In other words, the international brands should be extra cautious when sourcing from an industry such as the Malaysian electronics sector, where widespread labour rights abuse has been well-documented. That means the companies should be even more clear about the due diligence they have done prior to engaging in Malaysia.
But judging from the comments that Danwatch received from the international brands concerning their operations in Malaysia as well as the brands’ own websites, Andreas Rasche notes that it is unclear if they are conducting due diligence to a proper extent.
When asked about allegations of forced labour amongst the contract workers at their Malaysian subsidiary, the spokesperson from the Possehl Group solely responded to how Possehl were compensating the workers with their outstanding salaries, before adding that the Malaysian factory “is convinced that it has fully observed all regulations and legal requirements”. This is however not sufficient, according to Andreas Rasche.
“When they claim that they believe they have complied with all regulations, they neglect that international labor law also has clear regulations around forced labor”, he says.
“Their response to the wage issue is fair and right, but I also believe that we have to expect that such companies have a process in place in order to fully monitor working conditions at subsidiaries which are at risk for labor rights violations”.
Not satisfying
Andreas Rasche furthermore highlights the comments made by Toshiba and Panasonic after Danwatch asked them about labor rights abuses at a Malaysian factory, which the brands were both sourcing from. At first, the comments suggested that the brands alone trusted the statements they received from their Malaysian supplier – even though this statement contradicted Danwatch’s interviews with factory workers.
“When the companies get hints like the one from you, they need to do a somewhat deeper investigation”, Rasche says and adds that the situation should call for an independent audit, even though such audits are never any guarantee either.
“Based on their second response, Toshiba seems to be doing that now,” Rasche tells Danwatch and then points to the second response from Panasonic in which the company says it will now “consider” doing a survey that does not rely solely on the supplier’s information.
“Panasonic’s response is not satisfying”, Andreas Rasche says.