FSLM Higg

FSLM Higg is an excellent and important question. The term “Rights of People” is a core component of the Facilities & Social Labor Module (FSLM) of the Higg Index.

Let’s break down what this means in practice.

What is the FSLM Higg?

First, a quick overview:

• The Higg Index is a suite of tools developed by the Sustainable Apparel Coalition (SAC) to measure the social and environmental performance of supply chains.
• The Facilities & Social Labor Module (FSLM) is the specific tool used to assess social and labor conditions within a production facility (like a garment factory, tannery, or mill).

The “Rights of People” is not just one section; it’s a fundamental principle that underpins the entire FSLM assessment. It is about ensuring that all workers are treated with dignity and respect and that their fundamental human rights are protected.

Core “Rights of People” in the FSLM Higg

The FSLM assesses these rights across several key sections. Here are the most critical ones:

1. Forced Labor & Human Trafficking

This is the most fundamental right: the right to freedom.

• What it means: No worker should be forced to work through coercion, debt bondage, retention of identity documents, or threats.
• Higg Assessment Checks:
  • Workers have control over their own identity documents (passports, ID cards).
  • Workers are free to leave the factory premises after their shift.
  • No fees are charged to workers for recruitment.
  • Workers are not required to post “deposits” to get a job.

2. Child Labor & Young Workers

This protects the right to a childhood and education.

• What it means: No underage labor. The facility must have a robust age verification process. Young workers (of legal working age but under 18) must not perform hazardous work and their hours must be managed appropriately.
• Higg Assessment Checks:
  • Verification of worker age through reliable documents.
  • Policies and procedures to prevent and remediate child labor.
  • Special protections for young workers.

3. Harassment, Abuse & Discrimination

This protects the right to a safe and dignified work environment.

• What it means: Workers are free from physical, verbal, sexual, and psychological harassment or abuse. Employment decisions (hiring, promotion, pay) are based on ability, not on personal characteristics.
• Higg Assessment Checks:
  • A clear policy against harassment and discrimination.
  • A confidential grievance mechanism for workers to report issues without fear of retaliation.
  • Evidence that managers and supervisors are trained on these policies.

4. Freedom of Association & Collective Bargaining

This protects the right to have a collective voice.

• What it means: Workers have the right to form or join trade unions of their choice and to bargain collectively with management, without interference or retaliation.
• Higg Assessment Checks:
  • Management does not interfere with union activities.
  • Worker representatives are not discriminated against.
  • In regions where unions are restricted, the facility facilitates parallel means for collective bargaining (e.g., worker committees).

5. Grievance Mechanism & Worker Voice

This is the right to be heard and to seek remedy.

• What it means: Workers must have access to a safe, confidential, and anonymous way to raise concerns and complaints, and see them resolved in a timely manner.
• Higg Assessment Checks:
  • The grievance process is clearly communicated to all workers.
  • Workers can use the mechanism without fear of punishment.
  • There are records of grievances, investigations, and corrective actions.

6. Working Hours & Overtime

This protects the right to rest and leisure.

• What it means: Working hours must comply with national laws and, in many cases, industry standards (often a maximum of 60 hours per week). Overtime must be voluntary and compensated correctly.
• Higg Assessment Checks:
  • Accurate time records.
  • Overtime is not excessive and is properly paid.
  • Workers are provided with rest days.

7. Health & Safety

This is the right to a safe workplace.

• What it means: The facility must provide a work environment that is free from recognized hazards that could cause physical harm.
• Higg Assessment Checks:
  • Proper machine guarding, fire safety equipment, and emergency exits.
  • Availability of first aid and trained personnel.
  • Clean toilets, potable water, and adequate lighting/ventilation.

Why “Rights of People” is Critical in the Higg FSLM

• For Brands & Retailers: It’s a key part of their due diligence and social compliance. A poor score on these sections represents a high risk to their reputation and supply chain stability.
• For Facilities (Factories): Performing well on these sections is not just about passing an audit. It leads to:
  • Higher worker morale and retention.
  • Increased productivity and quality.
  • A stronger reputation, making them a preferred supplier for ethical brands.
• For Workers: This is the most important aspect. It directly impacts their well-being, dignity, and livelihood.

Key Takeaway

The “Rights of People” in the FSLM Higg is a comprehensive framework designed to move beyond simple checklist auditing. It pushes facilities to build management systems that proactively protect workers’ fundamental human rights, foster open communication, and create a culture of continuous improvement and respect.

What is Required FSLM Higg

The phrase “Required Rights of People” in the context of the FSLM Higg refers to the fundamental, non-negotiable human and labor rights that a facility must uphold to achieve a passing score.

These are the baseline requirements. Failure to comply with any of these typically results in a “Zero Tolerance” or “Automatic Fail” outcome for the facility, regardless of performance in other areas.

These requirements are based on the Higg FEM & FSLM Principles and international labor standards (ILO conventions).

The List of Required Rights of People in FSLM Higg

Here are the specific “Required Rights” that facilities must demonstrate compliance with. These are the absolute bare minimums.

1. No Forced, Bonded, or Involuntary Labor

This is the right to freedom. Any form of modern slavery is strictly prohibited.

• What is Required:
  • No retention of identity documents: Workers must hold their own passports, ID cards, and other personal documents. The facility cannot confiscate them.
  • Freedom of movement: Workers must be free to leave the workplace after their shift.
  • No debt bondage: Workers cannot be forced to work to pay off a debt to the employer or a recruiter.
  • Voluntary employment: Workers must be at the facility by their own free will.

2. No Child Labor

This protects the right to a childhood and education.

• What is Required:
  • No workers below the legal age: The facility must not employ anyone younger than the legal minimum age for work (or 15, whichever is higher, in line with ILO standards).
  • No workers below the age of 18 in hazardous work: Even if a worker is of legal age (e.g., 16), they cannot be employed in work that is likely to harm their health, safety, or morals.

3. No Harsh or Inhumane Treatment

This is the right to dignity and respect.

• What is Required:
  • Absolutely no corporal punishment: Physical punishment or abuse is forbidden.
  • No physical, sexual, or verbal harassment or abuse.
  • No threats of violence or intimidation.
  • No coercion: Workers cannot be forced to work through threats or fear.

4. No Discrimination

This is the right to equal opportunity.

• What is Required:
  • Employment decisions—hiring, compensation, promotion, discipline, termination—must be based on relevant and objective criteria (skills, performance), not on personal characteristics.
  • Protected characteristics include race, caste, religion, gender, sexual orientation, political opinion, nationality, age, disability, etc.

5. Freedom of Association & Collective Bargaining

This is the right to have a collective voice.

• What is Required:
  • Workers must be able to form and join trade unions of their own choosing.
  • Workers must have the right to collective bargaining.
  • The facility must not interfere with or discriminate against workers for their union activities.
  • In countries where these rights are restricted by law, the facility must not impede alternative forms of worker representation.

6. Legal Right to Work

This ensures the facility is operating with a legitimate workforce.

• What is Required:
  • All workers must have the legal right to work in the country (e.g., through citizenship, valid work permits/visas).
  • The facility must verify this through proper documentation.

What Happens if a “Required Right” is Violated?

The consequences are severe and are built into the Higg scoring logic:

1. Automatic Failure: The facility will fail the FSLM assessment immediately.
2. Immediate Corrective Action Required: The brand or auditor will require the facility to take immediate and verifiable corrective actions.
3. Potential for Business Termination: For serious violations (like forced or child labor), brands may suspend orders, terminate their business relationship, and potentially report the facility to authorities.
4. No “Continuous Improvement” for These Points: Unlike other areas of the Higg Index (like energy use), there is no “improvement period” granted for these fundamental rights. Compliance is expected 100% from the day of the assessment.

Key Distinction: “Required” vs. “Management System” Questions

It’s helpful to understand how the FSLM is structured:

• Required Questions (Zero Tolerance): These are the “Rights of People” listed above. They are pass/fail.
• Level 1 – Management System Questions: These questions evaluate if the facility has the policies, procedures, and training in place to protect workers’ rights (e.g., “Do you have a written anti-harassment policy?”).
• Level 2 – Implementation Questions: These questions check if those management systems are effectively implemented and understood by workers (e.g., “Are workers trained on the anti-harassment policy and how to report?”).
• Level 3 – Outcome/Performance Questions: These measure the results and effectiveness of the systems (e.g., “Are grievance reports investigated and resolved in a timely manner?”).

A facility can be working on improving its management systems (Level 1-3), but it must already be in full compliance with the Required Rights (Zero Tolerance) to be considered a viable supplier.

In short, the “Required Rights of People” are the non-negotiable, ethical bedrock of the FSLM Higg. Everything else in the assessment builds upon this foundation of basic human dignity.

Who is Required FSLM Higg

1. The Production Facility (Factory, Mill, etc.) – PRIMARY RESPONSIBILITY

The facility is the primary entity responsible for ensuring the Required Rights of People are met for every single worker on its premises.

• Who: Factory owners, senior management, and HR departments.
• Their Duty: To create, implement, and enforce management systems that proactively protect these rights. This includes:
  • Developing Clear Policies: Writing policies that explicitly forbid child labor, forced labor, harassment, and discrimination.
  • Implementing Procedures: Creating safe recruitment processes (e.g., no fee-charging to workers), robust age verification systems, and effective grievance mechanisms.
  • Training Management and Workers: Ensuring all supervisors know they cannot abuse workers, and all workers know their rights and how to report violations.
  • Providing a Safe Physical Environment: Ensuring the building is safe, with clear exits, fire extinguishers, and clean facilities.

In short, the facility is the direct duty-bearer. It is their legal and ethical obligation to provide a workplace that respects fundamental human rights.

2. The Brand(s) that Source from the Facility – DUE DILIGENCE RESPONSIBILITY

Brands and retailers have a responsibility to ensure that the products they sell are made in facilities that respect human rights. This is known as “supply chain due diligence.”

• Who: Sourcing managers, compliance teams, and corporate social responsibility (CSR) departments of apparel, footwear, and other consumer goods companies.
• Their Duty: To use tools like the Higg FSLM to identify risks and ensure their supplier facilities comply with these required rights.
  • They Require the Assessment: Brands mandate that their suppliers complete the FSLM.
  • They Review the Results: They scrutinize the scores, especially on the “Required Rights” questions.
  • They Enforce Consequences: If a facility fails on a Required Right (e.g., evidence of child labor), the brand must act. This can range from requiring immediate corrective action to suspending business or terminating the relationship entirely.
  • They Provide Support: Leading brands will often work with facilities to help them build capacity and improve their systems.

3. The Auditors / Verifiers – ASSURANCE RESPONSIBILITY

When an FSLM assessment is verified, a third-party auditor is responsible for objectively checking the facility’s claims.

• Who: Independent, accredited verification bodies and individual auditors.
• Their Duty: To gather evidence and determine if the facility is truly complying with the Required Rights.
  • They must be thorough and unbiased in reviewing documents (payroll, age verification records).
  • They must conduct confidential worker interviews to uncover issues that might not be visible in paperwork.
  • They have the power to mark a “Zero Tolerance” violation, which fails the facility.

4. Governments and Legislators – LEGAL RESPONSIBILITY

Governments in producing countries are responsible for creating and enforcing the laws that protect workers.

• Who: National and local governments, ministries of labor, and labor inspectorates.
• Their Duty: To enact strong labor laws that align with international standards (ILO conventions) and to effectively enforce them through inspections and penalties. The FSLM’s “Required Rights” are often based on or exceed these local laws.

5. The Workers Themselves – THE RIGHTS-HOLDERS

While not responsible for upholding the rights in a managerial sense, workers play a crucial role.

• Who: All employees within the facility.
• Their Role: As the rights-holders, they are the ultimate beneficiaries. They can:
  • Assert Their Rights: Use the grievance mechanism to report violations.
  • Participate in Systems: Join worker committees or unions to collectively bargain.
  • Provide Evidence: Through confidential interviews with auditors, they provide the ground-truth about whether rights are being respected.

Summary

In essence, the “Required Rights of People” in the FSLM Higg are the responsibility of the Facility to implement, the Brand to demand, the Auditor to verify, and the Government to enforce, all for the protection of the Worker.

When is Required FSLM Higg

1. Continuously & At All Times (The Ethical & Legal Imperative)

This is the most important answer. A facility must be in compliance with these fundamental rights every single day.

• Why: These are not performance goals or aspirational targets. They are the absolute baseline for ethical and legal operation. A facility cannot be ethical “only during an audit.” Respect for human rights must be embedded in its daily culture and operations.

2. During an FSLM Self-Assessment (The Internal Check)

A facility is required to report on its compliance with these rights when it completes its annual Higg FSLM Self-Assessment.

• When: Typically, this is done once a year, often triggered by a brand’s request or as part of the facility’s own internal management cycle.
• What Happens: The facility’s management answers the questionnaire, including all the “Required” (Zero Tolerance) questions. If they must answer “No” to any of these, they are essentially self-reporting a critical failure.

3. During an FSLM Verification (The External Audit)

This is the most critical formal assessment point. A third-party auditor verifies the facility’s claims.

• When: This occurs when a brand (or sometimes the facility itself) pays for an accredited verifier to audit the facility. This usually happens after the self-assessment and is also typically an annual event.
• What Happens: The auditor rigorously checks for evidence of compliance with the Required Rights. This is the moment when a violation is officially documented, leading to a failing score.

4. During Any Unannounced or Spot-Check Audit

Many brands and third-party auditors conduct unannounced audits to get a true picture of factory conditions.

• When: At any time, without warning.
• What Happens: The “Required Rights” are checked in real-time. For example, the auditor can immediately check if workers have possession of their passports or if emergency exits are blocked. There is no time to hide violations.

5. When a Specific Incident is Reported (The Reactive Trigger)

If a violation of a Required Right is reported, it triggers an immediate assessment.

• When: This could happen at any time, outside of the normal assessment cycle.
• What Triggers It:
  • A worker complaint through the grievance mechanism.
  • A report from a non-governmental organization (NGO) or journalist.
  • A whistleblower from inside the facility.
• What Happens: The brand and/or a verification body will launch a focused investigation specifically into the alleged violation (e.g., a claim of forced overtime or harassment).

Summary Table: “When” are the Required Rights Assessed?

Key Takeaway

Think of it this way: The “Required Rights of People” are like the law. You are required to obey the law every day, not just when a police officer is watching. However, your compliance is formally checked during specific events: a routine traffic stop (scheduled audit), a police response to a crime (incident investigation), or when an officer observes a violation in real-time (unannounced audit).

Where is Required FSLM Higg

1. In the Higg.org Digital Platform (The Tool Itself)

This is the most direct answer. The Required Rights are embedded within the specific questions of the FSLM module on the Higg online platform.

• Where exactly: They are found in the “Zero Tolerance” or “Required” questions scattered throughout the various sections of the FSLM assessment.
• How to identify them: In the questionnaire, these questions are typically marked or grouped in a way that highlights their critical nature. Answering “No” to any of these questions will result in an automatic failure for the facility.
• Sections containing Required Rights questions include:
  • Recruitment
  • Child Labor and Young Workers
  • Forced Labor
  • Harassment and Abuse
  • Freedom of Association and Collective Bargaining
  • Grievance Mechanism
  • Discrimination

2. Within the Production Facility (The Physical Location)

This is where the Required Rights must be actively demonstrated and upheld. An auditor looks for evidence of these rights on the factory floor and throughout the premises.

• On the Production Floor:
  • Evidence of Freedom of Movement: Unlocked doors, unobstructed exits.
  • Evidence of No Harsh Treatment: The general atmosphere; are supervisors speaking to workers respectfully?
  • Evidence of Health & Safety: Machine guards, fire extinguishers, clear aisles.
• In the Dormitories (if applicable): Living conditions must be voluntary, safe, and humane.
• In the HR Office:
  • Worker Files: Age verification documents (to prove no child labor), employment contracts (to prove voluntary employment).
  • Payroll Records: To verify workers are paid for all hours and not trapped by debt bondage.
  • Grievance Logs: Records showing that complaints are received and addressed.
• On the Notice Boards: Posted policies (in a language workers understand) on topics like anti-harassment, forced labor, and how to use the grievance mechanism.

3. Within the Facility’s Management Systems (The Policies & Procedures)

The rights are codified in the facility’s official documents and operational protocols.

• Where: In the facility’s Code of Conduct, Employee Handbook, and specific policy documents.
• Examples:
  • A “Prohibition of Forced Labor” policy that explicitly states the facility will not retain identity documents.
  • An “Anti-Harassment and Anti-Discrimination” policy that defines unacceptable behavior and outlines disciplinary actions.
  • A “Grievance Procedure” that provides multiple, confidential channels for reporting issues.

4. In the Minds and Behaviors of People (The Cultural Location)

Ultimately, the true “location” of these rights is in the understanding and actions of everyone at the facility.

• In Management’s Actions: Supervisors and managers must lead by example, respecting rights in their daily decisions and interactions.
• In Workers’ Knowledge: Workers must know their rights and feel safe to exercise them. This is proven during confidential worker interviews conducted by auditors.
• In the Overall Culture: A facility that truly upholds these rights has a culture of respect, openness, and fairness, where workers are not afraid to speak up.

5. Across the Global Supply Chain (The Contextual Location)

The “Required Rights of People” are a universal standard applied to every facility in a brand’s supply chain, regardless of its geographic location.

• Where: In every factory, mill, tannery, and processing facility that is part of the consumer goods supply chain, from Southeast Asia to Latin America to Europe.
• The Challenge: The application must be consistent, but the specific risks might differ. For example, the risk of forced labor might be higher in a region with migrant workers, while the risk of restricting freedom of association might be higher in a country with restrictive laws.

Summary Table

In essence, the “Required Rights of People” are located everywhere that matters: in the official tool, in the facility’s documents, in its physical space, and most importantly, in the daily lived experience of every worker.

How is Required FSLM Higg

How the “Required Rights of People” are Implemented and Enforced

The process is a cycle involving the facility, the brand, and an auditor, driven by the FSLM Higg framework.

1. How it is Defined and Structured (The Framework)

The FSLM doesn’t just state “no child labor”; it breaks it down into a verifiable process.

• Through Specific, Binary Questions: Each “Required Right” is translated into direct, yes/no questions in the Higg platform.
  • Example: “Does the facility ensure that no worker pays any recruitment fees to get a job?” (Yes/No)
• As “Zero Tolerance” Violations: A “No” answer to any of these questions is automatically flagged as a critical failure.
• Embedded in Management Systems: The questions force the facility to prove it has systems (policies, training, oversight) to prevent violations, not just react to them.

2. How it is Assessed (The Verification Process)

This is the core of “how” compliance is checked. An auditor doesn’t just take the facility’s word for it; they gather evidence through a multi-pronged approach:

• Document Review (Proof in Paper/Data):
  • How it’s done: The auditor examines payroll records, employment contracts, age verification documents (e.g., birth certificates), time cards, and grievance logs.
  • Example: To verify “No Forced Labor,” they check that overtime hours are properly recorded and voluntarily worked, and that no worker’s passport is held by management.
• Facility Walk-Through (Physical Evidence):
  • How it’s done: The auditor tours the entire premises—production floors, dormitories, canteens, and exits.
  • Example: To verify “Health & Safety” and “Freedom of Movement,” they check that emergency exits are unlocked and unobstructed.
• Confidential Worker Interviews (The Ground Truth):
  • How it’s done: This is one of the most critical steps. The auditor speaks with workers privately and confidentially, without management present.
  • Example: To verify “No Harassment & Abuse,” they ask workers if they feel safe, if supervisors yell at or threaten them, and if they know how to report problems without fear of retaliation. The workers’ testimony is the most powerful evidence for or against the facility’s claims.
• Management Interviews (Understanding Systems):
  • How it’s done: The auditor interviews HR managers, production supervisors, and top management to understand their knowledge of policies and their commitment to enforcing them.

3. How it is Enforced (The Consequences)

The “how” includes what happens after the assessment.

• Automated Scoring in the Higg Platform: The platform’s algorithm automatically calculates the score. A single “Zero Tolerance” violation results in a failing score for the facility.
• Corrective Action Plans (CAPs): If a violation is found, the brand will require the facility to create and execute a detailed plan to fix the issue immediately.
• Business Consequences: For severe or unresolved violations (e.g., child labor, forced labor), brands will suspend placing new orders or terminate their business relationship entirely. This is the ultimate enforcement mechanism.

4. How it is Integrated (The Continuous Cycle)

The “Required Rights” are not a one-time audit checkbox.

• How it’s done: The FSLM is designed as an annual cycle. Facilities are expected to use the results to drive continuous improvement.
• Example: A facility might pass the “Required Rights” one year but have low scores on “Worker Voice.” The “how” involves them then working over the next year to improve their grievance mechanism and communication channels before the next assessment.

Summary: The “How” in a Nutshell

The “Required Rights of People” in the FSLM Higg are upheld through a rigorous, evidence-based process that:

1. Translates fundamental rights into specific, binary questions.
2. Verifies compliance by cross-referencing documents, physical evidence, and—most importantly—confidential worker testimony.
3. Enforces standards through automated failing scores and real business consequences.
4. Integrates the requirement into an ongoing cycle of assessment and improvement.

In short, the “how” is a systematic and multi-layered audit process designed to uncover the truth about working conditions and hold facilities accountable to a non-negotiable ethical standard.

Case Study on FSLM Higg

“Fashion Forward Inc.” & “Starlight Garments Ltd.”

Company Profiles:

• Brand: Fashion Forward Inc. (FFI) – A mid-sized, trendy apparel brand based in the US, marketing itself on ethical production.
• Facility: Starlight Garments Ltd. – A factory in Vietnam employing 1,200 workers, producing FFI’s latest collection.

The Situation:
FFI requires all its key suppliers to complete a verified FSLM Higg assessment annually. Starlight Garments is undergoing its verification audit conducted by an independent third-party.

The FSLM Higg Assessment & Findings

The auditor follows the FSLM framework, focusing on the “Rights of People” sections. Here are the key findings:

1. Red Flag: Forced Labor & Recruitment Fees

• The Finding: During confidential interviews, several workers from the same rural province revealed they each paid a “recruitment fee” of one month’s salary to a local agent to get their job at Starlight. The factory management was aware of this arrangement. To repay the debt, they felt pressured to work excessive overtime.
• FSLM Violation: This is a direct violation of the Required Right against Forced Labor. The FSLM explicitly prohibits workers paying for their own recruitment. This is a “Zero Tolerance” issue.

2. Red Flag: Harassment and Abuse

• The Finding: Multiple female workers on one production line reported that their line supervisor frequently yelled at them, used demeaning language, and threatened to fire them if they did not meet unrealistic production targets. They were afraid to report him.
• FSLM Violation: This is a direct violation of the Required Right to be free from Harsh and Inhumane Treatment. The facility failed to provide a safe and dignified work environment.

3. Major Non-Conformance: Freedom of Association

• The Finding: The factory had a “Worker Committee,” but investigation revealed it was managed by the HR department. Members were chosen by management, and meetings were scripted. Workers who had previously tried to organize an independent meeting were subtly threatened with losing their bonuses.
• FSLM Violation: This violates the Required Right to Freedom of Association and Collective Bargaining. The facility was interfering with the workers’ right to freely associate and represent themselves.

4. Management System Failure: Grievance Mechanism

• The Finding: The factory had a grievance box, but it was located directly outside the HR manager’s office, with no privacy. Workers reported that nothing ever happened when complaints were submitted, and they feared retaliation.
• FSLM Violation: While a non-functioning grievance mechanism is a major failure, the fear of retaliation ties directly back to the Required Right against harassment and the right to be heard. The system was ineffective and unsafe.

The Outcome & Consequences

Based on the FSLM verification report, the following actions were taken:

1. Immediate Failing Score & Corrective Action Plan (CAP)

• The FSLM platform automatically generated a failing score for Starlight Garments due to the multiple “Zero Tolerance” violations.
• FFI placed all new purchase orders on hold.
• FFI gave Starlight a strict 90-day Corrective Action Plan with the following requirements:
  • Reimburse all recruitment fees to affected workers, with interest.
  • Immediately terminate the abusive line supervisor and train all supervisors on the anti-harassment policy.
  • Facilitate free and fair elections for a new, independent Worker Committee.
  • Relocate the grievance boxes to private, secure locations and implement a confidential, anonymous reporting hotline managed by a third party.
  • Provide training to all workers and managers on their rights, the new grievance procedure, and the policy against retaliation.

2. Business Consequences

• FFI made it clear that failure to complete the CAP satisfactorily within 90 days would result in the termination of their business relationship.
• Starlight’s reputation was damaged. Other brands sourcing from them also requested to see the FSLM report, putting additional business at risk.

3. Long-Term Changes at Starlight Garments

Faced with the loss of its major client, Starlight’s ownership took the CAP seriously. They:

• Hired an external consultant to help overhaul their HR and management practices.
• Saw a significant drop in worker turnover after the abusive supervisor was fired and fees were repaid.
• Began to see the value of a positive work environment, noticing a slight increase in productivity and quality from more engaged workers.

Analysis: How the FSLM Framework Worked in This Case

• Prevention vs. Reaction: The FSLM didn’t just catch a problem; its structure (worker interviews, document checks) was designed to uncover systemic issues that a simple checklist audit might miss.
• Worker Voice is Central: The critical evidence came from confidential worker interviews. Without this component, the recruitment fees and harassment might have remained hidden.
• Leverage for Change: The FSLM provided FFI with objective, verified data to justify its demands for change. It moved the conversation from “we think there might be a problem” to “the data proves there is a serious problem, and here is the evidence.”
• Clarity and Specificity: The “Required Rights” framework gave FFI and the auditor a clear, non-negotiable baseline. There was no ambiguity about whether the violations were acceptable.

Conclusion

This case study demonstrates that the “Rights of People” in the FSLM Higg are more than just a section in a questionnaire. They form a dynamic system of accountability. When properly implemented and verified, the FSLM can:

1. Uncover deeply embedded labor rights violations.
2. Empower brands to take decisive corrective action.
3. Protect workers by giving them a safe channel to report abuse.
4. Incentivize factories to improve management systems for long-term sustainability and ethical operation.

The ultimate success is not just in passing an audit, but in fostering a culture of respect where workers’ rights are permanently upheld.

White paper on FSLM Higg

The global consumer goods industry, particularly apparel and footwear, faces intense scrutiny regarding the social conditions within its supply chains. In response, the Sustainable Apparel Coalition (SAC) developed the Higg Index, a suite of tools for measuring environmental and social impacts. This white paper focuses on the “Rights of People” as the ethical cornerstone of the Facilities & Social Labor Module (FSLM). We examine how the FSLM moves beyond traditional compliance auditing by establishing a rigorous, evidence-based framework for protecting fundamental human rights. This paper details the “Required Rights,” the verification methodology, the roles and responsibilities of stakeholders, and the strategic business case for embedding these principles into core operations. The conclusion asserts that the FSLM’s “Rights of People” framework is a critical evolution in supply chain management, shifting the paradigm from risk mitigation to the proactive cultivation of ethical and resilient production ecosystems.

1. Introduction: The Imperative for a New Standard

For decades, social responsibility in supply chains was often managed through proprietary brand audits and checklists. This approach led to audit fatigue, duplication of efforts, and a failure to uncover systemic issues, as facilities could “prepare” for scheduled visits. The Rana Plaza disaster in 2013 was a tragic catalyst, highlighting the catastrophic human cost of systemic failure.

The Higg FSLM emerged as an industry-wide response, aiming to create a unified, transparent, and verifiable standard. At its heart is the principle of “Rights of People”—the non-negotiable, fundamental human and labor rights that must be guaranteed for every worker.

2. Defining the “Rights of People” in the FSLM

The “Rights of People” are not a single metric but a comprehensive framework built on international labor standards (ILO conventions) and human rights principles. They are categorized into two tiers within the FSLM:

2.1. Required (Zero Tolerance) Rights

These are the non-negotiable, fundamental rights. A single violation results in an automatic failure of the FSLM verification. They include:

• No Forced or Bonded Labor: Prohibition of debt bondage, retention of identity documents, and any form of compulsory labor.
• No Child Labor: Employment of no one below the legal minimum age or below 15, and no one under 18 in hazardous work.
• No Harsh or Inhumane Treatment: Prohibition of physical punishment, sexual harassment, psychological abuse, and coercion.
• No Discrimination: Employment decisions based on ability, not personal characteristics.
• Freedom of Association & Collective Bargaining: The right to form and join worker organizations without interference.
• Legal Right to Work: Verification of all workers’ legal right to work in the country.

2.2. Management System Rights

These are the systems and processes a facility must have to uphold all rights consistently. They are scored on a maturity scale (Level 1-3):

• Fair Wages & Benefits: Payment of legal minimum wage and provision of mandated benefits.
• Working Hours: Management of working hours and overtime to ensure they are not excessive and are voluntary.
• Health & Safety: Provision of a safe working environment, including emergency preparedness, machine safety, and clean facilities.
• Grievance Mechanism: Operation of an effective, confidential, and retaliation-free channel for workers to raise concerns.
• Protection of Young Workers: Special protections for workers of legal age but under 18.

3. The “How”: A Rigorous Verification Methodology

The FSLM’s effectiveness lies in its multi-faceted verification process, designed to uncover the ground truth.

• Document Analysis: Auditors review payroll records, time cards, employment contracts, and age verification documents to cross-reference claims.
• Facility Walk-Through: Physical inspection of production floors, dormitories, and common areas to assess working conditions, safety, and freedom of movement.
• Confidential Worker Interviews: This is the most critical component. Private, one-on-one interviews with a randomized selection of workers provide unvarnished testimony about their lived experiences. This is the primary method for uncovering issues like harassment, forced overtime, and fee-paying.
• Management Interviews: Discussions with HR and operational leaders to assess their understanding of policies and commitment to implementation.

This triangulation of data sources prevents facilities from hiding violations that are not documented on paper.

4. Roles, Responsibilities, and Consequences

Upholding the “Rights of People” is a shared responsibility.

• The Facility (Supplier): Bears the primary responsibility for implementation. Must integrate these rights into daily operations, policies, and culture.
• The Brand (Buyer): Bears the due diligence responsibility. Must mandate the FSLM, review results, and enforce consequences for non-compliance, including suspending business for Zero Tolerance violations.
• The Verifier (Auditor): Bears the assurance responsibility. Must conduct impartial, thorough assessments and report findings objectively.
• The Worker (Rights-Holder): The ultimate beneficiary. Their participation and testimony are essential for a valid assessment.

Consequences for non-compliance are severe and immediate, including a failing score, corrective action plans, loss of business, and reputational damage.

5. The Business Case: Beyond Compliance

Investing in the “Rights of People” framework is not merely a moral imperative; it is a strategic business decision.

• Risk Mitigation: Proactively identifies and remediates risks that can lead to reputational catastrophe, legal liability, and supply chain disruption.
• Operational Resilience: Facilities with high worker morale, low turnover, and strong management systems are more productive, deliver higher quality, and are more reliable partners.
• Brand Value & Market Access: Consumers, investors, and regulators increasingly demand ethical sourcing. Strong FSLM performance is a competitive differentiator and a license to operate with leading brands.
• Supply Chain Stability: Reducing worker turnover lowers recruitment and training costs and creates a more skilled, stable workforce.

6. Challenges and Limitations

The FSLM is not a silver bullet. Challenges remain:

• Capacity Building: Many facilities, particularly smaller ones, require support to build the necessary management systems.
• Auditor Competency: The quality of verification is dependent on the skill and objectivity of the auditor.
• Cultural and Legal Context: Applying a universal standard across diverse legal and cultural environments requires nuance and diligence.

7. Conclusion and Future Outlook

The “Rights of People” framework within the Higg FSLM represents a significant leap forward in corporate social responsibility. It replaces opaque, proprietary audits with a transparent, standardized, and evidence-based system that places fundamental human rights at the center of supply chain management.

The future will see this framework evolve through:

• Deeper Integration with Due Diligence Legislation: Aligning with emerging laws like the EU’s Corporate Sustainability Due Diligence Directive (CSDDD).
• Enhanced Data and Technology: Leveraging data analytics from the Higg platform to identify industry-wide trends and predictive risks.
• A Focus on Worker-Centric Outcomes: Shifting the focus from policy documents to measurable improvements in worker well-being.

Ultimately, the FSLM’s “Rights of People” is more than an assessment tool; it is a blueprint for building a fair, safe, and sustainable global supply chain that respects the dignity of every worker.

Industrial Application of FSLM Higg

The FSLM is not merely an audit for brands to use; it’s a management system for factories to adopt. Its application changes daily operations, strategic planning, and stakeholder relationships on the factory floor.

1. Application in Daily Operations & Management Systems

a) Recruitment & Onboarding:

• Before FSLM: Use of unauthorized third-party recruiters who charge workers fees.
• Industrial Application: The facility establishes a direct-hire policy or partners only with certified ethical recruiters. The HR department implements a system to verify that no worker pays for their job. This is checked during onboarding, and contracts explicitly state this policy. This eliminates debt bondage at the source.

b) Supervisor Training & KPIs (Key Performance Indicators):

• Before FSLM: Supervisors are evaluated solely on production output and efficiency, leading to pressure, harassment, and forced overtime.
• Industrial Application: Supervisor KPIs are expanded to include “Rights of People” metrics such as:
  • Worker turnover rate on their line.
  • Number of grievances filed and resolved.
  • Results from anonymous worker sentiment surveys.
  • Supervisors receive mandatory training on anti-harassment, communication, and conflict resolution.

c) Health & Safety (H&S) as a Dynamic Process:

• Before FSLM: H&S is a reactive function—fixing problems after they occur or before an audit.
• Industrial Application: A proactive H&S committee is formed with elected worker representatives. They conduct regular risk assessments, lead emergency drills, and have the authority to stop work in unsafe conditions. The grievance mechanism is used to report safety concerns, creating a continuous feedback loop.

d) Grievance Mechanism as a Business Intelligence Tool:

• Before FSLM: A locked box on a wall that is never checked, or a process that leads to retaliation.
• Industrial Application: A confidential, multi-channel system (anonymous hotline, digital platform, secure boxes) is implemented. The HR and management teams analyze grievance data not as complaints, but as critical operational data. A spike in grievances about a specific machine reveals a maintenance issue. Repeated complaints about a manager reveal a leadership failure. This allows for proactive problem-solving.

2. Application in Strategic Business & Risk Management

a) Buyer-Supplier Contracting:

• Application: A facility’s FSLM score becomes a key performance indicator in sourcing agreements. Brands link a strong and verified FSLM score to tangible benefits:
  • Preferential sourcing: Guaranteed order volume.
  • Longer-term contracts: Providing business stability.
  • Faster payment terms: Improving the factory’s cash flow.
  • Collaborative cost negotiation: Brands may be willing to pay a slight premium to support a high-performing facility.

b) Financial Risk Mitigation:

• Application: A strong FSLM performance directly mitigates financial risks:
  • Reduces turnover: The cost of recruiting and training a new worker can be 1.5x their annual salary. Low turnover saves significant money.
  • Prevents costly audits & remediations: A single forced labor violation can lead to seven-figure corrective action plans and legal fees.
  • Avoids reputational crises: A failed audit that becomes public can lead to the immediate loss of major clients, a risk that can be company-ending.

c) Access to Capital & Investment:

• Application: Banks and investors are increasingly using ESG (Environmental, Social, and Governance) criteria to assess risk. A facility with a verified strong FSLM profile is seen as a lower-risk, more sustainable investment. It may qualify for better loan terms or attract impact investors.

3. Application in Building a Sustainable Corporate Culture

a) From Policing to Partnership:

• Application: The FSLM framework shifts the dynamic between workers and management. Instead of a top-down “policing” model, the system encourages a partnership for continuous improvement. Worker committees are involved in decision-making, leading to a sense of ownership and shared purpose.

b) Data-Driven Decision Making:

• Application: Factory management moves from making decisions based on intuition to using the data from the FSLM (worker interview trends, grievance logs, turnover analytics) to guide their human resource and operational strategies.

Case Study: Industrial Application in Action

Scenario: A large footwear factory (“VietFoot”) consistently failed FSLM verifications due to high overtime and worker complaints about locker searches.

Industrial Application Process:

1. Root Cause Analysis: Instead of just punishing line managers, VietFoot used FSLM worker interview data to find the root cause: inefficient production planning was causing last-minute rushes, forcing mandatory overtime.
2. Operational Changes:
   • Production Planning: Invested in new planning software to smooth out production peaks and valleys.
   • Policy Change: Made all overtime strictly voluntary and communicated this clearly.
   • Procedure Change: Revised the locker search policy to require an HR representative and the worker present, respecting dignity and privacy.
3. Strategic Outcome:
   • Within 6 months: Voluntary overtime was sufficient because workers appreciated the choice. Productivity increased because workers were less fatigued and more engaged.
   • Within 1 year: Worker turnover dropped by 30%. The factory’s FSLM score improved dramatically, making it a “preferred supplier” for its key brand, which resulted in a 15% increase in orders.

Conclusion

The industrial application of the “Rights of People” in the FSLM Higg demonstrates that ethical treatment of workers is not a cost center but a foundational element of a modern, efficient, and resilient industrial operation.

Factories that successfully apply this framework move beyond simple compliance. They build robust management systems that:

• Increase operational efficiency by reducing turnover and improving morale.
• Decrease risk by proactively identifying and solving problems.
• Enhance brand value and secure their position in the future of ethical sourcing.

In essence, the FSLM provides the blueprint for transforming the factory floor from a site of potential exploitation into a engine of sustainable and profitable business.