Modern slavery—like forced labor, and unfair treatment—still affects more than 40 million people around the world. To help stop modern slavery, governments are making stricter laws that require businesses to act fairly and responsibly. One well-known law is the Modern Slavery Act, introduced in the UK in 2015. It requires companies to clearly show what they are doing to find and prevent modern slavery in their operations and supply chains.
What Is the Modern Slavery Act?
The Modern Slavery Act is a UK law that requires businesses to take responsibility for the risk of slavery and human trafficking in their operations. It legally requires some companies to publish a yearly statement showing what they are doing to stop modern slavery. The aim is to be open, support fair sourcing, and promote responsible business.
Who Needs to Comply?
Any business that:
- Operates in the UK, and
- Businesses with an annual global revenue of £36 million or higher must prepare and publish a modern slavery statement each year.
This regulation covers both UK-based businesses and international companies working in the UK.
The statement must be:
- Approved by the board or senior leadership
- Signed by a director
- Clearly linked from the company’s homepage
What Should the Statement Include?
To meet the requirements of the Modern Slavery Act, your statement should outline:
- Your supply chain structure
- Risk assessment and management strategies
- Policies and procedures to tackle modern slavery
- Training provided to staff, especially those in procurement
- Due diligence steps and actions taken to address identified risks
The report should be honest and detailed. A generic or vague statement may not meet expectations—and it could damage your brand’s reputation.
Why It Matters for Businesses
Complying with the Modern Slavery Act isn’t just about avoiding penalties. It also helps businesses:
- Build trust with investors, partners, and consumers
- Minimize the risk of supply chain disruptions due to labor abuses.
- Enhance their brand as ethical and responsible
If companies don’t follow the rules, they could face bad publicity, lose customers, and get into legal trouble—especially as more countries make their laws stricter.
Key Challenges in Compliance
For many companies, addressing modern slavery risks isn’t easy. Common challenges include:
- Limited visibility into complex, multi-tiered supply chains
- Resource limitations, particularly for smaller companies
- Cultural differences and varying legal standards in supplier countries
- Fear that acknowledging risks may damage brand reputation
However, being transparent—even about shortcomings—shows leadership and accountability. Stakeholders appreciate honest efforts to improve.
Real-World Examples of Compliance
Leading companies show that strong compliance is possible:
- Marks & Spencer: Known for detailed annual statements with clear progress tracking
- Nestlé: Conducts audits and engages with local communities in high-risk areas
- Telstra: Focuses on employee training and active supplier partnerships
These organizations demonstrate that going beyond minimum legal requirements pays off.
What’s Next for Modern Slavery Regulation?
The legal landscape is evolving. Future trends may include:
- Mandatory human rights due diligence laws in more countries
- Increased enforcement and penalties for non-compliance
- Use of technology such as blockchain for supply chain traceability
- Keeping up-to-date and flexible to stay compliant and succeed in the market.
- Keeping up-to-date and flexible is crucial for staying compliant and competitive.
Getting Started: Steps to Compliance
Identify your supply chain – Understand who your suppliers are and where potential risks exist.
Conduct risk assessments – Identify high-risk sectors or countries
Develop strong policies – Make anti-slavery part of your core business strategy
Educate employees – Especially those involved in procurement and operations
Track and inspect – Conduct regular checks and take action to fix any issues.
Report transparently – Publish clear, detailed, and honest annual statements
Conclusion:
Complying with the Modern Slavery Act is both a legal and ethical responsibility. It helps protect vulnerable individuals, improves business integrity, and ensures long-term success. If your business hasn’t started yet, now is a good time to act—begin by checking your supply chain carefully and being open about your efforts.
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