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Network Collaboration - Kevin Costello, President, Ariba, Inc.
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Made In a Free World

In a speech to some of the world’s leading business leaders last year, President Obama said that, “All the business leaders who are here and our global economy companies have a responsibility to make sure that their supply chains, stretching into the far corners of the globe, are free of forced labor.” The connected global economy has both challenges and opportunities in the area of human rights, specifically forced labor.

Given growing consumer awareness, and emerging legislation, the issue has become impossible to ignore. Come learn about how Made In A Free World, an organization included in the President’s remarks, has developed supply management solutions to diagnose and address forced labor.

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Made In a Free World

  1. 1. The IssueWho We AreProgress on Addressing SlaveryA Networked Solution
  2. 2. #AribaLIVE
  3. 3. #AribaLIVE
  4. 4. #AribaLIVE21st CENTURY IDEASTO ADDRESS21st CENTURY CHALLENGES
  5. 5. #AribaLIVESLAVERY FOOTPRINT IMPACTEMERGING CONSUMER BASEMAKERS AND INNOVATORSHELP INDIVIDUALS, BUSINESSES,AND INSTITUTIONSADDRESS FORCED LABORTOGETHER
  6. 6. #AribaLIVEBurgeoning DemandUnified MessagingWhy a Consumer-Facing Label?
  7. 7. #AribaLIVE
  8. 8. #AribaLIVE“GIVE US THE PLAYBOOK”BrandingAchievableSupported ByGovernmentAdaptableScalableAccessibleMarketable/RecognizableMeasurable
  9. 9. #AribaLIVE
  10. 10. #AribaLIVE”The launch of the Made in a FreeWorld initiative to help buyersand suppliers identify andeliminate supply chainvulnerabilities, and demonstratetheir commitment to combattinghuman trafficking.”EXECUTIVE ORDER
  11. 11. #AribaLIVEdisrupt illicit labor marketsCHARITIES GOVERNMENTCONSUMERSBUSINESSWe Need A Network
  12. 12. #AribaLIVESHAREDKNOWLEGEBETTERDATAANALYSISINFORMEDMARKETPLACEUNIFIEDMESSAGINGdisrupt illicit labor marketsWe Need A Network
  13. 13. #AribaLIVEEach Enterprise’s Footprint Can Exert Market Influence With Very Little Cost Or EffortSupplies / Goods / ServicesLeveraged SpendWhy a MIAFW Network?
  14. 14. #AribaLIVEA network of business leaders working together to address global slaveryStep 1Existing Policies & Codes Of Conduct Approved By Multi-Stakeholder GroupStep 2Commitment to learn from your Enterprise FootprintNetworkStep 3Engagement PathwayMIAFW (network)
  15. 15. #AribaLIVE1) What is your methodology for determining whether any 1st Tier supplier, including those who supply raw materials, obtain and employ labor under conditions that violate laws prohibiting slavery and human trafficking in thecountry in which the goods enter the supply chain or which would violate laws of the United States of America relating to the importation of goods tainted by slavery and human trafficking.Specifically how does your company:__Trace and protect all of the labor in its supply chain?__Honor the role and voice of the worker as the best check on abuse?__Provide for independent, unannounced, and thorough audits?__Provide effective whistleblower and complaint procedures?__Provide clear guidelines for security procedures throughout their supply chains to ensure that security forces are not used to intimidate, hold, or abuse workers throughout their supply chains?__Inform its shareholders and stakeholders on creation, maintenance and implementation of their related policies?__Guarantee all workers mobility by strictly forbidding any holding of official documents?__Ensure all workers are paid fairly?2) What is company protocol if you determine that a raw material or product in its supply chain that may be tainted by slavery and human trafficking. Specifically how does your company__Engage in prevention measures to ensure that the incidence is not repeated?__Require 1st Tier suppliers to comply with local laws related to slavery and trafficking in persons as well as ILO Conventions?__Ensure that labor recruiters are fully licensed by their home government and do not engage in using fraud or debt to create a trafficking exploitation?__Provide internal accountability for employees or contractors failing to meet company standards on this issue?__Comply with local laws related to slavery and trafficking in persons as well as ILO Conventions?__Provide any restitution for victims?4)Does your company have an awareness program to inform employees about:__the policy of ensuring that employees do not engage in trafficking in persons or related activities,__the procurement of commercial sex acts, or the use of forced labor;__the actions that will be taken against employees for violation of such policy;3) Does your Companies contracts have a clause that requires each contractor and subcontractor shall certify, prior to receiving an award and annually thereafter during the term of the contract or subcontract, that:__it has the compliance plan__to the best of its knowledge and belief, neither it nor any of its subcontractors has engaged in any such activities; or, if abuses have been found, the contractor or subcontractor has taken the appropriate remedial andreferral actions;Code of Conduct/PoliciesPreliminary AssessmentStep1
  16. 16. #AribaLIVESome of the CompaniesWho Have AlreadyPublicly AnsweredStep1
  17. 17. #AribaLIVEEnterprise FootprintSpendData(best)OperationalSpendContractedServices1st TierSupplierType/LocationorEnterpriseFootprintAlgorithmweighted by factorssuch as:Quantity of Product UsedVolume of ManufacturingRisk AnalysisOperations/Service/Product Ratio.......Allows for a largerenterprise to inputdetailed spend dataAllows for a largerenterprise to inputdetailed spend dataAllows for smallercompanies withoutdetailed spend data toinput based off of readilyavailablecompany infoAllows for smallercompanies withoutdetailed spend data toinput based off of readilyavailablecompany infoMulti-stakeholdervetted DB of FL inprocurement &manufacturingMulti-stakeholdervetted DB of FL inprocurement &manufacturingStep2
  18. 18. #AribaLIVEBasic MaterialsConglomeratesConsumer GoodsFinancialHealthcareIndustrial GoodsServicesTechnologyUtilitiesElectronicsAny Industry Sector
  19. 19. #AribaLIVE
  20. 20. #AribaLIVEPower SupplyAC/DC ConverterRisk Level: HighAcBel Polytech Inc.No. 17-28, (Hong Yeh Road),Hong Yeh 138 Industrial District,Tang Xia TownDongguan, Guangdong, ChinaNarrative:The Government of the People’s Republic of China doesnot fully comply with the minimum standards...(readmore).Next Steps:Policy Augmentation (see here)Contract Augmentation (see here)Assessment Recommended (see here)Migrant Worker Policy/Plan (see here)Power SupplyAC/DC ConverterRisk Level: HighAcBel Polytech Inc.No. 17-28, (Hong Yeh Road),Hong Yeh 138 Industrial District,Tang Xia TownDongguan, Guangdong, ChinaNarrative:The Government of the People’s Republic of China doesnot fully comply with the minimum standards...(readmore).Next Steps:Policy Augmentation (see here)Contract Augmentation (see here)Assessment Recommended (see here)Migrant Worker Policy/Plan (see here)Interactive Mapoutlining issue areasInteractive Mapoutlining issue areasProvide dynamic dataabout where thecompany isconducting businessProvide dynamic dataabout where thecompany isconducting businessProvide clear andrequired next stepsto insure againstforced laborProvide clear andrequired next stepsto insure againstforced laborStep2 Analysis/Next Step
  21. 21. #AribaLIVEKnowledgeEnterpriseFootprintInsightSocializationInternally & externalcommunicationabout insights andcommitmentsPlanningDevelopingInformedPathway To EngageSupply ManagementImplementSupply ChainAssessment/Remediation based on riskassessmentStep3Engagement Pathway
  22. 22. #AribaLIVESharedBestPracticesMarketingPipelineMeasurableSuccessSupplyChainStabilityEmployeeLoyaltyCSRCampaignsSupplierAnalyticsProactiveComplianceCompetitiveadvantageLegalComplianceCause-consciousmarketingMulti-stakeholderpartnershipsReputationalprotectionRiskmitigationGlobalCitizenshipPromotionto MIAFWuserdatabaseBenefits of The MIAFW Network
  23. 23. #AribaLIVEThe Power of a MIAFW Network
  24. 24. #AribaLIVEPre-EligibilityLearn MoreJoin UsBuild The Networkbusiness@madeinafreeworld.comNext Steps
  25. 25. Questions?

In a speech to some of the world’s leading business leaders last year, President Obama said that, “All the business leaders who are here and our global economy companies have a responsibility to make sure that their supply chains, stretching into the far corners of the globe, are free of forced labor.” The connected global economy has both challenges and opportunities in the area of human rights, specifically forced labor. Given growing consumer awareness, and emerging legislation, the issue has become impossible to ignore. Come learn about how Made In A Free World, an organization included in the President’s remarks, has developed supply management solutions to diagnose and address forced labor.

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