New SHU Brief Discusses Researching Strategies for Identifying Uyghur Forced Labor
It is incumbent upon "all companies to conduct more rigorous due diligence," to make sure they are in compliance with laws prohibiting forced labor, a new brief from Sheffield Hallam University said on June 19. "Know Your Supply Chains: Desk-Based Research Strategies to Identify Uyghur Region Exposure," part of a series of briefs, focuses on strategies companies can employ to discover whether or not they are using suppliers from the Uyghur region of China.
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Led by Sheffield Hallam professor Laura Murphy, the brief's advice on improving due diligence strategies focuses on four main ways to identify forced labor. The first is to get to know suppliers better. This includes the suppliers' registered names in their local languages and their subsidiaries and parent companies, the brief said. Secondly, sub-suppliers in the supply chain should be identified, or it should be determined where suppliers are sourcing from.
"Use customs records, corporate websites and annual reports, and other desk-based research to identify who your suppliers are sourcing from, all the way down the value chain," the brief said. This is important because even if suppliers are not based in the Uyghur region or using Uyghur forced labor, the production of the raw materials of the products could be from forced labor, the brief said.
Thirdly, identify any exposure to the Uyghur region through suppliers, including sub-suppliers. And fourthly, archive everything, saving all work for future reference in knowing which companies not to work with.
"While the process of tracing supply chains may be challenging, it is not impossible," the brief said. "Most companies are not currently including even the simplest of desk-based research strategies in their procurement, contracting, or due diligence processes. The steps outlined here will help companies and other researchers begin to gauge their supply chain exposure to the Uyghur Region."