How FSSC 24000 Helps Companies Identify and Mitigate Forced Labor Risks in Their Supply Chains

The Global Scale of Forced Labor

Forced labor remains one of the most ongoing human rights violations in global supply chains. The International Labour Organization estimates that 28 million people currently live under forced labor conditions. With rising regulatory oversight and growing demands from consumers, investors, and partners for proof of ethical sourcing, businesses need to demonstrate that they have robust controls in place to prevent and address labor exploitation.

Increasing Regulatory Pressure (CSDDD)

The EU Corporate Sustainability Due Diligence Directive (CSDDD) marks a significant shift in expectations. Organizations will be legally required not only to assess human rights risks in their supply chains but to act on them and report meaningful progress. Failure to comply may result in reputational damage, legal action, and fines of up to 5% of global turnover.

Growing Urgency of Addressing Forced Labor in Supply Chains

A recent example highlights how risks associated with forced labor can emerge even within highly regulated environments. In July 2025, investigations in Italy revealed several cases involving suppliers to the luxury fashion brand Loro Piana. In one instance, authorities found that a subcontracted workshop producing Loro Piana–branded cashmere jackets employed ten Chinese workers – five of whom were undocumented – who were compelled to work up to 90 hours per week for as little as four euros per hour and lived in makeshift rooms inside the factory. The case resulted in fines and judicial action against the supplier, causing not only financial repercussions but also reputational harm to the brand.

While the abuses were not committed directly by Loro Piana, the incident highlights a critical challenge: how can companies effectively oversee subcontractors and ensure that labor practices throughout their supply chains meet legal and ethical standards?

In this context, FSSC 24000 has emerged as a practical, credible, and globally recognized solution.

What is FSSC 24000?

FSSC 24000 is a social management system certification that helps organizations improve labor practices, working conditions, and social performance. It is based on internationally accepted standards, including ISO management system principles and PAS 24000: Specification for Social Management Systems, which includes requirements for social performance.

Instead of focusing on one-time audits, FSSC 24000 requires organizations to establish sustainable governance systems to identify and mitigate risks related to social violations and to continuously improve their social performance.

How FSSC 24000 Helps Manage Forced Labor Risks

1. Identification of Risk Across the Supply Chain

FSSC 24000 requires organizations to:

• Map their labor supply chains
• Assess legal, geographic, and operational risk factors
• Evaluate direct suppliers and sub-tier suppliers

This systematic approach enables companies to identify where forced labor exposure is most likely to occur, including high-risk regions, subcontracting networks, temporary labor agencies, and outsourced manufacturing operations.

2. Mitigation and Prevention Controls

Certification ensures companies have:

• Clear labor policies aligned with international human rights standards
• Due diligence procedures for supplier selection and monitoring
• Worker grievance mechanisms and corrective action processes
• Training for managers, HR personnel, and procurement teams

The goal is to establish strong internal governance, rather than merely passing an audit once.

3. Monitoring and Performance Measurement

FSSC 24000 requires, among others, ongoing tracking of:

• Worker wages and working hours
• Recruitment and employment practices
• Freedom of movement and contract conditions
• Health, safety, and workplace well-being indicators

These controls facilitate early detection and prompt correction of operational risks associated with social violations.

4. Transparent Reporting and Evidence of Compliance

Companies certified to FSSC 24000 can provide:

• Documented due diligence
• Continuous improvement records
• Independent verification from an accredited certification body

This evidence is critical for demonstrating compliance with CSDDD, ESG disclosure requirements, and customer-supplier codes of conduct.

Why FSSC 24000 Matters Now

Regulators, investors, and international buyers are increasingly demanding verifiable proof of ethical operations. Many industries, such as textiles, agriculture, electronics, construction, and fisheries, are already under heightened scrutiny.

Certification provides:

• A credible global standard, reducing audit fatigue
• A consistent approach across multiple countries and suppliers
• A framework for long-term improvement, not short-term inspection

Organizations that act early will be better positioned to meet regulatory requirements, maintain preferred supplier status for large brands, and build trusted supply chain relationships.

Forced labor is a systemic challenge, but it is not unmanageable. FSSC 24000 provides a practical, structured, and internationally recognized approach to identifying, preventing, and reporting forced labor risks, while also facilitating compliance with the EU CSDDD and other due diligence laws.

As global expectations continue to rise, proactive adoption of robust social sustainability systems will not only protect workers but also strengthen business continuity and brand integrity.