Glossary of terms

C

Back to A–Z

Chartered Institute of Management and Supply - CIPS
CIPS is the membership body for the procurement and supply chain management profession. They offer supporting resources and information, standardised education, professional qualifications, and a membership journey leading towards Chartered status.

Child labour
Not all work done by children should be classified as child labour that is to be targeted for elimination. The participation of children or adolescents above the minimum age for admission to employment in work that does not affect their health and personal development or interfere with their schooling, is generally regarded as being something positive. The term child labour is often defined as work that deprives children of their childhood, their potential and their dignity, and that is harmful to physical and mental development.

Climate vulnerability for workers
Exposure to excessive heat currently affects over 71 per cent of the global workforce. It is a key contributor to health issues such as dehydration, kidney dysfunction and neurological disorders; and is linked to an estimated 18,970 deaths and 22.87 million occupational injuries each year 7. As well as extreme heat, effects of climate change include catastrophic flooding, drought, and cyclones – all of which pose direct and indirect hazards to work and to health.

Collective bargaining
Collective bargaining is the official process in which trade unions negotiate with employers, on behalf of their members. It bargaining is only possible where an employer formally ‘recognises’ a trade union. It aims to improve the working and living conditions for workers and their families, and to reduce industrial action through prompt resolution of labour disputes.

Community dumping impacts
Incinerated waste contributes to the release of various hazardous gases, heavy metals, and sulphur dioxide in the air, poisoning wildlife and local communities, who increasingly suffer from cancer, diabetes, hormone disruption, skin alteration, neurotoxicity, kidney, liver and reproductive damage, bone disease, and more.

Community health impacts
The manufacturing supply chain contributes to substantially increased levels of air pollution – the sixth leading cause of death across the globe. It also elevates levels of, and is the cause of deaths due to, unsafe water, indoor smoke, lead exposure and unintentional poisonings.

Conflict financing
In politically unstable regions, mining and extraction of natural resources such as minerals, timber, and oil can be influenced or controlled by armed groups engaged in conflict. This increases the risk of human rights violations to workers and also means that profits are used to fund ongoing violence. Some of the most politically unstable countries are key contributors to supply chains.

Content moderation trauma
Online content moderators are regularly exposed to images and videos containing hate speech, humiliation, child sexual abuse, and extreme violence. Studies verify the consequences of this exposure, from reduced wellbeing to severe psychological distress and development of Post-Traumatic Stress Disorder.

Corruption
Corruption in public sectors is a global issue. It may take the form of ‘kickbacks’ which ensure contracts are awarded to particular suppliers, that laws protecting workers’ rights are not enforced for certain companies, or that goods and services can be misrepresented. Bypassing health and safety requirements is a common complaint. 

Cultural heritage disruption
The demands of international trade can disconnect traditional work and craftsmanship from the market, superseding artisanal and sustainably sourced products and food supplies with mass-produced versions. This threatens regional traditions, food security, and local economies.

D

Back to A–Z

Debt bondage
Anti-Slavery.org explain: “People who experience debt bondage have often been tricked into working for little or no pay. In many cases they are forced to pay off extortionate fees associated with their recruitment, accommodation or food, with no control over the debt they have accrued. Most or all of the money they earn goes to pay off their ‘loan’.  In many cases, people who experience debt bondage work far more, and for far longer, than it should take to pay off their loans, working tirelessly without seeing an end to their debt. many live in fear of violence or of passing their debt on to their children. is most widespread in South Asian countries including India and Pakistan, where it flourishes, for example, in agriculture, brick kilns, mills, mines and factories. It often occurs alongside other forms of modern slavery such as human trafficking.”

Digital exclusion
It’s estimated that 2.2 billion people remain offline in 2026.  Development Aid.org explain: “Small enterprises that are unable to leverage digital tools struggle to compete in global e-commerce, where visibility, logistics integration, and payment systems require strong connectivity. Many developing regions continue to face an unreliable electricity supply, low-quality broadband, and prohibitively expensive data services. Digital literacy is now a foundational requirement for modern participation and is comparable to the need for reading and numeracy skills. Yet access to digital education still remains uneven. UNESCO reports regarding digital skills gaps show that entire communities lack computers, reliable connections, or learning materials and the continuing intergenerational exclusion resulting not from unwillingness but from systemic constraints is ongoing.”

Disaster resilience & recovery
Hazards including earthquakes, floods, drought, extreme heat and storms are responsible for an estimated $257.2 billion annual loss for critical infrastructure sectors 17. Some extreme weather events can also trigger compound disasters, such as landslides in mountainous areas, which have associated average annual economic losses estimated to be USD 26 billion globally. The destruction of business premises as well as homes – and the fatalities and injuries resulting from disaster – can disrupt supply chains.

Dormitory and living condition concerns
Hostels and dormitories are common in labour-intensive industries. They are provided as communal housing to workers, often on-site or very near to the work premises. They may be described as a benefit or service, offered during recruitment; and may be part of the ‘debt’ owed by workers to employers in the context of debt bondage (described above). There is evidence of restricted movement and freedom in these hostels, and it is widely recognised that they facilitate and accentuate worker exploitation.

Due diligence
Due diligence is the process of investigating and evaluating a person, company, or transaction before entering into a business relationship or agreement. The goal is to identify risks, confirm information accuracy, and ensure compliance with applicable laws and regulations. There are several different types: financial, legal, operational, reputational, and regulatory/compliance.

E

Back to A–Z

Economic displacement
Economic displacement has historically consisted largely of ‘land grabs’ – land traditionally used for agriculture and other local activity being acquired and used for the building of project-related infrastructure – mines, dams, airports etc. More recently however, as opportunity associated with automation drives businesses toward different regions and premises, communities are at risk of displacement following the restructure of supply chains and natural disasters associated with climate change.

Education access impacts
Communities displaced due to economic downturn, climate change, and conflict experience a wide range of risks. It’s estimated that 47.2 million children are ‘internally displaced’ – forced to leave their own homes and/or areas of birth but not crossing borders – following conflict, violence and natural disasters.

Electronic waste impacts
Electronic waste – consisting mainly of metals, plastics, and chemicals – is imported to countries such as China, Nigeria and India; where it is openly burned. This releases toxic chemicals into soil, air, and water, entering food and water supplies and causing illness and death.

Emotional labour burden
‘Emotional labour’ refers to the psychological process wherein workers continuously regulate their behaviours, facial expressions, tone, and emotions to meet organisational demands. The cumulative impact of this regulation can lead to adverse psychological outcomes including emotional exhaustion, job burnout, and elevated stress levels, as well as mental health issues such as depression and anxiety.

Ethical Trading Initiative (ETI)
ETI is the leading alliance of businesses, NGOs and trade unions working together to advance human rights in global supply chains. The ETI Base Code 25 is an internationally recognised code of labour practice, founded on the conventions of the International Labour Organisation (ILO). It can be read alongside other resources highlighted in this toolkit, such as the Organisation for Economic Co-operation and Development (OECD) framework and the UN Sustainable Development Goals.

F

Back to A–Z

Food and water security impacts
As well as polluting water supplies, manufacturing supply chains use huge volumes of water and are a major driver of water scarcity. Water-intensive production and processing methods – such as bleaching, dyeing, and washing textiles – are often undertaken by suppliers in the Global South, which are more likely to be affected by drought, failing infrastructure, and poor regulation. Water scarcity affects communities’ production of their own food supplies and also creates risk for the agriculture they depend on for their livelihoods.

Forced labour
Forced labour is defined by the ILO as ‘all work or service which is exacted from any person under the threat of a penalty and for which the person has not offered himself or herself voluntarily’. It includes the child labour and debt bondage previously described. Forced labour may result from criminal enterprises or gangs; but it may also be imposed by governments as punishment - for the expression of political views or participation in strikes, and for other purposes.

Freedom of association
Typically mentioned in conjunction with collective bargaining, Freedom of Association is the right of workers and employers to form and join organisations of their own choosing – specifically, trade unions.

G

Back to A–Z

Gender-based exploitation and harassment
Harassment and violence (including sexual violence) against women are carried out ‘with a culture of impunity’ across the global supply chain. Women are less likely to be given permanent contracts, less likely to join unions, and less likely to receive in-work benefits such as sick pay and maternity pay.

Gendered labour segregation
ETI explain that “Women make up a significant proportion of the global supply chain workforce — especially in sectors such as manufacturing and agriculture. However, they are concentrated in low-paid and insecure positions, and under-represented in leadership or decision-making spaces”. This segregation contributes heavily to the harassment, violence, unequal pay, and inadequate workplace protections which characterise women’s work in the global supply chain.

Gig worker misclassification
 Classifying workers as self-employed or as independent contractors is a way of avoiding the costs associated with declaring them as employees. Many workers rights, including the right to a safe and healthy workplace and the right to paid sick leave, are not legally required for contractors.

H

Back to A–Z

Heat exposure
Exposure to excessive heat currently affects over 71 per cent of the global workforce. It is a key contributor to health issues such as dehydration, kidney dysfunction and neurological disorders; and is linked to an estimated 18,970 deaths and 22.87 million occupational injuries each year.

Household debt dependence
Associated with debt bondage (described above), household debt dependence is the imposition of a worker’s ‘debt’ (for recruitment, housing etc) onto their family. Migrant workers are especially at risk, with many having been tricked into paying recruiters for travel and visas. For example, thousands of workers are known to have paid recruitment fees five times higher than the official rate to access jobs in Malaysia from Bangladesh. There is evidence of children being held in slavery today due to loans their parents took out decades ago.

Human trafficking
Human trafficking is associated with, but distinct from, debt bondage. People who experience debt bondage have often been tricked into working for little or no pay; while those who have been trafficked have been abducted or otherwise forced or coerced into exploitative work. Between 2020-23, an estimated 202,478 people were trafficked - 36% of whom were trafficked into sexual exploitation and 42% for forced labour.

I

Back to A–Z

Illicit waste networks
Because of the charges associated with industrial waste disposal, organised crime networks generate income by acting as cheap waste disposal agents. Bypassing the regulations and requirements for safe and sustainable waste disposal, the UN estimate they generate at least $18 billion in illicit profits annually. Corporate involvement in waste crime and trafficking is said to be common.

Indigenous rights violations
 The United Nations Global Compact (UNGC) explains: “resource extraction may be located in areas where the rights of Indigenous peoples have not been fully documented or recognized. Such high-impact activities are likely to infringe on the rights of Indigenous peoples, including their right to traditional lands, or negatively affect their livelihoods or way of life by impeding their access to resources such as water, or to areas of cultural and spiritual significance”.

Informal labour dependency
Informal workers make up nearly 60% of the workforce globally, and 90% in low-income countries. Where such a substantial proportion of the workforce go without the legal rights to a safe and healthy workplace (etc), cycles are created: children start work earlier and benefit from less education, reducing their own likelihood of obtaining formal and safe work in adulthood; and economic growth is not enabled due to persistently low incomes and minimal social security.

K

Back to A–Z

Key performance indicators (KPIs)
KPIs – Key Performance Indicators – are metrics applied to contractors and suppliers by those issuing contracts. They are also used internally within larger businesses. In the context of health, safety and sustainability, example KPIs might include the imposition of audits, observations or fines when a given number of incidents is exceeded, or a limit put on the usage of informal labour.

L

Back to A–Z

Local community benefit sharing
While supply chains can negatively affect the communities in which their premises are placed and from which their workers are recruited, they can also have a positive impact. Benefits can be planned and implemented by corporate entities, in consultation with community representatives; and can include things like preferential electricity rates for citizens and recurring payments to local authorities for use in the creation of sustainable public infrastructure (e.g. for clean water supplies).

Local inflation and housing pressure
The costs of raw materials for house-building and maintenance increase when supply chains are disrupted due to conflict, natural disaster, and economic constraint. This puts pressure on local development and raises property costs, negatively affecting communities.

M

Back to A–Z

Migrant worker vulnerability
Migrants are some of the world’s most vulnerable supply chain workers. This is due in part to limited support networks and language barriers, but also to an increased likelihood of being informally employed and without legal workplace rights – regardless of citizenship or documentation status. Reporting of human rights violations against migrants in the supply chain in 2026 found that the most frequently recorded abuses were violations of employment and OSH standards. Abuse was found to be severe, including at least 98 fatalities, and multifaceted, with workers experiencing three or more types of human rights violation concurrently in 47% of cases.

Modern slavery
Anti-slavery.org explain that “Anti-Slavery International, we define modern slavery as when an individual is exploited by others, for personal or commercial gain. Whether tricked, coerced, or forced, they lose their freedom. This includes but is not limited to human trafficking, forced labour and debt bondage”.

Musculoskeletal disorders
Injuries or disorders that affect muscles, bones, joints and ligaments of the body. These may be work-related or be aggravated by work. MSDs have been found by the ILO to represent 20% of the burden of diseases caused by work-related diseases and injuries.

O

Back to A–Z

Occupational disease
Ill health contracted as a result of exposure to risk factors arising from work activity. Examples include Occupational dermatitis (often associated with regular exposure to certain chemicals), occupational asthma (often associated with regular exposure to dusts), and occupational cancers (associated with exposure to asbestos, silica dust, diesel fumes and radiation).

Occupational health (OH)
The promotion and maintenance of the highest degree of physical, mental and social wellbeing of workers in all occupations. This includes:

• the prevention among workers of departures from health caused by their working conditions 
• the protection of workers in their employment from risks resulting from factors adverse to health 
• the placing and maintenance of workers in an occupational environment adapted to their physiological and psychological conditions. 

Occupational Safety and Health
Occupational safety and health (OSH) deals with all aspects of health and safety in the workplace. Its goal is to prevent the occurrence of occupational accidents and diseases. A safe and healthy working environment is one where risks are eliminated or when all reasonably practicable actions have been taken to reduce risks to an acceptable level and where prevention has been integrated as part of the organisations culture.

Occupational hygiene
Occupational hygiene is the discipline of protecting worker health by controlling workplace hazards that can cause harm.

P

Back to A–Z

Platform dependency
A large proportion of the informal workforce is dependent on digital platforms for obtaining work. Platforms connect workers with customers looking for transport and delivery services, the provision of home maintenance and personal services such as nail art, and other freelance work such as graphic design and copywriting. Dependency on digital platforms can increase inequity in access to safe and sustainable work.

Precarious labour
Precarious labour is characterised by uncertainty over hours/shifts, low income, and lack of the legal protections associated with formally contracted work. Workers are vulnerable to decisions made about the allocation of hours and responsibilities, which can lead to some being coerced and exploited for the ‘reward’ of more hours while those who do not comply lose income.

Psychosocial hazard and risk
Anything in the design or management of work that increases the risk of work-related stress can be understood as a psychosocial hazard. Examples include:  

• Lack of variety in the work 
• Under-use of skills  
• Inadequate training  
• Long or unsocial work hours 
• Shift working 
• Inflexible hours 
• Lack of control over job design or workload  
• Unsafe equipment and resources 
• Poor physical working conditions 
• Discrimination, abuse, bullying and harassment (including sexual harassment)

R

Back to A–Z

Rating system coercion
Forced ratings systems, also known as forced rankings or forced distributions, are widely used in organizations to evaluate employee performance. However, these systems have been criticized for their potential to create stress and reduce the effectiveness of performance appraisals.

Repetitive strain injury
Repetitive strain injury (RSI) is a term sometimes used for pain caused by repeated movement of part of the body. It is an example of a common musculoskeletal disorder.

Resource wars
Many civil and international conflicts are driven, at least in part, by the demand for access to natural resources such as oil, precious metals and components such as diamond.

S

Back to A–Z

Supplier sanctions
Sanctions can be applied by businesses or regulatory authorities. They may take the form of fines or the withholding of funds when contracts are breached or when evidence is found of illegal or unethical conduct.

Security and piracy risks
Physical goods and data are at risk if appropriate measures are not taken throughout the supply chain. Piracy at sea, when organised criminal gangs rob and hijack vessels, remains prevalent in some parts of the world – a risk which can be reduced through carefully planned logistics. IT security is a key risk to global supply chains, with customer data and payments being targets for ransom.

Security force violation and intimidation
Evidence has been found of the use of state or private security forces to intimidate striking workers, suppress environmental protests, or violently clear land for industrial and resource extraction projects (e.g., mining, agriculture, infrastructure).

SLAs
SLAs – Service Level Agreements – are metrics applied to suppliers’ responsibilities, and (as with KPIs) can also be used internally within larger businesses. In the context of health, safety and sustainability, examples might include a requisite number of workplace risk assessments each year or compliance with audits and regulatory visits.

Supply chain traceability
The ability to track all suppliers involved in the design and manufacture of a product, including the sourcing of components.

T

Back to A–Z

Third-party subcontracting
Suppliers may sub-contract aspects of work – such as skilled piecework or embroidery – to individual home workers – in the garment sector, most are women. These third-party subcontractors are even more vulnerable than those in manufacturing workshops (etc.), as their working environments and the associated hazards cannot be assessed. As with other informal workers, they do not receive sick pay or other benefits; and they face a high risk of exploitation, coercion and abuse (including sexual abuse).

U

Back to A–Z

Union busting and suppression
As noted above with regard to freedom of association and collective bargaining, the right to join a union helps workers to improve conditions – including those relating to their safety and health. As well as using informal ‘subcontractors’ to avoid legal responsibilities in relation to workers’ rights, many companies use the threats of dismissal and violence in order to prevent workers from unionising.

W

Back to A–Z

Wage exploitation
Workers are recorded as being paid the national minimum wage but forced or coerced to work longer shifts than declared so that payments are inadequate. In some countries, the minimum wage may be four to five times below the amount needed to meet basic living costs – referred to as a living wage.

Wage theft
Wage theft is frequently the result of cancelled orders as well as unreasonable production targets and low unit costs demanded by buyers. Orders may have been fulfilled by workers before cancellation, when lost income due to buyer cancellation is passed on to workers by suppliers. In extreme cases this may be driven by economic downturn – for example, many household brands cancelled orders during the Covid-19 pandemic as they would not be able to sell the anticipated volume of products ordered. It can happen at any time, however.

Welfare
Workplace facilities that promote the health, safety and wellbeing of workers. These can include toilet and washing facilities, rest and changing facilities, a place to store and dry clothing and somewhere clean to eat and drink during break times.

Whistleblowing
Whistleblowing is the act of reporting illegal acts or wrongdoing in the workplace, or dangers which could affect the public interest. For example, a worker in the supply chain might blow the whistle on their employer if they found evidence that a banned substance known to cause cancer was being used in production in order to cut costs.

Work surveillance
The surveillance of work using technology can be an opportunity to improve working conditions, as human rights breaches may be more visible. However, surveillance methods may be intrusive and violate individuals’ right to privacy.