The UK Government has enacted a new law that will require thousands of businesses operating in the country to disclose what they are doing to expose slave labour in their supply chains.
Part 6 of the Modern Slavery Act 2015 requires any commercial organisation operating in the UK with a net annual turnover of at least £36 million to produce a Slavery and Human Trafficking Statement (Statement) outlining the steps taken to ensure that no slavery or trafficking exists in its own business or its supply chain. The new legislation seeks to enable consumers to make more informed decisions about where they chose to shop, as well as placing the onus on companies to take responsibility for every step of the supply chain process.
It is estimated about 17,000 UK businesses will have to publish these statements before the end of their financial year. If a company does not take the required steps, they must openly acknowledge in a published statement that they have failed to look into the possibility of slavery in their supply chain.
The UK Home Office has published guidance on preparing a Statement in, ‘Transparency in Supply Chains etc. — A practical guide’. The guide explains what information businesses need to provide consumers with to show that they are certain there is no use of forced labour anywhere in their supply chains.
The legislation comes in response to a number of scandals involving high profile companies selling products that at some stage had been manufactured using slave labour. In 2014, it was reported that four global retailers Walmart, Carrefour, Costco and Tesco and other leading supermarkets including Morrisons, the Co-operative, Aldi and Iceland had sourced prawns from a Thai based food company that was buying fishmeal from some suppliers operating fishing boats who were engaged in slave labour.
Click here to read the UK’s Modern Slavery Act 2015.
Click here for the UK Home Office’s guide to transparency in supply chains.