The Modern Slavery Act 2015 is a long overdue legislation that ensures all businesses within the supply chain are working consciously and ethically.

As globalisation grows, so does the complexity of international supply chains and many companies have been involved with modern slavery in their supply chain without being aware. That is why the Modern Slavery Act 2015 has been created; to ensure businesses are more aware of what is going on in their own supply chains and are taking conscious steps to stamp out modern slavery.

What Is Modern Slavery?

According to the Walk Free Global Slavery Index, 2013, over 29 million people worldwide are affected by ‘modern slavery’. This term refers to the level of exploitation that involves people being held captive by their employers. These people are treated like property by those who employ them and are traded and even destroyed as if they are objects, not human beings.

The main means of control include debts to the employer for ‘recruitment’ that the employee cannot pay off and threats of physical harm. Modern slaves are deprived the freedom to leave their jobs, workplaces or even have control over their own body in more extreme cases.

Where Does Modern Slavery Occur?

Shockingly, evidence suggests that no country or industry is completely safe from modern slavery. Electronics and high tech, steel and automobiles, agriculture and seafood, mining and minerals, garments and textiles, and shipping and transportation are among the industries affected globally.

What is even more worrying is that not even countries with highly developed economies are free from modern slavery. There are sectors in every country around the globe that are not operating within reach of Government regulation and this is where illegal and immoral practices such as modern slavery are able to continue.

The common areas where modern slavery is in practice are where:

  • There are insufficient regulations and laws or a lack of enforcement.
  • There is poor business and government accountability.
  • High levels of poverty occur.
  • Discrimination is widespread.
  • There is a large use of migrant workers (working illegally for cash-in-hand or payment in kind).
  • There are conflict zones.

The Impact Of Modern Slavery on Business

Showing a conscious effort is being made within a business to stamp out modern slavery in the supply chain is good for business. It shows good ethics and moral values, and builds trust in the organisation both at consumer level and employee level.

The implications of not complying with modern slavery legislation are not just legal sanctions such as fines. It would also have a significantly negative impact on brand reputation and would lead to loss of market share and consumer trust.

Complying With The Modern Slavery Act: Advice From CIPS

The Chartered Institute of Purchasing and Supply (CIPS) are a driving force in the UK’s prevention of modern slavery in supply chains. They have produced some helpful advice for procurement professionals on how to ensure you are complying with the Modern Slavery Act. There are also plenty more valuable resources available to CIPS members on the CIPS website to learn more and keep up to date on the topic of modern slavery in supply chains.