APPENDIX A: Definitions
Bonded labour
Work for an employer not for compensation received by the worker, but to pay off a debt, which is often incurred by another worker offering the worker’s labour in exchange.
Corrective action
A corrective action is a change implemented to address a weakness or non-compliance identified in an audit. It is the action taken to correct any non-compliance which has been found in an assessment to an agreed standard.
Corrective action plan (CAP)
The document completed after the audit which confirms the findings and any agreed necessary corrective actions that must be improved to meet our compliance standards.
Excessive fees
Fees charged to a worker that is in excess of the amount legally permitted by any applicable law of the host or home country. Or, in the absence of such law, fees substantially above the prevailing market rate.
Employment eligibility fees
Fees and costs associated with employment, including recruitment agency/placement firm fees, visas, health checks, work permit and work registration fees.
Freedom of association
The right of all workers to join or form a trade union of their own choosing, which is legal in the country in which merchandise is manufactured, and carry out trade union activities without interference from their employer or from public authorities.

Forced labour
All work or service that is extracted from any person under the menace of any penalty for which the said person has not offered him/herself voluntarily.
Grievance procedure
A process or procedure for workers who may feel that they have been treated unfairly to voice their concerns without fear of repercussion.
Harassment
Any physical, verbal, sexual, or psychological nature, offensive conduct that threatens human dignity and worker morale.
Hazardous work
Hazardous work includes working: with dangerous machinery/equipment (e.g. knives, saws); with chemicals or hazardous substances; in working conditions which may expose a worker to extreme noise, vibrations, cold or hot conditions; in dangerously confined spaces; and with lifting heavy things.
Human rights
A set of principles defined in the Universal Declaration of Human Rights (1948), based on the recognition of the inherent dignity and the equal and inalienable rights of all members of the human family as the foundation of freedom, justice and peace in the world.
Indentured labour
Work performed on behalf of an employer who forbids workers from leaving employment at the worker’s discretion.
International Labour Organization (ILO)
The ILO is the international organisation responsible for drawing up and overseeing international labour standards. It is the only 'tripartite' United Nations agency that brings together representatives of governments, employers and workers to jointly shape policies and programmes promoting Decent Work for all. www.ilo.org
ILO Convention 138
This Convention, concerning Minimum Age for Admission to Employment, was adopted in 1973 by the International Labour Organization. It requires ratifying states to pursue a national policy designed to ensure the effective abolition of child labour and to raise progressively the minimum age for admission to employment or work. For details on ILO Convention 138, see http://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:C138

ILO core labour standards
The ILO core labour standards consist of the following standards, laid out in eight conventions:  Freedom of association and the effective recognition of the right to collective bargaining (Convention No. 87 & No. 98)  The elimination of all forms of forced and compulsory labour (Convention No. 29 & No. 105)  The effective abolition of child labour (Convention No. 138 & No. 182)  The elimination of discrimination in respect of employment and occupation (Convention No. 100 & No. 111) Juvenile worker (or “Minor”) Any worker over the age of a child as defined by local or national law and under the age of 18. Material Safety Data Sheet (MSDS) A material safety data sheet is a form that references the properties of a substance and proper handling instructions. A MSDS is not intended for general consumer use, but rather industrial/manufacturer users and safety personnel that may come in direct contact of the substance. MSDS forms may contain detailed information such as physical property data, health effects, first aid, storage recommendations, disposal requirements, necessary protective equipment for handling, and instructions on how to handle spills, etc. Piece rate A method of paying workers by the number of items they produce, rather than the number of hours they work. Subcontractor (authorised) A subcontractor is an individual or in many cases a business that agrees to perform part or all of the obligations of another‘s contract (whether in writing or not). Authorised subcontractors must be approved by Kmart/Target prior to any agreement being made with the supplier and these subcontractors will be expected to meet the requirements of the Kmart/Target Ethical Sourcing Code. Subcontractor (unauthorised) An unauthorised subcontractor is  an individual or in many cases a business that agrees to perform part or all of the obligations of another‘s contract (whether in writing or not), and  who has not been approved by Kmart/Target as a subcontractor prior to the agreement being made. Supplier A supplier includes Kmart/Target vendors, factories or authorised sub-contractors.

Trade union (or “Union”) An organisation of workers that promotes and protects the interests of its members on issues such as wages and working conditions, especially through negotiations with employers. Worker A worker is defined widely to include any person working for or on behalf of a supplier, including but not limited to, employees, contractors, managers, staff, apprentices, sub- contractors, agents, and consultants.