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    Salesman introducing new shoes to customer in a shoe store.
    • Case Study
      Sustainability

    Supplier Management: Addressing Unethical Recruitment Fees

    How BSI Consulting identified and stopped tier 2 suppliers from charging illegal recruitment fees.

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    “Working with BSI helped us see beyond our direct suppliers to uncover and address serious ethical violations that were completely hidden from our view.” 

    Footwear industry client Supply Chain Director
    The Challenge

    Strengthening responsible recruitment practices for migrant workers

    In the footwear industry, tier 2 suppliers were found to be charging recruitment fees to foreign migrant workers, violating ethical recruitment standards and the client's supplier expectations. These suppliers lacked the management systems necessary to adopt responsible recruitment practices and comply with the Employer Pays Principle (EPP). 

    The Solution

    Designing and implementing a comprehensive skills development program

    BSI Consulting implemented a comprehensive skills development program designed to equip suppliers with the knowledge and tools needed to adopt ethical recruitment practices. The program included:

    • Workshops on ethical recruitment, client expectations around recruitment fees, and global and local labor requirements. 
    • Interactive exercises supported by a four‑month follow‑up plan to reinforce key learnings.
    • Guidance and tools to understand the Employer Pays Principle (EPP), assess recruitment risks, and address excessive fees.
    • Customized post-training support to sustain improvements and promote continuous improvement.

     

    The Benefits

    The client saw immediate improvements in its supplier management system, helping ensure responsible recruitment practices were fully embedded.

    Uncovering hidden exploitation through supplier engagement
    • Icon description

      Increased engagement across tier-2 suppliers on EPP adoption.

    • Icon description

      Identified key areas where recruitment fee risks were most significant.

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      Developed long-term plans to address risks with critical tier-2 suppliers.

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      Implemented strategies to further reduce recruitment‑related risks over time.

    The hidden cost of recruitment fees in global supply chains

    Industry data reveals the scale of recruitment fee exploitation affecting migrant workers and why supply chain transparency is critical.

    • 50%

      of migrant workers pay recruitment fees despite EPP (International Labour Organization)

    • 35%

      of companies have visibility beyond tier 1 suppliers (Ethical Trading Initiative)

    • $2,000 to $3,000

      fees migrant workers pay, equalling 6 to 12 months of wages (Institute for Human Rights and Business)

    • 40%

      cut in worker turnover by fixing recruitment fee violations (Responsible Business Alliance)

    “BSI showed us our duty for ethical recruitment goes beyond tier 1 suppliers—their insights were a wake-up call that sparked real, lasting change.” 

    Footwear industry client Supply Chain Director
    Why BSI?
    Why BSI?

    Helping organizations navigate social compliance and ethical recruitment

    BSI Consulting has deep regulatory expertise and global supply chain insight.

    BSI leverages international standards like ISO 37200 (modern slavery risk) and ISO 26000 (social responsibility) to help organizations build ethical supply chains and create a fairer, more sustainable world.

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