There is a growing realization that many of the human rights issues documented in global supply chains that continue to shock the world cannot be solved by individual organizations, and that collaborative efforts that take multi-stakeholder approaches are perhaps best equipped to tackle such challenges.
A recent webinar hosted by the Innovation Forum entitled "Leading corporate approaches to human rights risk management,” discussed the challenges that leading companies in different industries are facing in managing legal and reputational human rights risks in their operations, bringing in the household names Nestle and Intel along with international seafood group Thai Union to share their experiences and strategies.
All three companies said they took human rights issues extremely seriously, confirming that they pose risks to both business and strategy, and each claimed to have made good progress in this area in recent times.
Within the seafood sector, one of the largest and most controversial aspects of sustainability relates to labor, explained Darian McBain, global director of sustainability at Thai Union.
“We have been in the middle of what I call the maelstrom of the seafood sector that has happened over the last year, particularly focused on Thailand. This issue is very pertinent to us,” she said, adding that specifically within Thailand, the company has found a lot of the problems stem from unsafe migration, i.e. the migrant workforce that’s going to Thailand.
“Thailand has one of the highest base rates of pay in the region; it has many migrant workers coming from Myanmar, Laos and Cambodia to benefit from that high minimum wage. But in doing so, they sometimes put themselves at great risk," she said.
McBain said the main risks being seen in Thailand relate to human trafficking, incorporating debt bondage through the ways that people migrate to the country including documentation, transport and help getting employment.
“These can be very informal situations so there’s no one thing you can point at to say, ‘this is where the solution is,’ but they all add up to a great mix of human rights and labor risks," McBain said. “Another key thing we are seeing in the fishing sector is ‘irregular employment.’ This has traditionally been quite an informal sector; pay has been on the basis of what you catch. We have tried to formalize it into contracts where people have pay-slips that you can track any pay reductions or bonuses. It’s a change of culture for the industry and this isn’t unique to Thailand.”
Regularized employment records are important step forward because recruitment is an issue in both Thailand and in the countries from where workers are being recruited. They also help to overcome language barriers and ensure that people coming into Thailand understand what their rights are and how to get help if they need it, she said.
To deal with these risks, Thai Union has developed its Sea Change program, with one of its four pillars focused on safe and legal labor, and McBain said partnerships are “absolutely key” to this strategy. Partners include NGOs, intergovernmental organizations and government – “people on the ground who understand the situation, working toward a common goal.”
An important part of this is making sure workers are empowered to take action for themselves, that they are educated, that they understand who they can reach out to and know what support mechanisms are in place, and “really bringing to life what the issues that have been hidden for so long are.” After that, steps can be put in place to manage those risks and then balance the power between migrant workers, local workers, management and local government, she said. Furthermore, it’s crucial that these stakeholder partner groups and suppliers work together because "You can’t go this alone,” and then the partnerships must recognize where they can have “the biggest impact on those biggest issues and work toward common goals.”
“For us, the Shrimp Sustainable Supply Chain Taskforce has been vital in bringing the supply chain together with civil society and government to look at what solutions we can put in place. Local NGOs have been an absolute boon to our program and I don’t believe we could have got to where we are today without these ‘critical friends’ to guide us. They are also very strategic. I think that’s one of the most important parts – multiple groups working together toward a common goal, even if you are coming from different directions,” said McBain.
The seafood industry is far from alone in this collaborative approach. Even leading players in the fiercely competitive electronics industry recognize that going solo on such a big issue as human rights is not feasible, confirmed Mike McDonnell, senior manager of supply chain sustainability at Intel.
“To a great degree a lot depends on finding likeminded groups to go with Intel,” he said. “Although we are a big name, the electronics industry is massive and so we recognize that we have got to work with others,” said McDonnell.
Nestle is another large corporation seeking to establish specific partnerships to solve different challenges, especially in the “important area” of human rights, including working with the non-profit organization Verite relating to issues in Thai fisheries, said Yann Wyss, human rights manager at Nestle.
“Among our most important partners are our suppliers,” added Wyss. “They are not only business partners, they are running our programs on the ground. Without suppliers, we wouldn’t even be able to identify the risks let alone manage them effectively. So the work we have been doing with Thai Union and other suppliers has been very important. If you are not all aligned with what you want to achieve on the ground then it would be very difficult to improve a situation."
While acknowledging there is a considerable amount to do, the three companies believe a difference is being made in their respective fields on human rights issues through their partnerships. Indeed, through Thai Union’s collaboration with the Shrimp Sustainable Supply Chain Taskforce and other partners like Nestle, Walmart and the Thai Government “a whole movement of change” is underway, said McBain.
