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How BSI Consulting identified and stopped tier 2 suppliers from charging illegal recruitment fees
“Working with BSI helped us see beyond our direct suppliers to uncover and address serious ethical violations that were completely hidden from our view.”
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).
Workshops on the foundation and best practices of ethical recruitment, client expectations around recruitment fees, and global and local labor requirements.
Interactive exercises and a four-month implementation support plan that builds on learnings from the workshop. The program equipped suppliers to begin adopting ethical recruitment practices by:
The client saw an immediate improvement its supplier management system ensuring responsible recruitment practices are fully embedded and met.
Increased engagement across tier-2 suppliers on EPP adoption.
Identified key areas of recruitment fee risks.
Developed long-term plans to further address and reduce these risks with critical tier-2 suppliers.
Industry data reveals the scale of recruitment fee exploitation affecting migrant workers and why supply chain transparency is critical.
of migrant workers pay recruitment fees despite Employer Pays Principle (Intl Labour Organization)
of companies have visibility beyond tier 1 suppliers (Ethical Trading Initiative)
fees migrant workers pay, equalling 6 to 12 months of wages(Institute for Human Rights and Business)
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.”
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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