Skip to main content

Story

In a report released in June 2020, Know The Chain evaluated the efforts of 49 global Information and Communications Technology (ICT) companies to address forced labor and human trafficking in their supply chains. The companies represented the largest in the sector.

Companies were assessed against the following criteria: Commitment & Governance (the highest scoring theme); Traceability & Risk Assessment; Purchasing Practices; Recruitment; Worker Voice; Monitoring; Remedy. The report provided good practices examples and recommendations, evaluated corporate commitments and compliance with relevant regulations, and set out recommendations for investor action.

Industry-average scores out of 100 were given for each criterion, as well as a final average for each company across all criteria. The average score of the companies benchmarked in both 2018 and 2020 had dropped slightly, from 32/100 to 31/100.

Five companies achieved an overall score of 68 and above, with more than three-quarters scoring less than 50/100.

Amazon received a score of 43, which ranked 14 out of 49 in the benchmark.

The company's scores under each criterion were:
Commitment & Governance 62
Traceability & Risk Assessment 88
Purchasing Practices 22
Recruitment 36
Worker Voice 12
Monitoring 40
Remedy 44

Know the Chain summarised their findings about Amazon as follows:

“Compared to 2018, the company’s rank improved from 20th to 14th. This is because the company has disclosed a supplier list and data on its supply chain workforce, stronger engagement with peer companies, and processes that address recruitment fees. It also assesses forced labor risks at potential suppliers and across its supply chains. KnowTheChain identified one allegation of forced labor in the company’s supply chains.”

On areas for improvement, it stated: “The company has an opportunity to improve on the themes of Purchasing Practices, Worker Voice, and Remedy.”

Amazon had an overall score of below 50/100, and so lost a full mark in the Workers’ Rights category.

Reference:

KnowTheChain ICT Benchmark Findings Report - 2020 (June 2020)