Organized by:

• Embode

• Issara Institute

• Verité

Background

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As Asia remains central to global production for major brands, its supply chains are also at the forefront of increased risks, including forced labor and increased risk to workers, especially vulnerable populations, and rising regulatory scrutiny. In response, investors, regulators, and consumers are demanding more accountability in line with Human Rights Due Diligence (HRDD) Standards, particularly when it comes to labor practices. Additional factors, such as shifting geopolitical alliances and rising costs have forced brands to shift their production to new countries across Southeast Asia - creating new commercial arrangements in a short period of time. The shifting of major supply chains can lead to unequal business arrangements that force employers to meet standards without sufficient time and resources to efficiently undertake the changes required.

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Given the central role supply chain businesses play in recruiting and employment of workers, their role and voice in shaping and implementing better standards is paramount. 

 

Nevertheless, standards and requirements outlined in HRDD frameworks have not sufficiently engaged supply chain business in their development and implementation. This has led to the experience of supply chain businesses who supply major brands and multinational corporations being imposed upon in a “top-down” manner, instead of being an active partner in the business relationship. At the same time, other stakeholders such as worker representatives and civil society need to be engaged to ensure all perspectives are taken into account. As it stands now, there is a lack of adequate recognition of the centrality of the employer-worker relationship, and a lack of understanding of the barriers and challenges the employers face in implementing policies that protect workers rights. 

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Furthermore, the standards and decisions that are being set are often based on datasets that don't truly represent the realities on the ground.  Standard audit-based compliance models have proven inadequate for addressing systemic labor risks  - however, with active engagement between the supply chain partners, and with workers, both their employers and the supply chain partners can understand the issues and make better decisions leading to meaningful impact and positive change. 

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The session will examine how systemic risks such as forced labor, recruitment fees, and wage theft can only be addressed through equitable, co-invested partnerships between brands and suppliers. We will also explore how these partnerships can be used to meet evolving expectations stemming from regulatory and buyer requirements, consumer expectations, and shareholder scrutiny. 

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Participants will hear case studies of brands and supply chain businesses that have started to move beyond transactional compliance and embraced longer-term supplier engagement strategies, including joint remediation programs. Special attention will be paid to supplier perspectives, especially MSMEs and lower-tier producers, who are often excluded from HRDD design but bear the brunt of the risks.

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Key Objectives

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• Systemic human rights risks can better be addressed through equitable, co-invested partnerships between buyers and suppliers. Creating these partnerships require including the voices and perspectives from multiple stakeholders, including workers 

• The role of neutral third parties in supporting and validating these equitable partnerships in the buyer-supplier dynamic is key

• Session will propose practical solutions to the barriers brands and suppliers face when engaging in HRDD and social sustainability

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Guiding Questions

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• How can buyer-supplier relationships incentivize the protection of worker’s rights?

• How do we embed human rights in the commercial transactions in supply chain businesses?

• How can we reduce audit burden and fatigue, creating space for partnerships with neutral third parties?

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Format

• Panel / Reverse Panel

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Session Partners