Office of the Special Representative and Co-ordinatorfor Combating Trafficking in Human Beings

The role of public procurementin preventing trafficking for labour
exploitation in supply chains andadvancing human rights

The issue
Human rights abuses including trafficking for labour exploitation are increasingly found in the production of
everyday goods and services. The public sector is not
immune – it is frequently exposed to risks of exploitationin its purchasing. Public entities are the largest buyers ofgoods, services and works across many industry sectors,
and thus have a heightened responsibility to ensure they
are not contributing to the problem. Public buyers also
have significant purchasing leverage to make a substantial contribution to combating forced labour. Development
and enforcement of strong laws and policies governing
the procurement of goods, services and works for publicentities can help governments eliminate the market for ex-ploitation and promote opportunities for responsible companies, for example, by awarding contracts to suppliers
who can document safe, legal and fair working conditions.

The OSCE Model Guidelines on Government Measures to Prevent Trafficking for Labour Exploitation in Supply Chains suggest legal provisions
that can be used by States to develop national
legislation on the purchase of goods and services.
Download Link:
https://www.osce.org/files/f/documents/1/9/371771.pdf

The OSCE’s approach:Leading by example
In 2017, the OSCE Ministerial Council tasked theSecretary General to ensure that no activities ofthe OSCE executive structures, including the issuing of contracts for goods and services, contribute to any form of trafficking in human beings(MC Decision/6/17).
Download link:
https://www.osce.org/chairmanship/362096In response to this directive, the OSCE began to examine its own supply chains to ensure its purchasing decisions do not contribute to any form of exploitation. For theOSCE, a security organization promoting human rights ina number of fields, obtaining a ‘cheap’ deal on the basis ofhuman rights violations is simply not an option. The OSCE
expects its buyers to assess the sources of the goods
and services they procure as well as the risks of humantrafficking and labour exploitation that may exist in those
supply chains.
Whole-organization approachThe OSCE takes a whole-organization approach to addressing the risks of human trafficking in its procurement,from leadership at the senior management level to implementation by procurement officers across the organization. The Office of the Special Representative and Co-ordinator for Combating Trafficking in Human Beings (OSR/CTHB) and the Department for Management and Finance(DMF) bring expertise on human trafficking and procurement practices, respectively. These departments collaborate on the development of relevant policies and practices, which are then rolled out across the organization.
The OSCE also ensures that its strategies and policies are
informed by human trafficking survivors.
Development of the OSCE’s
approach to ethical procurement

Callto action

Implementationin practiceSupplierEngagement

Policy andGuidanceActionplans

Monitoring andreporting

Capacitybuilding

Risk analysis
and mapping

RemedyPolicy development and capacity building
To lay a foundation for eliminating risk, the OSCE began
by revising internal and external-facing procurement policies. It amended its Procurement and Contracting Policy
Framework with direct reference to OSCE’s commitment
on the importance of sustainable procurement with a specific mention of socially sustainable practices required ofOSCE procurement practitioners. It also revised the OSCE
Supplier Code of Conduct and OSCE General Conditionsof Contract introducing obligations on suppliers to refrainfrom directly or indirectly engaging in any practice inconsistent with international human rights laws or standards
that prevent child labour, sexual exploitation and trafficking
in human beings.
To facilitate implementation of the policies, the OSCE thenheld awareness-raising workshops for its procurement
and anti-trafficking staff across the Organization, developed an online training curriculum, and a comprehensiveguidance document for OSCE procurement practitioners.
The OSCE Procurement Guidance supports theimplementation of anti-trafficking measures inall phases of the procurement process across theOSCE and fosters collaboration between anti-trafficking focal points and procurement staff at theOSCE field operations.
Download link:
https://www.osce.org/cthb/536001
Online training link:
https://elearning.osce.org/courses/coursev1:OSCE+ACC202+2022/about

Risk-based approach
The OSCE’s approach is risk-based, and is applied ineach of its executive structures. Local tailoring requires
expert input from procurement practitioners with robust
knowledge of local circumstances, supply markets, trafficking risks, labour practices, and supply and procurement needs of individual field operations. To better tailor
interventions to local conditions, the OSCE held regional workshops with its executive structures to map their
supply chains in detail and to identify and address areasof highest risk. Action plans with individual roadmaps foreach executive structure were developed.
Since the Serbia pilot in 2020, the OSCE has been
analyzing the procurement data of all its executive structures for the risk of human trafficking
and labour exploitation, making OSCE the first inter-governmental organization to undertake suchan evaluation for its own procurement portfolio.
Download Link:
https://www.osce.org/files/f/documents/3/1/450775.pdf

Implementationin practice
The OSCE has implemented human rights due diligenceorganization-wide where risks were identified and has
managed to achieve:

In 2022, the OSCE has:
• Conducted five regional workshops with all
OSCE field operations and institutions;• Put in place 12 local Action Plans foraddressing risks in OSCE’s supply chains;• Assessed 60+ contracts as potentially high riskfor human trafficking;• Planned 10+ engagement activities withlocal suppliers on labour exploitation.

The OSCE’s polices are now being implemented in practice. The Organization has already introduced criteria invarious tenders and contract provisions to address theserisks, thereby improving transparency and accountability. Examples include the provision of coffee and mobilephones, as well as the provision of cleaning, security, hotel
and conferencing services.

• Full supply chain transparency in its supply of mobiledevices, with visibility up to the factory production level.
• Improved working conditions for the outsourced security staff working on OSCE premises by ensuring they
are getting fair pay for the work provided, including allsocial contributions, third party liability insurance, uniforms, equipment and regular training. Provisions in thecontract allow for monitoring of these commitments.
• Full visibility in the cost structure and employment
contracts of its outsourced cleaning staff, with proper
contractual provisions for regular monitoring, reportingand interviews with cleaning staff, which ensures thatagreed wages and other benefits are paid regularly andin full.

Tender preparation in the OSCE
Key Stages where leverage oversuppliers should be utilized

Contract
Management
Monitoring, reporting, remediation, contractual clauses

Market ResearchMarket analysis critical tosupport the tender design,getting to know key market
players

Supplier
Engagement
Pre-tender briefing withsuppliers on the CTHB topic,
discuss the evaluation criteria.

Analysis
Case studies, consultations
with OSCE / UN offices /NGOs, identifying suitableevaluation criteria.

Procurement staff gains familiarity with the sourcing needand the type of CTHB risks in the supply chain.
By consulting the guidance document and liaising with CTHB focal points,
a procurement strategy is developed on how these risks are to be addressed.

Complementary efforts with otherinternational organizations
The OSCE also promotes the importance of multilateral
cooperation to address risks of trafficking of human beingsand forced labour in supply chains. In 2019, the OSCEand ILO established and since co-chaired the United
Nations Task Force mandated by the United Nations’High-Level Committee on Management to develop a joint
approach in combating human trafficking and forced labour in supply chains across United Nations structures andother international organizations. Working with the United
Nations Task Force and the wider international community provides an opportunity to share good practices andlessons learned, as well as leverage greater purchasing
power to deliver change at scale.
These important efforts in advancing human rights due
diligence in public procurement help international organizations uphold and promote sustainability.

Taking the next step:
how the OSCE can help
The OSCE has built significant experience in policy development and practical implementation ofhuman rights due diligence specific to the risk of
trafficking of human beings and forced labour inpublic procurement. In line with its mandate, theOSCE stands ready to assist public procurers indeveloping and advancing their own efforts to address risks of labour exploitation in supply chains.
Please contact us at info-cthb@osce.org
or visit our website athttps://www.osce.org/cthb/supply-chainsto learn more.