Human Trafficking is a Real Problem and It May Be in Your Supply Chain.
With increases of production happening within supply chains, especially among companies that conduct business globally, transparency and visibility is becoming top of mind. Of course ethical sourcing is a main concern for many companies that are conducting business abroad and so is ethical business practices, but another issue is arising, and that is modern day slavery.
Slavery is becoming a large issue among companies that are doing business globally and that have supply chains with many different tier levels. The reason for this concern is mainly the idea that those supplies being produced deep within the supply chain are coming from areas where slave labor is used. Regulations such as the California Transparency Supply Chains Act (SB-657) and the Modern Day Slavery Act, is legislation set up to help prevent companies from sourcing goods that may use this type of unethical practice. According to an article by Jessica Burt, that was featured on The Guardian Website, indicates revisions have been made to the Modern Day Slavery Act, which centers around companies/entities doing business within the U.K. Similarly these reflect many of the provisions set fourth by SB-657. As the US is the 2nd largest economy in the world and the UK is the 7th, companies are now being heavily encouraged to make sure none of these slave labor practices are happening within their supply chain.
“In October, supply chain regulations in the Modern Slavery Act 2015 will come into effect, and many companies will be required to issue this statement annually, including a prominent link on their website homepage. Any lack of action will reflect poorly on the company and brand. Now is the time for business leaders to ensure that their company has active policies in this area to guard against forced or compulsory labour at any point in their supply chain.”
Understanding your supply chain is key and having visibility, so you do not put your companies operations at risk is vital. As supply chains grow increasingly complex, making sure your suppliers, and your subcontractors are abiding by these regulations is a must for conducting business globally. To learn more about these new regulations that will be more heavily enforced and to see if you are at risk, please click here.