FOOD

Themes Key Findings

2016 Food & Beverage

The companies' average overall score across the benchmark methodology's seven themes, which were selected to capture the key areas where companies need to take action to eradicate forced labor from their supply chains: commitment and governance; traceability and risk assessment; purchasing practices; recruitment; worker voice; monitoring; and remedy. There are a total of 22 indicators across the seven themes. For each theme a company can score a total of 100 points.

31

Overall Score 2016 Food & Beverage
36 Theme Score

Summary of Results

Seventeen companies have processes in place to monitor their suppliers' compliance with the Supplier Code of Conduct or other human rights / labor criteria. However, only four companies report they undertake worker interviews. Three companies report using Sedex Member Ethical Trade Audits (SMETA), a compilation of good practice in ethical audit technique. SMETA includes a requirement to ensure employment is freely chosen by verifying policies and processes such as how workers are recruited, or whether migrant workers have access to their identity documents. Seven companies disclosed a summary of audit findings, for the most part aggregating results such as the types of issues identified. In some cases, this included violations against freely chosen employment or labor "analogous to slavery." One company reported that no evidence of human rights practice violations was identified and that all workers at the farms and mills were employed directly. Member companies of the Fair Labor Association (FLA) disclosed that facility specific audit findings are available on the FLA website.

Auditing Process

The company audits its suppliers to measure compliance with applicable regulations and with its supply chain standards. The process includes scheduled and non-scheduled visits, a review of relevant documents, and interviews with workers.

The company has an audit process that includes: (1) scheduled and non-scheduled visits. (2) a review of relevant documents. (3) interviews with workers.

Low: 0
High: 100
39

Audit Disclosure

The company publicly discloses information on the results of its audits. This includes the number and percentage of suppliers audited annually, what percentage were unannounced, and information on who carried out the audits.

The company discloses: (1) the percentage of suppliers audited annually. (2) the percentage of unannounced audits. (3) information on who carried out the audits. (4) a summary of findings, including details regarding any violations revealed.

Low: 0
High: 80
33

Auditing Process: Leading Practice

Coca-Cola

Coca-Cola enhanced its social audit protocol to include a greater focus on migrant workers amongst other things. It also discloses a summary of audit outcomes. In 2014, 24% of workplace rights cases related to working hours and wages, 2% to freedom of association, and less than 1% to forced labor.

Recommended Action

Auditing Process

Ensure that the audit process includes a review of relevant documents (such as wage slips, information on labor recruiters, contracts, etc.) and worker interviews. Work to increase the percentage of audits that are non-scheduled, and also conduct audits below first-tier suppliers where the risk of forced labor is higher.