Auditing Santa: investigating labour practices in Santa’s workshop
There’s no doubt that the logistical challenge of sourcing and…
ESG as we know stands for Environmental, Social, and corporate Governance. So how does Father Christmas stay on top of change for the greater good? Let’s break it down:
As it snow happens, we know Santa has been ethically sourcing his toys and gifts from across the world, as well as limiting his carbon footprint by manufacturing on site, so he’s a key advocate for sustainable procurement and the benefits of nearshoring.
We also know he’s an equal opportunities employer, multilingual and values the importance of doing the right thing. Not to fir-get he also holds the highest employee engagement rates amongst global employers.
This is where it gets tricky – even for Father Christmas. Auditing Santa’s labour practices or managing elf and safety requirements might be the first step, but there is so much more to consider.
Changing legislation globally, on modern slavery and transparent supply chains, means Santa must be extra vigilant throughout the year to ensure he remains compliant with each country’s individual regulations such as:
The Norwegian Transparency Act
Father Christmas may have his head of operations in Lapland, but the Norwegian Transparency act doesn’t just cover companies in Norway, it also covers foreign companies that sell and provide products and services in Norway. Therefore as Father Christmas has more than 50 full time employees and a Balance sheet equalling or exceeding NOK 35 million, he will need to comply with the legislation by incorporate ethical standards at every stage of his operations. He will also be required to make accurate disclosures of his supply chain monitoring.
The German Supply Chain Act is a little different as it requires compliance from organisations who have their central administration, principal place of business, administrative headquarters, statutory seat or branch office in Germany – which Father Christmas doesn’t. However, some of his suppliers whom he imports raw materials from are based in Germany, so Father Christmas must understand the due diligence obligations and use his risk management system to identify, prevent or minimise the risks of human rights violations and damage to the environment within his supply chain.
Other legislations which he must understand and potentially be required to comply to include:
And more countries drafting new legislation every year.
Failure to do so would be far worse than a lump of coal in his stocking, it would mean fines or potential restrictions delivering presents in these countries, but most of all it would go against the Christmas spirit – doing good for goodness’ sake.
Adhering to these legislative requirements means Santa’s enterprise is transparent about where labour is sourced, how employees are paid as well as taken care of – and not just in his workshop – but throughout the entire supply chain.
Noel we know the what and the why, let’s talk about the how.
Our ESG score allows global supply chain managers like Father Christmas quickly see potential environmental, social and governance issues across his supply chain. It gives an immediate snapshot of his ESG risk, allowing him to mitigate it. He can also add criteria that meet the different legislative standards, which allows his suppliers status’ to immediately show ‘Compliant’ or ‘Non-compliant’ based on these criteria. Ultimately it means no more resting-Grinch-face while he’s trying to figure out which suppliers to work with to remain compliant.
Spruce up your supply chain this holiday season just like Father Christmas, because we know, ESG isn’t Evergreen – that’s why we’re here to help you sleigh ESG in 2023.