10 firms decline to take action on trafficking risks, under California Transparency in Supply Chains Act

Four of those firms respond to the concerns - among which Johnson Matthey refers to the fact that its North America business does have a specific policy on human trafficking and slavery.

The California Transparency in Supply Chains Act (SB-657) requires firms to publicly disclose the degree - if any - to which they are taking action on supply chain human trafficking and forced labour risks in five areas.  Those areas are verification, auditing and certification of direct suppliers; maintaining internal accountability standards; and internal training.

In a June 2014 blog post on the "KnowTheChain" coalition website, Ed Marcum of Humanity United highlighted the fact that 10 companies' statements, while compliant with the Act, state that they are not taking action in any of the five areas.  These companies, the post reads, "have openly chosen not to address the risk of slavery in their supply chains...demonstrat[ing] a lack of concern about the issue and the responsibility for even basic policies to procedures to assess, enforce or remedy trafficking issues." 

The ten firms are Caterpillar, Commercial Metals, Danaher Corp, Hyundai Motor America, IDEX Corporation, Johnson Matthey, Krispy Kreme Doughnuts, Manufactured Packaging Products, Overhill Farms and Valero Energy. 

Business & Human Rights Resource Centre invited the firms to respond to these concerns.  Caterpillar, Hyundai Motor America, Johnson Matthey and Valero Energy responded.  Their responses are available on this page - as well as a press release by us, and the blog post from the KnowtheChain website. In its response, Johnson Matthey pointed out that its North America business does have a specific policy on human trafficking and slavery.

If any of the other firms issues a response at a later date, we will include it alongside.

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Article
9 July 2014

Ten companies’ statements under California supply chain law say they are not taking action on human trafficking

Author: Business & Human Rights Resource Centre

Ten companies, including Caterpillar Inc, Hyundai Motor America and Krispy Kreme Doughnuts, Inc, have indicated they do not have basic policies or procedures in place to address the risk of human trafficking in their supply chains, according to their statements in compliance with a California law requiring businesses to disclose their efforts to prevent slavery...In its response, Johnson Matthey pointed out that its North America business does have a specific policy on human trafficking and slavery...

Download the full document here

Company response
8 July 2014

Caterpillar response to concerns with its disclosure statement under California Transparency in Supply Chains Act

Author: Caterpillar

Caterpillar appreciates the opportunity to respond to your inquiry regarding the California Transparency in Supply Chains Act (SB-657)...

Download the full document here

Company response
8 July 2014

Hyundai Motor America response to concerns with its disclosure statement under California Transparency in Supply Chains Act

Author: Hyundai Motor America

...Hyundai Motor America’s contracts with all supplier firms requires those firms to comply with all local, state and federal laws and regulations, which would include forbidding forced labor and human trafficking...

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Company response
8 July 2014

Johnson Matthey response to concerns with its disclosure statement under California Transparency in Supply Chains Act

Author: Johnson Matthey

...Firstly, we are pleased to note that “KnowtheChain” confirms we comply with the regulation’s requirements, however we feel that taking our statement in isolation does not fully represented Johnson Matthey’s commitments in this area...

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Company response
27 June 2014

Valero Energy response to concerns with its disclosure statement under California Transparency in Supply Chains Act

...Thank you for the opportunity to respond to the commentary. I take issue with the author’s assertion that Valero is a company that “demonstrate(s) a lack of concern about the issue” of human trafficking...

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Article
25 June 2014

When SB 657 Compliance is Transparent but Indifferent

...KnowTheChain’s data has found that some complying companies have openly chosen not to address the risk of slavery in their supply chains, despite posting a disclosure statement...[refers to Caterpillar, Commercial Metals, Danaher, Hyundai Motor North America, IDEX, Johnson Matthey, Krispy Kreme, Manufactured Packaging Products, Overhill Farms, Valero Energy].

Read the full post here