SOURCE: Source Intelligence®DESCRIPTION:
All companies around the world are pressured to increase their due diligence in fighting slavery within their supply chains. The pressure comes from governments that are very serious about stopping this on going issue and the consumers that purchase their products are also mounting more pressure. This type of focus requires a heavy amount of checks and balances into their own supply chain and getting even more granular down to their tier 2 and tier 3 suppliers.
This pressure keeps mounting because of consumer demands on making sure the companies they buy from are completely transparent on the products they produce and sell. Interestingly enough, Tesco, the giant supermarket retailer from Brittan, believes “that all businesses around the world have some form of slave labor in their supply chains but companies can find ways to eradicate this abuse,” according to an article in The Sydney Morning Herald.
"I think all corporations have slavery in their supply chains and some of those instances are absolutely horrific. Sometimes it can be the case, that the pressure of the competition can lead to some of those problems, but for the most part (businesses are) part of the solution.”
Most importantly, identifying the problems that create supply chain slavery is essential to separating company operations from this on going problem. The retail industry is truly affected by this, as many garment factories, in other parts of the world, seem to have forced labor practices in their facilities.
Regardless of the cost of doing ethical business to the company, consumers are demanding that these practices change and that slavery and forced labor be nowhere near the products they use. Consumers are the lifelines of any retail company and to avoid their concerns is to avoid the very problem that plagues supply chains.
Governments are increasing their level of concern and enforcement as well. It is no longer acceptable to have these issues within any supply chain. California Supply Chain In Transparency Act and The UK Modern Day Slavery Act are examples of how serious the political and private sector communities are taking this.
Companies have one option and that is to comply with the increasing regulations and pressures from the global community. If they do not comply they will surely find them selves at the center of criticism and regulatory problems. For more information on what companies are required to do, click here.
KEYWORDS: Business & Trade, Ethical Production and Consumption, modern day slavery act, slavery, supply chain, suppliers, sb-657, Source Intelligence