1. Compliance Program for Anti-Human Trafficking
Conflict Mineral & Ethical Sourcing Workshop 2015

2. James Calder Today’s Presenter Director - Compliance Programs
Assent Compliance
Over ten years as a senior expert on product
stewardship, regulatory approvals/certifications,
product safety, and ethical sourcing.

3. Main Legislative Drivers
Federal Acquisition Regulation (Executive Order 13627) California Transparency in Supply Chains Act UK Modern Slavery Act 2015

4. Federal Acquisition Regulation Human Trafficking Provisions Timeline
A contract clause prohibiting severe forms of HT, procurement of commercial sex acts and the use of forced labor has appeared in federal service contracts
Contractors had to: i) notify employees about the policy; ii) establish an employee awareness program and iii) notify the Government of an alleged violation
Expanded to cover all federal contracts and subcontracts, including those for supplies and commercial items 
Addition of language to make the adoption of a TiP awareness program a mitigating factor if a violation occurred
2006
2007
2009

5. Federal Acquisitions Regulation (Executive Order 13627)
Expanded list of types of conduct
Prohibits the withholding of identity documentation
Prohibits the use of misleading or fraudulent recruitment practices
Prohibits the charging of recruitment fees
Outlines contractors responsibilities to provide return transportation
Outlines contractors responsibilities in providing employee housing that meets host country housing and safety standards

6. Federal Acquisitions Regulation (Executive Order 13627)
Recruiters
Must use trained recruiters abiding by local laws
Contracts
Contractors to provide employment contracts – if they are separately required to do so by law or by contract - in writing, at least 5 days before relocation in a language understood by the employee and that contains details about, work description, Wages, prohibition on charging recruitment fees, work location(s), living accommodation and associated costs, time off, roundtrip transportation arrangements, grievance process and the content of applicable laws and regulations that prohibit trafficking in persons

7. Federal Acquisitions Regulation (Executive Order 13627)
Changes in reporting requirements
Contractors must report ‘credible information’ to both the contracting officer and the agency Inspector General
Contractors must cooperate with Government investigations of trafficking (this includes provision of information, access to facilities and staff, and responsibility to protect all employees suspected of being victims or witnesses to prohibited activities.

8. Federal Acquisitions Regulation (Executive Order 13627)
Mandatory components of the compliance plan:
(i) an awareness program; (ii) an employee reporting process; (iii) a recruiting and wage plan that addresses the restrictions on recruiting fees; (iv) a housing plan that ensures housing meets host country housing and safety standards; and (v) procedures to prevent trafficking activities by agents and subcontractors
Compliance as a mitigating factor
Compliance plan can only be considered as a mitigating factor for liability if:
Was in place at time of violation
Was implemented at time of violation 
Company took remedial actions, including reparation to victims  Maybe a stupid question but can you explain the difference of “in place at the time…” compared to “implemented at time…”

9. UK Modern Slavery Act UK Modern Slavery Act
This Act requires companies to produce a "slavery and human trafficking statement" each financial year, disclosing their efforts (or lack thereof) to ensure their supply chains are free from slavery and human trafficking.
Required for all companies (private and public) doing business in the UK and having over £36 million (Global)
Applies to good and services
Must report the business structure, policy, due diligence processes, areas of risk, KPIs, training
Went into effect last month

10. California Transparency in Supply Chain Act
Since January 1, 2012, every retailer and manufacturer doing business in California with annual worldwide gross receipts exceeding $100 million must  disclose on its website the extent to which it works to prevent AHT in the supply chain.
Disclosure to include:
Verification (Does it assess the Supply Chain?)
Audit (Does it perform?)
Certification (Do suppliers “certify”?)
Internal Accountability (Internal Procedures?)
Training (Does it train and how?)

11. CA TISA Statement We, ACME Corp,
Do not verify our supply chain for human trafficking
Perform no audits
Do not require suppliers to certify they supply goods free of human trafficking
Have no internal procedures to identify human trafficking
Do not provide any education to our employees or supply chain on the risks of human trafficking

12. CA TISA Statement
We, ACMECARE Corp, Have implemented a risk based assessment performed by a third party with human trafficking subject matter expertise. The assessment covers every known supplier and labor broker in ACMECARE’s supply chain. This occurs on a yearly basis for the entire supply chain with increased frequency for every supplier and/or labor broker holding some level of risk Performs yearly unannounced third party audits within the entire supply chain. Selected auditors must demonstrate specific knowledge on the risks of human trafficking. Audits are always performed on high risk suppliers plus a random selection of 10% of our other supply chain Requires all direct suppliers to contractually certify they comply with the labor laws of the countries in which they do business. Local labor laws are identified by region for the suppliers knowledge and encouragement Through its Ethics Committee, has implemented internal procedures to monitor the efficacy and results of our anti-human trafficking program. The Ethics Committee provides recommendations to the Compliance Officer who reports to the Board for their commitment on the entire organization’s anti-human trafficking program.

13. Three Regulations: Single Solution

14. Building a Program
To be successful, an Anti-Human Trafficking program should cover the following categories:

15. STEP 1: Policy Creation
The Policy is your company’s framework detailing your approach to these regulations
Objective: details the regulations impacting your company
Policy Statement: demonstrates your position
Roles & Responsibilities: defines employees roles
Hotline: provides reporting mechanism
Champion: must be adopted and accepted by senior leadership

16. STEP 2: Awareness Program
Broadcasting your company’s policy and requirements to address Anti-Human Trafficking
Develop & Distribute Educational Materials: creates awareness for internal employees as well as suppliers to ensure they are monitoring activities
Communicate Requirements: inform the supply chain of the requirements and actions that constitute a violation of your policy

17. STEP 3: Reporting Hotline
A Reporting Hotline provides employees, suppliers and contractors a way to report issues, ask questions and provide assistance
Address Confidentiality: Explain the measures taken to ensure any information provided is done so in confidence
Provide Instructions: Reporting is only as good as the detail provided so its important instructions are given in order to demonstrate what’s needed for a company to take action

18. STEP 4: Supply Chain Risk Assessment
Assessing your vulnerability to human trafficking issues within your supply chain will help eliminate risk
Create a Sourcing Map: certain geography locations pose a greater risk to the potential for Human Trafficking
Identify Supplier/Contractor Practices: through the use of questionnaires and audits document the hiring practices of your supply chain
Include your business operations

19. STEP 5: Mitigation Activities
Exposure of any potential issues requires an action plan to change the practices of the supply chain or eliminate the source
Questionnaire/Audit Review: evaluate supplier responses and work with them to eliminate hiring practices that create risk for Human Trafficking violations
Share Requirements Annually: pass along your supplier code of conduct and educate suppliers on the need for ethical practices

20. STEP 6: Incident Management
Create a process by which your organization can properly assess and resolve any instances of human trafficking
Manage incidents reported through hotline, HR, or other avenues
Assigns ownership (case management) to identify, analyze, and correct any exposure to human trafficking
Reporting of incidents

21. STEP 7: Continuous Improvement
Demonstrate your company’s continued efforts to improve supply chain transparency, promote education and awareness on the topic and reduce supplier risk
Year Over Year Improvement Opportunities: as the program gets started document ways in which your company can improve its processes and communication within the supply base
Increased Audit Verifications: create a plan to add supply chain audits to your annual process
KPIs: document your supplier risk and track your decrease in risk level as the program matures

22. STEP 8: Due Diligence
The verification process by which a company ensures its program is robust, adopted by the supply chain, promotes transparency and meets the requirements of the relevant regulations
Program Completeness – understand the reporting requirements, define execution
Transparency – ensure your internal processes are auditable and expectations to your suppliers are understood and able to be followed
Process Documentation – how your company and supply chain will handle situations as they arise
Has to include some validation/challenge to areas of risk
Applies to all steps

23. Thank You!