Best Practices for Supporting Ethical Business in the Logistics and Transportation Sector

Global compliance officers today are well aware that ESG risks have been a moving target over the last few years. Global human rights guidance has shifted from jurisdiction to jurisdiction, while regulations addressing environmental and social governance issues have become more difficult to track, depending on your industry sector or business operations. 

Global standards, like that of the recent ISO 37001 release, help to create a standard for governance programs across all industries, which is beneficial as a general understanding by both companies and stakeholders as to how business should be done the “right” way. And using those standards can help to better drive the focus for ESG compliance, even at a time of geopolitical uncertainty. Using guidance like that of ISO 37001 on drafting ethical policies, training on those policies, and ensuring alignment from the top of the company C-suite downward are the building blocks for a successful ESG compliance program.   

Given the nature of business within the transportation and logistics sector, for example, ESG compliance risks present complexities that include customs and border checkpoints, where there is the potential for document fraud, facilitation payments, bribery demands, and the movement of goods linked to forced labor or human trafficking is significantly elevated. These high-risk environments require strict oversight, transparent procedures, and robust internal controls to ensure all parties uphold ethical standards and prevent exposure to illicit or unethical activity. And this standard should be reinforced and maintained throughout a company’s supply chain.

TRACE offers comprehensive, user-friendly training tools that, through our training platform, play a critical role in addressing ESG compliance risks by enabling organizations to easily develop and assign required courses on key compliance, HR, and ethics topics. Robust reporting and analytics help demonstrate the return on investing in training for employees, while also supporting a sustained commitment to global education and responsible business practices. 

Supplementary compliance materials, including mini guides, succinct one-pager overviews, and scenario-based refresher training, can serve as helpful reminders about compliance risks in support of ongoing training efforts.  

A decade-long collaboration between TRACE and JAS has led to the successful implementation of an ESG compliance program for one such global multinational organization. 

TRACE is a globally recognized non-profit business association dedicated to anti-bribery, compliance, and good governance with members based in every region of the world and operating across more than a dozen industries. 

JAS, a leader in the transportation and logistics industry, partnered with TRACE in developing a recurring training plan on the TRACE learning platform.  The JAS team, alongside TRACE’s technical specialists, created a program to train employees once they are onboarded with the company. The training is repeated on a regular cadence to reinforce important messaging on forced labor risks, anti-bribery and corruption risks, unethical gift-giving, and more.  Alexandra Addison, President and Founder of TRACE International, notes JAS’s commitment to operating with integrity:

"As a member of TRACE for almost a decade, JAS has been a proactive and committed partner in the fight against corrupt practices and in advancing a more sustainable and equitable world. We are proud to see a TRACE member whose accomplishments consistently reinforce the importance of strong governance, ethical conduct, and environmental and social responsibility as foundational standards in today’s work environment."

TRACE training supports JAS’s efforts; it complements wider actions, including policy development, supplier engagement, compliance oversight, and alignment with international standards.

These trainings form an integral part of JAS’s ESG governance framework and contributed to the company’s achievement of an EcoVadis Gold rating.

The TRACE team offers benefits to help elevate any organization within any industry to raise their compliance and governance standards, to achieve a reputation for doing the right thing, and to maintain a well-trained and knowledgeable workforce.