Day: July 26, 2021

Gwen Hassan has been championing the fight against human trafficking for quite some time. The heartwrenching story of a young girl in SouthEast Asia brought the issue to her attention, but realizing that human trafficking is also a local issue spurred her to take action. “And since that time,” Tom Fox commends her, “you have been one of the leaders to talk about this issue in the context of either supply chain and overall corporate approach or compliance programs.” In this week’s show, Tom and Gwen discuss why fighting human trafficking is a compliance issue, and where it fits in ESG.
Part of Compliance
Human trafficking takes place everywhere, including in the US. Gwen tells Tom that there’s already an existing infrastructure with regard to third-party diligence, which could be used to fight human trafficking as well. She remarks, “…Why not start using that same set of controls and processes and power to make sure they’re doing their part to root out trafficking from their supply chain as well?” Her belief is that stamping out human trafficking should be part of every corporate compliance program. “The synergy with corporate compliance really came to the forefront with the UK Modern Slavery Act,” she points out. 
Why US Companies Should Care
Why should fighting human trafficking be an issue for companies who don’t trade internationally, Tom asks Gwen. “One of the biggest, kind of, eye-openers for me was learning about the extent of trafficking that’s right here in the US,” she responds. Even if your company does not do business overseas, you could still be contracting with businesses that engage in or support human trafficking. It’s imperative that you do your due diligence about third parties and even their subcontractors.
S or G?
Tom sees fighting human trafficking falling under the S in ESG. Gwen agrees that it does relate to social justice issues in a broad sense. In her opinion, it also is a G: companies should practice good governance, which includes robust third-party diligence. “The process side and the diligence aspects of a sustainable ethics and compliance program, fit very nicely with human trafficking… [and] the reasoning behind why you want to have a good program for human trafficking prevention relates back to social justice and the fair treatment of everyone who’s in your organization,” she remarks. Most business leaders immediately understand the reputational risk human trafficking poses to their companies. “Once you educate people as to the extent of the problem – the fact that it impacts everyone – it really makes a difference in their openness and their willingness to then invest,” she tells Tom. Government actions are helping the fight: once leaders know that there could be enforcement actions against them, they’re more willing to listen.
Resources
Gwen Hassan on LinkedIn | Email