risks of modern slavery in your sector: information & communications technology
TRANSCRIPT
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INFORMATION & COMMUNICATIONS TECHNOLOGY
Risks of Modern Slavery in Your Sector
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Today’s Moderator
Madison AdamsAssent ComplianceCompliance Services
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INTRODUCTION
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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
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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
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Agenda
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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
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IntroductionModern Slavery in the Information & Communication Technology Sector
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Modern Slavery: Definition
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MODERN SLAVERY
Slavery ServitudeForced
& Compulsory Labor
Human Trafficking
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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)
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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%
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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
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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.
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Feature PresentationModern Slavery in the Information & Communications Technology
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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
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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
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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)
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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)
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What Can ICT Companies Do to Address Forced Labor Risks
⬥ Commitment and governance⬥ Traceability and risk assessment⬥ Purchasing practices⬥ Recruitment⬥ Worker voice⬥ Monitoring⬥ Remedy
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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
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KnowTheChain - 2016 ICT Benchmark
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KnowTheChain - 2016 ICT Benchmark
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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)
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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
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UK Modern Slavery Act Registry
Technology sector – 104 statements
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Q&A Discussion
Questions?
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