Tag Archives: Supply Chain

Why do Companies Find it so Hard to Choose Between Profit and Principle?

April 5, 2021Uncategorized2022 World Cup, companies, cotton, exploitation, fashion, governance, government, governments, human rights, human rights abuses, labour, Martijn Boersma, migrant workers, modern slavery, muslims, Qatar, Revenue, Supply Chain, supply chains, systematic exploitation, uyghur, xinjiangmartijn

Businesses with ties to the Xinjiang province in China find themselves at a junction.

Caught in debates concerning Uyghur people being the victim of modern slavery and genocide, they must deal with concerns expressed by Western governments and human rights groups, and an increasingly agitated Chinese Communist Party.

Some commentators have suggested that foreign companies that (in)directly profit from the systematic exploitation of Uyghurs in China must choose between profit and principle.

It seems like a straightforward question: do companies want to profit from the state-organised repression, exploitation and extermination of an ethnic minority, or do companies condemn the treatment of Uyghur people in China and deal with the backlash?

The conundrum underlying the question is as old as capitalism itself: what social costs are we willing to accept in order for companies to make a profit?

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‘Bullying’ clothing companies are asking struggling suppliers for discounts

May 14, 2020UncategorizedAustralia, Bangladesh, brands, business ethicss, companies, corona, covid19, ethics, fashion, retailers, Supply Chainmartijn

Prominent Australian retailers been caught out again for “unsavoury” behaviour during the coronavirus pandemic – including asking for discounts and pushing back orders from struggling suppliers overseas.

Kmart has backflipped on its request for a 30 per cent discount it forced on its Bangladeshi suppliers, but is still enforcing tight turnarounds.

Mosaic Brands, which owns Crossroads, Millers, Noni B and more, has told its suppliers, also in Bangladesh, that it won’t be meeting some of its payments for eight months, according to the ABC.

Mosaic was called out early in the pandemic for its pushy sales techniques, peddling hand sanitiser and face masks to shoppers to capitalise on the panic-buying surge.

The behaviour is nothing short of bullying, business ethics expert Martijn Boersma said.

Continue reading ‘Bullying’ clothing companies are asking struggling suppliers for discounts →

Coronavirus Hits Precarious Workers in Supply Chains Hardest

March 18, 2020Uncategorizedaddressing modern slavery, Australia, brands, companies, exploitation, forced labour, government, governments, Martijn Boersma, modern slavery act, Reporting, Revenue, risk, Supply Chain, supply chains, trafficking, work, working conditionsmartijn

*Computer chip and circuit board factory, Jiangxi, China. Shutterstock*

The COVID-19 coronavirus is officially a pandemic, the US and Australian share markets have collapsed, both governments have unveiled stimulus packages, and Australia’s trade union movement is worried about the position of casuals. But things are worse overseas, including for the workers who make products for Australians.

20,000 garment workers in Cambodia face job losses from factory closures because of shortages of raw materials from China and reduced orders from buyers in the virus-affected locations including the United States and Europe. Thousands have already lost their jobs in Myanmar. Garment workers in Sri Lanka and Bangladesh are uncertain of their futures.

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Submission: Wage Theft Senate Inquiry

March 6, 2020UncategorizedFair Work Ombudsman, labour, labour standards, legislation, regulation, Senate inquiry, Supply Chain, wage theft, workmartijn

Underpayment is becoming an increasingly prevalent issue in Australia, with certain industries and sub-sets of workers more affected than others. Given the increasing prevalence of wage theft, workers can become resigned to accept employment below the minimum wage due to expectations that underpayment is unavoidable. While the Fair Work Ombudsman (FWO) plays a key role in identifying and rectifying underpayments, increased funding is required to allow it to effectively uncover breaches. Both mandatory and voluntary supply chain measures can play a key role to help target the issue of underpayment. Our submission recommends new legislation be passed to better regulate labour standards and the gig economy, strengthening enforcement of existing regulations.

The Spectator Summer Reading List: Addressing Modern Slavery

December 19, 2019Uncategorizedaddressing modern slavery, book review, exploitation, justine nolan, Martijn Boersma, summer books, summer reading, Supply Chain, workmartijn

“Justine Nolan and Martijn Boersma, academics, have provided a sobering book, Addressing Modern Slavery (NewSouth Books). In its current form, they say, slavery is less about the ownership of people than their exploitation through deceit, intimidation, and coercion. People from under-developed countries are the most likely victims, often tricked into working on farms or in mines, because paying them effectively nothing is more cost-effective than using machinery. Nolan and Boersma also look at the situation in Australia, where there have been many cases of illegal immigrants or others of dubious legal status being exploited. They argue that legitimate businesses have an obligation to monitor contractors and supply chains to identify cases of exploitation, and outline how it can be done. But the nightmare stories stay in the reader’s mind. This is an awful book, and a very important one.”

Originally published by The Spectator.

Final Update: Coles Shareholder Resolution

December 8, 2019UncategorizedACCR, Australasian Centre for Corporate Responsibility, Australia, coles, justine nolan, Martijn Boersma, shareholder resolution, Supply Chain, Unions, woolworthsmartijn

Earlier this year Justine Nolan, Laurie Berg and myself supported a shareholder resolution filed by the Australasian Centre for Corporate Responsibility, which was heard at the Coles Annual General Meeting on 13 November 2019.

The resolution asking the supermarket to reassess its supply chain policies to reduce reliance on third-party audits, and to consult more with unions. At the meeting, workers from the supermarket’s farmer suppliers challenged Coles’ executives over its ethical sourcing policy, asking the retailer to work with unions to ensure workers are fairly treated and paid. The resolution was supported by 12.8 per cent of shareholders.

Coles recently signed memorandum of understanding with three major Australian unions as a sign of the retailer’s willingness to work with unions. Unfortunately this does not include the National Union of Workers (who recently merged with United Voice to form the United Workers Union). This is a missed opportunity for Coles to embrace Worker-Driven Social Responsibility.

Update: Open Letter to Coles and Woolworths – Shareholder Resolution

October 10, 2019UncategorizedAustralia, certification, coles, exploitation, fresh food, justine nolan, labour, Martijn Boersma, modern slavery, open letter, social, Supply Chain, supply chains, trade unions, Unions, wage theft, woolworths, work, workplacemartijn

The open letter to Coles and Woolworths was covered by the New Daily and the supermarkets have written a response to our letter. The Australasian Centre for Corporate Responsibility (ACCR), who have been engaging both supermarkets since 2017, have prepared a response to the supermarkets. You can find the response here:

What’s next? A Shareholder Resolution!

Justine Nolan, Laurie Berg and Martijn Boersma have supported a shareholder resolution by ACCR that will be heard at the Coles AGM on the 13th November 2019. You can help by calling on UniSuper to support the resolution. All you need to do is send them a message here. You can use the sample text below, copy and paste, or write your own.

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Submission to the Inquiry into the NSW Modern Slavery Act 2018

October 4, 2019Uncategorizeddue diligence, modern slavery, modern slavery act, nsw modern slavery act, regulation, Reporting, Supply Chainmartijn

The Standing Committee on Social Issues is inquiring into and reporting on the Modern Slavery Act 2018 (NSW) (the NSW Act), the consultation draft of the Modern Slavery Bill 2019 (the amendment Bill), and the consultation draft of the Modern Slavery Regulation 2019 (NSW) (the Regulation), with particular reference to:

(a) the operability of the proposed anti-slavery scheme
(b) the effect of the anti-slavery scheme on business, including the supply chain reporting obligations under section 24 of the NSW Act
(c) the intended application of the anti-slavery scheme with respect to charities and not-forprofit organisations, State Owned Corporations and local councils
(d) the appropriateness and enforceability of Modern Slavery Risk Orders under section 29 of the NSW Act
(e) the unintended consequences of drafting issues with the NSW Act, including with respect to the Human Tissue Act 1983 (NSW) and the sale and supply of human tissue
(f) the risk of a possible constitutional challenge to current provisions in the NSW Act due to inconsistencies with the Criminal Code Act 1995 (Cth)
(g) whether the passage of the Modern Slavery Act 2018 (Cth) renders parts or all of the NSW Act unnecessary, or requiring of amendment to address inconsistencies or gaps
(h) the preferred course of action to address the matters identified
(i) any other related matter.

Below is the submission made by Justine Nolan and Martijn Boersma.

New Book Sheds Light on Modern Slavery

October 1, 2019Uncategorizedaddressing modern slavery, cleaning, companies, consumers, exploitation, Fair Work Ombudsman, global supply chains, government, labour, Martijn Boersma, Supply Chain, vulnerable workers, workmartijn

The Australian cleaning industry has come under scrutiny for being at risk of modern slavery in a new book which draws links between consumers, business and government, and an estimated 40 million people who are modern-day slaves.

Addressing Modern Slavery explains the global conditions that have allowed slavery to thrive to the point “where there are more slaves today than ever before in human history”.

Authors Associate Professor Justine Nolan from UNSW Sydney and Dr Martijn Boersma from UTS describe well-known examples from overseas, such as women in apparel sweatshops and children in brick kilns – but also examples that are closer to home.

The authors include a submission from a former cleaner to the Parliamentary Inquiry into Establishing a Modern Slavery Act in Australia who noted exploitation in the cleaning industry is very common.

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Book Review: “Addressing Modern Slavery”

September 30, 2019Uncategorizedaddressing modern slavery, Australia, book review, companies, consumers, exploitation, global supply chains, human rights, migrant workers, regulation, Supply Chain, Unions, working conditions, workplacemartijn

When the Bill that became the Modern Slavery Act 2018 (Cth) was introduced into the federal parliament, it was accompanied by a grim message: two centuries after the abolition of the slave trade in the United Kingdom, it is estimated that there are twenty-five million victims of modern slavery worldwide. It also came with a bracing if Panglossian promise: that the Modern Slavery Act would ‘transform’ the way large companies in Australia do business, and drive a ‘race to the top’. Published a year after the introduction of this legislation, Addressing Modern Slavery is a timely reflection on the pervasiveness of modern slavery in global supply chains – and on the role of the state, business, and other actors in combating this serious and complex problem.

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