Skip to content

2 June, 2023

Subscribe Advertise About Us
  • My Account
  • Register
  • Log In
  • Log Out

Board Agenda

  • Governance
  • Strategy
  • Risk
  • Ethics
  • News
    • Categories

      • View All
      • Board Moves
    • Succession planning

      News round-up: this week in governance

      UK 'less optimistic' on ESG than European boards; holding stock; ethics codes; governance in Japan;...

    • C-suite barometer Leaders are positive about growth despite economic uncertainty

      Sustainability and technology are strategic priorities for boards in 2023, Mazars’ annual barometer of the...

    • EU CSDDD Pressure builds on EU to amend due diligence rules

      More companies have added their voices to the call to make the EU Corporate Sustainability...

  • Insight
    • Categories

      • View all
      • Governance
      • Strategy
      • Risk
      • Ethics
      • Board Expertise
      • finance
      • Technology
    • Climate finance

      How climate change alters the financial landscape

      To achieve sustainability, companies and boards will need to look not only to their operations,...

    • generative AI

      Five AI issues to consider right now

      We may not know what AI will mean for us all in the long term,...

    • sexual misconduct

      How to prevent sexual misconduct in your organisation

      Revelations about the CBI may be shocking, but there is no place for complacency and...

  • Comment
      • View all
    • hybrid AGM

      Hybrid AGMs maximise shareholder participation

      Avoid virtual-only annual general meetings: although pragmatic in an emergency, they water down shareholders’ rights.

    • ESG break up ESG: Should E and S break up with G?

      In the world of investing, maturity has revealed significant practical shortcomings in combining environmental, social...

    • controlling shareholders The politics and geopolitics of controlling shareholders

      Shareholders with a controlling interest influence not only financial matters but can also wield great...

  • Interviews
      • View All Interviews
      • Podcasts
      • Webinars
    • information resilience IT transformation sees boards moving to ‘continuous’ management

      Data analytics available on demand requires a resilient—and selective—approach to sharing information, a webinar panel...

    • life sciences podcast Reform of NHS levy ‘harms UK competitiveness’

      Boards in the pharmaceutical and life sciences sector face increasingly difficult decisions, according to a...

    • Board priorities 2023 Board priorities 2023: tact, trust and transparency

      We asked key figures what would help boards this year. The answers ranged from 'smarter...

  • Careers
      • View all
      • Selection
      • Board Moves
    • board survey 2023 Board appointments fell sharply in 2022

      Companies appear to be sticking with experienced leaders—to the detriment of progress—suggests FTSE 350 boardroom...

    • diversity statistics Diversity statistics challenged by new scorecard

      Companies can ‘hit the target, but miss the point’, say academics researching a more ‘holistic’...

    • CEO turnover CEO turnover rises steeply

      The researchers say political changes and business difficulties may have accelerated turnover, which has risen...

  • Resource Centre
      • White Paper Downloads
      • Book Reviews
      • Corporate & Advisory Services
    • Mazars c-suite 2023

      Mazars C-suite barometer 2023

      The Mazars C-suite barometer is based on responses from more than 800 C-suite executives from...

    • CFO Career Survey Report

      Our survey, in December 2022, of almost 200 CFOs across the public, private and non-profit...

    • The Engagement Appeal: The Path to Inclusive Investor Engagement

      The Engagement Appeal: The Path to Inclusive Investor Engagement

      The Path to Inclusive Investor Engagement highlights the need for greater engagement between companies and...

  • Events
  • Search by topic
    • Governance
    • Strategy
    • Risk
    • Ethics
    • Regulation
    • ESG
    • Investor Relations
    • Selection
    • Board Expertise
    • finance
    • Technology

Slow start for Modern Slavery Act

by Gavin Hinks on November 8, 2016

Seven hundred companies have submitted Modern Slavery Act statements, but few have met all the core elements of the law. Resources, a lack of knowledge and a need for more guidance have all contributed to a slow start.

human trafficking, hands tied with rope

Image: Shutterstock

Theresa May, the UK prime minister, has made a campaign against modern slavery one of her flagship policies. But even as she recently called for Britain to lead the world in beating human trafficking, businesses in the UK were still coming to terms with their responsibilities.

The end of September saw the deadline for companies to complete their first mandatory statements under the Modern Slavery Act. But, according to the Business and Human Rights Resource Centre, the results were disappointing.

“Many companies failed to provide any information on the action they are taking, or be open about where the risks lie in their supply chain.”

–Phil Bloomer, Business and Human Rights Resource Centre

Of the 700 businesses that submitted statements, just 62 complied with the three core obligations under the law: explicit board approval for the statement; sign-off from a board director or equivalent; and availability of the statements on a company website.

The resource centre is not impressed. Phil Bloomer, an executive director at the Business & Human Rights Resource Centre, writes in an article for Reuters that there is a “gulf” between the companies providing the best statements “and the majority of companies providing little information or seeking to tick boxes”.

Bloomer also highlights a problem with what the statements say. “The content of statements is also not matching the sentiments from companies that they wish to end this scourge,” says Bloomer. “Many companies failed to provide any information on the action they are taking, or be open about where the risks lie in their supply chain.”

Good examples of Modern Slavery Act statements include those from Burberry, Marks & Spencer and Oxfam GB, says Bloomer.

Provisions

The Modern Slavery Act 2015 came into force in March last year. Among its measures it established a special commissioner to encourage best practice in slavery prevention and new powers to seize the assets of human traffickers.

At first there was little in the bill to place responsibility on companies, but a campaign brought about the Transparency in Supply Chain provision, which demands that companies with a turnover of £36m or more compile annual statements disclosing their efforts to ensure no slavery in their businesses or supply chains. They can also choose to disclose that no steps have been taken. There is no compulsion in the legislation to conduct supply chain due diligence, nor are there any penalties for non-compliance.

There is, however the court of public opinion. Phil Bloomer’s article is an early attempt to shine a spotlight on the quality of statements so far. His criticisms include the observation that similarities between many statements indicate the use of disclosure templates. He suggests that the consultants providing advice may be providing little more than compliance.

“Some of them do not seem to be fully aware of what to focus on to make their statements more effective.”

–Philippa Foster Back, Institute for Business Ethics

Bloomer is not alone in being concerned. Philippa Foster Back, a director at the Institute for Business Ethics, says some companies have struggled to focus on “the relevant issues”. According to Back, many statements show a “tendency to talk about their general commitment to ethics rather than bringing attention to the prevention of modern slavery”.

But there also seems to be a knowledge deficit. “Some of them do not seem to be fully aware of what to focus on to make their statements more effective”, says Back.

Hurdles

There may be other issues explaining why some companies have been reticent in their statements. The CBI says businesses are taking a range of measures but believes that they face a tall order in combing through their suppliers.

“The main hurdle for businesses will be the limitations of due diligence where they have large and complicated, multi-tiered supply chains,” a statement said.

Awareness and understanding of the Act was initially low—not helped, according to a CBI statement, by “poorly drafted guidance and legislation”. In fact, the CBI believes businesses are still in need of help from the government, even though they are now catching up with their responsibilities.

“The main hurdle for businesses will be the limitations of due diligence where they have large and complicated, multi-tiered supply chains.”

–CBI

“It would be good to see further clear guidance, especially for smaller businesses the Act covers.”

The Institute of Directors (IoD) has smaller-scale businesses in mind too. According to Andy Silvester, head of campaigns at the IoD, there is a resource issue: small companies do not have compliance units or the ability to “conduct high-quality audits”; they also lack the “technological nous” to monitor where their imports come from.

“It’s important, therefore,” says Silvester, “that the government does all it can to work with international partners to drive higher standards of enforcement and investigations in foreign countries too.”

He adds that if the momentum established by the Act is to be maintained, “we need to see the government and corporate partners call out bad behaviour when they see it.”

  • Facebook
  • Twitter
  • Google+
  • LinkedIn
  • Mail

Related Posts

  • Companies urged to improve modern slavery reporting
    April 26, 2022
    Child labourer breaking rocks

    Research reveals one in ten UK companies fails to provide a modern slavery statement, despite it being a legal requirement.

  • ‘Purpose-driven’ leaders honoured at Modern Governance awards
    September 23, 2021
    Diligent Modern Governance 100

    ESG & Diversity Trailblazer was among the new crop of Diligent governance awards that reflect the big issues in boardrooms around the world.

  • Amazon shareholders call for tax transparency
    March 7, 2022
    Jeff Bezos, founder of Amazon

    Investors want Amazon to use the Global Reporting Initiative’s Tax Standard to disclose its tax arrangements.

  • Climate risk and supply chains revealed as AGM hot topics for 2022
    February 10, 2022
    AGM cubes on financial documents

    A recent webinar hosted by Diligent and Board Agenda saw experts unpick the big issues on the agenda at shareholder meetings this year.

For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda

human trafficking, Theresa May, UK Modern Slavery Act

Search


Sign up to our Newsletter

Receive independent news, thoughtful journalism & expert insights about leadership, corporate governance & key boardroom issues straight to your inbox every week.

SIGN UP

Follow Us

 

 

 

 

Most Popular

  • Corporate governance code review boosts internal controls
  • ESG: Should E and S break up with G?
  • Five AI issues to consider right now
  • Board appointments fell sharply in 2022
  • Pressure builds on EU to amend due diligence rules

Featured Partner Profile

Diligent

Diligent

Diligent Corporation, which was founded in 2001, is headquartered in New York, NY with a European HQ in London. Diligent’s modern governance platform empowers leaders and teams at every level of the organisation to digitally transform and create ...

Featured Partner Resources

The Engagement Appeal: The Path to Inclusive Investor Engagement

The Engagement Appeal: The Path to Inclusive Investor Engagement

This is the inaugural white paper from The Engagem...

Stakeholder Engagement: A Roadmap for UK Plc Boards

This guide aims to provide directors and their col...

Digital Boards: How Technology Adoption is Driving Culture Change and Resiliency

Digital tools proved their worth to boards during ...
Leadership in AI report

Leadership in AI

This report from Board Agenda and Mazars, in assoc...
Director's Guide to Internal Investigations

A Director's Guide to Conducting Internal Investigations

An internal investigation must be handled meticulo...
 

ADVERTISE – FREE CORPORATE LISTING

FREE - Add your company profile to our Corporate & Advisory Directory.
ADD

ADVERTISE – PROMOTE YOUR REPORTS & WHITEPAPERS

FREE - Add your company profile to our Corporate & Advisory Directory.
Add Resource

Register Free

Register to receive free article views, selected resource downloads, and all the latest news alerts straight to your inbox. Register


  • Editors & Contributors
  • Editorial Advisory Board
  • Corporate & Advisory Services
  • Media Marketing Solutions
  • Contact Us
  • Careers
  • Board Director Network
  • Terms & Conditions
  • Privacy Policy
  • Cookies
  • Sitemap
|