Can You Identify Modern Slavery Practices?

Editor’s Note: Danny Shields is vice-president of industry relations at Avetta, a global supply chain risk management specialist.

The United Nations designated December 2nd as its International Day for the Abolition of Slavery, a reminder for those responsible for supply chains to take action to ensure freedom from any slavery practices. Eradicating slavery should be done to protect a company’s reputation and business and help in the fight against these terrible practices.

Slavery is alive and well in different forms throughout the world, and it is abundantly clear brands are damaged when it is learned these practices exist in their supply chains. Ignorance is no excuse.

Following a tragic building collapse in Bangladesh in which 1,134 garment workers died, global outrage was directed toward the 20-odd major brands whose products were sourced from the factories. While the ‘fast fashion’ industry initiated audits of supply chains to root out slavery practices, these brands are still negatively impacted.

How to “See” Potential Slavery Practices

Social media technology and listening programs can bring useful information regarding the conversation about your company and its suppliers. Use social media to illuminate potential supplier issues quickly and make appropriate changes.
Other resources for identifying which of your suppliers are the highest risk include analyzing regulatory filings, databases, and additional web-accessible information. Human resource inquiries can provide further insight into your suppliers’ labor practices.

Forced labor is generally seen in specific geographies and industries in varying forms. Assess your company’s risk for slavery practices with this knowledge as context for ensuring a worker-safe supply chain. Knowing these factors will allow you to examine the most at-risk partners, contractors and suppliers.

The Entire Supply Chain = Your Responsibility

A recent example of the responsibility for a ‘clean’ supply chain is a recent incident in which a Canada-based company was held legally liable for human rights violations in Guatemala – a supplier’s home country. Accountability for and protection of the supply chain is a continuous global task.

This instance illustrates the importance of verifying ethical and human rights practices of overseas contractors and suppliers with comprehensive reviews of health/safety, rates of injury and disease contraction statistics.

Prequalify Contractors

A transparent prequalification process for suppliers can help a company effectively keep modern slavery out of its supply chain. By establishing benchmarks following regional/national regulations, companies can avoid forced labor practices in their supply chains.
Technology can help organizations to obtain fact-driven information about their suppliers, including current information on sustainability, procurement practices, and health/safety data. The right technology can also provide detailed analyses that focus on ethical business practices, which can help identify and remove slavery practices and create healthier workplaces for all employees.

Start with Technology

A 2020 Business Continuity Institute supply chain resilience report noted, “while organizations are getting better at managing disruptions in their “close to home” tier 1 suppliers, due diligence further down the supply chain is slipping. Although there is increasing awareness of supply chain risk, in all likelihood very few organizations have the level of information that enables them to drill down into level 2 and 3 suppliers…”

Technology is perhaps the most efficient way to begin tracking these lower-level suppliers and the relationships between them. Predictive analytics can pinpoint potential forced labor situations by evaluating all suppliers’ supply chain activities, from Tier 1 down. The right technology also can help companies analyze critical metrics, including financial history and supplier performance.

Where to Begin

A recent white paper, The Reputational Risk of Human Rights Abuses in Supply Chains, can provide additional tips on how to make sure your supply chain is free from forced labor. While the fight to eradicate slavery may continue for some time, the combination of technology and action can help organizations to prevent this cruel institution.

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