As a member of IPC, we get information alerts from time to time. We received this one today with important information for many companies and clients.
|REMINDER: California’s Human Trafficking and Slavery Law Takes Effect January 1, 2012
On January 1, 2012, companies doing business in California that have annual gross global receipts in excess of $100 million will need to comply with California’s Human Trafficking and Slavery Law. The law requires companies to publicly disclose efforts to ensure their supply chains do not support human trafficking or slavery. The bill will have unintended consequences on the electronics industry as the entire supply chain will be questioned and audited regarding their social responsibility practices.
Although the law only directly impacts larger companies, the supply chain will need to provide substantial information and undergo extensive audits. If you think that your company is not impacted because your company doesn’t sell products in the State of California think again. Your current and potential customers in California will most likely request information from your company on efforts to eradicate human trafficking and slavery. Because most companies will likely choose to continue conducting business in California, the world’s 8th largest economy, it is expected that the entire electronics supply chain will be impacted. While the disclosure requirements only apply to companies with annual gross global receipts in excess of $100 million, there will be broader implications for the entire electronics supply chain.
The law states the disclosure requirements for companies. Companies must disclose to what extent, if any, they are doing the following:
IPC held a webinar “Disclosure Requirements That Will Impact the Electronics Industry: California’s Human Trafficking Law” that provided an overview of the requirements, how you will be impacted and what you can do to ensure compliance. This presentation is available to IPC members free of charge. For more information, please visit IPC’s webpage on corporate social responsibility (CSR) at www.ipc.org/CSR.