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
29 Theme Score

Summary of Results

Fifteen companies report having a process to create corrective action plans, and nine companies specify potential actions taken in case of non-compliance, such as stop-work notices, warning letters, supplementary training and policy revision. Only four companies report having a remedy program and/or requiring suppliers to have in place a remedy program. PepsiCo is the only company which provides details and describes a process for responding to complaints and reported violations of policies and standards received via its Speak Up Line, which is open to suppliers' employees. No company provides examples of outcomes of its remedy processes, which is concerning as these are the largest global companies of a sector where the risk of forced labor is high. Even companies which have been linked to forced labor allegations, or publicly acknowledge the use of forced labor in their supply chain lack disclosure and action on remedying victims, despite strong policies and processes in other areas.

Corrective Action Plans

The company has a process to create corrective action plans with suppliers found to be in violation of applicable regulations and/or the company's standards, with the goal of improving conditions and achieving compliance. The company's corrective action plans include potential actions taken in case of non-compliance; a means to verify remediation and/or implementation of corrective actions; timelines for remediation; and potential consequences if corrective actions are not taken.

The company's corrective action plans include: (1) potential actions taken in case of non-compliance, such as stop-work notices, warning letters, supplementary training and policy revision. (2) a means to verify remediation and/or implementation of corrective actions, such as record review, employee interviews, spot-checks or other means. (3) potential consequences if corrective actions are not taken.

Low: 0
High: 100
51

Remedy Programs

The company has a process to provide remedy to workers in its supply chain in cases of human trafficking and forced labor. In its public reporting the company provides examples of outcomes of this process.

The company discloses: (1) a process for responding to the complaints and/or reported violations of policies and standards. (2) examples of outcomes of these remedy process.

Low: 0
High: 50
6

Corrective Action Plan: Leading Practice

Unilever

When non-conformances are discovered, Unilever's suppliers are required to create a time-bound remediation plan addressing root causes of the non-conformance. Suppliers may be subject to re-audits. A scoring system for non-conformances observed during an audit determines the frequency of re-audits. The audit company verifies the implementation for corrective action plans. Continual non-conformances result in an escalation to the Global Procurement Code Committee for a decision on terminating the business relationship.

Recommended Action

Remedy Programs

Adopt a victim-centered approach to remedying workers in the supply chain found to be in situations of forced labor, and report outcomes of this approach. Depending on the circumstance, approaches might include repatriation, access to health support, consultation with relevant local authorities and NGOs, and working with local victim service-provision organizations.