‘2018 information and communications technology benchmark findings report’, Know the Chain

Report description:

In this report KnowTheChain looked at this question,’are the largest information and communications technology companies in the world doing enough to eradicate forced labor from their supply chains?’ Each company received an overall benchmark score, ranging from zero to 100 which was determined with regard to weighing seven themes equally: commitment and governance, traceability and risk assessment, purchasing practises, recruitment, worker voice, monitoring and remedy. In this study KnowTheChain evaluated 40 companies and the average benchmark score was 32 out of 100. Further, the two areas that were thought in this report to have the most impact on workers’ lives, worker voice and recruitment, were the lowest scoring themes.

Read the report here: https://knowthechain.org/wp-content/plugins/ktc-benchmark/app/public/images/benchmark_reports/KTC-ICT-May2018-Final.pdf

‘‘Body of work’ needed on slavery in supply chains’ by Darragh O’Keeffe

Article description:

As demonstrated by Darragh O’Keefe there is a lack of awareness of the existence of modern-slavery not just in the community but also by sourcing businesses and procurement professionals. Further, as important as increased awareness is increased preparedness to address the issue. The Commonwealth’s Modern Slavery Bill and the NSW Modern Slavery Act that was passed in June have both helped raise the issue’s profile, but in a survey conducted by Deloitte with sustainability managers, one third were unaware of the Modern Slavery Act and many thought there was only ‘a possibility’ of modern slavery in their supply chains. Further, a survey conducted in May by the Chartered Institute of Procurement & Supply (CIPS) showed ‘one in five [organisations] did not know who in their organisation was ultimately responsible’ for the issue of modern slavery in their supply chains.

This said, despite a lack of awareness and preparedness, informed organisations are ‘tending to embrace the legislation’, says Mark Lamb, general manager of CIPS Australasia. Dr Black from Deloitte states that one of the key challenges for organisations will be ‘getting visibility on supply chains’. The article goes on to discuss the importance of technology to address this issue as well as the predicted transformation of current procurement manager’s processes.

Read the article here

KNOW THE CHAIN Report

  • FORCED LABOR ACTION COMPARED: FINDINGS FROM THREE SECTORS
  • With recommendations for companies across sectors, business and multi-stakeholder associations, and investors

Forced labour is a risk for all importing global companies. Public awareness of forced labour in supply chains has grown, regulations requiring companies to take action have continued to emerge—businesses are being held to higher transparency and legal standards. Companies across all sectors importing goods from high risk countries can no longer afford to ignore this issue.

With a combined market capitalization of more than US $4 trillion, the companies analyzed by KnowTheChain represent some of the largest companies in the world. These companies were evaluated in seven categories and received a score out of 100 possible points.

Key findings across the three sectors include:

  • Average sector scores were below 50/100, indicating significant room for improvement across sectors.
  • Shockingly, there was one company in each sector that received a score of 0/100 indicating a concerning lack of action.
  • Apparel companies tend to be more advanced, while food & beverage companies are lagging behind.
  • This is reflective of the level of media attention and civil society pressure companies in each of the sectors have received.
  • Companies tend to be more advanced in developing supply chain commitments and monitoring the first labour performance of first-tier suppliers.
  • Companies are taking limited steps to address the exploitation of migrant workers by recruitment agencies. However, it is encouraging that a number of companies across sectors have joined the Leadership Group for Responsible Recruitment (thus committing to the “Employer Pays” Principle) and that some industry associations are starting to take action.
  • Two areas with limited progress are engagement with supply chain workers and providing remedy for workers whose rights are violated. These areas both lack attention from companies as well as from business and multi-stakeholder associations.

 

For the full Report look at : https://knowthechain.org/wp-content/uploads/KTC_CrossSectoralFindings_Final.pdf