standards organizations and a globally recognized leader in the development and delivery of international voluntary consensus standards. More than 12,000 ASTM standards are used around the world to improve product quality, enhance safety and facilitate market access and trade, as well as build consumer confidence.
All toys sold in the United States must meet the safety requirements of ASTM F963, Standard Consumer Safety Specification for Toy Safety, which incorporates relevant safety measures already required under federal law and includes additional guidelines and test methods to prevent injuries from choking, sharp edges and other potential hazards. This is part of the requirements under Section 106 of the Consumer Product Safety Improvement Act of 2008 (see CPSIA entry). The most recently updated version (2023) applies to toys manufactured after April 20, 2024.
Audit
An audit is an evidence-gathering process to evaluate how well audit criteria are being met. Audits must be objective, impartial and independent, and the audit process must be both systematic and documented. Audits can be either internal or external.
Audit Report
Formal documentation by an auditor, based on the results of the audit summary. Includes scope, findings, recommendations and proposed corrective action plans.
Audit Summary
Quantified documentation of the concerns and issues uncovered during an audit.
B
Basic Standard
A basic standard has a broad-ranging effect in a particular field. For example, a standard for metals may affect a range of products from cars to screws.
Better Cotton
The Better Cotton Initiative (aka BCI or Better Cotton) is the largest cotton sustainability program in the world. This nonprofit, multistakeholder governance group promotes standards in cotton farming and practices across 22 countries, accounting for nearly a quarter of global cotton production.
Bill of Lading
A document provided by a transportation company to a shipper that recounts the quantity and type of good(s) being carried.
The bluesign system is a globally recognized supply chain management protocol and network designed to eliminate harmful substances in the textile manufacturing process from start to finish. The organization sets control standards for environmentally friendly and safe production, and its experts independently verify environmental claims on products and business practices to grant labels indicating that a product meets strict environmental and worker safety standards.
BPA / Bisphenol A
BPA is a chemical used primarily in polycarbonate material, as well as epoxy resins and polysulfide materials. The U.S. Food and Drug Administration has issued regulations that prohibit the use of BPA in baby bottles and caps. Some states are pursuing bans of BPA in general-use food containers, water bottles and the linings of metal bottles/cans. (See Estrogenic Properties entry.)
Business Partners
Manufacturers, suppliers, service providers, shippers, intermediaries and others that each have a stake in the success of the business and in the brand’s reputation.
C
CAA / Circular Action Alliance
As of November 2024, CAA is the only producer responsibility organization approved to implement U.S. EPR laws for paper and packaging (see EPR, PRO entries).
Cadmium
A metal found in toys and in children’s jewelry (chemical symbol CD). New regulations regarding cadmium are expected to be enacted soon. Some states have already passed laws regarding the use of cadmium, primarily in children’s jewelry. European standards limit total cadmium to 100 ppm.
California Proposition 65 / Prop 65
Officially known as the Safe Drinking Water and Toxic Enforcement Act of 1986, California Proposition 65 requires businesses to warn Californians when exposure to toxic chemicals known to the state may cause cancer, birth defects or other reproductive harm. Businesses are required to provide a “clear and reasonable warning” via prescribed labels on product or product packaging prior to Californians using products that may expose them to one of the listed chemicals. As of August 31, 2018, a similar warning must be made prior to a purchase via a catalog or website.
In 2024, the short form label requirements were amended to 1. require each label to name at least one chemical for each type of exposure pathway (cancer or reproductive harm) that is present in the product, and 2. permit two alternatives to highlight the California-specific nature of the warning (i.e., the phrases “CA WARNING:” or “CALIFORNIA WARNING:” in bold print).
CAP / Corrective Action Plan
Upon completion of a factory assessment and the discovery of an infraction against stated social responsibility or regulatory requirements, the factory should receive a violations summary detailing findings and a CAP listing essential corrective actions and the expected time frame for their implementation.
Carbon Footprint
The total amount of greenhouse gases, measured in carbon dioxide equivalents, that an individual, organization, event or product produces directly or indirectly. Largely emitted due to the consumption of fossil fuels, these gases contribute to climate change.
Carbon Offset
A unit of carbon dioxide equivalent (see CO2e entry), that is reduced, avoided or sequestered to compensate for emissions occurring elsewhere.
CBP / Customs and Border Protection
This federal agency enforces laws and regulations relating to trade into and out of the U.S. Visit cbp.gov/trade for more information.
CCPSA / Canada Consumer Product Safety Act
The CCPSA is a Canadian law intended to protect consumers by addressing or preventing exposure to dangerous consumer products. The CCPSA applies to a wide variety of consumer products, including children’s toys, household products and sporting goods. Key provisions include incident reporting, document maintenance, general prohibitions and packaging and labeling requirements. Anyone who manufactures, imports, advertises or sells a consumer product in Canada must comply with all applicable requirements of the CCPSA and its regulations.
Certification
The process of providing assurance that a product conforms to a standard or specification or that an organization and/or individual is competent to perform a certain task.
Certification of Conformity / Certification Marks / Marks of Conformity
Document or seal/logo issued under the rules of a certification system, providing confidence that a duly identified product, process or service is in conformity with a specific standard or other normative document.
CFR / Code of Federal Regulations
A collection of rules published in the U.S. Federal Register by the executive departments and federal agencies. Available online at ecfr.gov.
Child
For labor purposes, any individual person under 15 years of age, unless the minimum age for work is higher by local law. For children’s products, 12 years of age and younger.
Child Labor
Typically refers to the illegal or inhumane use of children that generally do not meet the minimum age provisions of applicable laws and regulations for the purpose of performing work in a business.
Child Care Article
A consumer product designed or intended by the manufacturer to facilitate sleep for or the feeding of children ages 3 and younger, or to help such children with sucking or teething.
Children’s Product
The CPSIA defines a children’s product as designed and intended primarily for use by a child 12 years of age and younger. Recent clarifications stress not just the word “primarily” but also “for use.” Other factors to consider:
- Whether the product is represented in its packaging, display, promotion or advertising as appropriate for use by children 12 or younger.
- Whether the product is commonly recognized by consumers as intended for use by a child 12 or younger.
Children’s Toy
A consumer product designed or intended by the manufacturer for a child 12 years of age or younger for use by the child when the child plays.
Choking Hazard
The risk associated with a children’s product or toy having detachable parts that could be choked on by a child. Consumer product safety law bans toys and other articles that are intended for use by children 3 years of age or younger and that are or have small parts, or that produce small parts when broken. Toys and games that are or contain small parts and that are intended for use by children 3-6 years of age must be labeled to warn consumers not to purchase them for children younger than 3 because those children could choke on the small parts. The small parts ban is codified at 16 CFR part 1501.
CO2e / Carbon Dioxide Equivalent
CO2e is the standard unit for measuring carbon footprints. The idea is to express the impact of each different greenhouse gas in terms of the amount of CO2 that would create the same amount of warming. The main greenhouse gases are water vapor (H2O), carbon dioxide (CO2), nitrous oxide (N2O), methane (CH4) and ozone (O3).
COC / Code of Conduct
A Code of Conduct is a statement of principles that outlines what a company is doing to meet the expectations of the end buyer for product, social and environmental assurances. It is what a supplier would hand to a distributor and what a distributor would hand to an end buyer when an end buyer expresses those expectations.
Code
Business jargon/shorthand used in place of code of conduct.
Collective Bargaining Agreement
An agreement/contract in writing, between a trade union/employee/group of employees and employer/organization that specifies the terms and conditions under which work will be performed.
Commercial General Liability
Insurance coverage intended to protect a business against lawsuits and claims of bodily injury, property damage or advertising injury (false advertising).
Compliance Obligation
A requirement set forth by the law or a standard. Mandatory obligations are based on laws and regulations. Voluntary obligations are based on contracts, ethics, industry standards, community standards and codes of conduct.
Compliance Officer
The primary person responsible for objectively managing, monitoring, reviewing and evaluating an organization’s compliance program.
Compliance Team
A cross-functional team that includes essential staff members from across the organization assembled to assist the organization’s compliance officer with implementation and continuous monitoring.
Component Testing
Manufacturers can rely on test results or certification from a component part supplier, and component testing can reduce redundant testing. For example, if an identical button is used on five styles of children’s sweaters, the button can be tested once as a component rather than tested with each of the five styles of sweaters. Component testing can also identify test failures early on by testing a component before it is applied to the finished product and tested at that later stage.
Component testing may offer a marketing advantage to component part suppliers who can promote the sale of pre-certified, CPSIA-compliant products. It is critical, however, to have reliable traceability to the finished product and to ensure that the manufacturing process does not contaminate the component or final product.
Composite Testing
Composite testing is allowed for paints and substrates for lead and phthalates testing. You may test a combination of component parts as long as test procedures are followed to ensure that no failure to comply with applicable limits will go undetected.
Conformance
Conformance is a synonym of conformity used in the regulatory context when discussing how well a product or service meets a stated mandatory or voluntary obligation or standard.
Conformity Assessment
Process of determining whether an entity or item meets the requirements of a standard.
Conscious Capitalism
An economic and political philosophy stating that businesses should operate ethically by making choices that serve the interests of all stakeholders, including employees, customers, communities, investors and suppliers. See consciouscapitalism.org for more information.
Consumer
An individual member of the general public that uses and/or purchases a product or service.
Consumer Product
Any article, or component part thereof, produced or distributed for sale to a consumer for use in or around a permanent or temporary household or residence, a school, in recreation or otherwise; or for the personal use, consumption or enjoyment of a consumer in or around a permanent or temporary household or residence, a school, in recreation or otherwise.
Corrective Action
An action intended to improve a process, mitigate risk or remove the potential for harm.
CPC / Children’s Product Certificate
All children’s products to be sold in the U.S. must have this statement with testing results from a CPSC-recognized lab (see list at cpsc.gov/labsearch) stating that the product meets or conforms with federal safety rules, bans, standards or regulations. Every domestic manufacturer or importer of a children’s toy must issue a CPC (previously referred to as a Certificate of Conformity/COC), as required by the CPSIA, and it must include seven elements:
- Identification of the product
- Citation to children’s product safety rule
- Identification of responsible firm
- Contact information for individual maintaining records
- Date and place of manufacture
- Date and place of testing
- Identification of testing firm
CPSA / Consumer Product Safety Act
This umbrella statute established the CPSC, defines the agency’s basic authority and authorizes the agency to develop standards and bans. It also gives CPSC the authority to pursue recalls and to ban products under certain circumstances.
CPSC / Consumer Product Safety Commission
The U.S. Consumer Product Safety Commission is the government agency charged with protecting the public from unreasonable risks of serious injury or death from thousands of types of consumer products under the agency’s jurisdiction.
CPSC Import Shipment Tracking Tool
This tool, online at cpsc.gov/Imports/CPSC-Import-Shipment-Tracking-Tool, will allow any entity with an entry number (brokers, importers, etc.) to see where their entry is in the data review and examination process.
CPSIA / Consumer Product Safety Improvement Act
The Consumer Product Safety Improvement Act amended the CPSA to allow the CPSC to better regulate the safety of products made and imported for sale in the U.S. Signed into law in 2008, this landmark consumer product safety law provided CPSC with significant new regulatory and enforcement tools and defines the term “children’s products”
CPSIA includes provisions addressing lead, phthalates, toy safety, durable infant or toddler products, third-party testing and certification, tracking labels, imports, civil and criminal penalties and more, as well as SaferProducts.gov, a searchable public database of reports of harm. CPSIA also increased the number of authorized CPSC commissioners from three to five.
CSR / Corporate Social Responsibility
Corporate social responsibility refers to a company considering its social and environmental impact in addition to economic performance. CSR is also known as corporate citizenship, corporate accountability or corporate responsibility. CSR covers four categories: environmental, philanthropic, ethical and economic responsibility.
CTPAT / Customs Trade Partnership Against Terrorism
This voluntary program under CBP is intended to increase security in global supply chains by mitigating risk. When an entity joins CTPAT, an agreement is made to work with CBP to identify security gaps and implement specific security measures and best practices. CTPAT members are considered to be low risk and are therefore less likely to be examined at a U.S. port of entry.
D
Data Requirement Standard
Refers to the required provision of necessary values/information for a product or service.
Decorator
Anyone who embellishes a product through methods including but not limited to screen printing, painting, laser engraving and embroidery.
DEI / Diversity, Equity & Inclusion
Diversity, Equity & Inclusion is a set of values and practices that aim to create a more inclusive and welcoming environment for people from all backgrounds.
- Diversity means representation of varied identities and differences, both collectively and individually. It’s more than just ethnicity, gender or other demographics.
- Equity refers to the assurance of fair treatment and equal opportunity for every person. It acknowledges that people do not all start from the same place due to barriers that have prevented the full participation of historically underserved and underrepresented populations.
- Inclusion means cultivating an environment where every person is valued and has the opportunity to contribute to the success of the business and the people around them.
DHS / Department of Homeland Security
A U.S. cabinet-level federal department that is charged with public safety functions that include Immigration and Customs Enforcement and Trade and Economic Security.
Discrimination
Unfavorable treatment of a group or individual compared to treatment of other groups or individuals in hiring and employment practices on the basis of age, nationality, race, religion, social status, ethnic origin, sex, gender identity or disability. Consult the U.S. Department of Labor for more details.
Distributor
In the promotional products industry, distributors develop ideas for using promotional products in a marketing or promotional campaign, purchase such items from suppliers and manage the decoration/customization process, then sell them to advertisers/customers, who distribute or sell them to end users.
Documented Information
The information needed to verify compliance with standards and regulations.
E
Eco-friendly
Eco-friendly is an umbrella term indicating that a product or process is not harmful to the environment. However, the FTC (U.S.) and Canada have strict guidelines on such claims (see Green Guides entry), requiring an explanation of how or why a product is environmentally responsible. “Eco-friendly” and other vague descriptors are considered greenwashing if not accompanied by specific data to back up the claim.
EcoVadis provides business sustainability ratings to companies worldwide. It helps companies manage ESG risk and compliance and meet corporate sustainability goals using international sustainability standards such as the United Nations Global Compact and ISO 26000.
EMS / Environmental Management System
A set of interrelated or interacting elements (could also be software or a service provider) used by an organization in an effort to conduct and manage its environmental responsibility policy.
Endocrine Disruptor
Any chemical that may interfere with the endocrine system and have negative developmental and reproductive effects in humans. Chemicals such as BPA that are thought to be possible endocrine disruptors are often found in plastic bottles or metal food containers.
Environment
An organization’s surroundings inclusive of water, air, land, people, animals, plants and other natural resources.
Environmental Impact
Results of a process (such as manufacturing or shipping) that are considered to change the environment either positively or negatively.
Environmental Management
Refers to how an organization manages the impact of its processes on the environment.
Environmental Responsibility
The obligation an organization has to conduct operations in a way that does not harm the environment.
Environmental Sustainability
Organizational processes and procedures that take into account long-term benefits or reduction of harm to the environment.
EPA / Environmental Protection Agency
An independent agency of the U.S. government responsible for monitoring water quality, air quality and other environmental factors, as well as enforcing federal regulations governing hazardous chemicals.
EPR / Extended Producer Responsibility
An environmental policy approach in which a producer’s responsibility for a product is extended to the post-consumer stage of a product’s life cycle. This can include both financial responsibility and operational responsibility. Most EPR programs require producers to join a producer responsibility organization (see PRO entry) that develops a plan and manages the disposal of materials.
- S.: As of November 2024, five states have passed legislation on EPR for packaging – California, Colorado, Maine, Minnesota and Oregon – and 10 more have introduced bills. California has passed legislation on EPR for textiles as well.
- Canada: Canada’s EPR laws for packaging require obligated producers to join PROs, report packaging data and pay fees to sell their products in most provinces. Each province manages its own program.
ESG / Environmental, Social & Governance
ESG stands for environmental, social and governance, and it is a framework for evaluating an organization’s business practices and performance on various sustainability and ethical issues. It also provides a way to measure business risks and opportunities. Corporate ESG efforts include measures to reduce emissions and waste, as well as to recruit a diverse and inclusive workforce.
ESG ratings help stakeholders understand how well a company is managing sustainability risks and opportunities, and this information can help guide companies to broaden their focus beyond financial performance and emphasize the importance of environmental and social responsibility.
Estrogenic Properties
Chemical characteristics found in some plastics, such as BPA, that imitate the hormone estrogen. Chemicals with estrogenic properties are endocrine disruptors.
EU REACH
The European Union REACH regulation – aka The Registration, Evaluation, Authorisation and Restriction of Chemicals – took effect in 2007 and aims to protect human health and the environment from the risks of chemicals in everyday products. REACH puts the burden of proof on companies to identify and manage risks linked to the substances they manufacture and market in the EU. REACH is administered by ECHA, the European Chemicals Agency.
F
The Fair Labor Association is a nonprofit collaborative effort of universities, civil society organizations, and businesses dedicated to improving working conditions in factories around the world and promoting adherence to international and national labor laws.
Fair Trade
Fair trade refers to a way of producing, buying and selling goods that ensures decent working conditions and a fair wage/price for the people who produce them. The fair trade movement encompasses various standards, certifications and organizations that promote improved social and environmental standards, particularly in developing nations.
FDA / Food and Drug Administration
A U.S. federal agency in the Department of Health and Human Services, established to regulate the release of new foods and health-related products, such as lip balms and sunscreens, as well as drinkware and tableware.
FFA / Flammable Fabrics Act
This U.S. federal law enables CPSC to issue mandatory flammability standards and requires various flammability tests for clothing, including the Standard for the Flammability of Clothing Textiles and the Standard for the Flammability of Children’s Sleepwear.
FHSA / Federal Hazardous Substances Act
This U.S. law that requires that certain hazardous household products (“hazardous substances”) bear cautionary labeling to alert consumers to the potential hazards that those products present and to inform them of the measures they need to protect themselves from those hazards.
First-party Certification
An individual or organization providing the good or service offers assurance that it meets certain claims (as opposed to third-party certification by an independent organization).
FLETF / Forced Labor Enforcement Task Force
An interagency team led by the DHS to enforce the prohibition on importation of goods into the U.S. that were made with forced labor.
Forced Labor (Slavery)
Work performed by an individual or group of individuals that have not chosen to perform the tasks of their own free will. Often performed under the threat of punishment and also referred to as compulsory labor. (See UFLPA entry.)
Freedom of Association
The rights of employees to associate, organize and bargain collectively without fear of reprisal or interference.
FTC / Federal Trade Commission
The FTC is a federal agency that deals with consumer protection and competition issues in broad sectors of the U.S. economy. Established in 1914, its mission is protecting consumers from deceptive or unfair business practices and from unfair methods of competition through law enforcement, advocacy, research and education.
G
GCC / General Certificate of Conformity
U.S. domestic manufacturers and importers of certain general-use products (i.e., non-children’s products) are required to certify in writing via GCC, based on testing or a reasonable testing program, that their products comply with applicable product safety rules. GCCs vouch that a product complies with a certain requirement and may or may not involve testing by third-party laboratories.
Governance
Policies and procedures established to maintain and monitor the implementation of a corporate social responsibility program.
GRAS / Generally Recognized as Safe
GRAS is a designation given by the FDA to substances that are considered safe for their intended use in food. The FDA considers substances to be GRAS if:
- Experts agree that the substance is safe under the conditions of its intended use.
- The substance has been used in food for a long time without known harmful effects.
Last updated in 2012, the FTC’s guidance for the use of environmental marketing claims is designed to help marketers avoid making environmental marketing claims that are unfair or deceptive (see Greenwashing entry).
Green Marketing
Touting the environmental benefits of what you’re selling. The FTC “Green Guides” are designed to help marketers avoid making environmental claims that mislead consumers (see Greenwashing entry).
Greenhouse Gases
Greenhouse gases in the atmosphere trap heat and raise the Earth’s surface temperature. The five main greenhouse gases are: water vapor (H2O), carbon dioxide (CO2), nitrous oxide (N2O), methane (CH4) and ozone (O3). Carbon dioxide is the primary greenhouse gas emitted through human activities and accounted for 80% of all U.S. greenhouse gas emissions from human activities in 2022, according to the EPA.
Greenwashing
Greenwashing is a blanket term for unsupported claims about the environmental benefits of a company’s products or services. In 2024, the Canadian government amended the country’s Competition Act to put the burden of proof on businesses to ensure they can validate claims of benefiting the environment. It specifically outlaws public claims about a product’s environmental benefits that cannot be backed up by testing.
H
Harm
Injury or negative impact to a person’s mental or physical health, damage to product or property or physical loss.
Hazard
A potential source for causing harm.
Hours and Wages Regulations
Applicable wage, work hours, hiring, benefits and overtime laws and regulations.
Human Rights
Basic rights afforded to all human beings regardless of status, race, nationality, gender, color, religion, ethnicity or socioeconomic status.
Human Trafficking
Using force, deception, threats and other coercive tactics to recruit, harbor or take receipt of receipt of individual persons for the purpose of exploitation (see Forced Labor entry).
I
Illinois Lead Poisoning Prevention Act
This state-level labeling law regulates lead levels in items for both children and adults. If the surface coating or substrate material of an adult item exceeds 600 ppm, the warning label is required. For children’s products, the product requires a warning label if the total lead content of an applicable component is more than 40 ppm but less than 600 ppm.
ILO / International Labour Organization
This United Nations agency brings together representatives of governments, employers and workers to jointly shape policies and programs that promote social justice and internationally recognized human and labor rights and to develop cooperation in intellectual, scientific, technological and economic activity.
Injury
Harm or damage that has a negative impact to a person’s mental or physical health, through pain, suffering, disfigurement or other affliction.
Inspection
Review or careful examination of processes, procedures and documentation.
Interface Standards
Agreed-upon specifications or protocols that define how different components or systems interact with each other (promoting compatibility/interoperability of products).
Internal Audit
An objective review and analysis of an organization’s own operational activities, policies, procedures and structure. Also referred to as first-party audits.
ISO / International Organization for Standardization
ISO is a global, nongovernmental membership organization that promotes the development of voluntary standards and related activities to facilitate the international exchange of goods and services, and to develop cooperation in intellectual, scientific, technological and economic activity.
- ISO 14001 – This environmental responsibility standard provides guidance to all types of organizations, regardless of size, when implementing environmentally responsible policies and procedures.
- ISO 26000 – This social responsibility standard provides guidance to all types of organizations, regardless of size, when implementing socially responsible policies and procedures.
K
This international treaty, which took effect in 2005, extends the 1992 United Nations Framework Convention on Climate Change (UNFCCC) by committing industrialized countries and economies in transition to limit and reduce emissions in accordance with agreed individual targets. The U.S. signed the Kyoto Protocol in 1998, but Congress never ratified it.
In 2001, the U.S. withdrew its signature because it was thought unfair to require only industrialized nations to limit emissions. However, the Kyoto Protocol laid the groundwork for the more inclusive Paris Agreement, which the U.S. formally rejoined in 2021 (see Paris Agreement entry).
L
Labor Abuse
Any form of physical or verbal harassment used to discipline employees, or forced labor, including indentured, prison, bonded or slave labor (see Forced Labor, UFLPA entries).
LCA / Life Cycle Assessment
A tool for the systematic evaluation of the environmental aspects of a product or service system through all stages of a product’s life cycle.
Lead
A soft, malleable heavy metal. In certain contact degrees, lead is a potent neurotoxin for animals and humans. Lead has been regulated in paint and similar surface coatings since the 1970s. The CPSIA introduced a lead content limit on paint and accessible substrate materials of children’s products and toys in 2008.
LHAMA / Labeling of Hazardous Art Materials Act
This U.S. federal law requires that all art materials be reviewed to determine the potential for causing a chronic hazard and labeled if determined to be potentially dangerous.
Living Wage
The amount of compensation that will afford a normal standard of living for an employee and their family.
M
Management System
Processes used by organizations to develop and adhere to policies and procedures.
Mandatory
Required by law, rule or other statute.
Mandatory Standards
A standard that requires compliance by law, regulation, government statute policy or contractual agreement.
Manufacturer
Any company that manufactures, produces or assembles a promotional product. “Manufacturer” also includes firms that import a consumer product into the United States market or distributors who import directly from non-U.S. manufacturers.
Manufacturer’s Self-declaration of Conformity
A manufacturer or supplier attests to the fact that his or her product meets one or more standards. This is one method of ensuring that products are appropriate and safe for particular stages of a child’s development. Age grading should determine the physical and mental ability needed in order to play with and understand a product (see Age Grading entry).
Mitigate
To reduce or lessen the impact or severity of an incident.
Monitor
To watch, observe, check or keep continuous record.
N
Nearshoring
The practice of transferring a company’s manufacturing or other supply chain operations from a distant country (often China) to a country closer to its main location. Nearshoring is a trending response to offshoring challenges such as UFLPA and supply chain disruptions brought on by the COVID-19 pandemic and labor strikes (see Offshoring, UFLPA entries). Potential benefits include shorter shipping times, cost savings and reduced language barriers.
NGO / Nongovernmental Organization
Also referred to as civil society organizations, NGOs are not-for-profit organizations usually set up by volunteer citizens for a social or political purpose at a local, national or international level.
Noncompliant
The deliberate failure of an organization or product to meet laws, regulations, statutes or accepted standards.
Nonconformance
Failure of an organization to comply with laws, regulations, statutes, specified requirements, policies, obligations, responsibilities, standards or documented expectations. Failure of a product to meet standards for quality, safety, regulatory, legal or performance standards.
O
Objective
The intended result or goal.
OECD / Organization for Economic Co-operation and Development
An intergovernmental body established to invigorate world trade and economic advancement. OECD works closely with policy makers, stakeholders and citizens to establish evidence-based international standards and to find solutions to social, economic and environmental challenges.
Offshoring
The business practice of seeking suppliers/manufacturers in remote locations (most commonly in Asia) to cut costs.
Organization
Can be an individual entity or a group of individuals developed to complete a stated objective. It can be a company, corporation, charity, political group or other institution, regardless of size.
OSHA / Occupational Safety and Health Administration
OSHA is part of the U.S. Department of Labor. Its mission is to ensure that workers have safe working conditions free from unlawful retaliation. OSHA carries out its mission by setting and enforcing standards; enforcing anti-retaliation and other federal whistleblower laws; providing and supporting training and assistance; and working collaboratively with state OSHA programs.
P
This international treaty on climate change was adopted at the U.N. Climate Change Conference in December 2015. The treaty covers climate change mitigation, adaptation and finance, with a goal of keeping the increase in the global average temperature below 2°C “above pre-industrial levels” and pursuing efforts to limit temperature increase to 1.5°C by the end of this century to prevent far more severe climate change impacts such as severe droughts, heatwaves and rainfall. (See Kyoto Protocol entry.)
Phthalates
A family of compounds used primarily to increase the flexibility and durability of plastics. Eight types of phthalates (DEHP, DBP, BBP, DINP, DIBP, DPENP, DHEXP, DCHP) are currently prohibited in children’s toys and child care articles.
Policy
Documented principles and standards accepted as the guiding factors for an organization, government or any other party or individual.
PVC / Polyvinyl Chloride (aka Vinyl)
Widely used plastic material that contains phthalates. The use of PVC in children’s products is regulated by the CPSIA. There are stringent limits on the amount of certain phthalates in children’s toys and child care articles.
PPM
Parts per million
Principle Affordance
The possible actions that are afforded by the product, or how the user is most likely to use or misuse a product. For example, a bucket can be used to hold cleaning products, but it can also be used by a child as a helmet or a hat when at play.
PRO / Producer Responsibility Organization
Most EPR programs require producers to join a collective producer responsibility organization (see EPR entry) to plan and manage end-of-life handling for the covered products and materials. PROs are typically required to be nonprofit, and in most EPR programs producers pay fees to the PRO, which then distributes the funds to cover the costs. (See CAA entry.)
Procedure
An established, accepted and approved way of performing a task or making a decision.
Process
The established steps to perform or complete an action.
Process Standards
Specify requirements to be met by a process, such as a manufacturing line’s operation, in order to function effectively.
Product Liability
The legal liability a manufacturer or trader incurs for producing or selling a faulty product.
Product Life Cycle
The cycle through which every product goes, from introduction to withdrawal or eventual demise/disposal.
Product Standards
Establish qualities or requirements for a product or related group of products to assure that it will serve its purpose effectively.
Promotional Consultant or Distributor
Distributors develops solutions to marketing challenges through the innovative use of promotional products and are a resource to corporate buyers, marketing professionals and others.
(See California Proposition 65 entry.)
Protective Measure
A means of reducing or averting risk.
Q
Quality
Measurement by which a product, service, process, procedure, organization, individual, trait or characteristic is measured. How well a product meets stated standards or fulfills the implied purpose and is free from defects or deficiencies. Note: The level or degree of excellence attributed to a product or service is only part of the definition.
Quality Management
The control and monitoring activities means by which an organization provides consistency with stated standards for quality.
Quality Management System
The organizational structure of policies, processes and procedures used to implement and monitor quality.
R
Reese’s Law, signed into U.S. law in 2022, mandated that the CPSC adopt a standard requiring that button cell or coin battery compartments are secured in a manner that would “eliminate or adequately reduce the risk of injury from button or coin cell battery ingestion by children that are 6 years of age or younger during reasonably foreseeable use or misuse conditions,” as well as warnings on the packaging. In 2023, the CPSC issued a rule making ANSI/UL 4200A-2023 the mandatory safety standard to comply with Reese’s Law. Warning label requirements were established in 2024. (See UL 4200A entry.)
Regulations
Rules, principles or laws intended to manage or control actions by an authority.
Requirements
Demands, needs or desires of an organization or individual in relation to specific regulations.
Residual Risk
The risk that remains after protective measures and actions have been taken to mitigate undesired outcomes.
Responsible Sourcing
Best practices that encompass the entire corporate responsibility effort, inclusive of social, environmental and product responsibility.
Risk
The likelihood or probability of exposure to harm, danger or loss.
Risk Analysis
Study and evaluation of identified harm, danger or loss associated with an action, process or procedure.
Risk Assessment
Identification of variables and analysis of benchmarks for an action, process or procedure.
Risk Management
Coordinated efforts, typically implemented through policies, to identify, analyze and control processes and procedures in an effort to mitigate risk.
Risk Management System
A means of consolidating and monitoring processes and procedures, typically through a software program, in order to more easily identify and predict the impact of risk for an organization.
Risk Mitigation
To reduce, lessen or avoid the impact or severity of risk associated with potential noncompliance or nonconformance of a product or service.
Risk Reduction
Identifying and lessening the impact or severity of risk.
RSL / Restricted Substances List
Restricted substances are chemicals and other substances that have been determined to present human and environmental health hazards. Consequently, they are controlled by governmental laws and regulations. Organizations may establish their own lists, such as Nike or the American Apparel & Footwear Association.
S
Founded in 1997, Social Accountability International (SAI) is a global nongovernmental organization advancing human rights and socially responsible workplaces.
The auditable SA8000 certification standard encourages organizations to develop, maintain and apply socially responsible practices in the workplace and provides a framework for organizations of all types, in any industry and in any country, to conduct business in a way that is fair and decent for workers and to demonstrate their adherence to the highest social standards. The current version is SA8000:2014.
Safety
The avoidance of, protection from or freedom from harm, risk, injury or other unacceptable danger.
SDGs / Sustainable Development Goals
The United Nations Sustainable Development Goals are a set of 17 global goals adopted by U.N. member states to address social, economic and environmental challenges. The SDGs aim to achieve a more sustainable and equitable world by 2030, covering areas such as poverty, hunger, health, education, gender equality, clean water and climate action.
SDO / Standards Development Organization
Refers to the thousands of industry- or sector-based organizations that develop and publish industry-specific standards.
Second-party Certification
Assurance of conformance provided by an association to which the producing/importing individual or organization belongs.
Senior Management
Top organizational leadership (i.e. president, CEO, CFO, vice president) responsible for leading and guiding the entire organization and for ensuring there is cross-functional cooperation and buy-in for corporate social responsibility across the organization through accountability and compliance with established metrics.
Service Standards
Requirements or guidelines established to help an organization achieve its designated goals and overall purpose effectively.
Small Business
Classification of a business organization based on size, i.e., number of employees or annual receivables. More than 9 of 10 promotional products distributors and suppliers are considered small businesses.
Social Responsibility
Responsibility and obligations an organization has for how its decisions and operational actions impact society and the environment.
Source
The point of origin or entity from which information, services or product can be obtained or procured.
Sourcing
The act of researching, evaluating, vetting and engaging with suppliers to procure goods and services.
Stakeholder
A person, group or organization with an interest in the decision-making and activities of an organization. Stakeholders can be members of the organization (owners, employees, shareholders) as well as unaffiliated people who may be affected by the organization’s operations.
Stakeholder Engagement
The identification and involvement of people who may influence or be affected by an organization’s decisions, processes and environmental and societal impact.
Standard
An officially recognized rule or principle (mandatory or voluntary) by which compliance and conformance can be measured and attained.
Strategic Objectives
Long-term goals aimed at creating advantages in the marketplace through the implementation of specific policies, processes and procedures.
Subcontract
To assign work to another business (vendor) for the purpose of having them perform work on your behalf as part of a larger initiative or project.
Subcontractor
A business entity that performs work on behalf of another business entity.
Substrate
The material of which something is made, and to which surface coating may be applied.
Supplier
A promotional products company that manufactures, imports, converts, imprints or otherwise produces or processes promotional products offered for sale through promotional distributors/consultants.
Supply Chain
The network of organizations and logistics combined to bring a product to market. The supply chain encompasses design, sourcing, manufacturing, importing, procurement, distribution and sale.
Surface Coating
Paint or a similar liquid substance that becomes a solid film when applied to a material. Surface coatings are subject to applicable limits for lead, BPA, PFAS and other substances.
Sustainability
Efforts taken toward reducing the negative impact of an organization’s operations on the environment, society and economy. PPAI officially defines sustainability in the promotional products industry as “making, sourcing and distributing promotional items in ways that reduce negative environmental and social impacts while supporting long-term economic success.” More online at https://www.ppai.org/sustainability/.
Sustainability Report
The key method for transparently conveying an organization’s economic, environmental and social performance, as well as showcasing its commitment to sustainable practices.
T
Tactical Objective
Short-term goal related to a specific activity and generally task-oriented.
Terminology Standards
Define words permitting representatives of an industry to use a common, clearly understood language.
Testing Standards
Define the test methods to be used to assess the performance or other characteristics of a product.
Textile Fiber Products Identification Act
A U.S. federal law administered by the FTC designating names for synthetic textiles and requiring that all apparel and other textile products must be labeled with the correct fiber content within three percentage points of accuracy. Under its “5% rule,” fibers of less than 5% should be disclosed as “other fiber” rather than the generic name. (This rule refers to ISO 2076.)
Third Party
An organization or individual other than the primary two involved in a business transaction.
Third-party Certification
Process by which the producer’s claim of conformity is validated by a technically and otherwise competent third party, i.e., a body not controlled by or under the influence of the producer or buyer.
Third-party Logistics Provider
An organization or person, outside of the two primary business partners, that performs a task or provides manufacturing, shipping or other logistical services on behalf of one of the organizations.
Tolerable Risk
The level of loss, injury or penalty that is acceptable for an organization based on its values and societal values.
Transparency
Corporate transparency refers to the practice of companies being open about their business model, operations and ownership structure.
TSCA / Toxic Substances Control Act
The Toxic Substances Control Act of 1976 provides the EPA with authority to require reporting, recordkeeping and testing of chemical substances and mixtures, as well as impose restrictions on substances it deems harmful. The 2016 Lautenberg Chemical Safety Act amends the TSCA to include risk-based chemical assessments and increased public transparency for chemical information.
U
UFLPA / Uyghur Forced Labor Prevention Act
The Uyghur Forced Labor Prevention Act (U.S.) was signed into law in 2021 in response to the Chinese government’s systemic use of forced labor against Uyghurs and other ethnic minorities in the Xinjiang Uyghur Autonomous Region. Since 2022, CBP is responsible for preventing the entry of products made with forced labor into the U.S. and conducts reviews in the event goods are detained under the UFLPA. DHS maintains the UFLPA Entity List of companies in Xinjiang that are known to produce goods wholly or in part using forced labor.
UL / Underwriters Laboratory
Since 1894, Underwriters Laboratory has provided product testing, inspection and certification services for product safety. UL certification marks on products serve as a recognized symbol of trust. UL is one of several companies approved to perform safety testing by OSHA.
The mandatory standard under Reese’s Law that describes requirements for products containing button and coin cell batteries (see Reese’s Law entry). Requires either the use of a tool or the application of at least two independent and simultaneous movements to open by hand. Most recently updated in 2023.
UN / United Nations
An intergovernmental organization established to coordinate actions among nations and maintain peace and security worldwide.
V
Vinyl (aka PVC)
(See PVC entry.)
Voluntary
An action performed willingly and of free will without regulation, compensation, reward or other incentive.
Voluntary Standard
Also referred to as industry standards or consensus standards, these are often established by standards organizations, nongovernmental organizations or other industry associations based upon agreed industry best practices. Note: Governmental agencies look to voluntary standards as well as mandatory standards when investigating incidents and recalls.
Vulnerable Consumer
A consumer considered to be at greater risk of consumer product harm due to their age, health, education level or other limitations.
W
Worker
Nonmanagement personnel or staff employees.
Workplace Conditions
The conditions in and under which an individual performs his or her work for hire which can include the physical environment, proper sanitation, lighting, ventilation, fire safety protection, stress, noise levels and other dangerous situations.
X
XRF
X-ray fluorescence spectroscopy is a nondestructive examination method that permits the characterization of most inorganic pigments through the identification of their elemental constituents. The CPSC has found that XRF technology may be suitable for determining compliance of lead in plastic materials only.
FOOTER:
© 2024 Promotional Products Association International (PPAI). This information is furnished by PPAI for educational and informational purposes only. PPAI makes no and expressly disclaims any and all representations and warranties, express or implied, including any warranty of fitness for a particular purpose and/or statements about specific dates, coverage, application or otherwise. Users are advised to consult with appropriate legal counsel or other professional about the specific application of the law or this information to the user’s business and products.