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Legislation Related to Sourcing Practices

Several pieces of legislation exist to protect against unethical sourcing practices.  Many of these were listed in the section on Sustainability Guidelines, such as the Ethical Trading Initiatives.

Additional regulation entities are listed below:

Anti-Boycott Legislation: various laws exist that address the participation of a company in a boycott of one nation against another.Customs-Trade Partnership Against Terrorism (C-TPAT): “a government-business endeavor for imports (not exports) to increase the security of supply chains and U.S. borders. Initiated by U.S. Customs, C-TPAT involves voluntary cooperation of supply chain participants such as importers, carriers, brokers, warehouse operators, and manufacturers” (APICS Dictionary, 16th edition).

Fair Labor Standards Act (FLSA): “federal law that governs the definitions of management and labor and establishes wage payment, hours worked, and other employment practices” (APICS Dictionary, 16th edition).Foreign Corrupt Practices Act (FCPA): prohibits providing or offering payments, such as bribes or anything of value, to foreign government officials to obtain an advantage.

International Anti-Bribery Act: amends the FCPA by adding stipulations making it illegal for an individual or company in the United States to influence, bribe or seek to gain an advantage from a public official in another country.

Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises: “a set of recommendations on responsible business conduct addressed by governments to multinational enterprises (MNEs) operating in or from adhering countries that encourage and maximize the positive impact MNEs can make to sustainable development and enduring social progress” (APICS Dictionary, 16th edition).

The OECD Anti-Bribery Convention requires countries to develop such regulations.

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