What is Forced Labor Policy? Why Should A Company Have One?

What is Forced Labor Policy? Why Should A Company Have One?

What is Forced Labor Policy? Why Should A Company Have One?

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What is the Forced Labor Policy? Why Should A Company Have One?

One of the aspects of ESG objectives in the corporate world is the protection of human rights and enforcing specific social standards and codes of conduct. Forced labor represents every form of inhumanity and violation of human rights, and thus the ESG makes it a goal to eradicate this. Therefore, for all companies that share in the sustainability goal in the corporate world, it is required that a system is put in place to adapt and adequately implement the forced labor policy.

This piece breaks down the forced labor policy t and highlights why every company should have one.

The Concern On The Forced Labor In The Corporate Landscape

The concerns about forced labor in the corporate environment stem from the violation of the social aspects of the ESG. More investors are poking deeper into the corporate world’s social considerations and are keen on establishing and upholding social and ethical values.

This follows the ban on goods from China’s Xinjiang Uyghur region because of forced labor and modern slavery offshoots. For companies with global supply chains, forced labor is relatively easy to creep in, and this knowledge has increased agencies’ focus on this issue.

Forced labor is a form of modern slavery involving a lot of manipulation and exploitation of laborers and workers due to the little power they possess compared to the superiority of organizations and cooperations.

The confounding thing about the situation is that the environmental aspect of ESG overshadows the significant and more impactful aspect.

It spans subduing laborers or imposing labels and individuals often covered with deception and power abuse.

Human Rights Protection Policy And The Need For Companies To Adopt

Forced labor policy and measures are stipulated to address the issue of modern slavery in the corporate world and mitigate the practice of forced labor in countries that seek to reinforce the basic tenets of human rights as affirmed by the international labor organization.

 It is of utmost importance that companies reaffirm their commitment to evacuating this worrisome phenomenon through the use of forced labor policies containing detailed measures.  It involves assessing the supply chain, which is most susceptible to forced labor risks and conducting audits by regularly assessing labor recruiters conducting on-site visits, and obtaining feedback.

Issues of forced labor could elicit severe penalties, taking different forms for businesses. For example, some countries have stringent legislation to raise the issue of forced labor, and companies found wanting in any way or manner could be subjected to damning law cases.

Additionally, with more scrutiny on the issue of forced laborers, companies need to show that there is no risk related to their businesses and uphold their reputation as an enterprise that considers social welfare a priority.

As more investors are taking more time to assess an organizational effort toward safeguarding and upholding human rights, companies have to do much more than play to the sustainability gallery by revealing concrete frameworks against forced Labor.

A fair number of companies are trying to meet up with these expectations. From a sample of 12,000 companies, here are the top ten countries where companies adopt forced labor policy

  1. United States: 1436
  2. United Kingdom: 478
  3. China: 372
  4. Japan: 248
  5. Australia: 210
  6. Switzerland: 195
  7. Thailand: 168
  8. Sweden:  161
  9. Germany: 160
  10. Canada: 157

Forced labor policy also helps manage an ever-increasing supply chain, thus protecting the company from bad publicity and possible customer boycotts. On the other hand, a great deal of damage can arise if a company is allegedly involved in forced labor. For companies with an extensive supply chain, this shows the need for a code of conduct to ensure no forced labor encroaches on their operations.

Companies must take a stand against all manifestations of forced labor following the international labor organization’s directives to maintain good standing in society and avoid violating labor rules and guidelines. The United States stands, and the United Kingdom ranks high when it comes to the adoption of forced labor policies by companies.

Workplace and corporate organizations are expected to thrive in all aspects of the ESG considerations duly acted upon. And it is with no doubt that companies who adopt first labor policies and do well to check the measures are poised for success and better opportunities with the public and relevant stakeholders


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