In today’s complex global marketplace, many companies operate without a clear understanding of the human rights risks lurking within their supply chains. To better grasp the risks, companies often make use of traditional compliance audits – a process that is too often a simple checkbox (or tick-box) exercise. True risk management requires moving beyond traditional models to develop a concrete, nuanced understanding of how labor violations can emerge at every tier of production—from raw material extraction to final assembly.
Embedding human rights means integrating them into your company’s DNA, its culture, strategy, and daily operations. It’s about placing human rights on par with other core business priorities like efficiency, quality, cost, and environmental sustainability. This requires a fundamental shift in how businesses perceive their role and responsibilities in the global economy, moving beyond mere compliance to proactive engagement with human rights issues.
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
