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Carrots and sticks: increasing corporate accountability for ‘modern slavery’

Corporate accountability for modern slavery has received greater political and legislative attention in recent years, but is reporting enough?

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The container port in Singapore. Kimon Berlin/Flickr. (CC 2.0 by)

Labour exploitation, including forced labour, happens in the supply chains of corporations all over the world. Fishing boats in Thailand, construction sites in Qatar, and bedding factories in the UK have all been publicised as sites of forced labour, and many other labour abuses have been linked to the supply chains or operations of UK and European companies. This problem has long been known, but it is only recently that the role of companies in preventing and addressing labour exploitation has received significant political and legislative attention. This article looks at some of these recent efforts in the UK and the US, their current and potential impact, and considers what these efforts tell us about current approaches to ‘modern slavery’.

Legislating for transparency in supply chains

The UK Modern Slavery Act was passed in March last year and has been widely touted by the UK government as being unique and ‘world leading’. The most celebrated feature of the act is its transparency in supply chains (TISC) provision. This requires companies to prepare a “slavery and human trafficking” statement each financial year, which sets out the steps the company has taken to ensure that slavery and human trafficking is not taking place in any part of its business or supply chains. These statements must be approved by the board of directors and posted in a prominent place on the company’s website.