Modern slavery – how in-house lawyers can address the ‘S’ in ESG

Modern slavery – how in-house lawyers can address the ‘S’ in ESG

In our last Flying Solo event of 2021, we discussed the often under-addressed topic of modern slavery. The session included an overview of the current situation, as well as discussions under Chatham House rules on the practical measures in-house teams can implement to help their businesses address the challenge of modern slavery.

To start off this discussion, we heard how Radius Law and ½Û×ÓÊÓƵ recently partnered with charity (IJM) to create a brief video on Why does compliance with the Modern Slavery Act matter?, which you can watch .

To learn more about how to prevent modern slavery and human trafficking in your organisation and supply chain, see the ½Û×ÓÊÓƵ subtopic on slavery & human trafficking. It contains Practice Notes, Precedents and a Checklist to help you consider what policies, practices and procedures you might need to implement.

Sophie Gould of  introduced Colleen Theron, our expert speaker on modern slavery. Colleen is a tri-qualified solicitor and CEO of , a sustainability, business and human rights consultancy with specific expertise in modern slavery. 

Recognising anti-slavery as a boardroom issue and driving the cultural shift 

Picking up on the poll results, Colleen noted that only 9% of respondents thought that anti-slavery was predominantly a boardroom issue. She stated that organisations (and individuals) need to address modern slavery as a cultural issue. Indeed, without the boardroom and the CEO’s understanding of the risk that modern slavery poses to the supply chain or the business itself, they will not focus on it, blaming a lack of time or resources.

So, how can you as an in-house lawyer help drive cultural change?

All of the responses in the poll above are undoubtedly helpful, as is the understanding that modern slavery is a not just an issue in international businesses’ supply chains, but also in the UK. Indeed, over 10,000 individuals were identified as potential victims of modern slavery by the authorities in the UK in 2019.

Colleen warned us that we should not just be looking out for the abnormal to identify victims of modern slavery (such as signs of physical violence, and individual wearing the same clothes all the time, or being particularly angry or aggressive), but for the absence of normal, which can include the inability to relate to others or to have a ‘normal’ conversation.

Colleen felt that there is a significant lack of understanding in what modern slavery is. She commented that people and businesses tend to focus more on the E and the G side of ESG, leaving the ‘S’ to one side. However, there is a very real return on investments when a business focuses on the ‘S’ and boards and businesses should understand the value of this.

A growing regulatory landscape

Fighting modern slavery is not only a moral obligation but also a regulatory obligation.

 of the Modern Slavery Act 2015 ( ) requires commercial organisations that:

  • supply goods or services
  • carry on business wholly or in part in the UK, and
  • have a global turnover of £36m or more

to publish an annual ‘slavery and human trafficking statement’ on their website, outlining the steps taken (if any) during each financial year to ensure slavery and human trafficking is not taking place in any part of their business or global supply chains.

Many countries have their own requirements, which businesses with cross-border stakeholders need to be aware of. For example, although the EU does not currently have equivalent legislation to MSA 2015 or similar national legislation that exists in some EU countries, it has issued guidance to helps companies to combat ‘forced labour’ (see: , LNB News 13/07/2021 58).

Furthermore, the UK Government has recently confirmed its intention to create a single labour market enforcement body, which will focus on protecting workers, including in relation to labour exploitation and modern slavery. The creation of the new body is likely to be included in the forthcoming Employment Bill, which is expected to be published in 2022. For more information, see: .

What can you do in your business to address modern slavery?

Our breakout room discussion sought to answer this question in practical terms.

This Practice Note: Assessing modern slavery risk in supply chains, with related Precedents is a helpful starting point. It provides both a high level assessment and an in-depth examination which pick up on many of the points referred to in the breakout room discussions. 

For example, during a high level assessment you may wish to identify all members of your supply chain and set out risk criteria, whereas in the in-depth examination you could ask them to complete a self-assessment questionnaire.

 

For a recap of what we’ve discussed in the Flying Solo sessions in 2021, have a look at the in-house blogs on ½Û×ÓÊÓƵ.co.uk. 

Join us after a well-deserved break for the first Flying Solo session of 2022 to explore the concept of effective leadership, hearing from subject matter experts and with your peers sharing their insights and practical advice.

The effective leader. How to lead amid disruption and complexity

Date: Wednesday 26 January 2022

Time: 10:00 – 11:00

Format: Virtual event

Register now


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About the author:
Gloria is a Paralegal in the Lexis®PSL Paralegal Hub. She graduated in International Law and Globalisation from the University of Birmingham in 2019 and has been at ½Û×ÓÊÓƵ UK since March 2020. She has experience working for US, UK and Italian law firms on a range of matters, including IP, financial services and immigration law.