Business and Human Trafficking

Business and Human Trafficking

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  BUSINESS & HUMAN TRAFFICKING WhyBusiness should Bother Private Sector Engagement & Risk Management ’ Anders Lisborg TRACE meeting, Stockholm, March 2016
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  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
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  Content • Failure, frustrationand 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
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  Private Sector Engagement 10Important 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...
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  Background • “Facilitating CSRin 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
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  • Largest privatelyowned 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
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  The FS case
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  • Trade Unionsand 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
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  NOT FOR QUOTATIONCITATION 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
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  NOT FOR QUOTATIONCITATION 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)
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  Cost & Riskof 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
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  NOT FOR QUOTATIONCITATION 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
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  Guidelines against HumanTrafficking 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
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  Employers recommendations Employers ideasabout 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
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  Managing the Riskof Hidden Forced Labour - A Guide to Companies and Employers NEW online web-based version of guidelines http://virk.cmm.dk/en/
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  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.
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  Next steps… • VersionII (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)
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  Multi-stakeholder Partnerships THB & Forced Labour Private sector Publicsector Trade Unions Trade organisations MunicipalitiesNGO’s Consumers Authorities (Police, Tax, Labour inspections etc.) Retailers
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  THANK YOU Anders Lisborg [email protected]