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SPLC 2019 Summit: Human Rights in Procurement: Modern Slavery & Human Trafficking

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HUMAN RIGHTS IN PROCUREMENT:
MODERN SLAVERY & HUMAN TRAFFICKING
Sustainable Purchasing Leadership Council – May 22, 2019

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Panel
Nora Neibergall, moderator
Senior Vice President and Corporate Secretary
Institute for Supply Management
Robert Stum...

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Questions
1 Why should purchasers care?
2 What is “modern slavery”? Are other abuses
prevalent?
3 How can your institution...

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SPLC 2019 Summit: Human Rights in Procurement: Modern Slavery & Human Trafficking

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Slides from Melanie Bower, Director of Compliance Management, Sumerra; Stacey Forman, Sustainable Procurement Coordinator, City of Portland, Oregon; Nora Neibergall, Senior Vice President and Corporate Secretary, Institute for Supply Management; Robert Stumberg, Professor of Law; Director, Harrison Institute for Public Law, Georgetown Law; presented at the Sustainable Purchasing Leadership Council’s 2019 Summit in Portland, OR.

Slides from Melanie Bower, Director of Compliance Management, Sumerra; Stacey Forman, Sustainable Procurement Coordinator, City of Portland, Oregon; Nora Neibergall, Senior Vice President and Corporate Secretary, Institute for Supply Management; Robert Stumberg, Professor of Law; Director, Harrison Institute for Public Law, Georgetown Law; presented at the Sustainable Purchasing Leadership Council’s 2019 Summit in Portland, OR.

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SPLC 2019 Summit: Human Rights in Procurement: Modern Slavery & Human Trafficking

  1. 1. HUMAN RIGHTS IN PROCUREMENT: MODERN SLAVERY & HUMAN TRAFFICKING Sustainable Purchasing Leadership Council – May 22, 2019
  2. 2. Panel Nora Neibergall, moderator Senior Vice President and Corporate Secretary Institute for Supply Management Robert Stumberg Professor of Law; Director, Harrison Institute for Public Law Georgetown University Law Center Melanie Bower Director of Compliance Management Sumerra Stacey Foreman Sustainable Procurement Coordinator City of Portland
  3. 3. Questions 1 Why should purchasers care? 2 What is “modern slavery”? Are other abuses prevalent? 3 How can your institution begin to be diligent on human rights? 4 Why is transparency a central theme? 5 How can purchasers “leverage” or scale up their impact?
  4. 4. Questions 1 Why should purchasers care? 2 What is “modern slavery”? Are other abuses prevalent? 3 How can your institution begin to be diligent on human rights? 4 Why is transparency a central theme? 5 How can purchasers “leverage” or scale up their impact?
  5. 5. Questions 1 Why should purchasers care? 2 What is “modern slavery”? Are other abuses prevalent? 3 How can your institution begin to be diligent on human rights? 4 Why is transparency a central theme? 5 How can purchasers “leverage” or scale up their impact?
  6. 6. Modern slavery • Forced labor – work under menace of a penalty: kidnapping, confinement, threat of violence • Human trafficking – false recruitment, recruitment fees, confiscation of travel documents, no-return travel Sectors with forced or child labor US General Services Administration Apparel / textiles Agriculture Construction materials Construction services Electronics Extractives – oil, gas, mining Fishing / aquaculture Forestry Furniture Healthcare Hospitality – hotels Housekeeping – facilities Security services Transportation
  7. 7. Customary Source Countries China Dominican Rep. Haiti Honduras Hong Kong India Indonesia Pakistan South Korea Taiwan Thailand Vietnam Procurement data reports a contractor’s office address, not its location of production. This map shows customary source countries based on customs data. US Government: Customary Sources of Apparel
  8. 8. 8 Substantial Risk Low Risk ? = No Data Trafficking, Forced Labor Child Labor Discrimination Denial of Right to Organize Illegal Wages / Hours Unsafe Conditions China Dominican R. Haiti Hong Kong India Pakistan South Korea Taiwan Thailand Vietnam Prevalence of Abuses
  9. 9. 9 Substantial Risk Low Risk ? = No Data Trafficking, Forced Labor Child Labor Discrimination Denial of Right to Organize Illegal Wages / Hours Unsafe Conditions China Dominican R. Haiti Hong Kong India Pakistan South Korea Taiwan Thailand Vietnam Prevalence of AbusesModern Slavery
  10. 10. 1 Prevalence of Abuses Substantial Risk Low Risk ? = No Data Trafficking, Forced Labor Child Labor Discrimination Denial of Right to Organize Illegal Wages / Hours Unsafe Conditions China DOS, ITUC DOS DOS DOS, FH DOS, WRC DOS Dominican R. DOS ? ITUC DOS, WRC DOS, WRC DOS, WRC Haiti DOS ? DOS, WRC DOS, ITUC DOS, WRC DOS, WRC Hong Kong DOS, ITUC DOS DOS DOS DOS DOS India DOS, DOL DOS, DOL DOS DOS ? DOS Pakistan DOS DOL ? DOS ? ? South Korea DOS ? DOS, ILO DOS, ITUC, AI DOS DOS Taiwan DOS DOS DOS DOS DOS DOS Thailand DOS DOS ? ITUC ? DOS Vietnam DOL, DOS DOL, DOS DOS DOS DOL DOS Modern Slavery
  11. 11. Questions 1 Why should purchasers care? 2 What is “modern slavery”? Are other abuses prevalent? 3 How can your institution begin to be diligent on human rights? 4 Why is transparency a central theme? 5 How can purchasers “leverage” or scale up their impact?
  12. 12. First steps of diligence ... 1.Set expectations for suppliers, e.g., a code of conduct. 2.Assess supplier risk. 3.Confirm implementation of your code. Link to the GEC Purchaser’s guide: https://greenelectronicscouncil.org/resources-guidance/
  13. 13. First steps: City of Madison, WI 5 Remedy Disclose compliance plans and remedies. 4 Conditions Investigate and disclose conditions. 3 Factory location Disclose 60% of factories at bidding stage Disclose contractor’s list on consortium database 2 Procurement Disclose uniform contracts, a high-risk sector. 1 Policy Publish “sweatfree” code of conduct and factory disclosure forms
  14. 14. Questions 1 Why should purchasers care? 2 What is “modern slavery”? Are other abuses prevalent? 3 How can your institution begin to be diligent on human rights? 4 Why is transparency a central theme? 5 How can purchasers “leverage” or scale up their impact?
  15. 15. Transparency Pyrosome / Zooids
  16. 16. Transparency in Stages Depth of supply chain Stage of Disclosure 1 Policy 2 Procurement 3 Factories 4 Conditions 5 Remedy Institutional purchaser Prime contractor Tier 1 final goods Tier 2 parts Tier 3 materials ß Policy Supply chain à
  17. 17. Transparency in Stages: Tier 1 1 HR policy 2 Procurement 3 Factories 4 Conditions 5 Remedy Baseline Sourcing code Suppliers Factory location Audit report Remedy report Additional disclosures Risk assessment Shareholder engagement Governance Factory info. Condition Remedy resources Accountability Contract clauses Factory owners Worker info. Base wage Unions Living wage benchmark Audit percentage Aggregate reporting of compliance Resources Purchasing practices
  18. 18. Comparing Transparency Progress Framework Stage of Disclosure 1 Policy 2 Procure- ment 3 Factories 4 Conditions 5 Remedy California TSCA Modern Slavery Act EU – TED database US – USAspending.gov Fair Labor Assn - audits Madison, WI / SPC Electronics Watch in 2019 Fair Labor Assn – 3rd party Worker Rights Consortium 18
  19. 19. Questions 1 Why should purchasers care? 2 What is “modern slavery”? Are other abuses prevalent? 3 How can your institution begin to be diligent on human rights? 4 Why is transparency a central theme? 5 How can purchasers “leverage” or scale up their impact?
  20. 20. Contact information Nora Neibergall, nneibergall@instituteforsupplymanagement.org Senior Vice President and Corporate Secretary, Institute for Supply Management; leads ISM’s global certification programs. Advisor for the ISO20400 Sustainable Procurement – Guidance publication. Robert Stumberg, stumberg@georgetown.edu Professor of Law; Director of the Harrison Institute for Public Law, Georgetown Law. Advisor on procurement to the International Corporate Accountability Roundtable, Electronics Watch, and the Sweatfree Purchasing Consortium (model policy). Melanie Bower, mbower@sumerra.com Director of Compliance Management at Sumerra (apparel industry). Previously, Program Director for EPEAT; author of the Purchasers Guide for Addressing Labor and Human Rights Impacts in IT Procurements. Stacey Foreman, stacey.foreman@portlandoregon.gov Sustainable Procurement Coordinator, City of Portland. Advisor to the Green Electronics Council; board member of the Sweatfree Purchasing Consortium. LEED Accredited Professional.

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