Theres been a lot of talk about modern slavery recently, and it’s in large part because the new Modern Slavery Act 2015 came into effect earlier this month.
The Act essentially calls for corporations to be more transparent in what actions theyre taking to ensure their business and supply chains are slavery free.
It doesnt affect all companies. Under the Act, only businesses with an annual global turnover of 36m or more need to publish a statement on their website of how theyre preventing labour exploitation, but failure to do so could lead to some hefty fines and a possible injunction.
Not only this, but the press will be eager to scrutinise those big corporations which fail to publish a statement, or those which do but have weak statements that are misleading or ambiguous.
What should businesses do
Dont panic. If you already have a review and inspection strategy in place to ensure your supply chains are above board and dont pose a risk to you, all you have to do is be transparent about this to the public and publish it on your website each financial year.
If you dont, or you dont think you do enough to ensure your supply chain is slavery free, then you dont necessarily have to up your efforts (though you should). The Act just obliges companies to state what actions they take, so you could essentially publish a statement to say you take little or no action, but of course, your customers and investors won’t be all that pleased to read this.
Having to publicise what actions they take to make sure their organisation is completely free of labour exploitation might make companies think twice about the effort they make to do this, thats certainly the aim of the Act anyway.
So, you need to get to work straight away on drafting a statement for your website. This statement has to be prominently linked to from your websites homepage, too.
Its been advised that companies take legal and PR advice on getting the statement just right, as mentioned previously, the press will be keen to scour statements for any wrongful wording or missing information and out those companies which have seemingly immoral ethics.
This statement needs to be approved by the board of directors and signed by a director, then you need to publish it on your website. You need to do this each financial year, too.
Read on to discover what risks you incur by not taking action…