Protecting Human Rights in Supply Chains through Procurement · 11/18/2014  · Protecting Human...

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Protecting Human Rights in Supply Chains through

Procurement Lessons for the Private and Public Sector

from the ICAR Report

Please Note: Everyone is muted by default. We will begin shortly.

November 21, 2014

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Agenda

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Value of ICAR Report Sam Hummel to SPLC Director of Outreach

SPLC Value of ICAR Report Bjorn Claeson to SPC Executive Director

Sweatfree Purchasing Consortium

ICAR Report Findings Robert Stumberg Director and Professor of Law Harris Institute for Public Law Georgetown Law School

Discussion

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Value of the ICAR Report to the Sustainable Purchasing Leadership

Council

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Sam Hummel Director of Outreach SPLC

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Welcome

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Mission To support and recognize institutions for strategic leadership in understanding and taking responsibility for all of the consequences of all of their goods and services spending.

•  Social •  Economic •  Environmental

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Principles for Leadership in Sustainable Purchasing

www.sustainablepurchasing.org/principles

Understanding. Commitment. Results. Innovation. Transparency.

We recognized the ICAR Report as offering great value to SPLC’s work because it closely aligns with our consensus Principles for Leadership in Sustainable Purchasing, which can be summarized as “First seek to understand your impacts, commit to action, demonstrate results, support innovation and promote transparency”. The authors first sought to understand where the most human rights abuses are found within federal supply chains, which allowed them to strategically narrow their scope to five key supply chains. They then analyzed the procurement process to identify a menu of practical actions that a federal agency could commit to as part of an action plan. They identified ways that federal procurement can promote innovation in the marketplace, such as by pushing for stronger standards or working with suppliers to get “clean” supply chains verified from beginning to end. And finally, they identified a number of ways that federal agencies can promote supply chain transparency and make meaningful use of that information to ensure that real results are being delivered.

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Guidance for Leadership in Sustainable Purchasing

www.sustainablepurchasing.org/guidance

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Value of the ICAR Report to the Sweatfree Purchasing Consortium

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Bjorn Claeson Executive Director Sweatfree Purchasing Consortium

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Protecting Human Rights in Supply Chains through

Procurement

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Robert Stumberg Director and Professor of Law Harris Institute for Public Law Georgetown Law School

Presentation

Webinar Protecting Human Rights in Supply Chains

through Procurement

Lessons for Private and Public Sector Purchasers from the ICAR Report

Sustainable Purchasing Leadership Council Sweatfree Purchasing Consortium

Presentation by Robert Stumberg

November 18, 2014

Turning a Blind EyeRespecting Human Rights in Government Purchasing

http://accountabilityroundtable.org/initiatives/procurement/September 2014

Robert Stumberg, Anita Ramasastry & Meg Roggensack

US federal procurement: –  Does the government purchase from

high-risk sectors?

–  Are there gaps in procurement rules?

–  If so are there practical solutions?

4 high-risk sectors

Sector

Procure-ment in billions

2013

Safety, risk of death

Forced labor,

trafficking

Illegal child labor

Illegal wages, hours

Denial of freedom

Electronic products $11.1 x x x x x Mineral content - mining “ x x x x x Logistics / security $34.3 x x x Agriculture/seafood $6.7 x x x x Soft Apparel $1.4 x x x x x

Subtotal $53.5 $462.1 11.6% of all procurement

4 high-risk sectors

Sector

Procure-ment in billions

2013

Safety, risk of death

Forced labor,

trafficking

Illegal child labor

Illegal wages, hours

Denial of freedom

Electronic products $11.1 x x x x x Mineral content - mining “ x x x x x Logistics / security $34.3 x x x Agriculture/seafood $6.7 x x x x Soft Apparel $1.4 x x x x x

Subtotal $53.5 $462.1 11.6% of all procurement

4 high-risk sectors

Sector

Procure-ment in billions

2013

Safety, risk of death

Forced labor,

trafficking

Illegal child labor

Illegal wages, hours

Denial of freedom

Electronic products $11.1 x x x x x Mineral content - mining “ x x x x x Logistics / security $34.3 x x x Agriculture/seafood $6.7 x x x x Soft Apparel $1.4 x x x x x

Subtotal $53.5 $462.1 11.6% of all procurement

4 high-risk sectors

Sector

Procure-ment in billions

2013

Safety, risk of death

Forced labor,

trafficking

Illegal child labor

Illegal wages, hours

Denial of freedom

Electronic products $11.1 x x x x x Mineral content - mining “ x x x x x Logistics / security $34.3 x x x Agriculture/seafood $6.7 x x x x Soft Apparel $1.4 x x x x x

Subtotal $53.5 $462.1 11.6% of all procurement

4 high-risk sectors

Sector

Procure-ment in billions

2013

Safety, risk of death

Forced labor,

trafficking

Illegal child labor

Illegal wages, hours

Denial of freedom

Electronic products $11.1 x x x x x Mineral content - mining “ x x x x x Logistics / security $34.3 x x x Agriculture/seafood $6.7 x x x x Soft Apparel $1.4 x x x x x

Subtotal $53.5 $462.1 11.6% of all procurement

4 high-risk sectors

Sector

Procure-ment in billions

2013

Safety, risk of death

Forced labor,

trafficking

Illegal child labor

Illegal wages, hours

Denial of freedom

Electronic products $11.1 x x x x x

Mineral content- mining “ x x x x x Logistics / security $34.3 x x x Agriculture/seafood $6.7 x x x x Soft Apparel* $1.4 x x x x x

* 0.3% of all procurement ($462 billion) * Negotiated contracts can use non-price factors

Analyzing

the F A R

Gaps in 5 stages of procurement 15 practical solutions

Gaps in 5 stages of procurement 15 practical solutions

A Sampling of Gaps & Solutions Procurement Stage

1.  Plan

2.  Notify

3.  Evaluate

4.  Award

5.  Enforce

A Sampling of Gaps & Solutions Procurement Stage

1.  Plan

2.  Notify

3.  Evaluate

4.  Award

5.  Enforce

A Sampling of Gaps & Solutions Procurement Stage

1.  Plan

2.  Notify

3.  Evaluate

4.  Award

5.  Enforce

A Sampling of Gaps & Solutions Procurement Stage

1.  Plan

2.  Notify

3.  Evaluate

4.  Award

5.  Enforce

A Sampling of Gaps & Solutions Procurement Stage

1.  Plan

2.  Notify

3.  Evaluate

4.  Award

5.  Enforce

A Sampling of Gaps & Solutions Procurement Stage

1.  Plan

2.  Notify

3.  Evaluate

4.  Award

5.  Enforce

A Sampling of Gaps & Solutions Procurement Stage

1.  Plan

2.  Notify

3.  Evaluate

4.  Award

5.  Enforce

A Sampling of Gaps & Solutions Procurement Stage

1.  Plan

2.  Notify

3.  Evaluate

4.  Award

5.  Enforce

A Sampling of Gaps & Solutions Procurement Stage

1.  Plan

2.  Notify

3.  Evaluate

4.  Award

5.  Enforce

A Sampling of Gaps & Solutions Procurement Stage

1.  Plan

2.  Notify

3.  Evaluate

4.  Award

5.  Enforce

A Sampling of Gaps & Solutions Procurement Stage

1.  Plan

2.  Notify

3.  Evaluate

4.  Award

5.  Enforce

Road to Reform

Stage   Policy  op.ons  1.  Plan  for  procurement  needs  &  risks  

a.  Expand  scope  of  protec8on  b.  Clarify  human  rights  

2.  Solicit  bids,  provide  no8ce  a.  Provide  no8ce  of  risk  b.  Provide  no8ce  of  standards  

3.  Evaluate  poten8al  contractors  a.  Evaluate  responsibility  b.  Expand  the  database  (FAPIIS  plus  others)  c.  Cer8fy  knowledge  d.  Evaluate  capacity  

4.  Award  contract,  set  terms  a.  Confirm  management  capacity  with  disclosure  b.  Offer  pre-­‐award  clearance  c.  Expand  compliance  op8ons  based  on  risk  

5.  Monitor  &  enforce  a.  Use  remedies  that  are  convenient  to  agencies  b.  Provide  transparent  monitoring  via  independent  orgs  c.  Dedicate  staff  for  enforcement  –  shared  by  agencies  d.  Use  due  diligence  as  both  a  defense  and  a  remedy  

Policy Menu

•  Web link for the ICAR report –  http://accountabilityroundtable.org/initiatives/procurement/

•  Contacts –  Amol Mehra – Director of ICAR

amol@accountabilityroundtable.org

–  Robert Stumberg – Professor of Law, Georgetown University stumberg@law.georgetown.edu

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SPLC Pilot Program

www.sustainablepurchasing.org/community

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2015 Summit : Super Early Bird Registration

*Limited number of scholarships available

www.sustainablepurchasing.org/summit15