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Patagonia: Tackling Human Trafficking in Global Supply Chains
This case is based on Patagonia's journey to eliminate human trafficking from their supply chain. The case takes students through Patagonia's discovery of forced labor and debt bondage amongst their suppliers in Taiwan and later in Thailand, allowing students to examine their decision about how to best approach these issues. The case goes through the company SER team's initiatives to ensure Patagonia's suppliers maintain ethical business and employment practices. In 2011, the SER team proactively conducted social responsibility audits with their Tier 2 supplying mills and factories in Taiwan. The audits revealed multiple cases of human trafficking, forced labor including debt bondage, and other forms of labor exploitation among the migrant workers employed by the Tier 2 Taiwanese factories. Between 2011-2017, the SER employees worked hard alongside their factory partners to identify the changes that needed to be made to put an end to the forced labor and debt bondage uncovered by the 2011 audits. Multiple initiatives were launched during this time, such as comprehensive Migrant Worker Employment Standards and a "Roadmap to No Fees by 2020." Despite this, in 2019, Patagonia discovered that illegal and exploitative employment practices were still being utilized in a Tier 1 sewing factory in Thailand. At this point, the SER team faced new challenges and decisions. -
Big Chocolate: Child Slavery in the Cocoa Industry
Dick Marty was a Swiss Parliamentarian and former state prosecutor. In 2015, Marty led the Swiss Coalition for Corporate Justice (SCCJ), an alliance of Switzerland-based NGOs, in launching the Responsible Business Initiative (RBI) campaign. The proposed initiative aimed to introduce legal requirements for companies to undertake human rights and environmental due diligence under the Federal Constitution. If passed, corporations based in Switzerland could face legal risks for violations committed abroad. Numerous large corporations adamantly opposed the RBI, including Swiss cocoa giant Nestlé. The company had been at the center of multiple lawsuits and investigations, accused of aiding and abetting the enslavement of child laborers on cocoa plantations in West African countries since the 1990s. Yet, despite multiple efforts to reform Nestlé's supply chain, the child slavery problem persisted. In November 2020, the RBI was narrowly rejected in a national referendum. Marty and the SCCJ pondered how they could strive for corporate accountability in Switzerland. This case delves into concepts of business ethics, business law, corporate accountability, supply chain management, and modern slavery risks in global business environments. Students will explore the complex and pervasive issue of child labour in the global cocoa supply chain, discussing how and why the problem remains, despite broad public pressure, national and international laws, and even companies' own commitments to eradicating child labour. This case will encourage students to contemplate the problem of child slavery and accountability of multinational cocoa giants from diverse stakeholder perspectives. -
Social Auditing in Global Supply Chains: Forced Labor in the Malaysian Rubber Glove Industry
This case is written from the perspective of Ting-ting Loh, CEO of Aguila Safety Group (ASG). A prominent UK-based personal protective equipment (PPE) procurement company, ASG was one of the main suppliers of medical equipment to the UK National Health Service (NHS). During the COVID-19 pandemic, thousands of rubber glove factory workers in Malaysia tested positive for the virus. This reignited discussions and investigations of the labor practices in the factories. Numerous companies were accused of using forced labor, including some of ASG's direct suppliers. Ting-ting had to make important decisions about how to address the allegations of forced labor in ASG's supply chain, while continuing to meet demands for medical supplies during the pandemic. -
Fair Employment Agency: Eliminating Forced Labor Through Ethical Business Practices
The case is inspired in the real story of Scott Stiles and the Fair Employment Agency, a non-profit employment agency, founded in Hong Kong, with the purpose of eliminating forced labour. The Agency aims to address this issue with the introduction of a new business model in the domestic worker employment agency industry, which addresses social aims while allowing companies to be profitable. In the business model of the Fair Employment Agency, the hiring of domestic workers is made through transparent pricing and ethical practices, and foreign domestic workers are not required to pay placement fees to find jobs in Hong Kong. This allows foreign domestic workers to be free of debts, therefore being less susceptible to exploitation by employers and employment agencies.