In addition to the chocolate and
make-up industries – as discussed in the April 11th blog post – many other
industries make millions, if not billions, of dollars from the production of
commodities using forced labor throughout the supply chain.
This June, The Guardian newspaper
released an article exposing
the modern-day slavery used to procure shrimp for major grocery stores in the
U.S. and around the world (Hodal, Kelly & Lawrence, 2014). Shrimp is only
one of many products sold cheaply to consumers at the expense of exploited and
trafficked laborers. Worldwide the use of labor trafficking or forced labor
results in an estimated $51 billion of profits annually (International Labor
Organization, 2014). The United States
is the largest importer of goods in the world but, despite this, there is
little transparency of the supply chains that major companies use to move their
products from production to our shelves.
Thai fishmonger sorts shrimp. Photograph: Barbara Walton/EPA
The process involved in procuring a
product includes a complex system of supplies, contractors, and workers. As it
stands, this production maze makes it next to impossible for consumers to know
if a product they are buying has been touched by human trafficking. While there
have been moves from various agencies and even states (notably California) to highlight company supply chain
practices, until recently there was no proposed federal legislation that would
require companies to be accountable for their supply chain process.
Representative
Carolyn B. Maloney (D-NY). Photograph: Congressional Pictorial Directory
On June 11th, Congresswoman Carolyn
B. Maloney (D-NY) introduced the Business
Supply Chain Transparency on Trafficking Act of 2014 (H.R. 4842). Building on key elements of the California Transparency in Supply Chains Act of 2012,
this proposed legislation intends to require major companies in the U.S. to
disclose annually what steps they are taking to identify and prevent human
trafficking, slavery, and child labor in their global supply chains. Specifically, this legislation would require
major companies with annual worldwide global receipts over $100 million to
disclose clearly on their company website their processes for identifying and
addressing any forced labor in their supply chains. This would include disclosure of the
company’s current polices on auditing suppliers for evidence of forced labor,
training about issues related to human trafficking for employees who have
direct responsibility for supply chain management, and risk assessment (Wokaty,
2014). Under this bill, The
Department of Labor would also publish on their website a list of the top 100
companies adhering to the supply chain labor standards so businesses with
progressive practices would be recognized for their efforts. Unlike current
standards, such as the recognition of Fair Trade products, evaluation in this
ranking system would be required for all major companies, and would be complied
by the Secretary of Labor in consultation with the Secretary of State as well
as other Federal and international agencies.
If passed, this bill would represent
a major step forward in the global response to modern slavery. It would allow
consumers to research which companies are, or are not, taking steps to address
human trafficking. Consumers would be empowered to purchase goods which have
been produced without trafficking, and through these decisions they would be
able to support businesses with responsible anti-trafficking practices. The
bill would allow investors to better understand the risks in investing in
certain companies, and enable them to make educated decisions regarding their
portfolios. It would further create space for better discourse between
companies and advocates about strategies that businesses could implement to
identify and eradicate suppliers who use human trafficking and slave labor from
their supply chain.
-Caitlin Gallacher, IOFA ChildRight: NY Intern
For more information about the
Business Supply Chain Transparency of Trafficking and Slavery Act, please refer
to the following sources:
Fitzpatrick, T. (2014, June 12). New Legislation Could Help Consumers and Investors
Take a Stand Against Slavery. Retrieved
from http://ftsblog.net/2014/06/12/new-legislation-could-help-consumers-and-investors-take-a-stand-against-slavery/
Hodal, K., Kelly, C., & Lawrence,
F. (2014, June 10). Revealed: Asian
slave labor producing prawns for supermarkets in US, UK. The Guardian. Retrieved from http://www.theguardian.com/global-development/2014/jun/10/supermarket-prawns-thailand-produced-slave-labour
International Labor Organization
(2014). Profits and Poverty: The
Economics of Forced Labour. Geneva,
Switzerland: International Labor Office.
Lagon, M. (2014, June 27). Modern slavery will continue if corporations
keep passing the buck. The Guardian. Retrieved from http://www.theguardian.com/commentisfree/2014/jun/27/modern-slavery-corporations-business-sense-ethical-supply-chain
Morosi, M. (2014, June 12). Maloney targets slavery, human trafficking
and child labor with bipartisan supply chain transparency bill. Retrieved from http://maloney.house.gov/press-release/maloney-targets-slavery-human-trafficking-and-child-labor-bipartisan-supply-chain
U.S. House. 113th Congress, 2nd
Session. H.R. 4842, Business Supply
Chain Transparency on Trafficking and Slavery Act of 2014. Washington,
Government Printing Office, 2014.
Wokaty, J. (2014, June 12). Investors welcome federal
bill calling for corporate disclosures on trafficking and slavery risks. Retrieved from http://www.iccr.org/investors-welcome-federal-bill-calling-corporate-disclosures-trafficking-and-slavery-risks-0
For more information about the
California Transparency in Supply Act (SB-657) legislation please visit: https://www.knowthechain.org
