Risks of Modern Slavery In Your Sector: Information & Communications Technology

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INFORMATION & COMMUNICATIONS TECHNOLOGY

Risks of Modern Slavery in Your Sector

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[email protected] / www.assentcompliance.com / 1 866 964 6931 / © Assent Compliance 2016Confidential and Proprietary to Assent Compliance. © 2015 Assent Compliance Inc.

Today’s Moderator

Madison AdamsAssent ComplianceCompliance Services

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INTRODUCTION







Assent Product SuitesOur Market Leading Platform

Ethical Sourcing

Materials Management

Supplier Information Management

InspectionsConfigurable Surveys & Declarable Substance

Lists

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Today’s Presenter

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Sarah CarpenterAssent ComplianceBusiness & Human Rights Analyst







Webinar Series Details

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November 3rd

10 AM EDTApparel with Fair Wear Foundation

November 8th

1 PM ESTFood & Beverage with

Oxfam America

December 7th 10 AM EST

Information & Communications Technology with KnowTheChain

March 2017

Jewelry







Agenda

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[email protected] / www.assentcompliance.com / 1 866 964 6931 / © Assent Compliance 2016 7

Introduction to Modern Slavery

Snapshot of Modern Slavery in the ICT Sector

Challenges Faced by ICT Companies

Preventing and Mitigating Risk

Progress by ICT Companies

Case Studies












IntroductionModern Slavery in the Information & Communication Technology Sector







Modern Slavery: Definition

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MODERN SLAVERY

Slavery ServitudeForced

& Compulsory Labor

Human Trafficking







Modern Slavery: In Numbers

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45.8 million people

Supply chains provide fertile ground for modern slavery conditions to arise

International Labour Organization:Global Slavery Index:

living in modern slavery (2016)

21 million victimsof forced labor (2012)







Modern Slavery: By Country

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Source: The Global Slavery Index (2016)

58 percent of those living in slavery are located in five countries

Top Five Countries (Proportion of Population):

North Korea: 4.37% - Uzbekistan: 3.97% - Cambodia: 1.65% - India: 1.4% - Qatar: 1.36%







Anti-Human Trafficking Laws: New & Stronger

◆ Amended FAR Rule on Combating Trafficking in Persons (52-555-50) - 2015

◆ UK Modern Slavery Act - 2015

◆ California Transparency in Supply Chains Act - 2012 (compliance sweep in 2015)

◆ U.S. Trade Facilitation and Trade Enforcement Act - 2016

◆ More to come: EU Directive on Non-Financial Reporting and others

Why Now?

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NGO Scrutiny, Investigative Journalism, Strategic Litigation

Why Now?

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Today’s Partner

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Felicitas WeberKnowTheChain







Organization Overviews

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Assent Compliance provides best-in-class compliance solutions that help organizations with their global, environmental and human

rights compliance strategies.

KnowTheChain is a partnership of Humanity United, the Business & Human Rights Resource

Centre, Sustainalytics, and Verité— it is a resource for businesses and investors who need to

understand and address forced labor abuses within their supply chains.







Feature PresentationModern Slavery in the Information & Communications Technology







ICT Sector: Forced Labor at Commodity Level

Commodities used in electronics, such as cell phones and laptops

⬥ “3 Ts” (DRC, Bolivia): Tin, Tungsten, Tantalum/Coltan

⬥ Gold (Burkina Faso, North Korea, Nigeria, and Peru; Ghana, Latin America)

Verite – Forced labor Commodity Atlas, US Department of Labor - List of goods produced by forced labour






http://www.verite.org/commodities

https://www.dol.gov/ilab/reports/child-labor/list-of-goods/


ICT Sector: Forced Labor at Manufacturing Level

Electronics sector in Malaysia ⬥ Nearly 1/3 of migrant workers in forced labor (1/4 of all workers)

Cycle of exploitation: Deceptive recruitment / recruitment fees → debt / passport retention → no freedom of movement / inability to leave job

Verite 2014 - Forced Labor In The Production Of Electronic Goods In Malaysia, US Department of State - 2016 Trafficking in Persons Report






http://www.verite.org/sites/default/files/images/VeriteForcedLaborMalaysianElectronics2014.pdf

https://www.state.gov/documents/organization/258876.pdf


ICT Sector: Occurrence of Forced Labor

Case study: Guardian expose (Nov. 16) - Samsung and Panasonic accused over supply chain labor abuses in Malaysia

⬥ Migrant workers from Nepal⬥ Workers employed and recruited by recruitment agencies⬥ Recruitment agencies in home countries charging high fees and deceiving

workers about type of work and level of pay⬥ Passport retention by agencies (illegal in Malaysia)⬥ Restriction of freedom of movement (threat of fines if workers want to leave)⬥ Poor working conditions (long hours, few breaks)






https://www.theguardian.com/global-development/2016/nov/21/samsung-panasonic-accused-over-supply-chain-labour-abuses-malaysia


Key Challenges

⬥ Traceability of minerals

⬥ Lack of law enforcement in sourcing and manufacturing countries

⬥ Competitive pricing of consumer products

⬥ Long supply chains and complex worker recruitment systems

⬥ Lack of unionizations

⬥ Vulnerable groups of workers (e.g. migrant workers, small-scale miners)







What Can ICT Companies Do to Address Forced Labor Risks

⬥ Commitment and governance⬥ Traceability and risk assessment⬥ Purchasing practices⬥ Recruitment⬥ Worker voice⬥ Monitoring⬥ Remedy







What Can ICT Companies Do to Address Forced Labor Risks⬥ Collaborate with peers

⬦Engage governments in countries where suppliers operate ⬦Work with peers to provide joint supplier training⬦Play an active role in industry associations to drive improved standards in the industry

⬥ Address exploitation through recruitment agencies⬦Encourage direct hiring and direct employment of supply chain workers⬦Ensure fees are paid by the employer, not supply chain workers⬦Set clear standards for recruitment agencies, ask suppliers to be transparent on agencies used, and undertake due diligence on agencies

⬥ Engage workers⬦Empower workers (address barriers to freedom of association, ensure workers are aware of their rights and your standards)⬦Engage with supply chain workers, in a manner they can speak freely (outside of work context)⬦Provide effective grievance mechanisms for supply chain workers







KnowTheChain - 2016 ICT Benchmark







Case Study: Apple

Change in recruitment approach

⬥ “Employer pays” principle: Leadership Group for Responsible Recruitment

⬥ Suppliers are required to audit recruitment agencies

⬥ Training: Online training and support for suppliers employing foreign workers

⬥ Remedy: Ensured over $25 million USD recruitment fees have been repaid to supply chain workers since 2008 (over $4 million USD in 2015)






https://www.ihrb.org/pdf/reports/IHRB-Statement-of-Intent-Employer-Pays-Principle-Leadership-Group-for-Responsible-Recruitment.pdf


Case Study: Hewlett-Packard (HP)

Foreign Migrant Worker Standard◆ No recruitment fees for workers ◆ No passport retention◆ Encourages direct hiring of workers, and requires direct employment

Training◆ Training of recruitment agencies◆ Sub-tier supplier training provided jointly with first-tier suppliers

Purchasing practices◆ Rolling 12+ week forecast to suppliers◆ Multi-year agreements with major suppliers







UK Modern Slavery Act Registry

Technology sector – 104 statements







[Webinar] Compliance Essentials: Conflict Mineral Due DiligenceThursday, December 8th | 1PM EST

[Webinar] Compliance Essentials: Assent University Thursday, December 15th | 11AM EST

Upcoming Educational SummitsFebruary 8, 2017 | San Jose

Upcoming Events: Webinars & Conferences

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Q&A Discussion

Questions?

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Risks of Modern Slavery In Your Sector: Information & Communications Technology

Education

Transcript of Risks of Modern Slavery In Your Sector: Information & Communications Technology