Helping a Firm Counter False Forced Labor Claims – FTI Consulting

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Aug 5, 2025 - 11:30
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Helping a Firm Counter False Forced Labor Claims – FTI Consulting

 

Independent Investigation into Forced Labor Allegations and Alignment with Sustainable Development Goals

Case Background and SDG Context

An asset management group faced severe allegations of forced labor and human trafficking, practices that directly contravene the principles of Sustainable Development Goal 8 (Decent Work and Economic Growth). The accusations, made by a former employee to investors and auditors, specifically challenged the company’s adherence to Target 8.7, which calls for immediate measures to eradicate forced labor and end modern slavery.

In response, the firm initiated an independent investigation to verify the claims and uphold its commitment to corporate responsibility and ethical operations, aligning with the principles of accountability and justice found in SDG 16 (Peace, Justice and Strong Institutions).

Investigative Mandate and Methodology

FTI Consulting was engaged to conduct a thorough and impartial investigation. The primary objective was to assess the validity of the allegations by benchmarking the company’s practices against international standards and legal precedents related to human rights and labor.

Key Investigative Actions:

  • A comprehensive review of employee records and payroll data was conducted to identify any indicators inconsistent with SDG 8, such as:
  1. Restrictions on freedom of movement
  2. Excessive working hours
  3. Unlawful wage deductions
  4. Coercion or threats of termination
  • Employee interviews were performed to gather qualitative data on the work environment.
  • Company practices were benchmarked against international labor standards and recent human trafficking case precedents to ensure a robust and credible assessment.

    • Key Findings and Contributions to SDG 8

    The investigation yielded findings that affirmed the company’s compliance with standards for decent work.

    • The expert analysis found no evidence to substantiate the claims of human trafficking or forced labor.
    • On the contrary, the review supported evidence that the company fosters a positive work environment where employees are valued and provided with opportunities for career advancement, directly contributing to the aims of SDG 8.

    Outcomes and Upholding SDG 16

    The expert report provided a clear, evidence-based foundation for the company’s response, leading to significant outcomes that reinforce the principles of justice and strong institutional integrity.

    Impact of the Report:

    • It enabled the company to decisively counter the defamatory allegations and protect its reputation among investors, auditors, and other stakeholders.
    • The findings empowered the firm to pursue legal action against the former employee for making false statements, thereby utilizing legal frameworks to ensure justice and accountability as promoted by SDG 16.
    • The timely and streamlined report provided the company’s legal and compliance teams with the necessary tools to communicate their position effectively during a sensitive period.

    1. Which SDGs are addressed or connected to the issues highlighted in the article?

    SDG 8: Decent Work and Economic Growth

    • The article directly addresses issues of “forced labor and human trafficking,” which are antithetical to the principles of decent work. The core of the article is an investigation into these specific allegations within a company’s operations.

    SDG 16: Peace, Justice and Strong Institutions

    • The article highlights the process of seeking justice and defending against false allegations. The company engaged “external counsel,” conducted an “independent investigation,” and pursued “legal action,” which are all functions of a just and effective legal system and strong institutional frameworks designed to resolve disputes.

    2. What specific targets under those SDGs can be identified based on the article’s content?

    Target 8.7: Eradicate forced labour, end modern slavery and human trafficking

    • This target is explicitly relevant as the article centers on a company facing “allegations of forced labor and human trafficking.” The investigation conducted by FTI Consulting was designed to “assess the validity of the allegations” related to these specific crimes, directly aligning with the target’s goal of eradicating such practices.

    Target 16.3: Promote the rule of law and ensure equal access to justice

    • The article demonstrates the application of this target. The company utilized the legal system to defend itself by recruiting “external counsel” and using an “expert report” in its defense. Furthermore, the findings enabled the company to “pursue legal action against the former employee for making false statements,” showcasing the use of legal mechanisms to seek justice and uphold the rule of law.

    3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

    Indicators for Target 8.7

    • The article implies several indicators used by FTI Consulting to measure the absence of forced labor and human trafficking. These were identified through a “comprehensive review of employee records and payroll data” and interviews:
    • Freedom of movement restrictions: The investigation looked for any evidence that would suggest employees’ movement was controlled.
    • Excessive working hours: This was a key metric reviewed to ensure labor standards were met.
    • Unjust wage deductions: Payroll data was analyzed to identify any punitive or illegal deductions from employee pay.
    • Termination threats: The investigation sought to uncover any coercive practices used to control employees.
    • Benchmarking against international standards: The company’s practices were compared against established global norms for labor rights.

    Indicators for Target 16.3

    • The article provides clear indicators of a party accessing justice mechanisms to resolve a dispute:
    • Use of legal counsel: The company “recruited external counsel to defend itself.”
    • Independent investigation as a tool for justice: FTI Consulting was engaged to “conduct a thorough and independent investigation.”
    • Creation of an expert report for legal proceedings: The investigation resulted in an “expert report to use in the company’s defense.”
    • Pursuit of legal action: The company was enabled to “pursue legal action against the former employee,” indicating the use of the legal system to address grievances.

    4. Create a table with three columns titled ‘SDGs, Targets and Indicators” to present the findings from analyzing the article.

    SDGs Targets Indicators
    SDG 8: Decent Work and Economic Growth Target 8.7: Take immediate and effective measures to eradicate forced labour, end modern slavery and human trafficking.
    • Absence of freedom of movement restrictions.
    • Absence of excessive working hours.
    • Absence of unjust wage deductions.
    • Absence of termination threats.
    • Benchmarking of company practices against international standards and case precedents.
    SDG 16: Peace, Justice and Strong Institutions Target 16.3: Promote the rule of law at the national and international levels and ensure equal access to justice for all.
    • Engagement of external counsel for defense.
    • Execution of an independent investigation to assess claims.
    • Use of an expert report in legal defense.
    • Pursuit of legal action to counter false statements.

    Source: fticonsulting.com