What is The California Transparency in Supply Chains Act (CTSCA) ?
The California Transparency in Supply Chains Act (CTSCA) is a piece of legislation that deals with the widespread problems of slavery and human trafficking in supply chains. This regulation was implemented in January 2012 due to rising customer demand for ethically produced goods. As unethical practices like forced labour or human trafficking became more prevalent, consumers were more concerned about the sources of their products. CTSCA aims to improve supply chain transparency, corporate accountability, and consumer knowledge to enable customers to make more informed purchasing decisions.
Disclosure requirements in detail:
Verification: To evaluate and reduce the risks related to human trafficking and slavery, companies are required to reveal if they verify the supply chains for their products. The disclosure must also state whether a third-party company is carrying out this verification.
Audits: Organisations are required to disclose if they audit their suppliers to determine whether they adhere to their standards for combating human trafficking and slavery. They must also state whether these audits are independent and undertaken without warning.
Certification: Businesses are required to state whether they require their direct suppliers to obtain certification. This certification attests to the fact that the components used in their goods comply with the laws against slavery and human trafficking in the nations where they do business.
Internal accountability: Businesses are required to state if they uphold internal accountability standards and practices. These processes are intended to deal with situations where workers or contractors don’t adhere to the business’ standards on human trafficking and slavery.
Training: According to the Act, businesses must declare whether they offer training on human trafficking and slavery. Employees and managers with direct supply chain management responsibilities are the target audience for this training. The objective is to inform these people about reducing the hazards of human trafficking and slavery in the supply chains of goods.
How does the RighOrigins platform help you comply with CTSCA ?
Our Supply Chain Traceability and ESG Intelligence Suite empowers businesses to execute comprehensive ESG strategies and align with regulatory requirements while effectively managing potential risks. By offering real-time visibility into complex supply chains, RightOrigins enables companies to map out the intricate journey of their products, ensuring compliance with CTSCA’s stringent standards. With our suite, companies gain a powerful tool to improve transparency, enhance corporate responsibility, and elevate their commitment to eradicating issues like slavery and human trafficking from their supply chains, ultimately fostering a more sustainable and ethically responsible business environment.
Conclusion
In essence, our Supply Chain Traceability and ESG Intelligence Suite does more than ensure CTSCA compliance; it fuels your business growth by instilling transparency, efficiency, ethical credibility, and a competitive advantage—all vital elements in today’s dynamic business landscape.