As companies look to uphold ethical labor practices in their supply chains, a major challenge arises – how to promote worker freedom of association (FoA) rights in places where union rights are legally restricted? Furthermore, the corporate accountability landscape is shifting toward government regulation of supply chain compliance via transparency and due diligence mandates and trade sanctions. Considering this, how must companies reassess the prevailing practices in their supply chains that create obstacles and suppression of rights, even in countries where union rights are less restrictive on pape
As new and emerging human rights due diligence (HRDD) legislation, such as the recently passed EU Corporate Social Due Diligence Directive (CSDDD), gains traction, the demand for transparent and accurate information regarding labor recruitment costs has escalated. As global supply chains grapple with the pervasive issue of debt bondage, a deeply rooted manifestation of forced labor, the urgent need to shed light on the hidden financial burdens shouldered by migrant workers has become critical.
The Fostering Fee Accountability and Cost Tracking (FFACT) project, a collaborative effort between Verité and over 10 other civil society organizations (CSOs) in India, Bangladesh, and Malaysia, is addressing the need for transparent, accurate calculations of recruitment costs through worker-led digital
Companies face mounting pressures from consumers, regulators, and their own ethical and sustainability commitments when it comes to upholding workers’ rights. Through two pioneering field pilots in the Indian cotton supply chain, Verité’s U.S. Department of Labor-funded Supply Chain Tracing and Engagement Methodologies (STREAMS) project is testing innovative approaches that combine supply chain traceability with robust labor rights due diligence. These pilots represent efforts to develop an evidence-base and resources that will help companies strengthen human rights due diligence efforts proactively, rather than reactively.
The European Union (EU) reached a historic deal on the Corporate Sustainability Due Diligence Directive (EU CSDDD). For the first time, large companies and those in high-risk sectors will be required to implement risk management systems to address their adverse impacts on people, communities, and the environment if they wish to do business in the EU market.
The United States and other governments are creating laws and regulations to require more effective management and prevention of these risks by those who sell goods and services to the government and by those who import goods into the US and other countries. As a result, government officials of many types – from contracting and procurement officials to Congressional staff – are increasingly engaged in matters related to labor and human rights risks in global supply chains.
