Navigating through your supply chain
Risks for Businesses Why should businesses address the risks of labour exploitation in subcontracting chains? Complex employment arrangements de-centralise and diffuse oversight and increase the risk of overlooking problems in the working conditions among companies that use subcontracting in European risk sectors such as forestry, cleaning, agriculture, catering and construction (e.g., FRA 2015). The lack of accountability, complex employment relationships, long-subcontracting chains and a lack of ethical channels for workers to report problems increase the risk of labour exploitation (FLEX 2017). By making sure that your company follows legal and voluntary standards on human and labour rights, you will effectively prevent negative human rights impacts related to business activities and enhance your company’s profile as a responsible and proactive actor. Addressing risks will: ○○ Enhance a company’s reputation and public image in the eyes of its employees, clients and partners ○○ Increase the competitive position by meeting possible partners’ prerequisites for responsible business ○○ Prevent unfair competition which can be linked to unreasonably low salaries or neglecting occupational health and safety regulations ○○ Improve productivity by acting responsibly, which will lead to a more motivated workforce that can be reflected in the quality and efficiency of and safety at work ○○ Facilitate the recruitment of (migrant) workers in the competition for skilled labour through appearing as an attractive employer ○○ Facilitate growth and strengthen a company’s market position in the eyes of customers, the general public and investors by taking social consideration into account
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