Forced and child labor

Forced and child labor take different forms, including bonded labor of migrant workers, human smuggling, and all other forms of modern slavery. Forced and child labor are most commonly found in the construction, agriculture, apparel manufacturing, and mining industries.

Conflict minerals are commonly extracted utilizing violence and forced labor practices by rebel or corrupt groups. BSI monitors notable countries where the export of conflict minerals is currently happening and analyzes the likelihood of mineral supply chains being exploited or illicitly controlled by groups involved in armed conflict.

Organizations need to account for the social, environmental and economic consequences from their supply chain operations and the potential repercussions on their brand and reputation. Reputational risk is closely linked with social responsibility, and extends to the ethical performance of a supplier base. Disregard of labor laws, deplorable working conditions, low wages, underage labor, and an overall lack of health and safety in the workplace can have serious ramifications on the brand image, and ultimately impact an organization’s financials. Effective corporate and social responsibility (CSR) policies mitigate risk and influence the market perception of a corporate identity, which can deliver a competitive advantage.