Transparency in Supply Chains on Slavery
and Human Trafficking
California Governor Arnold Schwarzenegger signed
into legislation a bill that requires retailers
and manufacturers who do business in California to
show they have taken steps to eliminate slavery
from their supply chains. This new law, SB 657
came into effect on January 1, 2012.
SB 657 focuses on the elimination of slavery and
abuse of workers employed or contracted by
companies which do business in California.
These companies also have an obligation to monitor
the compliance of suppliers who are located
outside of the United States.
This bill requires that retailers must make a
public declaration covering the following
1. Show that the
retailer verifies its product supply chain to
assess and address risks of human trafficking and
2. Provide a
description of the audits conducted to ensure its
suppliers adhere to core standards.
from direct suppliers that materials used to make
products are not from countries that engage in
slavery and human trafficking.
internal accountability standards for employees or
contractors to assure they meet the company’s
5. Ensure that
employees who are responsible for sourcing and
supplier management receive training on human
trafficking and slavery, with a focus on the risks
within supply chains.
Global Standards can assist your company with all
aspects of compliance to SB 657 in Asia. Our
local auditors in China, Vietnam, and Thailand are
trained to monitor these elements through a
physical audit of suppliers. This audit
takes approximately one day for most
factories. However, we suggest that
suppliers with no prior background or a lack of
developed human resources systems undergo a one
day training program that provides details on the
types of documentation and training necessary to
comply with SB 657.