Why Modern Slavery Compliance Matters for Your Business
The Modern Slavery Act is placing increased pressure on companies to act, it is critical to ensure your operations and supply chains are free from exploitation. Explore how Verified’s platform empowers businesses to make a real difference whilst strengthening their operations for success.
Modern slavery can emerge when contractors or subcontractors, particularly in roles such as cleaners, security personnel, and migrant workers, are subjected to coercive or deceptive practices. They may find themselves working in unfair conditions, which may include discriminatory practices, excessively long working hours, and underpayment.
Similarly, within the facilities management industry, modern slavery risks can be present in the wide range of services provided – from cleaning, maintenance, and security to catering and waste management. Layers of subcontracting, particularly common in these industries, can further obscure these exploitative practices, making them even more challenging to detect and address. The complex and often opaque supply chains in this industry can mask labor exploitation, making it harder to identify and confront.
The Modern Slavery Act (the Act) is a significant piece of legislation aimed at eradicating modern slavery in global supply chains and businesses.
Non-compliance with the Act can result in significant financial, legal, and reputational risks due to affected human rights. Therefore, it is essential for businesses to understand the importance of compliance and proactively address modern slavery risks. Understanding and vigilantly monitoring for signs of modern slavery is crucial for businesses in these sectors. It ensures they uphold ethical standards and protect human rights in their operations and supply chains, creating safer and fairer working environments and ensuring their operations and supply chains are free from exploitation.
Non-compliance with the Act can result in significant financial, legal, and reputational risks due to affected human rights. Therefore, it is essential for businesses to understand the importance of compliance and proactively address modern slavery risks. Understanding and vigilantly monitoring for signs of modern slavery is crucial for businesses in these sectors. It ensures they uphold ethical standards and protect human rights in their operations and supply chains, creating safer and fairer working environments and ensuring their operations and supply chains are free from exploitation.
Business Practices Are Continuing to Fall Short
Following a recent report, Broken Promises: Two Years of Corporate Reporting Under Australia’s Modern Slavery Act, 92 companies’ corporate statements with known risks of modern slavery were examined in depth. The report highlighted:
- 66% of the companies were still failing to comply with the basic reporting requirements mandated by the legislation (with some companies not submitting reports at all);
- 56% of the commitments made by companies in the first year of reporting to improve their modern slavery response remained unfulfilled based on their second-year statements; and
- 43% of companies reviewed are still failing to identify obvious modern slavery risks in their supply chains.
Given Directors can be held liable for failing to meet their obligations under the Act, the need for companies to develop and implement policies and processes to identify, manage and mitigate the risk of modern slavery is becoming increasingly crucial.
Modern Slavery With Verified
Part of addressing modern slavery means that companies must ensure employees, contractors and visitors are not only aware of relevant policies such as HR, whistleblowing, and ethical sourcing, but also have ready access to them. These policies should articulate clear reporting mechanisms to facilitate confidential and anonymous disclosure. By creating an environment where individuals feel safe to report concerns, companies can more effectively tackle modern slavery and promote ethical practices throughout their operations.
Considering the growing importance of addressing the mounting legislative requirements, Verified has stepped in as a vital partner for businesses to effectively deliver policies to, and educate the end user.
A key component in the fight against modern slavery is the encouragement of whistleblowers to come forward. By making clear and accessible policies, such as codes of conduct, whistleblower, and modern slavery information readily available to end-users, Verified assists in fostering a culture of transparency and accountability, which is crucial in combating modern slavery.
Platform Benefits to Your Business
Learn More on How You Can Safeguard Against Key Risks
Learn more on how we can make a lasting impact in the fight against modern slavery together. Pave the way for ethical business practices and educate your stakeholders . If you have any questions, feel free to give us a call on 1300 133 950 or send us an email at [email protected].