California Transparency – Supply Chain Act for Cross Border Trade
The California Transparency is a Supply Chain Act that monitors and controls cross border trading to promote legitimacy and integrity in distribution and supply. The act has been implemented in the United States and is one of the foundational pillars of modern day supply monitoring and control initiatives. The code was implemented in the federal state of California in January 2012 and has since been practiced by all companies involved in trade. The law has been designed to compel companies and organizations to outline and publicly declare some of the efforts they have taken in promoting modern ideas, including the elimination of slavery and human trafficking in all areas of their supply chain.
The law provides a facilitative platform for organizations to conform to international trade protocols by initiating organizational strategies to assess their supply networks and eliminate any potential loop holes that may support or be used for human trafficking and child labor. This will promote a voluntary approach by companies to monitor closely their supply chains to ensure their compliance to International Labor Laws and the California Transparency Act.
The following are some of the requirements of the act:
- Companies are required to asses and address any potential risks of human trafficking in their own supply chain within the requirements of the California Transparency Act.
- Inclined by the act to conduct a thorough and robust analysis of their direct suppliers and determine if their operations make the supply chain vulnerable to human trafficking.
- Requires companies to take the regulatory role of ensuring all indirect and direct suppliers have complied with the company’s anti-slavery and human trafficking policies and the international human trafficking laws.
- Mandates organizations to conduct comprehensive training programs for staff and managers on human trafficking and slavery as well as the legislation in place to deal with the vice
The benefits of complying with the law are very categorical and not just for companies in the United States and California in particular, but also the whole world. The benefits are listed here below:
- Implementing the law will allow your organization to come up with an effective supply chain procedure that is inline with the international laws on human trafficking. This will promote an enabling legal environment for your company operations.
- The compliance to the California Transparency will improve the reputation of your company towards a sustainable future to your supply chain.
- The law also will grant you the necessary tools to develop a monitoring and control policy that will look at human trafficking issues in your direct suppliers