Aphrodite, Content Writer, Headline Diplomat eMagazine

The illicit activity of human trafficking is rapidly increasing globally, and due to its hidden nature, it’s challenging to determine the full extent. According to research, over 40 million individuals are exploited by this $150 billion industry worldwide, exceeding the gross income of several Fortune 100 companies.

Big companies encounter considerable danger to their brand if trafficking links are found in their products, services, or supply chains. Zara, a popular apparel seller, was recently charged with using forced labor in its Brazilian supply chain. Similarly, the airline and hospitality sectors risk their reputation if their services or properties are exploited for illicit activities by traffickers.

Businesses must guarantee employees’ equitable and lawful treatment, supervise their supply chains, and comply with fair labor standards. However, preventing human trafficking goes beyond simply fulfilling a legal obligation.

With the growing attention to human trafficking, companies should be proactive in managing these risks to show their dedication to this issue and other corporate responsibility objectives while adhering to global human rights standards.

Reflecting on Business Oriented Corporate Social Responsible approach

In the 20th century, Corporate Social Responsibility (CSR) emerged as a response to the global recognition of the significance of human rights and environmental conservation. CSR encompasses a wide range of activities, but the focus has recently been on the actions of corporations overseas and in their supply chains.

CSR was first defined in the 1950s, but was not fully integrated into business strategies in the 1990s, when environmental and human rights activists protested against corporate abuse abroad. In the mid-1990s, the sweatshop movement concentrated on corporate responsibility for low wages and labor abuse in developing world factories. This increased consumer concern for corporate sustainability, ensuring low environmental impact and fair labor practices.

However, incorporating CSR into the business world has been a challenge since the 1990s. Globalization has created a complex network of suppliers and corporations, resulting in a diffusion of responsibility. Corporations can disclaim responsibility for labor abuse in their supply chains but still benefit from the low-cost goods and resell them for a profit.

The importance of integrating Human Trafficking Laws in Business

Legislation is being passed by states to combat human trafficking, with California’s governor approving SB 970, which is now Section 12950.3 of the Government Code. For instance, hotels subject to the Fair Employment and Housing Act are now required to give their employees, who may have contact with human trafficking victims, a minimum of 20 minutes of training every two years.

This new law specifies that the training must include the meaning of human trafficking, child commercial exploitation, distinguishing between sex and labor trafficking, identifying the most vulnerable individuals, responding to and reporting the issue, and the relevant agency’s contact information.

Furthermore, as of January 2021, California Civil Code § 52.6(e) compels light-rail, intercity passenger-rail, or bus stations to provide a minimum of 20 minutes of training to employees who may interact with or get a report of suspected human trafficking. This training must cover the ability to identify human trafficking signals and report them to the authorities.

The Actions that Businesses can take

Businesses can unknowingly participate in child labor, but international guidelines provide ways for companies to eliminate this practice. These guidelines require businesses to carry out due diligence in their supply chains to prevent adverse human rights impacts in their operations, supply chain, and other business relationships. This will aid in fighting human trafficking.

Businesses can take the following actions as a mere minimum:

Evaluate the risk of human trafficking in your company’s operations and supply chain through a risk assessment.
Develop human trafficking policies and standards or incorporate prohibitions into existing human rights policies and standards.
Include prohibitions on human trafficking and forced labor in contractual requirements for suppliers and contractors.
Train managers and employees to identify and report signs of forced labor and human trafficking.
Connect with relevant industry initiatives and potential partners to support your company’s training and risk assessment efforts.

Conclusion

Understanding corporate social responsibility is crucial as it pertains to a company’s ethical and socially responsible conduct. It is not solely a legal obligation but also necessary for investigating the ethical and social concerns surrounding corporate actions. Concentrating on human trafficking as part of the company’s social responsibility has favorable effects on society and the company, fostering social awareness and boosting its reputation in the business world and society.

Featured photo: Tima Miroshnichenko, Pexels