FOR IMMEDIATE RELEASE CONTACT September 30, 2015 Liliana Giffen, email@example.com
Five Years After Pioneering CA Transparency Law,
Business Resource Expanded and Re-Launched
KnowTheChain responds to corporate need to address supply chain labor abuses
San Francisco, CA – On the five-year anniversary of SB 657, a landmark California law to combat human trafficking, online business resource KnowTheChain announced its expansion to help companies improve corporate transparency and responsible supply chain management practices. KnowTheChain was originally created to document corporate compliance with the California Supply Chain Transparency Act (SB 657).
Since the passage of SB 657, new laws and regulations in the United States, United Kingdom, and European Union are emerging that require corporations to disclose their efforts to eradicate forced labor from their supply chains. As this trend gains momentum, corporations are increasingly expected to operate transparently and responsibly.
“Forced labor is a well-documented problem in the supply chains of global businesses around the world. Companies without effective policies and practices may be contributing to the exploitation of people unknowingly,” said Killian Moote, Director of KnowTheChain. “We are expanding to be a resource that can increase understanding and action by companies on these issues. We believe corporations have an opportunity to meaningfully contribute to the eradication of forced labor in their supply chains.”
In a new insights brief also released on the anniversary of SB-657, KnowTheChain reviewed the impact of five years of this pioneering law on 500 companies and outlined recommendations for future legislation. The briefing calls for improved corporate transparency, better guidance for companies, and that compliance criteria be based on supply chains risks rather than tax classifications. Because of disclosure inaction by the California Attorney General, there is no information publicly available on which corporations are subject to SB 657. KnowTheChain was able to identify 19 percent of an estimated 2,600 companies that were approached by the Attorney General about the law.
Among the 500 companies reviewed by KnowTheChain, almost half did not disclose under all five requirements of the law, and 29 percent did not provide any disclosure statements.
Founded by Humanity United in 2013, KnowTheChain is maintained in partnership with the Business & Human Rights Resource Centre, Sustainalytics, and Verité.
KnowTheChain, is a resource for businesses and investors, who need to understand and address forced labor abuses within their supply chains. The site is led by Humanity United, and maintained through partnerships with the Business & Human Rights Resource Centre, Sustainalytics, and Verité. KnowTheChain provides insights and resources to enable companies to comply with growing legal obligations, and to more effectively identify and adopt responsible supply chain management practices. ktcdevlab2dev.wpengine.com
Business & Human Rights Resource Center
“Eradicating modern day slavery is a moral imperative, and there is now also a clear business case to do so. We are pleased to be partners on this resource, which will enable companies, investors and civil society to take the necessary action.” – Phil Bloomer, Executive Director, Business & Human Rights Resource Centre
“At Humanity United, we believe that market forces and businesses can be a powerful force for positive social change. That is why we are committed to working with the business community to address the issue of forced labor in supply chains. “- Randy Newcomb, President & CEO, Humanity United
“At Verité we believe that long-term, sustainable solutions to inhumane working conditions requires engagement across sectors. By focusing on transparency and reporting KnowTheChain can help identify what practices are most effective at addressing the root causes of abusive practices.” –Dan Viederman, CEO, Verité
Please refer all media inquiries to Liliana Giffen of Humanity United: