With access to new labor markets and emerging technologies, companies who span across country lines could be at risk of human rights abuses in supply chains.
Human rights abuses in the supply chain have been a longstanding global issue and can be difficult to monitor and mitigate.
According to a 2018 report from the UN’s International Labor Organization (ILO) and the Walk Free Foundation, nearly 40.3 million people are engaged in some form of modern slavery, with 71% of the victims being women and children.
Human rights risks in the global supply chain include:
In most cases, human rights violations in the supply chain are due to poor management or exploitative practices. Research shows that 57% of businesses have poor visibility across their supply chains, and only 23% of businesses have a credible framework of mapping supplier networks—this is especially challenging for companies who rely heavily on third-party suppliers.
There are multiple ways you can manage human rights risks in your supply chain:
Audit services, supplier prequalification and vetting software, and free risk assessments can help companies identify whether their suppliers are following the right labor policies and procedures, whether they are implementing the right workplace controls and complying with government sanctions on workplace rights.
Related White Paper
The Reputational Risk of Human Rights Abuses in Supply Chains
While geographically dispersed supply chains provide companies with access to new labor markets and emerging technology, they also present serious human rights risks that are difficult to monitor and mitigate. Download Now!