Human trafficking and the link to fraud in firms' supply chains

FRAUD can happen anywhere within a company's supply chain and affect companies in any sector. The problem is exacerbated in developing markets, where the risk of fraud and corruption may be higher and the rule of law weaker. While regular audits of vendors is increasingly accepted as a best practice in many industries, the risk of improper payments, corruption and fraud by vendors remains high.

Furthermore, with a growing demand for companies to implement sustainability practices, and a parallel emergence of related regulations, it is imperative for companies to get ahead of potential ethical risks such as forced labour, land disputes and poor working conditions within their supply chains.

In the last year, numerous headlines exposed instances of forced and child labour, land disputes and poor working conditions in the supply chains of prominent global brands, particularly those in the electronics, garment and seafood industries. Conventional approaches to due diligence and compliance are often inadequate to detect these violations, especially in increasingly complex and multi-jurisdictional supply chains.