Domestic and international laws regulating human trafficking, forced labor, and child labor are becoming increasingly complex and have social, civil, and criminal implications for corporations worldwide.
With increased scrutiny from consumers, the media, and law enforcement, corporations need an ally to help them research and assess their supply chain and third party vendors, understand intricate legislation, and develop policies that comply with legislation. We are that ally.
CHTCS understands the operational and legal intricacies needed to develop and implement policies that comply with legislation regulating human trafficking, forced labor, and child labor.
Here are some of the current laws that could affect your corporation:
- California Transparency in Supply Chains Act of 2010: Under California Transparency in Supply Chains Act of 2010, California retail sellers and manufacturers with over $100,000,000 in annual profits are required to disclose publicly any measures and efforts the company has taken to identify and address human trafficking, forced labor, and child labor.
- Trafficking Victims Protection Act (TVPA): Under the TVPA and related regulations, which cover United States government contractors, sub-contractors, and their employees, the United States Government can terminate government contracts with corporations found guilty of human trafficking, forced labor, and child labor.
- Racketeer Influenced and Corrupt Organizations (RICO) Act: Under RICO, corporations and individuals face criminal and civil implications. In fact, the United States Government has convicted several individuals linked to human trafficking since 2009.
Corporations must be proactive in addressing human trafficking and must mitigate risk in order to protect their assets, investments, and reputation.
- Corporations have an obligation to their shareholders, stakeholders, and investors to regularly evaluate and maintain compliance with corporate policies and procedures.
- Corporations have an obligation to frequently review local, state, federal, and international laws and regulations.
- If corporate compliance officials are not proactive in addressing human trafficking, corporations may face significant repercussions from consumers, law enforcement, shareholders, stakeholders, and investors.
Corporations that are socially irresponsible, do not evaluate corporate policy, and are not proactive, could face severe consequences for being linked to human trafficking, forced labor, and child labor. These consequences include:
- Financial Losses
- Negative Publicity
- Consumer Loss and Outrage
- Civil Lawsuits
- Criminal Charges
- Sponsor and Partner Backlash
Eighty-six million millennial consumers in the United States are reshaping the standards of corporate America’s conduct and, now, more than ever, are demanding socially responsible behavior from corporations.
- Socially responsible corporations recognize that human trafficking, forced labor, and child labor are some of the most egregious forms of abuse found in corporate and third party supply chains.
- Without implementing stringent policies and maintaining compliance, corporations are unable to capitalize on the communal and economic benefits of being socially responsible.