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Impact of Modern Slavery Act on businesses

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When the Modern Slavery Act 2015 came into force, it marked a significant shift in how UK businesses operate. It wasn’t just another piece of legislation to file away; it was a call to action. It asked organisations to look closer at their operations and, crucially, their supply chains.

For many business leaders and compliance professionals, this Act has reshaped the landscape of corporate responsibility. It’s no longer enough to simply deliver a good product or service. Today, you need to know exactly how that product was made and who was involved in the process.

In this blog, we’ll explore what the Modern Slavery Act means for your business, the risks of getting it wrong, and the genuine benefits of building a transparent, ethical supply chain.

Understanding the core requirements

At its heart, the Modern Slavery Act is about transparency. Section 54 of the Act specifically requires commercial organisations with a global turnover of £36 million or more to publish an annual slavery and human trafficking statement.

This statement isn’t a box-ticking exercise. It needs to set out the steps you have taken to ensure slavery and human trafficking aren’t taking place in any part of your business or supply chains. If you haven’t taken any steps, the law says you must state that clearly, though few businesses would want to make that admission publicly.

However, even if your turnover falls below this threshold, the impact ripples down. Larger clients often require smaller suppliers to demonstrate their own ethical credentials. Supply chain compliance has become a chain reaction; if you want to work with big players, you need to play by the same ethical rules.

The risks of non-compliance

Ignoring the Modern Slavery Act carries significant weight. While the immediate legal penalties might seem limited compared to other regulations, the real damage often happens elsewhere.

Reputational damage

Your reputation is your most valuable asset. In an age of instant information, consumers, investors, and clients are increasingly socially conscious about #. Being linked to modern slavery, even inadvertently through a distant supplier, can cause catastrophic damage to your brand. Trust takes years to build but can be lost in a single news cycle.

Operational disruption

Discovering unethical practices in your supply chain can halt operations overnight. If a supplier is found to be exploiting workers, you may have to terminate contracts immediately, leading to supply shortages, project delays, and financial loss.

Loss of business

As mentioned earlier, procurement teams are tightening their criteria. If you cannot provide evidence of your anti-slavery policies and due diligence, you may find yourself locked out of tenders and losing contracts to more compliant competitors.

Taking a proactive approach

Compliance shouldn’t feel like a burden. Instead, we see it as an opportunity to strengthen your business. Taking a proactive stance against modern slavery demonstrates leadership and integrity. Here is how you can ensure your business meets the Act’s requirements effectively.

1. Conduct thorough due diligence

You can’t fix what you don’t see. Mapping your supply chain is the first critical step. This involves identifying who your suppliers are, where they operate, and what risks are associated with their specific industries or locations.

We recommend moving beyond the first tier of suppliers. Often, the highest risks lie further down the chain, with subcontractors or raw material providers. Regular audits and risk assessments help you spot red flags early, such as workers having their passports withheld or excessive overtime requirements.

2. Implement robust policies

Your stance on modern slavery should be written down and accessible. A clear anti-slavery policy sets the standard for everyone in your organisation and your supply chain. It should outline your zero-tolerance approach and explain the procedures for reporting concerns.

Make sure these policies are woven into your contracts. Suppliers should understand that adherence to your ethical standards is a non-negotiable condition of doing business with you.

3. Training and awareness

Policies are only effective if people understand them. Training your staff is essential. Your procurement team, in particular, needs to know what to look for when selecting and managing suppliers.

But awareness shouldn’t stop at the procurement desk. All employees should understand the basics of modern slavery and feel empowered to speak up if they spot something that doesn’t look right. Creating a culture of openness is your best defence.

The benefits of transparency

While the work involved in compliance is real, so are the rewards. Businesses that embrace transparency often find they run more efficiently.

  • Better supplier relationships: rigorous due diligence often leads to stronger, more collaborative relationships with suppliers. When you work together on ethical standards, you build trust.
  • Investor confidence: Investors are increasingly using ESG (Environmental, Social, and Governance) criteria to screen potential investments. A strong anti-slavery stance makes you a more attractive proposition.
  • Employee pride: People want to work for companies that do good. Demonstrating a commitment to human rights boosts morale and helps attract top talent.

How SafeContractor can support you

Navigating the complexities of supply chain compliance can feel daunting. It takes time, resource, and expertise to monitor every supplier effectively. That is where we can help.

We specialise in taking the headache out of compliance. Our platform allows you to assess your supply chain’s health, ensuring that the contractors and suppliers you work with meet the necessary standards, including those related to modern slavery.

If you’re looking for in-depth guidance and practical steps to strengthen your organisation’s approach to modern slavery compliance, we invite you to download our recently published Modern Slavery Whitepaper. It’s packed with insights, real-world examples, and actionable advice to support your journey toward a more ethical and transparent supply chain. Download the Modern Slavery Whitepaper here.

With us in your corner, you can focus your time on other areas of your business, safe in the knowledge that your supply chain is not just compliant, but ethical. We provide the visibility you need to make informed decisions and the support to help your suppliers improve.

Conclusion

The Modern Slavery Act has fundamentally changed the expectations placed on businesses. It challenges us to take responsibility for the human cost of our operations. While the requirements are strict, they drive us towards a fairer, more transparent way of working.

By conducting proper due diligence, training your teams, and fostering a culture of transparency, you protect your business from risk and position yourself as a leader in ethical business practice.

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If you are looking to strengthen your supply chain visibility, we are here to help. Let’s work together to build a safer, fairer working world.

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