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Julie Tanner Assistant Director, Socially Responsible Investing ENDING HUMAN TRAFFICKING The role of corporations, investors and.

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Presentation on theme: "Julie Tanner Assistant Director, Socially Responsible Investing ENDING HUMAN TRAFFICKING The role of corporations, investors and."— Presentation transcript:

1 Julie Tanner Assistant Director, Socially Responsible Investing ENDING HUMAN TRAFFICKING The role of corporations, investors and consumers A presentation to The Annual General Meeting of Women Graduates September 13, 2014

2 Agenda  Socially responsible investing and corporate responsibility  Human Trafficking defined  Examples  Current and proposed legislation  Steps companies must take to detect and prevent trafficking abuse  How you can make a difference

3 Christian Brothers Investment Services  Since 1981, CBIS has been a recognized industry leader in socially responsible investing  Our approach to SRI emphasizes shareholder advocacy ― direct engagement with companies on issues of concern to clients  Our stock screens are tailored to participants' core religious values and actively managed to reflect changes in company strategies  Shareholder advocacy is an essential aspect of our fiduciary duty  By encouraging strong corporate environmental, social and governance performance, we are supporting the growth of shareholder value

4 Socially Responsible Investing  SRI incorporates corporate responsibility factors into investment analysis and management  A broad-based approach that considers financial performance and societal impact  Good environmental, social and governance (ESG) performance can translate to long-term shareholder value and benefits to society  $1 out of every $9 in the U.S. is invested according to one or more SRI strategies  As SRI has evolved, so have the ways to implement it  Also known as Ethical Investing, Green Investing, Mission-Based Investing and Sustainable Investing

5 Active Ownership  Corporate Dialogues  Ongoing communication between a group of shareholders and the board and/or management to encourage action on an issue of concern.  Shareholder Resolutions  A proposal placed on the proxy ballot and voted on by shareholders at a company’s annual meeting.  Proxy Voting  Votes on management and shareholder proposals as a fundamental responsibility of stewardship.

6 Corporate Social Responsibility “Corporate social responsibility encompasses not only what companies do with their profits, but also how they make them. It goes beyond philanthropy and compliance and addresses how companies manage their economic, social, and environmental impacts, as well as their relationships in all key spheres of influence: the workplace, the marketplace, the supply chain, the community, and the public policy realm.” »Harvard Kennedy School Corporate Social Responsibility Initiative  Companies are under pressure to be accountable not only to shareholders, but also to stakeholders such as employees, consumers, communities, and society-at-large

7 Human Trafficking  Human Trafficking is morally unacceptable, a grave violation of human rights, and a serious crime in many countries.  The Trafficking Victims Protection Act of 2000 (TVPA) defines severe forms of trafficking in persons as:  Sex trafficking: the recruitment, harboring, transportation, provision, or obtaining of a person for the purpose of a commercial sex act, in which the commercial sex act is induced by force, fraud, or coercion. or in which the person induced to perform such act has not attained 18 years of age; and  Labor Trafficking: the recruitment, harboring, transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery.  Major forms of human trafficking include forced labor, sex trafficking, bonded labor, debt bondage, involuntary domestic servitude and the worst forms of child labor, such as forced child labor and child sex trafficking.

8 Elements of Human Trafficking

9 21 Million Victims of Human Trafficking  Women and girls are greater share of total (55%)  Children 17 and younger account for 26%  Majority subjected to forced labor in place of origin/residence (56%) Source: International Labour Office (ILO)

10 Victims of Forced Labor by Region Prevalence »Central and South Eastern Europe4.2 »Africa 4.0 »Middle East 3.4 »Asia and the Pacific 3.3 »Latin America & the Caribbean 3.1 »Developed Economies & EU 1.5 (per 1000 inhabitants) Source: International Labour Office (ILO)

11 Human Trafficking and Supply Chains  68% of those in forced labor are victims of exploitation in private sector economic activities such as manufacturing, construction, agriculture, and services.  Trafficking is difficult to detect:  Abuses are hidden; characterized by deception  No paper trail or breakdown of worker payments  Exploitation occurs when unscrupulous recruiters:  Misrepresent jobs, pay and length of contract  Charge fees and provide high-interest loans  Illegally deduct, underpay or withhold wages  Take passports to prevent workers from leaving  $21 billion annual cost of coercion to individual workers in lost wages, illegal deductions, and excessive recruitment fees.

12 A Multi-Pronged Approach To Fight Trafficking Encouraging companies to create policies Monitoring performance Filing resolutions, if needed Engaging Corporations Raising Awareness Promoting Legislation Issuing reports to highlight best practice Launching press campaigns Conducting webinars to educate and inform Organizing investors to lobby for corporate reporting on human trafficking

13 Forced Labor Forced Child Labor in Uzbekistan: 150 major brands and retailers state opposition and commit to not knowingly source Uzbek cotton until an end to Government practice. Production of pig-iron in Brazil: Thousands of workers forced to illegally harvest timber and produce charcoal under extreme and degrading conditions. Charcoal is used to make pig-iron, which is ultimately sold to international buyers, such as Ford, GM, Nucor and Toyota.

14 The Hospitality Sector & Child Sexual Exploitation Carlson Rezidor Hotel Group internal training poster Sign The Code of Conduct for the Protection of Children from Sexual Exploitation in Travel and Tourism: 1. Establish policy against child sexual exploitation 2. Train staff 3. Educate travelers 4. Report annually Over 500 signatories, including Wyndham, Carlson (Radisson), Delta, Hilton, Sabre and Orbitz Training programs teach front desk staff to be alert to youngsters traveling with older adults: Reluctance to provide identification No luggage Signs of abuse Fear of speaking, stammering, sweating An incident at a Travelodge in San Diego demonstrates that CSE impacts all countries

15 Ethical Recruitment  Encouraging supply chain monitoring in the agriculture sector  Archer Daniels Midland issued a human rights statement covering 400,000 growers that includes commitments to:  Create ethical recruitment standards;  Strengthen guidelines to ensure safe working conditions; and  Prohibit recruiters from charging fees of workers  Raising concerns about human rights in the palm oil sector  Campbell’s Soup agreed to:  Review ethical recruitment policies to ensure that the labor brokers that help to bring 3 million workers to plantations in Indonesia and Malaysia have responsible practices.  Join The Roundtable on Sustainable Palm Oil (RSPO), a group of producers, retailers and organizations seeking to eliminate forced and child labor;  Purchase 100% certified sustainably sourced palm oil by 2015

16 Major Sporting Events  The London Olympics  13 hotels and 20 Olympic sponsors: o Create human trafficking policies o Train staff to identify victims o Sign “The Code” o Audit supply chains  The International Olympic Committee: Create human rights guidelines for business partners covering complete Olympic lifecycle  The Super Bowl  Coalition of investors, anti-trafficking organizations and faith groups trained hotels prior to the Dallas, Indiana and New Jersey Super Bowl  The World Cup  Hotels across South Africa were encouraged to train staff. Accor and Carlson conducted programs and shared materials industry-wide.

17 Legislation  The Trafficking Victims Protection Act (TVPA)  Created the first comprehensive federal law to address human trafficking, focused on prevention through public awareness and monitoring programs, protection for victims, and prosecution through new federal crimes.  Business Supply Chain Transparency on Trafficking and Slavery Act of 2014 (H.R. 4842)  If passed, companies would report if and how they identify and address human trafficking within their supply chains  Applies to companies with $100 million+ in revenue that report to the Securities and Exchange Commission (SEC)  The California Transparency in Supply Chain Law of 2010  Large manufacturers and retailers are required to report the extent to which they identify and address human trafficking within their supply chains  Applies to companies doing business in California with $100 million+ in revenue  Strengthening Protections Against Trafficking In Persons in Federal Contracts  Executive Order 13627 requires federal contractors and subcontractors to take proactive preventative measures to detect and eliminate human trafficking and forced labor in their supply chains

18 Corporate Strategies to Address Trafficking  Create human trafficking and ethical recruitment policies  Develop a common understanding and framework  Evaluate high-risk sectors and regions  Identify vulnerable workers and locations  Monitor and audit supply chains  Fix the problem and find the cause  Repay workers and terminate agents that charge fees  Train staff, workers and suppliers to identify and report human trafficking  Ensure workers know their rights, the laws, and hotline numbers  Improve public reporting  Share information with all stakeholders  Encourage suppliers to report

19 Active Ownership: Defining Success Process Change Behavioral Change Social Change Impact Low High Time to Impact ImmediateLong-term

20 How You Can Help  CALL The National Human Trafficking Resource Center at 1-888-3737-888 if you suspect a case of human trafficking or seek services  TALK about trafficking with friends, family and co-workers to raise awareness  LEARN from organizations, government agencies, and media focused on human trafficking to become better informed  BE a knowledgeable consumer and check what you use and consume is slavery free  GIVE your business to companies with robust anti-trafficking policies and programs  FREQUENT hotels that have signed The Code and share info with non-Code hotels  VISIT the websites of your favorite companies for evidence of anti-trafficking programs. If none, encourage them to develop and report on them. If they do, applaud their efforts  DOWNLOAD helpful apps, including those that rate items based on corporate anti- trafficking policies  ENCOURAGE legislators to sponsor and vote in favor of anti-trafficking legislation  YOUR HELP NEEDED NOW: ASK your Representative to co-sponsor The Business Supply Chain Transparency on Trafficking and Slavery Act of 2014 (H.R. 4842)

21 Selected Resources  CIVIL SOCIETY ORGANIZATIONS  Verite: http://www.verite.org  Dhaka Principles for Migration with Dignity: http://www.dhaka-principles.org  Free The Slaves: https://www.freetheslaves.net  End Child Prostitution and Trafficking (ECPAT-USA): http://www.ecpatusa.org  Polaris Project: http://www.polarisproject.org  CONSUMER INTERACTIVE SITES  Made In A Free World, including Slavery Footprint:  Free2Work:  KnowTheChain: https://www.knowthechain.org  INVESTOR COALITION  The Interfaith Center on Corporate Responsibility (ICCR):  Statement of Principles &Recommended Practices to Confront Human Trafficking and Modern Slavery:  MEDIA  CNN Freedom Project:  GOVERNMENT  U.S. State Department Office to Monitor and Combat Trafficking in Persons:  U.S. Department of Labor List of Goods Produced by Child Labor or Forced Labor:  International Labor Organization (ILO) Core Conventions: labour-standards/conventions-and-recommendations/lang--en/index.htm labour-standards/conventions-and-recommendations/lang--en/index.htm

22 A Leader in Active Ownership  For 33 years, CBIS has engaged the world’s leading companies on a wide range of environmental, social and governance issues. Select CompaniesSelect Issues Abbott Laboratories ABN AMRO Alcoa American Electric Power Archer Daniels Midland Atlantic Richfield AT&T Baxter International Best Buy BP Capital One Financial Corp. Cash America Chase Manhattan Chevron Corporation Cisco Citigroup Coca-Cola Costco Dayton Hudson Dillard’s Dow Chemical DuPont Eastman Kodak Eli Lilly Exxon Mobil FelCor Lodging Trust Ford FPL Group General Electric Gillette GlaxoSmithKline Goldman Sachs IBM Intel JPMorgan Chase James River Corp. Kraft Foods Kemet Kimberly Clark Layne Christensen Lowe’s Companies Lucent Macy’s Mattel May Department Stores McDonald's Merck Merrill Lynch Microsoft Mobil Motorola Newmont Mining Nucor Corporation Occidental Petroleum Royal Dutch Shell SBC Communications Schering-Plough Schlumberger Ltd. Sears Roebuck Siemens Sony Sprint Sun Microsystems Target Corporation Texaco Texas Instruments Time Warner Tyco International Tyson Foods VF Corp. Unocal Unilever Wal-Mart Wells Fargo Walgreen Weyerhauser Access to Medicines/Drug Pricing Board Diversity Corporate Governance Community Reinvestment Environmental Justice/Stewardship Equal Employment Opportunity Executive Compensation Genetically Engineered Crops Global Human Rights Global Warming/Climate Change HIV/AIDS Human Rights Human Trafficking International Lending Landmines MacBride Principles (N. Ireland) Mortgage Lending Operations in Oppressive Regimes Polyvinyl Chloride (PVC) Pornography Production Predatory Lending Product Safety Responsible Lending Vendor Standards Violence in the Media

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