It requires companies to take steps to prevent slavery and human trafficking in their operations and supply chains. In this blog post, we will explore what the UK Modern Slavery Act requires of companies and the steps that they must take to comply with the law.
This includes companies that are involved in manufacturing, retail, services, and other sectors. Additionally, the Act applies to companies that have a subsidiary or franchise in the UK, regardless of where the parent company is located. Companies that do not meet the turnover threshold may also voluntarily comply with the Act's reporting requirements to demonstrate their commitment to eradicating modern slavery from their operations and supply chains.
The government can issue an injunction to companies, which can result in the suspension of the business operation. In addition, non-compliant companies can face significant fines and other legal sanctions. From a reputational perspective, companies that are associated with modern slavery can face severe criticism from customers, stakeholders, and the media, which can result in a significant decline in market value.
Therefore, it is crucial for companies to take the UK Modern Slavery Act seriously and implement robust policies and procedures to prevent modern slavery in their operations and supply chains.
Under the UK Modern Slavery Act, companies are required to conduct due diligence on their supply chains to identify and address any modern slavery risks. This includes conducting risk assessments, mapping their supply chains, and engaging with suppliers to understand their policies and practices related to modern slavery. The due diligence process should also involve monitoring and auditing suppliers to ensure that they are complying with the company's modern slavery policies and procedures. If the company identifies any instances of modern slavery in its supply chain, it must take action to address the issue and prevent it from occurring in the future.
FRDM uses basic vendor level data to build a dynamic risk monitoring system for your supply chain. Reporting features cut your team’s time to prepare report 60-80%.
Finally, the UK Modern Slavery Act encourages collaboration between companies, NGOs, and other stakeholders to address modern slavery issues. This may involve sharing best practices and collaborating on initiatives to address modern slavery risks in specific industries or regions.Companies are also encouraged to report any instances of modern slavery that they identify to the relevant authorities. This may include reporting to the police or other law enforcement agencies, as well as to NGOs or other organizations that are working to address modern slavery issues.
FRDM is a leader in the modern slavery space. Our technology has been covered by CNN, Vogue, Fast Company, Wall Street Journal and others. We are partnered with Made In A Free World, one of the most influential NGOs in the Anti-Slavery space, and to whom FRDM donates 5% of every subscription fee.