In my first post, A Quick Guide to ESG and Risk Management in the Extended Enterprise, I outlined what ESG (environmental, social and governance) is and how it impacts third-party risk management. Next, we looked deeper into a specific aspect of Governance in ESG: anti-bribery and corruption (ABAC). This post discusses a social aspect: how modern slavery can impact your extended enterprise.
What Is Modern Slavery and How Does It Apply to Modern Supply Chains?
Modern slavery exists when people are subjugated by companies and controlled by threats of harm or debts they cannot repay. Human trafficking is a related term used to describe when people are moved between countries (e.g., the slave trade). Slavery is found in the supply chains of corporations producing materials and products, as well as in the forced compulsion of children to make products in factories. In fact, 40 million people are estimated to be enslaved around the world today, resulting in $150 billion in ill-gained profits every year.
The good news is the world has been taking action. Governments in several countries have passed legislation requiring organizations to report on modern slavery in their supply chains. A few examples of legislation include . . .
[THE REST OF THIS ARTICLE CAN BE FOUND ON THE PREVALENT BLOG WHERE GRC 20/20’S MICHAEL RASMUSSEN IS A GUEST AUTHOR]