What is modern slavery and why is it important for businesses to train and educate their employees and their supply chain.

#Modernslavery, also known as human trafficking, is a widespread and pervasive issue affecting millions of individuals worldwide. According to the International Labour Organization (ILO), approximately 21 million people are victims of forced labour globally, generating an estimated $150 billion in illegal profits each year. Modern slavery can occur in various forms, including forced labour, debt bondage, forced marriage, and the exploitation of children.

In recent years, there has been an increased focus on modern slavery, particularly in the context of businesses and their supply chains. It is essential for companies to understand what modern slavery is, how it can manifest in their operations, and the importance of training and educating their employees and supply chain to prevent and mitigate its occurrence.

Modern slavery can occur at any point in a company's supply chain, from raw material production to manufacturing, distribution, and retail. It can be challenging for companies to identify instances of modern slavery in their operations, particularly if they lack visibility into their supply chains. However, failing to address the issue can have serious consequences for businesses, including reputational damage, legal and financial penalties, and a loss of consumer trust.

One of the key reasons why it is important for businesses to train and educate their employees and supply chain on modern slavery is to prevent its occurrence in the first place. By raising awareness of the issue and providing training on how to identify and report potential instances of modern slavery, companies can take proactive steps to address the problem.

For example, businesses can provide training to their employees on how to identify signs of modern slavery, such as restricted movement, poor working conditions, and withholding of pay. They can also establish reporting mechanisms that allow employees to raise concerns about potential instances of modern slavery without fear of retaliation. By doing so, businesses can create a culture of awareness and vigilance that can help to prevent modern slavery from occurring in their operations.

Another reason why it is important for businesses to train and educate their employees and supply chain on modern slavery is to ensure compliance with laws and regulations. Many countries have laws that require businesses to take steps to prevent and mitigate modern slavery in their operations and supply chains. For example, the UK Modern Slavery Act 2015 requires businesses with a turnover of ￡36 million or more to publish an annual statement detailing the steps they have taken to address modern slavery in their operations and supply chains.

The Australian Modern Slavery Act 2018 (MSA) is a federal law that seeks to prevent and eliminate modern slavery in supply chains and operations. This applies to businesses with an annual revenue greater than $100 Million. More on this later in the article.

Businesses that fail to comply with these laws and regulations can face serious consequences, including fines, legal action, and reputational damage. By training and educating their employees and supply chain on modern slavery, companies can ensure that they are complying with relevant laws and regulations and avoiding the potential consequences of non-compliance.

Finally, businesses that take steps to prevent and address modern slavery in their operations and supply chain can reap a range of benefits. For example, they can enhance their reputation by demonstrating a commitment to ethical and responsible business practices. They can also improve their relationships with suppliers by working collaboratively to address the issue. Additionally, they can enhance their brand value by attracting consumers who are increasingly demanding that businesses take responsibility for the impact of their operations on society and the environment.

In conclusion, modern slavery is a pervasive issue that can occur at any point in a company's supply chain. It is essential for businesses to understand what modern slavery is, how it can manifest in their operations, and the importance of training and educating their employees and supply chain to prevent and mitigate its occurrence. By doing so, companies can take proactive steps to address the problem, ensure compliance with relevant laws and regulations, and reap a range of benefits, including enhanced reputation and improved relationships with suppliers and consumers.

The Modern Slavery Assessment Cycle

Design

Design and implement a modern slavery management framework

Assess

Conduct due diligence on the modern slavery risks in the

business supply chain and operations

Mitigate

Adopt strategies for addressing the identified modern slavery risks

Remediate

Develop and implement appropriate remediation measures

Monitor & Review

Monitor and review the effectiveness of the modern slavery risk management framework and processes

Report

Establish appropriate mechanisms for internal and external reporting

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The Australian Modern Slavery Act 2018

The Australian Modern Slavery Act 2018 (MSA) is a federal law that seeks to prevent and eliminate modern slavery in supply chains and operations. Modern slavery encompasses various forms of exploitation, including forced labour, debt bondage, human trafficking, and slavery-like practices.

The MSA applies to Australian entities with an annual revenue of over AUD $100 million*, including Australian-based companies, foreign companies operating in Australia, and government entities. These entities are required to prepare a Modern Slavery Statement outlining the steps they have taken to assess and address modern slavery risks in their operations and supply chains.

To comply with the MSA, businesses need to take a risk-based approach to identify and assess modern slavery risks within their operations and supply chains. This includes conducting due diligence to understand the risks associated with their suppliers and taking action to mitigate those risks.

The MSA also requires businesses to consult with their stakeholders, including workers, suppliers, and civil society organisations, in identifying and addressing modern slavery risks. Businesses are expected to engage with these groups to understand their concerns and develop strategies to address any identified risks.

Additionally, the MSA includes provisions for the government to establish a publicly accessible Modern Slavery Register, which lists the entities required to submit a Modern Slavery Statement. This register enables stakeholders, including consumers and investors, to review the steps taken by businesses to address modern slavery risks.

Overall, the Australian Modern Slavery Act is a crucial step towards addressing modern slavery in supply chains and operations. Businesses that comply with the Act can enhance their reputation, demonstrate their commitment to ethical practices, and build trust with stakeholders. By working to eliminate modern slavery, businesses can also contribute to a more just and sustainable world.

*There have been discussions occurring which may see the current threshold of $100M lower to $50M per annum revenue.

Access expertise and support

How well is your business doing regarding Modern Slavery compliance? Apricot Consulting has developed our ‘Modern Slavery Health Check’ which helps identify compliance, gaps and risks in organisations Modern Slavery Statement and associated employee and supply chain engagement, process, compliance and training. ?

Contact Apricot Consulting Head of Corporate Social Sustainability, James McHugh to schedule a ‘health check’. [email protected]

Author

Geoff Gourley is a leading Global Social Innovator, Entrepreneur, Impact Investor and Director of ESG at Apricot Consulting, in 2017 acknowledged in the Top 100 Social Entrepreneurs & Innovators around the world. He has 30 years’ experience in design, property, construction, and all things Environmental, Social, Governance and Impact.

+61 428 317 387

[email protected]

Apricot Consulting Consulting

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