Combatting Child Labor in Supply Chains: Strategies, Regulations, and the Role of AI

Addressing child labor violations in a company's supply chain is not only essential for protecting reputation and upholding ethical standards but also crucial for complying with evolving global regulations. While the U.S. Department of Labor (DOL) seeks stronger enforcement powers domestically, international efforts against child labor and forced labor are gaining momentum.

The European Union has taken a significant step by agreeing to prohibit products made with forced labor, setting a precedent for other jurisdictions. Canada's enactment of the Fighting Against Forced Labour and Child Labour in Supply Chains Act mandates businesses to report measures taken to prevent these abuses, raising awareness among North American companies.

Brad Gates, regional head of the Americas at Ethixbase360, highlights the potential for expanded legislation, emphasizing the need for stricter regulations to discourage reliance on child and forced labor. To ensure compliance, companies must identify their suppliers and assess risks, particularly in industries prone to child labor exploitation.

Gwen Hassan, deputy chief compliance officer at Unisys, suggests a targeted approach to identifying violations by narrowing down suppliers based on specific risk factors. This focused strategy enables companies to develop tailored transition plans for high-risk suppliers, enhancing accountability and transparency.

Moreover, child labor often intersects with other risks such as bribery and corruption. Gates emphasizes the importance of incorporating child and forced labor risks into existing third-party management platforms, enabling comprehensive risk assessment across supply chains.

For companies operating in the United States, the DOL provides self-assessment tools to evaluate compliance with child labor laws. These tools facilitate proactive measures to mitigate risks and ensure adherence to regulatory requirements.

In the realm of technology, the integration of artificial intelligence (AI) systems offers promising solutions to combat child and forced labor. Ram Ben Tzion, CEO of Publican, highlights the potential of AI to automate the analysis of transactions, enhancing detection capabilities and minimizing reliance on manual inspections.

Ben Tzion underscores the importance of AI and digital tools in gaining transparency and visibility into supply chains. By leveraging AI-driven supply chain mapping models, companies can identify unethical suppliers and mitigate compliance risks effectively.

Furthermore, Hassan recommends utilizing resources such as the Customs Trade Partnership Against Terrorism (CTPAT) program for guidance on mitigating child and forced labor risks. CTPAT requirements mandate documented criteria to prevent goods with forced or child labor from entering the United States, aligning with the DOL's compliance standards.

To address the threat of forced labor comprehensively, companies must integrate risk management measures into their operations. This includes assessing risks, training stakeholders, and implementing monitoring mechanisms to ensure compliance with ethical standards and regulatory obligations.

Additionally, suppliers should be held accountable through the establishment of codes of conduct and independent reviews to prevent forced labor. By adhering to reliable tools and guidelines endorsed by organizations like the International Labor Organization and the DOL, companies can bolster their responsible supply chain practices.

In conclusion, proactive engagement in responsible supply chain management is vital for protecting vulnerable workers and safeguarding against legal, reputational, and financial risks. By adopting robust strategies and leveraging technological advancements, companies can uphold ethical standards, comply with regulations, and contribute to the eradication of child labor globally.

By fLEXI tEAM