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New US legislation takes aim at supply chain slave labor

Jonathan Cooper-Bagnall
Apr 9, 2015 9:48:00 AM

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New legislation around supply chain slave labor

In our blog and in our ongoing dealings with clients, we continue to advocate the importance of having explicit insights and knowledge into the business practices and ethics of those companies that live within one’s supply chain. We’ve pointed quite extensively to our corporate virtualization research that reveals just how much modern organizations rely on external suppliers for the services and goods necessary to not just run a successful business, but to have one in the first place. The importance of supply chain visibility has grown exponentially in recent times, as has the potential negative impact failures can have on brand and profitability.

Another high profile supply chain scandal emerged in the mainstream media this week that, once again, underscores our message. The revelation that seafood sold in the U.S. may have been sourced from suppliers using slave labor caught the attention not only of the press, but of some fairly high profile U.S. politicians as well.

A representative from the State of New York, Carolyn Maloney, indicated plans to place greater onus on companies to keep slave and child labor out of their supply chains. She is currently shaping legislation to be introduced later this year. This comes hot on the heels of a Presidential executive order that addresses federal procurement and prohibits federal contractors and subcontractors from engaging in human trafficking or forced labor.

The list of supply chain scandals continues to grow. And now, attention to the issue is being paid at the highest levels within the U.S. government. Whether it’s the use of slave labor in the seafood industry - a detestable and criminal practice - or something much less sinister like ensuring your marketing services firm isn’t relying on bots to produce imaginary impression numbers, companies need to enact programs and procedures to audit and monitor supplier activities on an ongoing basis.

Soon, failures may be punishable by law. So why wait any longer? Download our corporate virtualization research to learn about the increasing reliance on suppliers and how your business can overcome the challenges that this creates.

As always, please add your thoughts and comments to the section below.Corporate Virtualization

 

 

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