Tag Archives: CSR

Modern Slavery Good Practice Toolkit

July 2, 2023Uncategorizedaddressing modern slavery, Australia, civil society, companies, Corporate Governance, corporate social responsibility, CSR, exploitation, forced labour, global supply chains, human rights, labour, labour standards, legislation, Martijn Boersma, modern slavery act, Supply Chainmartijn

The final instalment of a research series jointly conducted by nine academic and civil society organisations has been made publicly available. The publication, known as the Good Practice Toolkit, offers businesses crucial insights into human rights due diligence and ways to amplify their compliance with Australia’s Modern Slavery Act (MSA).

Drawing upon data collected over several years, the toolkit examines corporate responses to the MSA and their engagement in human rights due diligence. It zeroes in on two notably weak facets of business practice: stakeholder engagement and supplier relations.

The Toolkit’s main recommendations are:

Prioritise suppliers with demonstrated respect for human rights.
Work in partnership with suppliers in designing and communicating expectations.
Conduct meaningful and sustained engagement with workers and their representatives.
Engage with relevant stakeholders in the design of policies.
Use effective grievance mechanisms as an engagement tool.

The Australian Human Rights Institute (UNSW Sydney), Business and Human Rights Centre (RMIT), the University of Melbourne, the University of Notre Dame Australia, the University of Western Australia and Willamette University, in association with the Human Rights Law Centre, the Business & Human Rights Resource Centre and Baptist World Aid, conducted this research. It follows earlier reports, ‘Australia’s Modern Slavery Act: Is It Fit For Purpose?’, ‘Broken Promises’ , and ‘Paper Promises’ .

New Research: Is the Australian Modern Slavery Act Fit For Purpose?

April 3, 2023Uncategorizedaddressing modern slavery, Australia, companies, Corporate Governance, corporate social responsibility, CSR, due diligence, exploitation, forced labour, global supply chains, government, human rights, human rights abuses, modern slavery, modern slavery act, remediation, Reportingmartijn

The Australian Modern Slavery Act 2018 (MSA) aims to combat modern slavery in the operations and supply chains of Australian businesses by requiring them to report on their efforts to address this issue. However, the question remains whether the Act is fit for purpose. This new report, based on data collected from a business survey and focus groups conducted in 2022 and 2023, offers new insights to inform policy change and business practices by examining the gaps between policy and practice in corporate modern slavery statements.

Effectiveness and barriers

Our investigation gathered input from respondents regarding the MSA’s effectiveness, best practices for implementing remediation measures, and potential reforms. The report presents evidence of corporate responses triggered by the MSA and stakeholders’ perceptions of its impact. Findings reveal a broad consensus that the current corporate responses to the Australian MSA are generally not benefiting victim-survivors of modern slavery. While the MSA raises awareness in the best case, it may also provide a superficial appearance of compliance for businesses that continue to depend on opaque supply chains and cheap labor without substantive commitment to addressing abuses.

Two critical issues highlighted by survey and focus group participants for improving policy and practices to address modern slavery are enhancing supplier relationships and stakeholder engagement. Respondents identified several barriers to effective remediation, including current procurement practices, low trust between suppliers and reporting entities, and inadequate resourcing by businesses for remediation efforts that would compensate and empower victim-survivors of modern slavery. Remediation is a crucial aspect of addressing modern slavery, and effective processes must prioritise risk to people over risk to business.

Remediation and potential reform

The findings also offer insights into practices that may contribute to more effective remediation of modern slavery, providing valuable lessons for government policy focus and businesses seeking to improve their approach to remedy. Survey data indicates that participants who engage key stakeholders in remediation, such as trade unions, report the most effective approaches. Other essential tools include risk management practices like supplier training and increased transparency from suppliers—practices currently utilised by Australian businesses.

Data from this report and previous research demonstrate a strong desire for MSA reform and the need to incentivise improved practices. A majority of survey respondents:

Endorse establishing an Anti-Slavery Commissioner;
Support harmonising the MSA with international standards, such as the UN Guiding Principles on Business and Human Rights (UNGPs), and emerging legislation in other countries;
Agree that mandating human rights due diligence requirements would lead to improved responses to addressing modern slavery;
Support a mix of policy measures, including sanctions and incentives (such as disqualification from government tenders, financial penalties, and director liability) to better tackle modern slavery.

There is a clear disconnect between policy and implementation when it comes to addressing modern slavery within the operations and supply chains of Australian businesses. This stems from a lack of transparency in corporate supply chains, which hinders both the detection and resolution of modern slavery issues. To effectively combat this, it is essential to prioritize enhancing supplier relationships and collaborating with key stakeholders such as trade unions. The problem can only be resolved if it is first acknowledged and understood. Gaining better insight into labor conditions in supply chains through engagement with frontline workers is a fundamental and indispensable initial measure in the battle against modern slavery.

All respondents advocated for reform of the MSA to drive company action that benefits victim-survivors of modern slavery, rather than merely promoting superficial compliance with the Act. This report, therefore, serves as a call to action for both policymakers and businesses to work together to enhance the effectiveness of the MSA and genuinely address the issue of modern slavery in corporate supply chains.

Human Rights Due Diligence: An Overview

March 28, 2023Uncategorizedcompanies, Corporate Governance, corporate social responsibility, CSR, due diligence, exploitation, forced labour, human rights, human rights abuses, regulation, worker exploitationmartijn

The purpose of this resource is to offer a comprehensive overview of global human rights due diligence legislation, including both proposed and enacted laws. Initially created for the Australian Cotton Industry, this document is also valuable for policymakers, industry professionals, civil society, and scholars interested in understanding trends in human rights due diligence, comparing legislation across countries, and estimating anticipated changes for businesses operating in Australia.

The Growing Focus on Mandatory Due Diligence

Over the past few decades, there has been heightened scrutiny on the societal impacts of businesses. International organizations have developed non-binding guidelines and recommendations since the 1970s, acknowledging companies’ responsibility to uphold human rights and implement due diligence across supply chains. However, these voluntary international agreements have fallen short in effectively safeguarding human rights within commercial supply chains. Consequently, governments have experienced increasing pressure to incorporate these guidelines into domestic legislation.

In recent years, there has been a notable increase in country-level due diligence legislation, inspired by guidelines from international organizations. Examples of such legislation include the California Transparency in Supply Chains Act 2010, the UK Modern Slavery Act 2015, the French Corporate Duty of Vigilance Law 2017, and the Australian Modern Slavery Act 2018. Our analysis highlights the rapid development of due diligence legislation, with numerous drafts currently under parliamentary discussion. Critics have voiced concerns regarding the nature of these reforms, citing lenient penalties, weak requirements, and a limited scope of businesses affected. Despite these criticisms, the growing prevalence of domestic due diligence legislation demonstrates its potential to pave the way for significant change.

Key trends in human rights due diligence legislation:

Increasing robustness: New legally binding regulatory frameworks are becoming increasingly more robust, with the expectation that mandatory due diligence across supply chains will be the end result.
Expanding expectations: There is a growing expectation for small and medium-sized businesses to incorporate aspects of due diligence, as seen in the Aotearoa New Zealand proposal and Canadian Modern Slavery Act.
Industry-specific legislation: Laws targeting specific industries have emerged, such as the New York Fashion Act and the US FABRIC Act.
Broadening scope : Some proposals extend the scope of workplace violations to include worker exploitation, as in the Aotearoa New Zealand proposal.
Legal redress for victims: Certain laws provide opportunities for victims to seek legal redress, as in the Dutch Child Labor Law.
Increased fines and penalties: Some acts impose higher fines and penalties, such as the US Uyghur Forced Labor Act and the German Act on Corporate Due Diligence.

These trends indicate a global shift towards stronger and more comprehensive human rights due diligence legislation, emphasising the importance of businesses in upholding human rights and promoting sustainability across their supply chains.

Pandemic Disruption of the Textile and Apparel Value Chain

March 29, 2023Uncategorizedapparel, civil society, companies, consumers, corporate social responsibility, covid-19, CSR, disruption, exploitation, garment, global supply chains, global Value Chain, pandemicmartijn

The COVID-19 pandemic disruption has had a significant impact on the textile and apparel value chain, particularly on garment workers in the Global South. The disruption caused by the pandemic has raised questions about global justice and responsibility for these workers. This briefing paper investigates how the Australian cotton industry can influence working conditions along the textile and apparel value chain, and provides a detailed summary of the context surrounding the impact of COVID-19 on the textile and apparel value chain.

The pandemic had a calamitous effect on the lives of garment workers in the Global South. Women make up 80% of the labor force in the textile and apparel value chain, meaning that they have been disproportionately affected by COVID-19 in the sector. Migrant workers are important to the global textile labor force, and the exploitation of migrant workers has been an ongoing concern. The effects of COVID-19 are ongoing, and many countries are experiencing surges, different variants, and returns to lockdown, putting garment workers economically, socially, and medically at risk.

Global activism campaigns have sought to mobilise support and ignite corporate accountability. The #PayUp campaign, for example, urged consumers to hold brands accountable for paying their workers despite canceling orders. Large corporations canceling their orders had a dramatic effect on household income, leading to an increase in malnutrition and homelessness. The loss of jobs in apparel manufacturing was caused by several factors and continues to have a ripple effect on the longer-term economic security of workers.

As well as responding to the events of the pandemic, many actors are ‘future proofing’ their supply chains. The disrupted access to materials and political tensions will give some countries a notable advantage for export competitiveness. The global push for some textile industries in the Global North to ‘re-shore’ production has become a topical issue in recent policy debates. Responses to the problems faced by garment workers have focused on potential points of leverage at the endpoint of the value chain. Overall, the supply chain disruptions of the pandemic spotlight the need for stakeholders to work collaboratively to protect worker well-being.

Modern Slavery Risks in the Cleaning and Security Industry

August 8, 2022Uncategorizedaddressing modern slavery, civil society, cleaning accountability frae, companies, consumers, Corporate Governance, corporate social responsibility, CSR, exploitation, forced labour, governance, labour standards, modern slavery act, regulation, Reporting, Supply Chain, supply chains, trafficking, transparency, Unions, vulnerable workers, worker exploitation, working conditionsmartijn

This briefing session brings together academic experts in the fields of modern slavery, labour law compliance, supply chain due diligence and temporary migrant workers, to share insights and advice on how universities can demonstrate leadership in promoting good labour practices. The aim of this briefing is to assist relevant stakeholders in the higher education sector to understand their role in promoting good labour practices, and provide guidance on practically how to do this. This briefing is aimed at professionals working in university procurement and contract management, university modern slavery working groups, university risk and compliance, cleaning and security contractors that currently hold contracts at university campuses.

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Why a degree in modern slavery is a valuable addition to your CV

June 15, 2022Uncategorizedaddressing modern slavery, Australia, civil society, companies, Corporate Governance, corporate social responsibility, CSR, ethics, exploitation, Fair Work Ombudsman, forced labour, global supply chains, governance, government, human rights, human rights abuses, labour, labour standards, legislation, Martijn Boersma, migrant workers, modern slavery, modern slavery act, regulation, stakeholders, Supply Chain, supply chains, trade unions, trafficking, transparency, vulnerable workers, work, worker exploitation, working conditionsmartijn

Modern slavery may seem a distant issue in Australia, but a new course will teach graduates why an understanding of it is increasingly important in every business

It might be easy to imagine, especially in Australia, that slavery is a thing of the past. But an estimated 15,000 people were living in conditions of modern slavery here in 2016, through forced marriage and labour, sexual exploitation, debt bondage and human trafficking – exploitation that disproportionately affects women, children, asylum seekers and migrants. Globally, in that same year, 40.3 million victims were being abused.

Martijn Boersma is an associate professor of human trafficking and modern slavery at the University of Notre Dame Australia, where a new course aims to provide the skills and knowledge that will enable people to work proactively to put an end to the exploitation of vulnerable people.

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Modern Slavery and Climate Change – Towards an Integrated Approach

July 30, 2022Uncategorizedaddressing modern slavery, civil society, Climate change, companies, consumers, Corporate Governance, corporate social responsibility, CSR, environment, exploitation, forced labour, global supply chains, human rights, human rights abuses, migrant workersmartijn

Climate change has made millions vulnerable to modern slavery. Displacement and migration because of climate change creates a nexus of harm that pushes people to accept work that actively contributes to environmental destruction of forests, fisheries, waterways and land. Weak regulation and enforcement, corruption, a lack of political will and the lure of profits combined with vulnerability of people creates a vicious circle of opportunity for forced labour, child labour, debt bondage and slavery. In this webinar, speakers explored how an integrated approach to addressing modern slavery, climate change and environmental destruction can lead to impactful interventions by governments, communities, workers and business.

Hosted by: Jenny Stanger, Anti-slavery Taskforce, Catholic Archdiocese of Sydney

Facilitated by: Dr Martijn Boersma, Associate Professor of Modern Slavery and Human Trafficking at University of Notre Dame Australia

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Child Labour in Hyundai’s Supply Chain

July 30, 2022Uncategorizedchild labour, companies, Corporate Governance, corporate social responsibility, CSR, forced labour, human rights, Hyundai, labour, vulnerable workers, working conditionsmartijn

The carmaker is facing questions after serious allegations of child labour being used in one of its US subsidiary steel plants. Australia’s Hyundai Motor Company has distanced itself from serious allegations of child labour in its US company’s subsidiary steel plant.

The allegations come after an investigation from Reuters revealed that several children, one as young as 12, have missed school to work at the Korean carmaker’s subsidiary, called SMART Alabama LLC.

According to the Reuters report, local police, three underage children, eight former and current employees of SMART have all said the flagship assembly employed underage staff to work long shifts.

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2SER Radio Interview – The Myth of the Social License to Operate

July 21, 2022UncategorizedCorporate Governance, corporate social responsibility, CSR, environment, governance, legitimising myths, myth, myths, social, social license to operate, stakeholdersmartijn

In this radio interview on 2SER, I discuss the chapter published in the “Research Handbook on the Sociology of Organizations” on “Organizational Legitimacy and Legitimizing Myths.” It suggests that companies, as an influential and dominant group, want to maintain how they are held to account for their social and environmental impacts, which is through market forces. The research contends that the social license to operate and other concepts such as corporate purpose are hierarchy-enhancing legitimizing myths that uphold this status quo in favour of companies, at the detriment of society.

martijnboersma · 2SER Razor’s Edge – The Myth of the Social License to Operate

The Myth of the Social License to Operate

June 14, 2022Uncategorizedconsumers, Corporate Governance, corporate purpose, corporate social responsibility, CSR, environment, ethics, governance, governments, legitimacy theory, legitimizing myth, Martijn Boersma, myth, regulation, Reporting, social, social dominance theory, social license to operate, stakeholders, Sustainability, transparencymartijn

Over the last two decades many of the world’s largest companies have been involved in scandals, misconduct and dubious ethics. Rather than relying on interventions by public authorities, the dominant governing rationality is informed by the belief that the market is able to balance social, environmental, and financial interests. However, the vast majority of companies that have been involved in ethical transgressions have survived – and have even thrived. Potential damage to the reputation of companies, or threats to their ‘social license to operate’, seems to have had a limited effect. There is therefore reason to believe that market forces are not adequate by themselves to correct corporate misbehaviour.

This chapter from the upcoming ‘Research Handbook on the Sociology of Organizations’ explores the reliance on market forces to correct corporate actions that are not aligned with the common good. It examines to what extent legitimacy theory adequately explains the dynamics around organizational legitimacy, and it proposes an expansion of legitimacy theory to increase its explanatory power: the use of social dominance theory and legitimizing myths expands (organizational) legitimacy as a theoretical construct. In explaining why antagonistic stakeholders continue to rely on market-based approaches, this research suggests that they have either bought into the hierarchy-enhancing myths, or they have not yet developed compelling hierarchy-attenuating myths to challenge the status quo. The chapter concludes with the suggestion that the ‘social license to operate’ and ‘corporate purpose’ are legitimizing myths that uphold the idea that the market can balance social, environmental, and financial interests.

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Tag Archives: CSR