Mark Mittelhauser

Office of International Labor Affairs and Corporate Social Responsibility, Bureau of Democracy, Human Rights and Labor, U.S. Department of State

Acting Director

Protection of labor rights is a fundamental human right. In 2007, our office added Corporate Social Responsibility to our title to reflect the essential role that companies can play in promoting human rights, which is a longstanding goal of U.S. foreign policy.

We make the argument that effective CSR policies are good for business in terms of worker retention, morale, productivity and risk mitigation. Even when times are challenging, it makes sense to continue to have effective CSR policies. At the same time, one must recognize that the current global economic crisis will present many new challenges, particularly for suppliers facing price pressures.

We concentrate primarily on the labor aspects of human rights, and CSR is a key tool in our efforts. Much of our focus is on eradicating labor abuses within international supply chains, whether in pig iron from Brazil, cotton from Uzbekistan or cocoa from West Africa.

In the auto industry, the complexity of the supply chain is mind-boggling, with thousands of suppliers spread out across the globe. Each product has its own challenges, particularly in remote regions where there are multiple layers of suppliers. Charcoal sourced from the Brazilian Amazon that may be tainted with forced labor, for example, is used in the making of some pig iron, which, in turn, is used to make steel, which is then turned into auto parts.

There are a tremendous number of hurdles for companies with vast supply chains – not only in controlling the conditions within the product chains, but even in simply getting a handle on what might be going on, particularly in areas where labor rights violations are hard to detect.

Ultimately, the responsibility for enforcement lies with governments. But in many cases, countries must contend with underfunded labor ministries and factories that are practically unreachable or hidden in the informal sector. In Brazil, it can take days for inspectors to travel by truck to the charcoal camps where forced labor might be alleged.

Ford's leadership within the Automotive Industry Action Group has been essential in bringing automakers together to focus more clearly on CSR policies and social goals. Ford has also been part of multi-stakeholder dialogues that include companies, governments and NGOs. These dialogues are critical to our understanding of the issues and to determining what role each of us can play.

One of the trends we're seeing is a shift from focusing solely on monitoring of supply chains to focusing more on remediation and training. The monitoring model in and of itself may not be entirely effective. Companies need to know their suppliers, they need to know the suppliers of their suppliers, and they need to do the types of training that Ford has been doing within its supply chain in order to reach the lowest rung of suppliers.

Individual companies can absolutely have a real impact by monitoring working conditions, providing livelihoods for individuals and offering models for others. Despite the economic climate, we remain optimistic that efforts to improve working and social conditions will continue to receive greater focus internationally.