Supply chain labor violations
Human rights sit at the heart of today’s regulatory, reputational, and commercial agendas. The Global Sourcing Risk Index provides a clear view of human rights risks in global supply chains, drawing on interlinked indicators such as voice and accountability, workplace fatality rates, and the prevalence of modern slavery, including forced and child labor.
As brands increasingly place human rights at the center of their ESG commitments and identity, understanding these risks has become a non-negotiable aspect of strategic sourcing.
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The Global Sourcing Risk Index offers a strategic view of high-risk country-sector pairings across eight key risks, and how procurement leaders can respond with clarity and control.
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Why it matters
The business case for upholding human rights is clear and compelling. It directly reflects rising consumer expectations, with studies showing that 60-80% of Gen Z and high-income shoppers will switch brands or pay more for products that align with their values.
Yet violations remain widespread and are growing. According to Walk Free, over 50 million people lived in modern slavery in 2021, an increase of 10 million in just three years. For procurement teams, failing to address these issues is not just an ethical lapse; it is a direct threat to brand loyalty, market access, and long-term commercial viability.
What the data reveals about Human Rights Risk in Supply Chains
The Scale of the Challenge: Modern Slavery in Major Economies
A common misconception is that severe human rights violations are confined to the fringes of the global economy. The data shows this is false. G20 nations import nearly half a trillion dollars’ worth of at-risk goods annually, from electronics and solar panels to textiles and garments.
High-risk countries like China, Saudi Arabia, and Russia are deeply integrated into global trade, meaning that sourcing from major economies provides no guarantee of ethical compliance.
The risk is systemic and requires active, targeted due diligence regardless of a country’s economic status.
India and Turkey: A Spotlight on Labor Risks
Key sourcing destinations like India and Turkey present unique and complex human rights challenges. While India has the largest absolute number of people in modern slavery, its risk profile is also defined by one of the highest workplace fatality rates, a direct consequence of widespread informality in construction and agriculture.
Turkey, meanwhile, is an outlier in Europe, with growing concerns over informal work among migrant and refugee children. Its position highlights the tension between proximity to Western markets and significant gaps in labor standards.
For full analysis – Read The Global Sourcing Risk Index
Beyond Audits: Uncovering Hidden Risks
High-profile disasters at audited suppliers, like the Rana Plaza collapse, prove that box-ticking compliance is not enough. The greatest human rights risks often lie below the surface in Tier 3 or 4 of the supply chain, with subcontractors, smallholder farms, or mills operating far from the view of corporate auditors. This demands a shift in thinking.
Proactive due diligence, deep supply chain mapping, and traceability are essential tools for identifying vulnerabilities. The goal is not simply to avoid being found non-compliant, but to ensure the business is not complicit in exploitation.
Are You Asking the Right Questions About Human Rights?
Addressing human rights requires moving beyond simple compliance and embedding ethical principles into the core of your sourcing strategy.
These questions can help you identify gaps and opportunities to not only mitigate risk but also drive positive change.
- Is our Supplier Code of Conduct simply a signature on a document? Does it include clear consequences for breaches, robust grievance mechanisms for workers, and a commitment to work with suppliers to raise standards?
- Do we have a clear map of our supply chain beyond Tier 1? Have we identified the origins of our raw materials and components, particularly in high-risk regions or sectors known for informal labor?
- Are we leveraging the power of collaboration? What multi-stakeholder initiatives, like the Fair Labor Association or the Responsible Business Alliance, can we join to pool audits, share standards, and drive systemic change that we cannot achieve alone?
