Compliance Program for Anti-Human Trafficking - PowerPoint Presentation

Slide1

Compliance Program for Anti-Human Trafficking

Conflict Mineral & Ethical Sourcing Workshop 2015Slide2

Today’s Presenter

James Calder

Director - Compliance Programs

Assent ComplianceOver ten years as a senior expert on product stewardship

, regulatory approvals/certifications, product safety, and ethical

sourcing.Slide3

Main Legislative Drivers

Federal

Acquisition Regulation (Executive Order 13627)

California Transparency in Supply Chains Act

UK Modern Slavery Act 2015Slide4

Federal Acquisition Regulation

Human Trafficking Provisions Timeline

A contract clause prohibiting severe forms of HT, procurement of commercial sex acts and the use of forced labor has appeared in federal service contracts

Contractors had to: i) notify employees about the policy; ii) establish an employee awareness program and iii) notify the Government of an alleged

violation

Expanded

to cover all federal contracts and subcontracts, including those for supplies and commercial items 

Addition

of language to make the adoption of a

TiP

awareness program a mitigating factor if a violation

occurred

2006

2007

2009Slide5

Federal Acquisitions Regulation

(Executive Order 13627)

Expanded list of types of conduct

Prohibits the withholding of identity documentation Prohibits the use of misleading or fraudulent recruitment practices

Prohibits the charging of recruitment feesOutlines contractors responsibilities to provide return transportation

Outlines contractors responsibilities in providing employee housing that meets host country housing and safety standardsSlide6

Federal Acquisitions Regulation

(Executive Order 13627)

Recruiters

Must use trained recruiters abiding by local laws

Contracts

C

ontractors

to provide employment contracts –

if

they are separately required to do so by law or by contract - in writing, at least 5 days before

relocation in

a language understood by the employee and that contains details

about, work description, Wages, prohibition

on charging recruitment

fees, work

location(s), living accommodation and associated costs, time off, roundtrip transportation arrangements, grievance process and the content of applicable laws and regulations that prohibit trafficking in personsSlide7

Changes in reporting requirements

Contractors must report ‘credible information’ to both the contracting officer and the agency Inspector General

Contractors must cooperate with Government investigations of trafficking (this includes provision of information, access to facilities and staff, and responsibility to protect all employees suspected of being victims or witnesses to prohibited activities.

Federal Acquisitions Regulation

(Executive Order 13627)Slide8

Mandatory

components of the compliance plan:

(i) an

awareness program; (ii

) an employee reporting process; (iii) a recruiting and wage plan that addresses the restrictions on recruiting fees;

(iv)

a housing plan that ensures housing meets host country housing and safety standards; and

(v)

procedures to prevent trafficking activities by agents and

subcontractors

Compliance

as a mitigating factor

Compliance plan can only be considered as a mitigating factor for liability if:

Was in place at time of violation

Was implemented at time of violation 

Company took remedial actions, including reparation to victims

 Maybe a stupid question but can you explain the difference of “in place at the time…” compared to “implemented at time…”

Federal Acquisitions Regulation

(Executive Order 13627)Slide9

UK Modern Slavery Act

UK Modern Slavery Act

This

Act requires companies to produce a "slavery and human trafficking statement" each financial year, disclosing their efforts (or lack thereof) to ensure their supply chains are free from slavery and human trafficking.Required for all companies (private and public) doing business in the UK and having over £36 million (Global)Applies to good and services

Must report the business structure, policy, due diligence processes, areas of risk, KPIs, trainingWent into effect last monthSlide10

California Transparency in

Supply Chain Act

Since January 1, 2012, every retailer and manufacturer doing business in California with annual worldwide gross receipts exceeding $100 million must  disclose on its website the extent to which it works to prevent AHT in the supply chain

.Disclosure to

include: Verification (Does it assess the Supply Chain

?)

Audit (Does

it perform

?)

Certification

(Do suppliers “certify

”?)

Internal

Accountability (Internal Procedures

?)

Training (Does it train and how?)Slide11

We, ACME Corp,

Do not verify our supply chain for human traffickingPerform no auditsDo not require suppliers to certify they supply goods free of human trafficking

Have no internal procedures to identify human traffickingDo not provide any education to our employees or supply chain on the risks of human trafficking

CA TISA StatementSlide12

We, ACMECARE Corp,

Have implemented a risk based assessment performed by a third party with human trafficking subject matter expertise. The assessment covers every known supplier and labor broker in ACMECARE’s supply chain. This occurs on a yearly basis for the entire supply chain with increased frequency for every supplier and/or labor broker holding some level of risk

Performs yearly unannounced third party audits within the entire supply chain. Selected auditors must demonstrate specific knowledge on the risks of human trafficking. Audits are always performed on high risk suppliers plus a random selection of 10% of our other supply chainRequires all direct suppliers to contractually certify they comply with the labor laws of the countries in which they do business. Local labor laws are identified by region for the suppliers knowledge and encouragement

Through its Ethics Committee, has implemented internal procedures to monitor the efficacy and results of our anti-human t

rafficking program. The Ethics Committee provides recommendations to the Compliance Officer who reports to the Board for their commitment on the entire organization’s anti-human trafficking program.

CA TISA StatementSlide13

Three Regulations: Single SolutionSlide14

To be successful, an Anti-Human Trafficking program should cover the following categories:

Building a ProgramSlide15

STEP 1: Policy

Creation

The Policy is your company’s framework detailing your approach to these regulations

Objective:

details the regulations impacting your companyPolicy Statement: demonstrates your position

Roles &

Responsibilities:

defines employees roles

Hotline:

provides reporting mechanism

Champion:

must be adopted and accepted by senior leadershipSlide16

STEP 2: Awareness Program

Broadcasting your company’s policy and requirements to address Anti-Human

Trafficking

Develop & Distribute Educational Materials: creates awareness for internal employees as well as suppliers to ensure they are monitoring activities

Communicate

Requirements:

inform the supply chain of the requirements and actions that constitute a violation of your policySlide17

A Reporting Hotline provides employees, suppliers and contractors a way to report issues, ask questions and provide assistance

Address Confidentiality: Explain the measures taken to ensure any information provided is done so in confidence

Provide Instructions: Reporting is only as good as the detail provided so its important instructions are given in order to demonstrate what’s needed for a company to take action

     STEP 3: Reporting

HotlineSlide18

STEP 4: Supply

Chain Risk Assessment

Assessing your vulnerability to

human trafficking issues within your supply chain will help eliminate

riskCreate a Sourcing

Map:

certain geography locations pose a greater risk to the potential for Human Trafficking

Identify Supplier/Contractor

Practices:

through the use of questionnaires and audits document the hiring practices of your supply chain

Include your business operationsSlide19

STEP 5: Mitigation Activities

Exposure of any potential issues requires an action plan to change the practices of the supply chain or eliminate the

source

Questionnaire/Audit Review: evaluate supplier responses and work with them to eliminate hiring practices that create risk for Human Trafficking violations

Share Requirements

Annually:

pass along your supplier code of conduct and educate suppliers on the need for ethical practicesSlide20

STEP 6: Incident Management

Create a process by which your organization can properly assess and resolve any instances of human

trafficking

Manage incidents reported through hotline, HR, or other avenuesAssigns ownership (case management) to identify, analyze, and correct any exposure to human traffickingReporting of incidentsSlide21

STEP 7: Continuous

Improvement

Demonstrate your company’s continued efforts to improve supply chain transparency, promote education and awareness on the topic and reduce supplier risk

Year Over Year Improvement Opportunities:

as the program gets started document ways in which your company can improve its processes and communication within the supply baseIncreased Audit Verifications:

create a plan to add supply chain audits to your annual process

KPIs:

document your supplier risk and track your decrease in risk level as the program maturesSlide22

STEP 8: Due Diligence

The verification process by which a company ensures its program is robust, adopted by the supply chain, promotes transparency and meets the requirements of the relevant

regulations

Program Completeness – understand the reporting requirements, define execution

Transparency – ensure your internal processes are auditable and expectations to your suppliers are understood and able to be followedProcess Documentation – how your company and supply chain will handle situations as they arise

Has to include some validation/challenge to areas of risk

Applies to all stepsSlide23

Thank You!