In 2003 the LEGO Group became the first toy manufacturer to join the UN Global Compact. This UN initiative reflects the LEGO Group’s desire to live up to its social responsibility in the field of human rights, environment and labour standards.

In 2004, Kjeld Kirk Kristiansen; majority shareholder and the then President and CEO of the LEGO Group, took part in a Global Compact Leaders Summit in New York to demonstrate the LEGO Group’s continued support for the obligations implied by the principles of Global Compact.

The LEGO Group uses both its Annual Report and its website to communicate with stakeholders on corporate responsibility issues and on its implementation of the Global Compact principles. The Annual Report 2004 describes the LEGO Group''s corporate responsibility on pages 16 to 18. Amongst other issues we have described our Quality Assurance, Materials Policy, our stand on environmental issues as well as our work with our Code of Conduct and our charities.

In 2004 the LEGO Group has revised its Code of Conduct which was first drafted in 1997. The Code of Conduct outlines what is expected of the LEGO Group and its suppliers. In 2004 92 audits were made at the LEGO Group’s suppliers and the LEGO Group’s own production sites in Denmark and the Czech Republic were audited.

A special appendix to the Code of Conduct regarding child labour has been drafted in cooperation with Save the Children. The appendix sets forth directions on the approach our suppliers should take in case of a child labour incident.

The new and revised Code of Conduct also now contains an explicit mentioning of the LEGO Groups support of Global Compact. We also compel our suppliers to join the Global Compact.

LEGO Company is preparing for a global ISO 14001 certification, which is expected to be implemented globally by 2006.

After several years of systemizing the workplace-environment field, LEGO System A/S in Billund achieved certification under the OHSAS 18001 standard in 2003. The plan is to globalize the system over at three-year period starting in 2004.

The LEGO Company has formed a five-year partnership with Save the Children Denmark to set up schools in Third World countries. The agreement is in its fourth year.

Global Compact - Activities 2004 in relation to each of the principles.
Principle 1:
Code of Conduct revision.
Continued work on global implementation of the health and management system OHSAS 18001.
Participation by CEO in Global Compact Leaders Summit in New York to demonstrate LEGO Group’s continued support for the principles.
Principle 2:
No specific activities
Principle 3:
No specific activities
Principle 4:
Code of Conduct revision.
Principle 5:
A new appendix to our Code of Conduct dealing specifically with child labour was drafted in cooperation with Save the Children.
Principle 6:
Code of Conduct revision. It is now stated that pregnancy-tests and hiv/aids-tests are not accepted.
Principle 7:
A system for registering additives has been developed.
Principle 8:
Commencing to work towards global certification of the environmental management system under ISO 14001.
Principle 9:
Code of Conduct has been revised and the section on the environment was expanded to cover the subject in more detail.
Principle 10:
No specific activities