Are child labor, forced labor, or other labor abuses known or believed to occur in sourcing areas? If so, what are the root causes (i.e., climate change disasters, political transition, weak state authority/enforcement capacity, authoritarian regime or limited civic space, migration, poverty, a company’s purchasing or sourcing practices, lack of decent work opportunities for adults)?

What are the high-spend categories, such as essential raw materials or vital components, that are most at risk of labor abuses, including those that employ migrant workers recruited illicitly or those that involve work? 

How does this industry operate in the country? Are workplaces formal or informal? 

What are the characteristics of the labor force that make them particularly vulnerable to labor abuses; for example, migrants, youth, ethnic minorities, lack of freedom of association protections in their facility, etc.? 

Are legal and institutional frameworks in place to allow for effective industrial relations, worker organizing, and collective bargaining? Are those laws and frameworks operational and enforced? Are labor unions present and actively encouraged at the supplier level by local management? 

What social safety nets exist to protect the most vulnerable; for example, social pensions, in-kind and food transfers, conditional and unconditional cash transfers, fee waivers, public works, and school feeding programs? Which of these gaps can companies fill to proactively remediate risks? 

What are the key laws and regulations concerning labor issues in this country and jurisdiction? Is there public evidence/data that those laws are enforced?

What efforts are being undertaken, and by whom, to combat labor abuses such as child and forced labor in this industry or area, including from NGOs, unions, the private sector, and others?

Suggested Corporate Actions:

• Provide pricing structures and order timelines that enable suppliers to abide by company codes of conduct without putting undue pressure on suppliers to cut corners on labor rights in order to fulfill rush orders.
• Integrate social compliance within all relevant units of a company, including at the supplier and sub-contractor levels, leveraging worker voice wherever possible.
• C-suite level accountability and engagement on social compliance metrics across a business, including procurement, supplier oversight and contracting, and supply chain functions.
• Encourage stable business relationships with trusted suppliers.
• Develop capacity building, training, auditing, and worker-driven social compliance improvement opportunities that enable existing suppliers to meet risk assessment standards. 
• Require suppliers to meet defined social compliance benchmarks and/or codes of conduct that are developed in close collaboration with workers. 
• Seek input from worker organizations on supplier compliance with codes of conduct or standards and assess the impact of responses on workers.  
• Limit how much production a supplier can subcontract to outside entities.

Suggested Corporate Actions:

• Engage with workers and unions in good faith, and ensure suppliers do as well, including via collective bargaining. 
• Encourage and reward suppliers for responsibly recruiting workers and paying back recruitment fees, ensuring all relevant fees are paid by employers.
• Screen migrant workers to identify illegal recruitment fees, assess if workers understand employment contract terms, and ensure workers have identification documents. 
• Ensure workers’ right to organize is respected and enforced, and worker organizations can freely bargain for benefits and living wages above the legal minimum. 

Suggested Corporate Actions:

• Provide adequate training on rights and responsibilities and grievance mechanisms to both employees and management.  

Suggested Corporate Actions:

• Fund community projects—such as building a school in a particular community—in exchange for government provision of related services in the community. 
• Finance teacher salaries, livelihood programs, youth employment training, women’s empowerment, victim shelters, counseling, legal services, and/or wage and financial management tools. 
• Target philanthropic contributions toward communities in direct supply chains. 
• Collaborate with other companies on solutions, improving supplier requirements via multi-stakeholder initiatives. 
• Reimburse health care costs and provide transportation and childcare.  
• Pay a fair price for inputs, including by increasing workers’ wages where necessary.
   

Suggested Corporate Actions:

• Ensure that a company’s code of conduct bans use of informal work wherever possible.
• Allow for communication across languages, locations, and cultural differences, and provide assistance for practical considerations like internet connectivity, safety concerns, or travel challenges. 
• Experts from academic institutions, corporate social responsibility consultancies, and NGOs can be engaged to assist with risk and impact assessment. 

Suggested Corporate Actions:

• Provide workers who are victims of conflict or abuse with free shelters, counseling, legal, and other services.
• Provide health programs for workers that simultaneously improve quality of life and enhance workplace productivity.
• Ensure suppliers provide workers with personal protective equipment, paid sick leave, and other policies that protect worker health and safety, particularly during health crises such as global pandemics.