They say it takes a village to raise a child– an entire community must provide for and interact positively with children for those children to experience and grow in a safe and healthy environment. But what must they grow into? A healthy standard of living? Access to fair livelihood? Survival with dignity? Opportunity for prosperity? What does that child need after it is done “being raised?” 

At a wider scale, these questions turn into larger humanitarian conversations where there is a standard or a means that society aspires to achieve— Human Rights, a common understanding of the basics of human existence. But let’s roll back a little from an existential crisis to a real one that manifests itself in countries, economies, businesses, and the very same communities— forced labor. 

Understanding Forced Labor

Forced Labor has deep historical, geopolitical, and socio-economic roots from ancient civilizations using enslaved people to medieval serfdom. Colonial powers exploited indigenous populations and harsh working conditions during the Industrial Revolution. The 20th century witnessed forced labor camps in totalitarian regimes. Forced labor, also known as involuntary labor or slavery, is a form of exploitation in which individuals are compelled to work against their will, often under threat of violence or other forms of coercion– a gross violation of human rights and considered a form of modern-day slavery.

The United Nations Forced Labour Protocol (UNFLP) is a pivotal instrument that underscores the urgency of combatting forced labor practices within various industries, most notably the textile sector. The UNFLP, introduced as an amendment to the broader International Labour Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work, has propelled the issue of ending forced labor in the textile supply chain to the forefront.  

The Current Discourse

For Shahi, this resonated with our Responsible for People framework, which takes inspiration from our founder’s motivations for creating fulfilling and sustainable employment for women. As a vertically integrated manufacturer, we touch a large chunk of the upstream stakeholders. This makes us hyper-aware of the supply chain’s circumstances and the impending impacts that global policies, discourses, and paradigm shifts have on them. 

In 2021, we started exploring Yarn Ethically & Sustainably Sourced (YESS), an initiative spearheaded by the Responsible Sourcing Network (RSN). RSN is a non-governmental organization that champions the human rights of vulnerable communities in mining and harvesting raw materials found in products we use daily. The next year, we piloted the YESS Standards, along with 6 other global suppliers, and are now the first mill in India to take the lead in implementing robust due diligence measures.

“Due diligence will help us align with upcoming legislation and also build capacities on critical topics like forced labor.”

— Anant Ahuja, Head, ESG

The Challenge: an Indian Supplier’s Perspective

India has a comprehensive legal framework to combat forced labor and protect workers’ rights. India’s Constitution prohibits forced labor under Article 23, the Bonded Labour System (Abolition) Act, 1976; Child Labour (Prohibition and Regulation) Act, 1986; Minimum Wages Act, 1948; Immoral Traffic (Prevention) Act, 1956, Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979, The Factories Act, 1948, and other labor laws. 

The apparel and textile supply chain is a sprawling web across multiple countries. The numerous stakeholders create a diverse landscape of territorial and customs laws– making it challenging to monitor and regulate labor practices effectively. Being the 5th largest sector in employment, the global nature of this industry intensifies the urgency to address forced labor.

“Dedicating efforts to strengthen sustainable governance systems has kept Shahi in the forerunning. With YESS, we will strengthen our due diligence and continue to provide ethically sourced and produced garments to our customers.”

— Ramalingam T, CEO, Knits Division

As a leading manufacturer, our awareness and understanding make our support of international efforts in investigating, monitoring, and mitigating forced labor crucial. Shahi serves on the Advisory Committee of YESS, which brings together different industry players, such as brands, suppliers, and NGOs, to strategize the development of YESS into a commercial and practical standard.

Leveraging Due Diligence

 

Aligning with YESS

Empowered by the YESS frameworks, we strive to only purchase cotton materials from sources verified as not involving or contributing to forced labor in cotton production. The standards have helped us achieve added qualifications in our due diligence process. 

“YESS is a more conversational assessment wherein the facility can explain its unique systems and processes around due diligence. The sourcing teams are able to solve queries and doubts, which is not possible in one-sided audits.”

— Amanullah SP, AGM, Spinning Production

Governance 

• Support and build capacities of cotton-supplying counterparties to improve performance and conform to responsible cotton-sourcing policy. 
• Exercise due diligence consistent with the Organisation for Economic Co-operation and Development (OECD) Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector and encourage our suppliers to do the same. 
• Exercise due diligence in consistency with US UFLPA
• Organize formally responsible sourcing teams within our existing sourcing teams

Assessment and action

• Annual assessments through YESS auditors to verify conformance status and continually identify opportunities to improve our responsible cotton due diligence management system. 
• Preparing reports on progress and sharing with the YESS
• Where risks of forced labor in cotton production are identified, develop a risk management plan that engages internal and external actors in the supply chain who can collectively mitigate the risks of adverse impacts.

“I am impressed with Shahi’s team for not only taking a deep dive into the nuances of forced labor but then strengthening their processes and implementing a due diligence approach to identify, assess, and mitigate this abuse. I appreciate they care about contributing to solutions that have an impact.”

— Patricia Jurewicz, CEO of RSN/YESS  

What we look forward to

We look forward to strengthening our relationship with our suppliers and supporting them with our learnings from sustaining a 115,000-strong workforce and exposure to evolving standards and our position in the industry. 

With YESS, we have made an attempt to align the company with the upcoming legislation— a proactive measure that gives us the confidence to serve international clients. As we write this piece, more regulations will be adopted worldwide. In the upcoming years (Years 2 and 3), through YESS, Shahi will be able to implement the vision behind these regulations and contribute to mitigating the risk of forced labor.