Short-term : support populations most effected by trafficking trafficking

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Short-term : support populations most effected by trafficking trafficking Long-term : change societal norms and create sustainable options that increase dignified work and address root causes of trafficking. - PowerPoint PPT Presentation

Transcript of Short-term : support populations most effected by trafficking trafficking

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Short-term: support populations most effected by trafficking trafficking

Long-term: change societal norms and create sustainable options that increase dignified work and address root causes of trafficking.

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“Its impossible to get dressed, drive to work, talk on the phone, or eat a meal without touching products tainted by forced labour.(1)”

(1) US State Department, Trafficking in Persons Report, 2010

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US Department of Labour lists over 120 different goods produced using child or forced labour globally in the agriculture, manufacturing, and quarried industries.

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SB 657: CALIFORNIA TRANSPARENCY IN SUPPLY CHAINS ACT

SB 657 Highlights(2):• Effects “retail sellers” and “manufacturers”

• Company must be doing business in California and have $100 million or more in annual worldwide gross receipts

• Mandates effected companies disclose what they are doing to address trafficking in their supply chain.

• Disclosure must be “conspicuous” and “easily understood”

• Law only requires disclosure. It does not necessitate action or policy be company.

(2) Senate Bill 657 accessed: http://leginfo.ca.gov/pub/09-10/bill/sen/sb_0651-0700/sb_657_bill_20100930_chaptered.html

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WHAT COMPANIES ARE EFFECTED?

An estimated 3500-4500 businesses are subject to the Act, based on the following interpretation of the legal requirements(3):

• The company is organized or commercially domiciled in California;

• Sales of the company in California exceed the lesser of $500,000 or 25% of total sales;

• Real property and tangible personal property of the company in California exceed the lesser of $50,000 or 25% of the taxpayer’s total real property and tangible property; or

• The amount paid by the company in California for compensation exceeds the lesser of $50,000 or 25% of total compensation paid.

(3) K&L Gates, California Transparency in Supply Chains Act – First 90 Days

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FIVE AREAS THE LAW COVERS

Companies must disclose whether they…

• Engage in verification of product supply chains to evaluate and address risks of human trafficking and slavery.

• Conduct audits of suppliers to evaluate supplier compliance with company standards

• Require direct suppliers to certify that they are compliant with relevant labour laws

• Maintain internal accountability standards

• Training on human trafficking and slavery provided to management

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VERIFICATION:Required:• Discloses information on the verification of product supply chains

• The use of a third party to verify product supply chains

Recommended:• conducts a tracing project to identify locations of unknown producers

• publishes a public list of suppliers, including country, name and addresses

• States how many suppliers the brand has traced> > “Traced” defined as knowledge of suppliers name and locations

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AUDITRequired: • Discloses information on monitoring

• Identifies if monitoring is independent, third party, and unannounced

Recommended: • Disclose auditing information, including suppliers monitored and frequency

• Discloses statistics on unannounced visits or off-site worker interviews conducted

• The company discloses information on the use of labor brokers

• The company shares broad monitoring results publically

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CERTIFICATION

Required:• Whether materials incorporated into company products are certified (in

compliance with country laws in which they are doing business) by direct suppliers

Recommended: • Disclose direct suppliers' relationships at inputs or raw materials suppliers • Use of a third party certification system that certifies suppliers down to the

raw materials level

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INTERNAL ACCOUNTABILITYRequired: • Information on internal accountability standards and procedures Recommended:• Code of Conduct that addresses labor standards • Includes standards (Ex. Vendor Code of Conduct) in supplier contracts

• Preferred supplier program (to promote suppliers that demonstrate better and improved labor conditions)

• Functioning grievance mechanism that includes investigation and efforts to address grievance.

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TRAINING Required: • Whether employees and management are trained on human trafficking and

risk mitigation in supply chains

Recommended:• The company discloses information on financial support towards training.

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SB 657 & BEYONDStatus of SB 657• Does not mandate companies do anything. The first step is transparency.

• 70-80% of companies are believed to not to be complaint with SB 657.

• Similar legislation has been introduced in the UK and the US at the federal level.

Beyond• SB 657 creates an opportunity to engage in a broader sourcing

conversations with companies.

• Labor issues now on the agenda of many companies, previously unengaged in them.

• SB 657 is only the first of potentially other similar legislative efforts.