CHANCELLOR WHITE TO REMOVE HIMSELF FROM FINAL DECISION ON FAIR LABOR AND UNIVERSITY LICENSING RECOMMENDATIONS

FAYETTEVILLE, Ark. --- Citing his desire to avoid the appearance of a conflict of interest, Chancellor John A. White said today that he would remove himself from the final decision about a code of conduct for governing workplace conditions in which products with the University’s insignia are manufactured.

Instead, the final executive decision will be made by the University’s interim vice chancellor for academic affairs, Dan Bennett. Bennett’s decision, in turn, will be based on recommendations from the new University Committee on Fair Labor and Licensing and the Chancellor’s Executive Committee, a standing committee of five vice chancellors and the executive assistant to the chancellor.

White’s decision to remove himself from the decision-making process was made, he said, to avoid the appearance of a conflict of interest stemming from his membership on the board of directors of Russell Corporation. Based in Alabama and Georgia, Russell is a manufacturer and marketer of apparel products, some of which bear University of Arkansas’ insignia.

"I believe my service on the Russell board provides an advantage to the University, rather than a disadvantage, because it puts me in a good position to convey campus concerns to other board members," White added. "Nevertheless, it is far more important to eliminate the appearance of a conflict of interest stemming from my association with and remuneration from Russell."

White added that Russell has acted as a responsible corporate citizen to ensure that products bearing a school’s name and marks are produced in working conditions that are safe, healthy and fair to workers—particularly in less developed countries.

"While removing myself from the decision-making process on this issue, I believe it is important to point out how Russell has conducted itself in this arena," he said.

"In my view, Russell has established an exemplary set of International Operating Principles for itself and its business partners," White said. "These principles serve to maintain high ethical standards in the conduct of business and mandate compliance with the laws of the countries in which facilities and employees are located."

These same principles forbid child labor, as well as the use of forced, involuntary or uncompensated labor under any circumstances, including corporal punishment other mental or physical disciplinary actions or sexual harassment, he said. In addition, they address health and environmental concerns, community relations, and employee communications.

To ensure compliance with these standards, Russell Corporation or a third party designated by Russell undertakes measures such as on-site inspection of manufacturing facilities.

According to Nancy Young, vice president of communications for Russell, the bookstore business—in which most college apparel and related products are sold—amounts to only two percent of Russell Athletic’s total sales annually.

Much of that bookstore business comes from sweatshirts, which are still being made in the United States. In fact, Russell Athletic’s overall manufacturing is conducted 100 percent in the United States in yarn production, fabric production, cutting production, embellishment and distribution. The lone exception in this process is in assembly, where 33 percent is done offshore and 67 percent is done in the United States.

"Bookstore business is a very small percentage of Russell’s sales, and the vast majority of production for bookstores is in the United States," Young said.

White’s decision to remove himself stems from a chain of events beginning in late July, when he established the Committee on Fair Labor and University Licensing and named Bev Lewis, women’s athletics director, as its head.

White charged the committee with examining various proposals for monitoring conditions under which the University’s marks and logos are manufactured. He also asked it to draft a set of recommendations for how the University should proceed by January 30, 2000, for consideration by the Chancellor’s Executive Committee.

The Executive Committee had been asked to deliberate and vote on the recommendations and send them to White for final approval.

After the announcement of committee members was made last week, White received a letter from the Campus Democracy Collective, a registered UA student organization that has been a critic of apparel industry practices worldwide. The letter cited a "distinct conflict of interest in your making the final decision on the committee’s proposal." The Collective asked him to resign his seat on the Russell Board or turn the final decision over to the Committee on Fair Labor and University Licensing.

White said that an issue of this importance requires a final executive decision. Thus, the Executive Committee will deliberate and vote, as originally planned, on the recommendations of the Committee on Fair Labor and University Licensing. Final approval of how the University proceeds, however, will be made by Dan Bennett, interim vice chancellor for academic affairs.

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