Spotlight on Supply Chain Legislation

Many countries are passing supply chain legislation to help bring visibility to and ultimately prevent forced labor from occurring in the production of goods; the Uyghur Forced Labor Prevention Act(UFLPA) and German Supply Chain Due Diligence Act are two examples. Under these Acts, a single violation or compliance issue at a supplier can lead to serious supply disruptions including factory shutdowns, business licenses getting revoked, or materials being held up at customs points. Beyond that, companies that are found to be using forced labor in their supply chains can face significant reputational damage. By complying with the legislative requirements, companies can seek to build trust with stakeholders and affirm their commitment to a sustainable and ethical business model.