Recently, a new Benchmark report was released by KnowTheChain, pertaining to the Information & Communications Technology sector, which outlines weaknesses in global supply chains and vulnerabilities to forced labor.  This report puts significant pressure on technology companies to address forced labor in the global supply chain. 

KnowtheChain ("KTC") is a partnership devoted to assessing corporate supply chains and disseminating reliable information about the risks of forced labor in supply chains.  KTC utilizes benchmarking as a tool for identifying current best practices, to encourage corporations which are struggling to address forced labor in the supply chain develop better strategies.  The benchmark reports score companies on seven different themes relating to labor practices in the supply chain: Commitment and Governance, Traceability and Risk Assessment, Purchasing Practices, Recruitment, Worker Voice, Monitoring, and Remedy.  KTC measures 22 indicators in each theme, to determine a company's score (best out of 100).  In 2016, KTC released the Apparel & Footwear Benchmark and the Food & Beverage Benchmark.

The Coca Cola Company ranked second highest in the 2016 Food & Beverage Benchmark, with a reasonably positive score of 68 out of 100.  Although Coca Cola Company ranked incredibly high in Commitment and Governance (96/100) and Traceability and Risk Assessment (75/100), the company did receive worrying scores in Recruitment (33/100) and Worker Voice (23/100).  In response to this, Coca Cola began strengthening its initiatives to protect workers in its supply chain.  Earlier this year, Coca Cola and the State Department announced a new partnership to evaluate its sugar supply chain and utilize blockchain technology to increase transparency of sourcing.  Coca Cola has pledged to conduct 28 in-depth country reports by 2020, to better identify the risk of forced labor.  KTC's Benchmark report has shown to have significant influence over corporate action, influencing companies to take a serious look at forced labor in the supply chain.

Now that KTC has released its 2018 Information & Communications Technology Report, the International Supply Chain Initiative ("ISCI") is closely monitoring the response of companies included in the report, and strongly encourages all companies to take measures to protect workers in the supply chain.  ISCI can assist with strengthening corporate policies and procedures to produce higher scores and boost a corporation's efforts to eliminate forced labor from the supply chain.

If you would like to find out if your company is at risk for the use of forced labor in your supply chain, and how to remedy it, please contact us immediately.


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