Industry Talk

Regular Industry Development Updates, Opinions and Talking Points relating to Manufacturing, the Supply Chain and Logistics.

How Business Can Take Stronger Steps to Eradicate Modern Slavery in the Supply Chain

It’s been ten years since the UK’s Modern Slavery Act came into force, and its real-world impact is being closely examined. At the close of 2024, a House of Lords committee tasked with assessing the legislation, reappraised it and said, “The world has changed, and best practice has moved on.” These findings serve as a call to action for all companies to move beyond checkbox compliance and take meaningful steps in safeguarding human rights across their supply chains.

As global supply chains become more intricate, businesses must now go beyond basic compliance to ensure ethical labour practices. This means staying on top of the evolving labour laws and conducting rigorous third-party due diligence are critical steps in mitigating risks and preventing human rights violations within the supply chain.

Strengthening internal policies, improving transparency, and fostering accountability across the supply chain can help organisations proactively mitigate modern-day slavery rather than reactively addressing violations after they occur. Ty Francis, MBE, CCEP, Chief Advisory Officer at LRN Corporation, explores this further…

Ten Years of Progress, But Is It Enough? 

When the Modern Slavery Act came into force in 2015, it aimed to make provisions about slavery, servitude, forced or compulsory labour, and human trafficking, including provision for the protection of victims; to make provision for an Independent Anti-slavery Commissioner; and for connected purposes. It was widely regarded as groundbreaking, requiring companies to publish annual statements detailing the steps they had taken to prevent slavery in their operations and supply chains. However, ten years later, critics argue that the legislation has lacked enforcement, with many companies either failing to produce meaningful reports or neglecting to publish them at all. According to the House of Lords committee, the voluntary nature of these disclosures has rendered the law largely symbolic.

So, what more should businesses be doing to ensure they are operating a more ethical and responsible supply chain?

Leadership in Action 

Many countries, including the UK, have enacted modern slavery laws that impose legal obligations on businesses to ensure their operations and supply chains are free from slavery. Yet, toothless regulation hasn’t stopped the issue. In a world where supply chains span across borders to all corners of the world, firm and decisive actions are a must if businesses truly wish to eradicate it.

The more forward-thinking businesses are already taking action by carrying out due diligence and implementing codes of conduct for suppliers, including clauses on modern slavery, to ensure ethical practices throughout the supply chain. This is one of the most impactful strategies to prevent modern slavery because firms that embed due diligence into procurement processes, not as an afterthought but as a core business function, are better equipped to identify risks and respond swiftly to potential abuses.

Some businesses have also established clear policies and procedures for making key business decisions, such as supplier selection, to ensure alignment with human rights standards. Another approach taken by forward-thinking businesses has been to train staff on the signs, symptoms, and types of modern slavery exploitation. However, to be successful, this training must be consistent, and frequent refresher courses are vital to ensure best practice. Furthermore, collaborations and partnerships with NGOs and governments in specific regions should be leveraged to share information, best practices, and resources.

Yet, to truly drive meaningful and lasting change, these practices must be elevated beyond isolated corporate responsibility efforts and embedded as a standard across entire sectors. A more unified, strategic approach is now required, mandating consistent training, enforcing compliance through independent monitoring, and fostering stronger collaboration between businesses, governments, and civil society.

Five Key Steps to Combat Modern Slavery

With organisations feeling the pressure to tackle modern-day slavery, compliance can no longer be treated as a tick-box exercise. Below are some key areas where companies can take meaningful, lasting action.

1. Prioritising supply chain due diligence

With new legislation like the EU’s Corporate Sustainability Due Diligence Directive (CS3D), Germany’s Supply Chain Act, and Norway’s Transparency Act, reshaping how businesses approach risk in their supply chains is vital. Instead of treating these regulations as compliance hurdles, companies have an opportunity to build more structured and ethical systems.

2. Introduce Continuous risk checks

Managing third-party risk isn’t something you do once and forget. It needs to be ongoing and informed by real data. In an ever-changing world, regular checks enable businesses to continually adapt to their operating climate and changing government frameworks.

3. Enhance training and awareness

The lack of awareness from companies and third-party suppliers is a common stumbling block in ethical sourcing. Companies should be rolling out interactive, relevant training for employees and suppliers alike, with practical examples tied to real-world risks. Integrating compliance training into procurement processes is also recommended to ensure ethical considerations are evaluated before supplier onboarding.

4. Strengthen resilience through stress testing

Being resilient is an operational advantage. Modern supply chains today are under pressure from multiple directions, from worker shortages to geopolitical shifts, such as the introduction of tariffs, and unprecedented disasters. So, having strong business continuity plans (BCPs) is becoming a requirement in some countries, such as the UK and the EU. Therefore, organisations should stress-test their processes, plan for disruption, and ensure that risk management strategies are documented and ready to activate when needed.

5. Address ethical complexities with honesty and partnerships

Child labour often stems from complex local economic realities, which are not easily solved by bans alone. Businesses should work with local stakeholders to understand the context and, where possible, invest in education and community support. Ethical sourcing must be embedded in corporate values and global operations.

Turning Regulation into Real Change

A decade on from the introduction of the Modern Slavery Act, it’s clear that the legislation alone is not enough to eradicate modern slavery from global supply chains. Therefore, the call is for businesses to go beyond symbolic compliance and embrace a proactive, systemic approach rooted in due diligence, accountability, and transparency. Now is the time for companies to embed ethical sourcing into procurement decisions while investing in ongoing training. The path forward is clear: lead with integrity, act with urgency, and make ethical supply chains the new standard.