Five ways the Modern Slavery Act will change procurement

Modern slaveryReported as an issue in every country around the world

In many industries, from electronics and automobiles to seafood and textiles

The Modern Slavery Act 2015 requires organisations turning over more than £36m to show how they are tackling it

Time is tickingThese £36m+ organisations have to produce a statement within 6 months of their year end (March 2016 on)

Detailing how they are addressing modern slavery and human trafficking in their supply chains

Has to be published on company website home page

5 implications for procurement

AwarenessPrioritiesChampionsTraining

Supplier engagement

Awareness

‘Not knowing’ won’t be acceptable

Understanding the risks of modern slavery will be essential, e.g.• An estimated 35.8m people in some

form of modern slavery globally• UK reported 1746 cases of slavery in

2013• Illegal global profits of $150bn p.a.

Priorities

Procurement teams need to prioritise the highest risk areas

According to CIPS, these could include areas where there are weaker laws, low enforcement & poor business or govt accountability; areas with high levels of poverty or discrimination against certain groups

Champions

A Modern Slavery champion could be a pivotal player in procurement teams

This will ensure one individual is always responsible for keeping up to date on risks; helping colleagues & management to take all necessary actions & update policies

Training

CIPS Ethical e-learning course is a good starting point for anyone engaging with suppliers on human rights & related issues

Content includes a look at forced labour in supply chains, where risks lie and how to eradicate them

Supplier engagement

Audits, evaluations, shortlisting & performance management processes are likely to be impacted by the Modern Slavery Act

Supplier engagement

Start by ensuring that existing & new suppliers understand the organisation’s approach to modern slavery

Alter supply contracts to reflect this

Support & encourage whistle-blowing throughout the supply chain

A chance for change

Ultimately, procurement will be pivotal in helping to stop slave labour in the UK and across the world

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