Tips for Combating Forced Labor in Supply Chains

Forced labor, including human trafficking, forced labor because of debt, and other similar practices, are still a concern up to the present. The ILO indicates that millions of people are in conditions of forced labor globally and that many of them are blind within complex supply chains.

The management of a company has a social responsibility to ensure that they do not contribute to making the product in a way that would negatively affect other people.

Here are some key steps companies can take to combat forced labor in their supply chains:

1. Implement a Strong Supplier Code of Conduct

Employment relations are clearly outlined when a company or organization has developed a proper supplier code of conduct. This code should require anti forced labor and other violations of labor laws in relation to the employment of children and wages.

The code should also contain consequences for non-compliance with established standards, like termination of business relationships.

2. Conduct Supplier Audits and Risk Assessments

It is critical to maintain a relationship with suppliers and conduct risk assessments on them at least once a year to detect forced labor risks. Audits should not be limited to documentation, and there should be a possibility of conducting visits to factories and production facilities.

If the auditor is fully trained, he or she should identify certain warning signs like restricted worker movement, poor working conditions, and differential wage levels.

3. Promote Supply Chain Transparency

This is where transparency plays a critical role in addressing forced labor issues. It is important that companies try to identify their whole supply chain network and all their tiers of suppliers and subcontractors.

This facilitates the identification of potential threats and risks associated with various aspects and activities within an organization. Another advantage of transparency is that suppliers can be held accountable; they are likely to stay compliant with set labor standards if they know they are being monitored.

4. Partner with NGOs and Industry Groups

Compacts with non-governmental organizations (NGOs) and industrial associations can be effectively used in the fight against forced labor. To expand, NGOs, which typically have insight into the issue of forced labor, can offer both information and education to business entities.

Industry groups can act as a means for cooperation between firms and develop the practices that should be followed.

5. Stay Up-to-Date on Legal Regulations

Foreign enforced labor trade laws have, over the years, changed in many ways. To effectively manage forced products, companies should ensure they have adequate knowledge of different laws, such as the current Forced Labor Trade Law in the United States, which bars the importation of products developed via forced labor.

It is important that they follow these laws not just because there are legal consequences to them but also because they signify adherence to ethical standards in sourcing.

Final Words

The adoption of the steps above would go a long way towards helping organizations prevent the existence of forced labor in supply chains. To address this global issue, there is a need to address the issues to do with ethical sourcing, foster cooperation, and, more importantly, persevere.