In 2015 the UK Government passed the Modern Slavery Act. It was considered a milestone both domestically and across the globe, being the first piece of legislation specifically addressing modern slavery and human trafficking in the 21st century. It improved support and protection for people affected by modern slavery, empowered law enforcement to tackle these crimes, and laid out punishments for traffickers.  

One of the most pioneering changes the Modern Slavery Act introduced was provision to encourage business to take action to ensure their end-to-end supply chains are slavery free. This was outlined in Section 54, which stated that organisations with an annual turnover of over £36m a year would be required to publish a statement each year outlining the steps they have taken to ensure modern slavery is not taking place in their business or supply chains.  

While this legislation targets larger businesses, it was designed to cascade awareness and mitigation efforts down their supply chains to smaller businesses. However, by publishing their own modern slavery statement, SMEs can both reduce the risk of modern slavery occurring in their operations and supply chains and win more business by demonstrating their values. It is a win-win situation. Keep reading to find out more… 

1. Statements have an important role in addressing modern slavery 

Modern slavery is a growing problem that affects every country, including the UK. The number of identified victims in the UK has been rising year on year, with over 16,000 people referred to authorities in 2022. However, this number may represent only a fraction of the total, with experts estimating there could be as many as 100,000 victims in the UK alone.  

A modern slavery statement allows businesses to proactively assess potential risks for modern slavery and develop strategies to address them. These could include establishing policies and procedures, offering training for staff and suppliers, and creating grievance mechanisms for workers. While some industries may be at higher risk than others, no sector is immune to the issue of modern slavery. Therefore, it is crucial for all businesses to take steps to address the risk of these heinous crimes and promote ethical practices across their industries. We all have a role to play in fighting modern slavery, and developing a modern slavery statement is an essential part of this. 

2. They serve as an accountability mechanism 

 Writing and publishing a modern slavery statement can act as an accountability mechanism for SMEs by demonstrating a commitment to addressing modern slavery within their operations and supply chains. By identifying potential risks, outlining policies and procedures for mitigation, and engaging with stakeholders, the statement can serve as a benchmark for measuring progress. It also allows for transparency and scrutiny by customers, investors, and regulatory bodies, providing an incentive for an SME to uphold their commitment to combatting modern slavery.  

3. They help businesses remain competitive 

Prioritising social responsibility and ethical standards can enhance a company’s reputation compared to its competitors. With global legislation increasing around supply chain due diligence, protecting human rights is becoming essential to remain competitive in the years to come. Investors and consumers alike are increasingly interested in companies that adopt socially responsible practices and are more likely to support companies that prioritise ethical standards. The latest Ethical Consumer Markets Report shows that ethical markets grew by almost 35% in 2021, expanding to £141.6 billion – the largest jump in the value of the market since it started being tracked in 1999. 

A business that publicly commits to combatting and eliminating modern slavery from its operations and supply chains may be perceived more favourably than its competitors that are less transparent or have not issued such statements. This presents an opportunity for SMEs as it provides another way for them to distinguish themselves from their peers and demonstrate the values their business embodies. 

Remember, no matter how small your business is, your modern slavery statement is a step towards creating a more ethical and just world. By taking action and holding yourselves accountable, small businesses can collectively make a big difference in tackling modern slavery. Together, let’s work towards a brighter future where human rights are respected and upheld. 

More information on how your SME can address modern slavery in your operations and supply chains can be found here, and if you would like further assistance please get in contact with our team here. 

By Gabriella Jiménez