This paper centers on the allegations on human rights and forced labour issue within a case organisation palm oil producer in Malaysia which was issued with Withhold Release Order (WRO) by U.S Customs and Border Protection (U.S. CBP) for alleged incidences of forced labour. The alleged findings against this case were associated to ILO’s 11 indicators of forced labour. This paper presents an analysis of the issues and practices that led to the allegations coupled with counter measures undertaken by the case organisation. A case study was conducted based on in-depth interviews with ten selected participants who consisted of internal employees of the case company and external stakeholders who were involved in the plantation industry. The data was analysed based on the institutional forces and market forces in accordance with the institutional theory framework developed for this study. The findings generated demonstrated that foreign workers management are the most vulnerable segment towards forced labour incidents coincides with the lack of awareness in the organization and practices as well as less emphasized on forced labour indicators during laws, regulations and certification standards enforcement activities. The institutional pressure which was the WRO issued to the case company has led to company’s strategic response with several corrective actions and review in policies and procedures being implemented. The challenges, mitigation measures and corrective action taken by the case company in this study reflects in the seriousness of the industry to ensure a sustainable practice in palm oil production.