Combating Modern Slavery in Supply Chains

Transcription

1 Combating Modern Slavery in Supply Chains What You Need to Know About Supply Chain Anti-Slavery Initiatives Helen Carter Action Sustainability May 2017

2 Helen Carter Senior Sustainable Procurement Consultant

3 What is Modern Slavery?

4 Forced labour in the private economy generates US$ 150 billion in illegal profits per year

5 MYTH: Modern slavery only happens in the developing world FACT: Modern slavery happens everywhere. There are over 1.5 million people working in slavery-like conditions in Europe, North America, Japan and Australia.

6 MYTH: Sex trafficking accounts for most cases of modern slavery FACT: Most of the people in slavery work in industries such as agriculture, fishing construction, manufacturing, mining, utilities and domestic work. Around one in five are victims of sexual exploitation.

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8 What is categorised as modern slavery? Bonded Labour Forced Labour Trafficking Criminal Exploitation Forced Marriage Sexual Exploitation Organ/Egg Harvesting Domestic Servitude

9 Where can exploitation be found?

10 Can you spot the signs?

11 Global Legislation & Policy Drivers

12 It applies to us all Trafficking and labour exploitation is illegal Companies found guilty of hiring exploited labour could now be forced to pay compensation to victims

13 Federal Business Supply Chain Transparency on Trafficking and Slavery Bill Modern Slavery Act 2015

14 Take immediate and effective measures to eradicate forced labour, end modern slavery and human trafficking and secure the prohibition and elimination of the worst forms of child labour, including recruitment and use of child soldiers, and by 2025 end child labour in all its forms Protect labour rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and those in precarious employment

15 ILO Protocol on Forced Labour 13 countries have ratified the Protocol 4 have it in force today It s a legally-binding treaty that requires governments to take new measures to tackle modern slavery in all its forms. It works on three main levels: protection, prevention and compensation

16 What can you do?

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18 A strategic approach to managing supply chain risks

19 Your action plan.. Work Stream Policy Leadership & Governance Question Does your recruitment policy reference Slavery and Labour Standards Does your supply chain policy reference slavery and labour standards Do you have a policy and process for whistleblowing and supporting victims Have the leadership endorsed and supported your approach to combating labour exploitation? Are your governance systems in place to monitor progress against your policy? People Risk & Opportunity Assessment Measurement Engagement Have you trained your people on the principles of exploitation? Have you included awareness raising in inductions both site and office? Do you know where your biggest risk is for exploitation? Have you analysed your spend and mapped your supply chain What measures are you going to put in? Are you using management or outcome measures? How have you engaged your supply chain? Have you any partnership arrangements with NGO s?

20 Organisational Checklist

21 Harnessing the power of the supply chain

22 Role of Procurement Professionals 3 P s Processes Policies Planning Anti Slavery Response

23 Procurement Route

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25 Supply Chain Mapping Recognise the risks Create visibility Build a map Motivate suppliers Work collaboratively

26 Assess your risk. Spend Profile how much are you spending with suppliers within each category and how much is the category worth? Visibility of the current supply chain do you understand how products are made, where they are coming from, where labour is recruited from? Geography are any of the sources of products coming from countries that have bad human rights records is labour local or being brought in from abroad? - You can refer to to get a better understanding of geographical and industry risks associated with your categories. Current activity what actions, standards do you have in place that address issues relating to Modern Slavery Capacity to do more what else can be done that has not already been done to address these issues

27 Technical Tools

28 Consider & Prioritise Recruitment Temporary Labour Subcontracts (with heavy labour emphasis) Materials

29 Technical Requirements - Prequalification Question Poor Response Good Response Best Practice Please provide details of the approach your organisation has taken to addressing or exceeding the requirements of the Modern Slavery Act 2015 No demonstrable understanding of the Modern Slavery Act No supporting policies or commitments relating to addressing modern slavery No mention of how the organisation will work with contractors to manage the risk Generic policy mentioning Modern Slavery and commitment to addressing the issue Have an Action plan on how to address the supply chain and some commitment to producing a risk assessment to identify areas of high risk Action plan will include, training, supply chain engagement, measurement and continuous improvement plans Tool box talks conducted with organizational employees to raise awareness Policy created detailing commitment to addressing modern slavery both within the organisation internally as well as the supply chain Policy references whistle blowing facilities and addresses how victims can and will be supported should they be identified. Evidence of supply chain collaboration and procurement activity undertaken to address identified labour exploitation and modern slavery risks Evidence of measurement and engagement commitments Partnered with an NGO

30 Technical Requirements Contract Clause Compliance with Laws and Policies Due Diligence Country Specific Clauses Sub Contracting Training Audit Reporting Grievance procedures Indemnity Warranties Termination

31 Technical Requirements Performance Measurement Performance Indicator Description Owner %age of relevant suppliers with published statements %age of suppliers attending awareness raising events %age of workforce undertaking a training session or e-learning module relating to modern slavery %age all the key suppliers identified within the contracting organisations and are eligible who have issued their modern slavery statement %age of all the relevant suppliers/subcontractors who have attended an awareness raising event organised either by the contracting organisation or an external third party %age of the workforce who have attended either a specific training course or utilised e-learning resources such as those available through the school Contracting Organisation Contracting Organisation Contracting Organisation/Supplier/Su b-contractor %age of key spend with supply chain map %age of Tier 1 suppliers undergoing a full audit %age of the supply chain with grievance mechanisms %age of open grievances within organisation %age of workforce employed through an agency %age of key trade spend with a supply chain map supporting the identification of locations and potential for exploitation %age of suppliers identified, undergoing a full audit in relation to complying with Modern Slavery Act requirements Sub-contractors/suppliers with grievance mechanism in place Number of open grievances as percentage of total grievances raised Number of workforce employed through an agency as a percentage of the total workforce Contracting Organisation Contracting Organisation Contracting Organisation Contracting Organisation Contracting Organisation

32 Contract & Supplier Management

33 Help& Report

34 Summary What is your policy and stance including approach to whistleblowing? How aware are your employees and supporting functions? What recruitment processes are in place to make sure your workforce is not exploited? Do you want to issue a statement to manage your risk & enhance your reputation? Where are the risks in your supply chain? Have you embedded requirements within your procurement process? How can you engage with your supply chain to improve transparency?

35 Abolition of Slavery House of Commons 1789 I take courage I determine to forget all my other fears, and I march forward with a firmer step in the full assurance that my cause will bear me out, and that I shall be able to justify upon the clearest principles, every resolution in my hand, the avowed end of which is the abolition of the slave trade William Wilberforce Abolition of Slavery Bill 1792

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37 Useful Links

38 Thank You Helen Carter Action

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40 Y O U R F E E D B A C K I S I M P O R T A N T Please take a few minutes to complete this brief survey. Survey link: or Scan the QR code on your smartphone.