Over the last several decades, society has become more aware of social issues. This has spread to governments, which are now demanding stronger company oversight and due diligence processes. One of these concerns is modern-day slavery, which is the exploitation of other people for personal or commercial gain. Common forms of modern-day slavery include child labor, trafficking, and forced labor. More companies are now aware of these concerns. Whether driven by government regulation, internal ESG policies, or protection of their public image, identifying and removing modern-day slavery from supply chains is becoming a requirement.
Whether it is sugar, fish, electronics, or garments, it is crucial to understand that imports account for between 25% and 30% of global GDP, making up a sizable portion of the global economy. The harsh truth is that most organizations do not have heightened supply chain visibility. Without accurate and comprehensive due-diligence policies and processes in place, it is challenging for companies to be certain their supply chain does not contain modern-day slavery practices and can comply with global human rights regulations.
The focus of the e-book is to shed light on the Human Rights regulations and due diligence parameters. You will also learn how using Source Intelligence's human rights solution to manage due diligence can combat modern day slavery and exploitation in your supply chain.
Most countries view basic human rights as universal regardless of nationality, gender, race, language, religion, ethnicity, and other values. These ideals represent the right to liberty and freedom from torture and slavery. Human rights also involve the right to express, form an opinion, have an education, and work. UNICEF defines human rights as a basic standard that protects and preserves basic human dignity without discrimination.
Supply chain and risk management involve various human rights regulations. Due diligence of rights in the supply chain has become integral. It is one of the main reasons the U.N. supported the guiding principles on basic human rights in the business landscape. And parts of those guidelines revolve around due-diligence laws in the supply chain.
These principles require companies to take strategic steps to ensure human rights are met within their operations. As of 2022, corporate-based human rights strategies are integral to overall supplier management.
Internal human rights assessments allow organizations to perform risk analyses and identify human rights violations. In line with existing supply chain assessments, it is just as important to develop preventive measures to identify potential risks and direct new supply chain initiatives.
Once organizations can identify human rights risks and abuses, they can adopt a proactive approach to take corrective measures.
The last thing organizations should do is allow modern-day slavery to creep into their supply chain processes. The most common supply chain-centric forms of modern-day slavery are debt bondage, human trafficking, forced labor, child labor, and sexual exploitation.
From Nike to Apple, many large corporations have had tarnished supply chain reputations due to child labor and debt bondage practices. Although bonded labor is criminalized internationally by the Palermo Protocol, it is still present. Currently, Africa and Asia rank the highest for exploiting children and minors for work. Similarly, sexual exploitation and human trafficking are at an all-time high in South America.
While not as prevalent, modern-day slavery also exists in both the E.U. and U.S. economies, particularly with the exploitative labor of undocumented migrants. These practices cross the boundaries of ethics, regulations, and laws.
Currently, there are over 40 million people (about twice the population of New York) in modern slavery, with one in four victims being children.
In the case of human rights violations, businesses can suffer a heavy blow in the form of tarnished market reputation and compromised production processes. Additionally, governments are continually implementing new regulations to stop worker exploitation.
One of the most common examples in recent history is when the U.S. State Department, Department of Commerce, Department of Homeland Security, and Department of the Treasury highlighted the forced labor conditions and risks in Xinjiang, China. As a result, a law was developed that put direct pressure on U.S. importers.
Deepen your human rights compliance knowledge
You've just learned how human rights violations impact businesses and the associated risks. In the full e-book, explore additional global human rights regulations, build a robust human rights due diligence program, and uncover strategies to safeguard your supply chain. Plus, see how Source Intelligence’s Human Rights solution automates risk assessments and streamlines compliance.
Read the complete e-book to fortify your human rights strategy and protect your brand.