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HUMAN RIGHTS IN PROCUREMENT:
MODERN SLAVERY & HUMAN TRAFFICKING
Sustainable Purchasing Leadership Council – May 22, 2019
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
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?
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?
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?
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
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
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
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
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
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?
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/
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
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?
Transparency
Pyrosome / Zooids
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
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
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
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?
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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SPLC 2019 Summit: Human Rights in Procurement: Modern Slavery & Human Trafficking

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