1 Best Practice Guidance on Ethical Recruitment of Migrant Workers Inspired by Faith, Committed to Action Inspired by Faith, Committed to Action Inspired by Faith, Committed to Action Inspired by Faith, Committed to Action A B O U T T H E I N T E R FA I T H C E N T E R O N C O R P O R AT E R E S P O N S I B I L I T Y. Celebrating its 46th year, ICCR is the pioneer coalition of shareholder advocates who view the man- agement of their investments as a catalyst for social change. Its 300 member organizations comprise faith communities, socially responsible asset managers, unions, pension funds, NGOs and other socially responsible investors with combined assets of over $200 billion. ICCR members engage hundreds of cor- porations annually in an effort to foster greater corporate accountability on questions such as climate change, corporate water stewardship, sustainable food production, human trafficking and slavery in global supply chains, and increased access to financial and health care services for communities in need.
2 ICCR. 475 RIVERSIDE DRIVE SUITE 1842. NEW YORK, NY 10115. AC K N O W L E D G E M E N T S. ICCR wishes to thank Humanity United for its support of ICCR's No Fees initiative and the ongoing engagements and research that led to this best Practice guide. The guide and four case studies in this handbook were researched and developed by Valentina Gurney, ICCR Associate Program Director for ICCR's No Fees initiative and she is the principal author of this guide. Special thanks to The Coca Cola Company's Genevieve Taft, Brian Chen, Gary Cho, SGS, Darian McBain, Global director of sustainable Development, Thai Union, Corporate HR Policy and Global Excellence De- partment of Charoen Pokphand Foods PCL, The Farm Labor practices Group (FLPG) and others for their invaluable input.
3 An additional four case studies were prepared by Social Accountability International (SAI), in partnership with ICCR. Primary authors from SAI were Rachel Kanter Kepnes, Ramona Moor- head and Tracie Ninh, with technical expertise from Sanjiv Singh and translation services from Isaac Yu. SAI would like to thank the following interviewees for offering their insights and sharing their experi- ence for the case studies in this handbook: M. Anbukani, Penguin Apparels; Thuy Nguyen, Patagonia;. Priya Chingen, Princes Tuna Mauritius; Tanvi Kafi and Terri Yandt, HP Inc. Additional writing and editing was provided by David Schilling, ICCR's Sr. Program Director for Human Rights. Many thanks to both Kilian Moote of Humanity United and Shawn MacDonald of Verite for reading and providing comment on the draft report.
4 COPYRIGHT ICCR, APRIL 2017. Photo credits: Cover, pgs. 10 etc: V. Gurney, 10, 12, 17, 21, 25, 30, 32, 34, 40, 42, 43; p. 21: David ; p. 24: ; and p. 29: somyot Contents I. Executive Summary 3. II. Background Forced Labor Risks in Global Supply Chains 6. Corporate Responsibility to Uphold Human Rights 7. Government's Role in Enforcing Ethical Recruitment 8. Investor Advocacy and ICCR's No Fees Initiative 9. III. Case Studies Methodology 10. BUYERS The Coca Cola Company 12 Agricultural Products Company X 18. Hewlett Packard 21 Patagonia 24 SUPPLIERS CP Foods 26. Thai Union 28 Princes Tuna 30 Penguin Apparel 33. IV. Key Learnings 35. V. Guidance 1. Map the Supply Chain 37 2. Identify and Prioritize Risks 37. 3. Build Support of Top Management 38.
5 4. Policy Development/Three Pillars Implementation 39 5. Buyer-Supplier Relationship Building 42 6. Appropriate Supplier Support 42 7. Transparent Communication 43 8. Stakeholder Collaboration 44 VI. Conclusion 44. VII. Additional Resources 45. VIII. Appendix: Sample Fee Schedule of a 47. Company in the Asia-Pacific Region Best Practice Guidance on Ethical Recruitment of Migrant Workers I 1. Introduction In recent years, the international labor Recruitment industry and its accompanying human rights risks have become a focal point of concern for companies with global supply chains. Surges of work-related migration along with a Recruitment industry that is largely unregulated have created a predatory climate for Migrant workers where exploita- tion and egregious violations of human rights flourish.
6 While some countries and sectors are more vulnerable to these violations than others, they are present in the extended supply chains of virtually every company and, without adequate safeguards in place, threaten the lives of workers and present serious reputational and financial risks to both companies and their investors. The purpose of this emerging Best Practice Guidance on Ethical Recruitment of Migrant Workers is to highlight the progress some companies have made on these fronts that may serve as models for companies looking to implement Ethical Recruitment policies and contribute driving change at the Recruitment agency level. Through the examination of eight companies in high risk sectors we provide an analysis of emerging best practices in the development of corporate Ethical Recruitment policies, and identify gaps for improvement.
7 We hope this analysis will serve both companies and the invest- ment community. Several of these case studies are based on ICCR member engagements under its No Fees Initiative funded by Humanity United. Additional case studies are the result of research furnished by Social Accountability International (SAI). ICCR encourages companies in their respective sectors to take leadership roles that will serve as models for their sector peers fostering a race to the top on questions of corporate responsibility. In our ongoing No Fees multi-stakeholder roundtables we are convening top brands from at-risk sectors along with government representatives, Recruitment experts and human rights advocates to share learnings and challenges in a collective attempt to eradicate the scourge of trafficking and slavery from global supply chains.
8 A preliminary draft of this guide was shared with roundtable participants at a recent convening in January, 2017 and we are grateful for additional input they provided. As new legislation takes effect and better practices emerge in the future, we will contin- ue to collaborate with these and other stakeholders to refine our recommendations and update this guide. In the meantime, we welcome any feedback and suggestions that will make this guide more useful. 2 I Best Practice Guidance on Ethical Recruitment of Migrant Workers I. executive summary Almost 21 million people (a conservative estimate) are trapped in conditions of forced labor that generates over $150 billion in profits for other parties. Of these workers, over 75% are exploited within the traditional private sector, especially in industries such as agriculture, apparel, construction, electronics and manufacturing.
9 Poverty, displacement, job scarcity and wage disparity all create financial burdens for workers at the bottom of global supply chains that may drive them across borders seeking jobs. The ILO estimates that over 150 million workers left their home countries in 2013 in search of a job, and that number is increasing every year. Unethical recruiters often charge workers the equivalent of thousands of dollars in fees to secure employment. These fees could cover a range of services from work placement to orientation, transportation to the country, daily transportation to the worksite, housing and other services. Migrant workers in fear of being deported, without access to adequate grievance mechanisms in their host countries, are prime targets for exploitation as forced laborers.
10 This exploitation takes a number of forms including debt bondage, collateral, illegal deductions from wages and confiscated or restricted access to travel documents like passports, permits and visas that limit workers' freedom of movement. As a result, the international labor Recruitment industry and its accompanying human rights risks have become a focal point of concern for companies with global supply chains. A surge in work-related migration along with a Recruitment industry that is largely unregu- lated has created a predatory climate for Migrant workers where exploitation and egregious violations of human rights flourish. While some countries and sectors are more vulner- able to these violations, they are present in the extended supply chains of virtually every company and, absent adequate safeguards, threaten the lives and livelihood of workers and present serious reputational and financial risks to companies and their investors.