Slavery? That Doesn t Exist Anymore, Does It?!

Transcription

1 Slavery? That Doesn t Exist Anymore, Does It?!

2 Moderator: Steve McDonald Head of Market Development, Risk, Americas Thomson Reuters Gwendolyn Hassan Managing Counsel, Global Compliance & Ethics CNH Industrial Hanna Breshin Senior Counsel, Labor & Employment Bechtel Global Corporation Brendan Morrisey Program Director, Responsible Sourcing - Walmart

3 Gwendolyn Hassan Managing Counsel, Global Compliance & Ethics CNH Industrial

4 CNH In CNH Industrial NV

5 My Company: CNH Industrial NV Third largest capital equipment manufacturer in the world Second largest agricultural equipment manufacturer in the world Doing business in 180 countries Approximately 70,000 employees North American headquarters in Burr Ridge, IL Global headquarters in Turin, Italy

6 My Role Managing Counsel Global Compliance Responsible for operation of compliance program globally Team of 10 people in 5 different countries Also serve as counsel to Global Trade Compliance Team OFAC/Trade Sanctions Anti-boycott regulations EAR/ITAR C-TPAT, Customs, FTZ SME on ABAC, TPDD, Human Trafficking prevention

7 Creating a Human Slavery Prevention Program Basic Elements of a Prevention Program 1. Risk assessment for your business 2. Understanding of regulatory context for your company 3. Policy considerations 4. Training of employees

8 Creating a Human Slavery Prevention Program First step Understand your risk U.S. Department of Labor Report on Human Trafficking risk for 130 categories of goods and 71 different countries U.S. State Department Trafficking in Persons Report Annual (most current is 2016) Ranking of countries (like CPI) based on extent to which they are addressing slavery Next Step Understand your regulatory environment UK? California? Federal Contractor?

9 Creating a Human Slavery Prevention Program Are you a Federal Contractor? Special requirements for contractors under the FAR Additional requirements for defense contractors under the DFAR Depending on volume of business and contract performance location, may need to develop a written housing plan, supply chain audit plan May need to post Department of Defense hotline information

10 Creating a Human Slavery Prevention Program Developing your policy/statement Be aware of consistency with other policies (human rights, sourcing, purchasing, sustainability) Obtain key stakeholder buy-in from purchasing/supply chain, internal audit, government contracting, corporate communications vcan you kill two birds with one stone? v Consider combined compliance statement for UK and CA acts UK Modern Slavery Act Annual Statement (due within 6 months of end of fiscal year, May 31 st for those with calendar year fiscal) vmust be published on corporate web site v Do existing policies need to be amended to incorporate? Supplier Code of Conduct

11 Creating a Human Slavery Prevention Program Employee Training Purchasing / supply chain, audit, legal, compliance In-person or web-based? How often?

12 Creating a Human Slavery Prevention Program Statement example: Slavery_and_Human_Trafficking_Statement.pdf

13 Creating a Human Slavery Prevention Program Next Steps Once you have the basics down, and if it makes sense given your company s specific risk profile and risk tolerance, look to grow and mature your program: vrequire annual certifications of compliance from your direct suppliers vexpand beyond direct suppliers to indirect and 2 nd and 3 rd tier suppliers (subcontractors of your direct) vdevelop audit program for suppliers and their subcontractors

14 Creating a Human Slavery Prevention Program What do you do if you find Human Trafficking in your supply chain? Boycott country? Blacklist supplier? vwill this solve the problem? (Conflict Minerals Example) Address with supplier directly? Get NGO involved to help? Re-source from another supplier?

15 Hanna Breshin Senior Counsel, Labor & Employment Bechtel Global Corporation

16 About Bechtel Global engineering, construction, and project management company Over 25,000 projects across 160 countries on all seven continents 4 global businesses: Infrastructure; Nuclear, Security & Environmental; Oil, Gas & Chemicals; and Mining & Metals 55,000 + colleagues worldwide Signature projects include the Hoover Dam, and currently the Riyadh Metro and Crossrail in England

17 Compliance Program An Integrated Approach US Federal Acquisition Requisition (FAR) UK Modern Slavery Act (MSA) UN Guiding Principles Bechtel s Vision, Values and Covenants Bechtel Code of Conduct Bechtel Human Rights Statement Bechtel s Guiding Principles on the Recruitment and Employment of Foreign Migrant Workers

18 Global Policy Against Human Trafficking and Slavery Bechtel does not tolerate human trafficking or slavery in any part of our global operations or supply chain Applies to employees, contingent workers, business partners and suppliers Sets forth responsibilities for monitoring, reporting, investigating and remediating the risk of modern slavery in the business and supply chain and ensuring labor standards are met Reporting violations helpline, anonymous reporting available, no retaliation

19 Supply Chain Transparency Engagements with Suppliers Supplier Expectations: Bechtel does not tolerate the use of slavery, servitude, forced or compulsory labor or human trafficking, and we expect our suppliers to meet these expectations à Supplier Pledge Contractual Requirements: Standard terms and conditions with suppliers establish our expectations that no slavery is used anywhere in the supplier s business or by any of the suppliers in its own supply chain. Awareness and training Verification, due diligence and audit Process Engagement with external stakeholders

20 Brendan Morrisey Program Director, Responsible Sourcing - Walmart

21 Walmart Overview 2.3 million associates (1.5 million US; 800,000 international) Retail in 28 countries, plus sourcing offices >100,000 suppliers globally ~24,000 active factories disclosed to Walmart Responsible Sourcing Source: 2017 SEC Form 10-K; Walmart factory data 1/31/2017

22 Walmart Supply Chain Compliance Approach Foundational Responsible Sourcing is one of Walmart s 14 Global Ethics & Compliance subject matters Unified compliance strategy built around leadership, risk assessment, communication, training, monitoring & response, standards & controls Differentiators Collaboration and collective action Reporting and transparency

23 Collaboration and Collective Action Why collaborate? Improved risk assessment & horizon scanning Common direction for overlapping supply chains Increased odds of success Selected collaborations Consumer Goods Forum Leadership Group on Responsible Recruitment Seafood Task Force Ethical Trading Initiative Stronger Together Issara Institute

24 Disclosure and Transparency Why disclosure and transparency? Legal requirements Customer trust and goodwill Support collaboration Selected disclosures UK Modern Slavery Act California Transparency in Supply Chains Act ETI Report Walmart Corporate Website

25 Questions?

26