Companies shirking supply chain responsibilities
New research has shown that ten major US companies are circumnavigating legislation that attempts to end human trafficking and forced labour in supply chains.
According to new research the companies are failing to provide adequate data on their supply chain as required by the California Transparency in Supply Chains Act.
The KnowtheChain website, a resource website created to promote greater transparency and dialogue around the issue of trafficking in supply chains, reports that some complying companies have openly chosen not to address the risk of slavery in their supply chains, despite posting a disclosure statement.
For example, Hyundai’s disclosure reads: “In compliance with the disclosure requirements of California Senate Bill 657…Hyundai supplies the following information: Hyundai has no policy regarding, and does not monitor, human trafficking and slavery in its direct product supply chain.”
Similarly, though technically compliant with the letter of the Supply Chains Act requirements, the following ten companies have released disclosure statements that demonstrate a lack of concern about the issue and the responsibility for even basic policies or procedures to assess, enforce, or remedy trafficking issues:
Hyundai Motor America
Johnson Matthey Inc.
Krispy Kreme Doughnuts, Inc.
Manufactured Packaging Products
Overhill Farms, Inc.
Valero Energy Corp.
KnowTheChain say they have already assessed nearly 500 companies to identify whether they meet the minimum disclosure standards mandated for large retailers and manufacturers by the California Supply Chains Act. The evaluations show that some companies have embraced the spirit of the law, developing robust policies, while others lag behind. Of these companies, over 100 have no or insufficient statements regarding their efforts to eliminate slavery from their supply chains.
In a June 2014 blog post on the "KnowTheChain" coalition website, Ed Marcum of Humanity United states that these companies "have openly chosen not to address the risk of slavery in their supply chains...demonstrat[ing] a lack of concern about the issue and the responsibility for even basic policies to procedures to assess, enforce or remedy trafficking issues."
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