business and human trafficking
TRANSCRIPT
BUSINESS & HUMAN
TRAFFICKING
Why Business should Bother Private Sector Engagement & Risk Management
’
Anders Lisborg TRACE meeting, Stockholm, March 2016
Private sector toolkit. - Free of charge - Available in Danish and English - Print version Launched 2014 & online web-
version 7th. Oct. at the CSR Awards 2015 - http://virk.cmm.dk/en/ - http://csrfonden.dk/en/csr-awards/csr-
awards.aspx
Content
• Failure, frustration and despair
• A phone call on a wedensday afternoon
• Romanian employers/exploiters with fancy cars and poor people in their garage
• A large company and the CEO under pressure
• Reputational damage & marketing warfare
• Making new friends and how to tango
• Going from “not interested” to “let’s do it”
• How to raise awareness without campaigns
Private Sector Engagement
10 Important Lessons learnt
1. Trafficking is a turn-off! The private sector is reluctant to get involved in combatting THB, - being associated with THB
2. Anti-THB stakeholders needs to understand business perspectives and terminology (the risk of THB = business risk)
3. Crucial to understand INCENTIVE and RELEVANCE to business: Is it relevant / does it, - or can it affect business? – If so, in which way? What are the risks? (divided into legal risk and reputational risk) What are the opportunities? (related to cooperate image and CSR)
4. Develop a ”Business case” What’s in it for the company? Why spend time/money? Why get involved?
5. RISK is one of the main incentives to get involved, e.g risk minimization, risk management, - purely a business perspective
6. Documentation and data as a platform. If there is no documented cases/problems there is no direct risk…
7. Business listens to Business. Meeting with Danish Chamber of Commerce and main employers organisations)
8. A real Business Case can be a ”Game Changer” 9. For guidelines – focus broader, - not too narrow on THB 10. Guerilla marketing / awareness raising. If they don’t come to us we go to them...
Background
• “Facilitating CSR in the Field of THB” EU funded project, Coordinated from Tilburg University
• 7 Countries (Holland, Italy, Austria, Belgium, UK, Spain, Denmark), Different sectors, Hotel sector, Denmark
• Aim to develop sector specific guidelines to prevent THB in each country
• Challenge – limited PS interest...few willing to talk, meet, little time (not an issue / priority)
• Then, - first contacts, further interest and close collaboration
• Largest privately owned Facility Service & Health Care Company in Scandinavia (2nd. Cleaning company in Denmark)
• 8000+employees (3300+ in Facility Service / Cleaning etc.)
• 2000+ customers: (Govt. Institutions, Municipalities, Private companies)
• 82 sub-contracted companies (till 2012)
• Turnover: aprox. 1 billion DKK (133 mill. EUR)
The FX Case: Cost and Risk of being associated with THB
The FS case
• Trade Unions and media document cases of severe labour exploitation and possible THB
• CMM identifies THB victims
• Police start investigations (two cases)
• FX remains defensive, former CEO denies responsibility
NOT FOR QUOTATION CITATION OR DISTRIBUTION
NOT FOR QUOTATION CITATION OR DISTRIBUTION
THB cases: (FX sub-contractor)
Romanian nationals establish a company The company offers themselves as subcontractors for the bigger companies Recruiting labors in Romania Romanian doubles their salary by 10, from 30€/monthly to 300€/monthly The workers identity is stolen. Employer trafficker in full control of ID papers, bank accounts etc. The company usually performs good and steady work
NOT FOR QUOTATION CITATION OR DISTRIBUTION
• Up to 50 romanian workers / victims
• Poor living conditions: Eating leftovers ,
no toilets (3 cases: Garage, Basement, Balcony)
• Forced into criminal activities. Physical violence. Threatend
• Working hours up to 20hrs. Salery 2500-3000 DKK. cash per month.
• Sub-contractor told workers they were illegal and that they should fear police and authorities.
• Confiscated ID documents. Up to 11
pers. Living in a garage (16 m2.)
THB cases: (FX sub-contractor)
Cost & Risk of being associated with THB
Continued documentation of labour exploitation cases Trade Unions and news press ”target” FX Competetors launch a ”marketing warfare” and continue to
dissiminate negative news among main customers FX is BLEEDING CASH!!, - loose main customers Estimates the whole process cost 25% of annual profit FX forced to re-strategise, new CEO Comprehensive restructuring of the company: Stop using sub-contracters altogether Postpone all direct sales for a year (while restructuring) New direct employment of 600cleaners Now according to themselves ”the cleanest cleaning company in
Denmark”
NOT FOR QUOTATION CITATION OR DISTRIBUTION
NOT FOR QUOTATION CITATION OR DISTRIBUTION
FX direct response: ”Needle eye” direct employment procedure FX full control of the employment process at all levels All workers carefully screening:
Names, adressess, CVR, databases, google, facebook, personal interview at the main office
All are carefully explained the rules and regulation (main office) Signs contract and that they have understood the details
e.g. can’t bring friends to the workplace (reason for dismissal)
Person associated with known ”bad employers” are excluded Monitor sub-contracters (known ”rotten apples”) Close collabroation with Police, Tax, and Danish anti-THB Center
Guidelines against Human Trafficking for Forced Labour – A practical tool for companies and employers
Aim to:
• Be a valuable practical tool to help “GOOD business get rid of BAD business”
• Create value for the businesses and companies:
– What will our guidelines be worth in Euro’s? / would businesses be ready to buy our “product” and expertise?!
• Help minimize risk (of any involvement in, - or association with THB and exploitation) = reputational damage
• Help maximise a positive socially responsible cooperate image
• Guidelines as a information, risk management and prevention tool – also an awareness instrument...
NOT FOR QUOTATION CITATION OR DISTRIBUTION
Employers recommendations
Employers ideas about what such guidelines could include:
• “guidelines that are easy to understand and clearly communicated”
• “a good case for how this can be done (implementation in practice)”
• “guidelines that are easy to understand for companies of all kinds, a product that makes sense and which you can quickly go through and find out what you need to pay attention to (easy to navigate)”
• “information material about rights and obligations”
• “a guidelines that contains factual information”
NOT FOR QUOTATION CITATION OR DISTRIBUTION
Managing the Risk of Hidden Forced Labour - A Guide to Companies and Employers
NEW online web-based version of guidelines http://virk.cmm.dk/en/
Marketing the Guidelines
• Guerilla marketing / awareness raising
• If they don’t come to us – we go to them…
• Identifying relevant Business events
• CSR Awards 2014: http://csrfonden.dk/en/csr-awards/previous-csr-awards/csr-awards-2014.aspx
• CSR Awards 2015: http://csrfonden.dk/en/csr-awards/csr-awards.aspx
• Side-events on ”Risk Management and Responsible Coporate Behavior” & ”Hidden Forced Labour in the Supply Chain?”
• International & Danish Speakers, (FS CEO; COOP CSR Chief, Matt Freidman, David Camp (Stronger Together), Employer organisations etc.
• 1-2 Hours – short and consise
• New partners: 1) Danish Business Authority; 2) Inter-ministerial working group on CSR, 3) Human Rigths and Business (DIHR) etc. Private Companies etc.
Next steps…
• Version II (updates – based on PS feedback)
• Online / interaktiv version (done)
• PS Training modules (sector specific) – e-learning
• PS mobilisation (coalition)
• Guidelines on global supply chains and risk management
• Does not stand alone: Part of a 3-leg strategy (tripartite approach)
Multi-stakeholder Partnerships
THB & Forced Labour
Private sector
Public sector
Trade Unions
Trade organisations
Municipalities NGO’s
Consumers
Authorities (Police, Tax,
Labour inspections
etc.)
Retailers
