Social Auditing and Ethical Certification

Persistent problems have been documented in the effectiveness of social auditing and ethical certification schemes when it comes to preventing, detecting and addressing forced labour. Yet, companies continue to turn to these private tools to fulfil their duties under due diligence and transparency legislation, and as strategies to respond to pressure to detect such human rights violations and shield themselves from liability when it does occur. This Brief maps out how monitoring tools would need to change to play a role in promoting labour standards. We stress the need to establish liability for auditors and certifiers that play a role in misleading consumers and policymakers—willfully or not—about labour practices and worksite conditions, including for the accuracy of their reports and the role they play in obscuring criminal practices. Reforms proposed include increasing NGO and union involvement and disrupting financial conflict of interest by creating a pool of auditors that companies do not pay directly. We argue that more meaningful and promising third party verification and monitoring systems are worker-led, and that funds spent on auditing and certification could be channelled into more effective worker-driven and state-led solutions.