USA Law and Practice Contributed by: Michael G. Congiu and Gillian Gilbert, Littler
is framed as an iterative, stakeholder-informed process that should be embedded in corporate risk management systems and publicly commu - nicated. The NAP outlines several priority areas where soft law tools are being leveraged: • Advisory and Co-ordination Mechanisms: A new Federal Advisory Committee on RBC will guide policy and stakeholder engage - ment, particularly around critical minerals and HRDD. • Federal Procurement: The plan strengthens enforcement of anti-trafficking and forced labour provisions in federal supply chains, using procurement standards as a lever for ethical conduct. • Access to Remedy: Agencies such as the Department of Labor (DOL), Development Finance Corporation (DFC), and Export- Import Bank (EXIM) are enhancing grievance mechanisms. Reforms to the USNCP include anti-reprisal protections and expanded mediation capabilities. • Business Resources: The launch of an RBC and Labor Rights InfoHub and sector-specific guidance aim to support businesses in high- risk industries and emerging technologies. Additional commitments reflect a broad applica - tion of soft law principles: • Technology Governance: Initiatives promote rights-respecting AI and address tech-facili - tated gender-based violence. • Workers’ Rights: The US Trade Representa - tive (USTR) is developing a Forced Labor Trade Strategy, while DOL is enhancing transparency and stakeholder engagement on enforcement.
• Environmental Justice: Programmes support climate-resilient labour rights and inclusive environmental governance. • Anti-Corruption: Implementation of the Cor - porate Transparency Act and new toolkits aim to foster ethical business environments through transparency and peer learning. While the NAP lacks the force of law, it serves as a powerful policy signal. It shapes expec - tations, informs procurement and investment decisions, and encourages voluntary compli - ance with global norms. The contrast with the previous administration – where enforcement was minimal – highlights the role of political will in the effectiveness of soft law. Should a future administration deprioritise the NAP, its influ - ence may again wane, underscoring the fragility and flexibility of soft law instruments in shaping responsible business conduct. 2.2.8 Regulatory Change See 2.2.6 Other . 3. Corporate Liability 3.1 Criminal and Civil Corporate Liability Trafficking Victims Protection Act (TVPA) The TVPA imposes both criminal and civil liability on corporations that benefit from human traffick - ing, including forced labour, particularly within foreign supply chains. A corporation may be held criminally liable if it acts with reckless disregard of the fact that it is financially benefitting from trafficking-related activities. Victims may also bring civil claims under the TVPA. To establish liability, a plaintiff must dem - onstrate that the company benefitted from par - ticipating in a venture that it knew or should
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