Corporate Responsibility and Labor Affairs Archives

Forum Examines How to Purge Supply Chains of Human Trafficking

Published on February 21, 2012
L-R: Ronnie Goldberg (USCIB), Christine Bader (Kennan Institute), David Arkless (ManpowerGroup), Letty Ashworth (Delta Airlines), Dirk Vande Beek (Travelport)
L-R: Ronnie Goldberg (USCIB), Christine Bader (Kennan Institute), David Arkless (ManpowerGroup), Letty Ashworth (Delta Airlines), Dirk Vande Beek (Travelport)

An estimated 27 million people worldwide are victims of human trafficking, which can take many forms – affecting men, women and children – and is making its presence felt in global supply chains.  To help companies understand the scope of the problem and take appropriate steps to address it, USCIB joined with the U.S. Chamber of Commerce and the International Organization of Employers, part of our global network, to organize a February 14 forum, “Engaging Business: Addressing Human Trafficking in Labor Sourcing,” at the Atlanta headquarters of The Coca-Cola Company.

Common forms of human trafficking include bonded labor, debt bondage, fraud, coercion, and other forms of modern slavery. Often it involves migration of legal workers – within a country and across borders – who have been misled by recruiters into assuming coercive debt and loss of their travel papers.  This forum focused on trafficking in the workplace, mainly via labor sourcing.

Human trafficking is increasing being targeted in policy and regulatory efforts.  In 2000, the United Nations adopted the Palermo Protocol to the UN Organized Crime Convention, and the United States enacted the Trafficking Victims Protection Act.  Three-quarters of the world’s nations have ratified the treaty, and two-thirds have passed laws against trafficking.  Since the beginning of this year, the California Transparency in Supply Chains Act of 2010 requires California manufacturers and retailers with over $100 million in annual worldwide gross receipts to disclose their efforts to eliminate slavery and human trafficking from their direct supply chains.

Kevin Bales, president of the NGO Free the Slaves
Kevin Bales, president of the NGO Free the Slaves

The prohibition of human trafficking is a human right that requires immediate due diligence of supply chains by business, and mitigating action where it exists.  The one-day program focused on potential business impacts, national and international legal trends, networks, strategies and best practices for eliminating human trafficking in labor sourcing.  Attendees gained a better understanding of the various forms of human trafficking in labor sourcing, the scope of legal and stakeholder expectations, and how to identify and address instances of human trafficking in labor sourcing.

Also at the forum, USCIB member ManpowerGroup and the NGO Verite launched a new guide to help companies prevent trafficking in their labor sourcing, “An Ethical Framework for Cross-Border Labor Recruitment,” a detailed framework for combating human trafficking and forced labor.

“Today’s environment requires businesses to be global and talent to be mobile, therefore ManpowerGroup has made it a priority to be at the forefront of ensuring that global recruitment markets operate transparently and ethically,” said David Arkless, ManpowerGroup’s president of global corporate and government affairs.  “Leading firms already commit to high ethical standards, but too many other operators exploit workers through recruitment debt, fraudulent contract substitution, and other forms of abuse.  And even well-intentioned businesses face reputational risk from unwittingly becoming entangled with unethical partners.”

Click here for more information on the ManpowerGroup-Verite initiative.

It was clear from the presentations and discussion at the forum that this is a highly complex issue, but that there are steps that companies can and should take to minimize the risk of trafficking in activities linked to their operations.

Staff contact: Adam Greene

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USCIB’s Greene Named to State Department Advisory Body

Published on February 16, 2012
Adam Greene
Adam Greene

Adam Greene, USCIB’s vice president for labor and corporate responsibility, has been named to a State Department advisory body on the OECD Guidelines for Multinational Enterprises.  Joining Greene on the panel is Clifford Henry, associate director of corporate sustainable development with Procter & Gamble and chair of USCIB’s Corporate Responsibility Committee.

Assistant Secretary of State for Economic and Business Affairs Jose W. Fernandez announced the new multi-stakeholder advisory panel in January.  The OECD Guidelines are voluntary recommendations from governments to multinational enterprises on responsible conduct in such areas as human rights, labor, environment, and corruption. They are the only multilateral, comprehensive code of conduct, endorsed by 43 national governments.

The new panel will advise the U.S. National Contact Point, a State Department official who leads the United States work under the Guidelines. For more information, please visit www.state.gov/usncp.

Through our affiliation with BIAC, the Business and Industry Advisory Committee to the OECD, USCIB members provided extensive input to the recent revision of the OECD Guidelines.

Staff contact: Adam Greene

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Business Workshop Builds Support for OECD Gender Initiative

Published on February 9, 2012
USCIB’s Ronnie Goldberg (center) and U.S. Ambassador to the OECD Karen Kornbluh (right)
USCIB’s Ronnie Goldberg (center) and U.S. Ambassador to the OECD Karen Kornbluh (right)

Women are a critical resource in facing the challenges of our global economy, both as an emerging market and as a significant pool of human talent. As government policymakers seek new means to energize growth and job creation, BIAC, the Business and Industry Advisory Committee to the OECD, part of USCIB’s global network, along with AmCham France and the OECD, joined together to welcome approximately 100 experts, from business, government and international organizations, to a February 2 workshop on “The Business Case for Women’s Economic Empowerment” at the OECD Conference Center in Paris.

Chaired by BIAC Chairman and USCIB board member Charles Heeter (Deloitte), the workshop provided business perspectives and best practices to the OECD Gender Initiative, a multi-disciplinary program to update indicators, analyze policy experiences and recommend good practices to achieve more gender equality in education, employment and entrepreneurship.  Ronnie Goldberg, USCIB’s executive vice president and senior policy officer, participated in the workshop.

“We are fortunate to live at a time when technology, the internet and mobility enable information sharing, communications and resource allocation that can help advance gender equality,” Mr. Heeter said. “Nevertheless, despite this positive environment and past efforts over decades to advance economic empowerment of women, progress has been slow. Today’s workshop was an important opportunity for business to contribute to OECD efforts to accelerate change on this issue.”

U.S. Ambassador to the OECD Karen Kornbluh and OECD Deputy Secretary General Yves Leterme thanked BIAC and AmCham for the initiative of organizing the workshop, highlighting the importance of business perspective in effective policy development.

“By focusing on ‘the how, not the why’ for creating economic opportunity for women, BIAC’s business workshop has greatly assisted the United States and other OECD member countries in our efforts to show that countries can increase equity and growth by harnessing women’s talents, innovation and leadership,” Ambassador Kornbluh stated.

Staff contact: Ronnie Goldberg

BIAC Announces Joint Workshop on Women’s Economic Empowerment

Published on January 30, 2012

On February 2, BIAC (the Business and Industry Advisory Committee to the OECD, part of USCIB’s global network), along with AmCham France and the OECD, will hold a joint workshop on “The Business Case for Women’s Economic Empowerment” at the OECD conference center in Paris.

Organized as a one-day invitation-only event, the joint workshop aims to provide a business perspective and best practice experience to the OECD Gender Initiative, a multi-disciplinary program to help governments promote gender equality in education, employment and entrepreneurship.

The workshop topics will focus on three main objectives of the meeting including highlighting the business case for women’s economic empowerment through presentation of company case studies and talent management best practices, identifying key public policy issues needed to enable employer best practices and advance women’s economic empowerment, and identifying areas for OECD work to further elaborate on key issues and questions raised by the workshop.

The workshop will facilitate exchanges between senior experts from business, government, academia, international organizations and other stakeholders to provide proactive input to the 2012 OECD Ministerial and Forum to be held in May. USCIB Executive Vice President Ronnie Goldberg will attend, and BIAC Chairman Charles Heeter will address gender diversity in the workplace from an article published in the 2012 OECD Yearbook, entitled “Gender Dividend: An Urgent Economic Imperative.”

Staff Contact: Ronnie Goldberg

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Global Business Takes Part in G20 Employment Session

Published on December 20, 2011

As host duties for the G20 transitioned from France to Mexico, Mexico City was the site on December 15 of the first meeting of the G20 Employment Task Force, with youth unemployment as its principal focus.  The IOE and BIAC were invited by the Mexican government to organize the participation of the business delegation, which was led by USCIB Executive Vice President Ronnie Goldberg, who serves as the IOE’s regional vice president for North America and chairs BIAC’s Employment, Labor and Social Affairs Committee.   An IOE-BIAC paper prepared for the meeting focused on enhancing youth employability, creating inclusive labor markets for young people, and ways to foster youth entrepreneurship.

Staff contact: Ronnie Goldberg

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USCIB’s Adam Greene Named to Labor Department Advisory Committee

Published on October 26, 2011
USCIB's Adam Greene
USCIB’s Adam Greene

New York, N.Y., October 26, 2011 – Adam Greene, USCIB’s vice president for labor affairs and corporate responsibility, has been named by Secretary of Labor Hilda Solis to serve on the National Advisory Committee for Labor Provisions of U.S. Free Trade Agreements.  The recently reconstituted advisory committee provides advice to the Secretary of Labor on the implementation of labor rules in existing free trade agreements, and on the labor provisions of FTAs being negotiated.

The committee’s other newly named business representatives all come from USCIB’s membership.  They include Darryl Knudsen of Gap Inc., Ed Potter of The Coca-Cola Company (chair of USCIB’s Labor and Employment Committee) and Anna Walker of Levi Strauss & Co.

“I am delighted that Secretary Solis has selected such solid business representatives for this important advisory committee,” said USCIB President and CEO Peter M. Robinson.  “Effectively navigating the intersection of trade and labor policies is critical if we are to move forward on trade, grow our economy and create quality American jobs.  I congratulate Adam Greene, Ed Potter, Darryl Knudsen and Anna Walker on their appointments and extend USCIB’s full support for their work.”

USCIB is the primary forum for American business in the area of international labor policy and the linkages between trade and labor.  As the American affiliate of the International Organization of Employers (IOE), USCIB plays a direct role in the tripartite International Labor Organization, working alongside government and trade union representatives to develop global labor and workplace standards and programs.  In addition, through its affiliation with the OECD’s Business and Industry Advisory Committee (BIAC), USCIB is actively involved in OECD work in the areas of employment, labor and social affairs, interacting with labor via BIAC’s counterpart organization, the Trade Union Advisory Committee.

Mr. Greene manages U.S. business participation in the development of international labor standards, and advises companies on international and regional trends in labor and employment policy.  He coordinates USCIB involvement in the ILO’s governing and standard setting bodies, and promotes the ILO Declaration on Fundamental Principles and Rights at Work.  He is vice chair of the Business Technical Advisory Committee on Labor Affairs to the Inter-American Conference of Ministers of Labor.

Labor representatives on the National Advisory Committee for Labor Provisions of U.S. Free Trade Agreements were drawn from the United Steelworkers, the United Auto Workers and the AFL-CIO, among others, while “public” representatives come from a number of academic institutions and think tanks.

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and prudent regulation.  Its members include top U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world.  With a unique global network encompassing leading global business organizations, including the IOE and BIAC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment.  More information is available at www.uscib.org.

Contact:
Jonathan Huneke, USCIB
+1 212.703.5043, jhuneke@uscib.org

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Business Calls for Fresh G20 Commitment on Jobs Especially for the Young

Published on September 27, 2011

Employment

Working through two of USCIB’s affiliates – the International Organization of Employers (IOE) and the Business and Industry Advisory Committee to the OECD (BIAC) – global business called on the G20 to make a fresh commitment to maintaining and creating jobs, following forecasts of renewed economic uncertainty and slow global growth.

At this week’s G20 labor ministerial in Paris, IOE Executive Vice President Daniel Funes de Rioja of Argentina stressed the need for strong, sustainable and balanced growth, underpinned by measures that will restore business confidence to take risks, invest and generate job opportunities.

American business representatives at the ministerial included BIAC Chairman Charles Heeter, principal with Deloitte LLP and a member of USCIB’s board, and USCIB Executive Vice President Ronnie Goldberg, who serves as a regional vice president of the IOE and chairs BIAC’s Employment, Labor and Social Affairs Committee.

Advocating concrete measures to address the worsening global jobs outlook, employers recommended improving the quality of business regulation, and a closer focus on labor markets, in the context of reduced government capacity for direct stimulatory expenditure.

Mr. Funes de Rioja particularly highlighted the need for youth employment, employability, skills and education to be recognized as top priorities for the G20, along with economic and financial reforms.  Read more on the IOE website.

BIAC called for strong action by G20 governments to avoid the devastating effects a “double-dip” global recession would have on employment.

“Without decisive action, we risk prolonging record levels of long-term unemployment and having millions more young people enter adulthood without the prospect of meaningful work,” stated Mr. Heeter. “This would be tragic for the individuals involved, their families and our societies.”

BIAC urged governments to prioritize action to restore investor and consumer confidence by delivering clear and pragmatic national, regional and global strategies for growth and job creation. “The way out of the crisis will come from the private sector growth. Governments must focus on creating a better business environment to restore investor confidence,” Mr. Heeter said.  Read more on BIAC’s website.

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From the President Supply Chain Challenges

Published on September 1, 2011
USCIB President and CEO Peter Robinson
USCIB President and CEO Peter Robinson

Efficient and well managed supply chains are essential to corporate profitability and the health of the global economy.  Companies are doing a lot – and being asked to do a lot more– to ensure the integrity of their operations and those of their suppliers around the world.  Because of this, much of USCIB’s work in recent years has revolved around supply-chain concerns – customs practices, transport security, counterfeiting and piracy, labor and environmental concerns.

Most global companies have programs in place that set standards for suppliers and hold them accountable.  More and more companies are adopting supplier codes of conduct to fill the gap created by the failure of local governments to implement or enforce their own laws, including labor and human rights laws.

But pressure is growing for companies to push supply chain management efforts even farther beyond their present scope.

New initiatives would make producers responsible for addressing broad social ills that may exist at some point in their extensive global supply chains, including child labor, forced labor, human trafficking, and armed conflict.

Examples of this trend abound:

  • the California Transparency in Supply Chains Act, focused on slavery and human trafficking;
  • efforts to address forced child labor in cotton production in Uzbekistan;
  • similar efforts to address forced labor in Brazil
    in cattle ranching, sugar and charcoal production; and
  • the Dodd-Frank law, specifically Section 1502, which requires companies to disclose whether or not conflict minerals are used in their products.

The common element of all these challenges is that they are the result of systemic failures of governance or reflect pervasive social problems.  Our view is that a prescriptive approach does not address the underlying cause of the problem and therefore is doomed to failure.

USCIB has engaged companies and policy makers on the importance of maintaining high standards and improving performance throughout the supply chain.  We have:

  • organized a series of workshops hosted by The Coca-Cola Company on how companies address forced labor, child labor and human rights;
  • promoted awareness and support for the Better Work Campaign, an ILO/World Bank program to improve factory conditions in developing countries;
  • engaged with the OECD on its recent revisions to the OECD Guidelines for Multinational Enterprises;
  • contributed to OECD’s best practices for conflict minerals in the Congo region; and
  • spearheaded efforts to address the Uzbek cotton issue via the International Labor Organization’s disciplinary process.

Perhaps our deepest involvement has been in helping craft the 2011 UN Guiding Principles on Business and Human Rights.  The UN principles ask companies to respect human rights, starting with legal compliance, and institute a due diligence process to “know and show” that they do.  But the guidelines are also very clear in stating that companies cannot – and should not – assume the responsibilities of governments, and that suppliers are themselves responsible for complying with national law and respecting human rights.

USCIB played a strong and vocal role in developing the UN principles, which are a sensible and responsible alternative to the overreach of the Dodd-Frank law.  Policy makers should use the UN principles as a model for ensuring appropriate action by companies to keep their supply chains clean, while also maintaining pressure on local governments to live up to their fundamental responsibilities.

Mr. Robinson’s bio and contact information

Other recent postings from Mr. Robinson:

Opening the World for Business (Summer 2011)

The OECD at 50 (Spring 2011)

Dealing With State-Owned Enterprises (Winter 2010-2011)

Leadership’s Legacy, and Its Promise (Fall 2010)

USCIB’s Ronnie Goldberg Reelected to ILO Governing Body

Published on June 21, 2011
At the International Labor Conference, L-R: John Kloosterman (Littler Mendelson), Kristin Lipke (U.S. Department of Labor), USCIB’s Ronnie Goldberg and John Oswalt (Procter and Gamble).
At the International Labor Conference, L-R: John Kloosterman (Littler Mendelson), Kristin Lipke (U.S. Department of Labor), USCIB’s Ronnie Goldberg and John Oswalt (Procter and Gamble).

USCIB Executive Vice President Ronnie Goldberg was re-elected to the Governing Body of the International Labor Organization (ILO) in a vote  conducted in Geneva last week . The Governing Body is the executive council of the ILO and meets three times annually in Geneva. It takes decisions on policy and establishes the program and budget of the 183 member states of the ILO.

The ILO is a tripartite United Nations agency where representatives of government, business and labor work jointly to promote greater respect for labor rights around the world.  USCIB represents the interests of American business in the ILO through its role as the U.S. affiliate of the International Organization of Employers (IOE).  Ms. Goldberg also serves as the IOE’s regional vice chair for North America.

In a related development, Adam Greene, USCIB’s vice president for labor and corporate responsibility, was recently named by Secretary of Labor Hilda Solis to the National Advisory Committee for the Labor Provisions of U.S. Trade Agreements, which provides advice on the implementation of labor chapters of U.S. free trade agreements as well as the North American Agreement on Labor Cooperation.

The ILO Governing Body election took place during the annual International Labor Conference, at which a new international labor standard aimed at improving conditions for domestic workers was adopted. The U.S. employers’ delegation to this year’s ILO conference was headed by Edward E. Potter, director of global workplace rights with The Coca-Cola Company and chair of USCIB’s Labor and Employment Policy Committee.  In addition to Ms. Goldberg and Mr. Greene, the delegation included John Kloosterman (Littler Mendelson), Kent McVay (Coca-Cola), John Oswalt (Procter and Gamble) and Kevin Sullivan (IBM).

Other outcomes of this year’s conference included guidance on labor inspection and a decision to negotiate an ILO recommendation on social security.  Heads of state and government addressing the delegates included German ChancellorAngela Merkel and Russian Prime Minister Vladimir Putin.

Staff contact: Adam Greene

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ILO website

Global Business Welcomes UN Special Representatives Human Rights Report

Published on June 10, 2011

The three main pillars of USCIB’s global business network – the International Organization of Employers, the International Chamber of Commerce, and the Business and Industry Advisory Committee to the OECD – have joined together in welcoming the final report of Professor John Ruggie, UN Secretary General Ban Ki-moon’s special representative on business and human rights.  On May 30, after six years of study and consultation, Professor Ruggie released his final report, entitled “Guiding Principles on Business and Human Rights: Implementing the United Nations ‘Protect, Respect and Remedy’ Framework.”

In their joint statement to the UN Human Rights Council, the IOE, ICC and BIAC thanked Professor Ruggie for “his dedication and tireless effort over the past six years to develop open communication and consensus among all stakeholders, which has been a significant part of his contribution to the way in which these issues are addressed.”

They continued “Our organizations have actively engaged with [Professor Ruggie] throughout his mandate by participating directly in numerous consultations, submitting joint comments or statements on various reports produced by the mandate, and engaging in ongoing communication with [him] and his team during the entire mandate.”

The groups endorsed the report’s “Protect, Respect, Remedy” framework, which clearly distinguishes the roles of national governments and third parties, including business enterprises, in upholding human rights.

The joint statement said: “Business is committed to meeting its responsibility to respect human rights and we fully expect that states and other stakeholders will do the same within their respective duties and responsibilities. Our organizations also remain committed to working with the UN Human Rights Council and other stakeholders during the implementation phase to advance the framework and the Guiding Principles in a way that creates a sense of ownership of the issues among our members, which we see as a key success factor in dissemination and adoption of the Principles.

Staff contact: Adam Greene

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