A decade ago, the UK Modern Slavery Act set a global precedent. Now, the conversation shifts to how businesses can truly champion the fight against modern slavery and secure resilient, ethical operations for the future.
March marked the 10th anniversary of the UK Modern Slavery Act, a significant milestone for approximately 12,000 UK-based companies and their subsidiaries. This British legislation mandates that entities with an annual turnover of £36 million must produce an annual statement outlining how they manage modern slavery and human trafficking risks in their operations and supply chains. Heralded as pioneering at its inception, the Act aimed to position the UK at the forefront of the global fight against forced labor.
However, a decade on, it's clear the Modern Slavery Act remains a long way from achieving its full potential. The voluntary reporting mechanisms, while a step forward, have not delivered the intended impact, and the UK now risks falling behind other jurisdictions that have introduced more ambitious and enforceable legislation.
The Global Scale of Modern Slavery: A Persistent Challenge for Businesses
To truly understand the challenge, we must acknowledge the scale of the problem. Globally, an estimated 50 million people were living in situations of modern slavery in 2021, with approximately 27.6 million in forced labor. This crime affects every country, cutting across demographics, and disproportionately impacts the most vulnerable, including women, children, and migrant workers. From garment manufacturing and agriculture to construction and domestic work, modern slavery manifests in various forms, including human trafficking, debt bondage, forced marriage, and child exploitation. These exploitative practices are often deeply embedded within complex global supply chains, making detection and remediation a significant challenge for businesses.
We’ve seen a growing global momentum for robust human rights due diligence legislation, from the Uyghur Forced Labor Prevention Act (UFLPA) in the US to the EU’s Corporate Sustainability Due Diligence Directive (CSDDD) and Forced Labor Regulation. Countries like Switzerland, Norway, France and Canada are also taking initiative to make organizations accountable for all their activities in their supply chains that might involve modern slavery.
Why Stronger Modern Slavery Act Measures Benefit UK Business
Crucially, despite current deregulatory pressures, there is a compelling case for the UK government to keep pace and introduce stronger measures to address modern slavery in supply chains. Stronger legislation would mandate due diligence for all, forcing laggards to adopt responsible practices and thus leveling the playing field. Currently, businesses that do invest in robust due diligence to prevent modern slavery incur costs (time, resources, training, technology) and may be undercut by those who don’t.
Many businesses themselves favor stronger action. Before the CSDDD was passed, over 800,000 businesses publicly supported the law, recognizing that robust human rights and environmental due diligence is not just an ethical imperative but also good for business. Studies, including one from the European Commission, have demonstrated clear business improvements in areas such as financial performance, personnel management, and reputation, proving that commercial needs and human rights obligations are not mutually exclusive.
Evolving the Modern Slavery Act: New Guidance and Future Directions
Recent developments in the UK signal a growing recognition of this reality. In October 2024, the House of Lords’ Select Committee published its recommendations for strengthening the policy, proposing enhanced enforcement mechanisms and penalties for non-compliance. More recently, the UK Home Office has released revised guidance on how businesses can effectively respond to Section 54 of the Modern Slavery Act, relating to Transparency in Supply Chains.
Importantly, instead of focusing solely on producing a compliant statement, this new guidance includes practical advice on addressing modern slavery, reflecting current best practices not covered in the original legislation, such as worker voice, remediation, and responsible recruitment. It also integrates well with internationally recognized frameworks, such as the UN Guiding Principles on Business and Human Rights and the OECD Due Diligence Principles.
Beyond Compliance: Building Resilient Supply Chains
While these are positive steps, incorporating the learnings from the past 10 years since the legislation was introduced, they highlight a persistent challenge: the Modern Slavery Act has often focused heavily on reporting, which can sometimes divert resources from directly addressing modern slavery within complex supply chains. To truly challenge all forms of slavery and make UK supply chains more resilient, a clearer framework for proactive and preventative action, coupled with import controls, would streamline compliance processes and offer greater certainty in navigating the evolving global regulatory landscape.
Ultimately, the UK's position in the global fight against modern slavery hinges on its ability to evolve. By embracing more robust and actionable due diligence practices, UK businesses can not only mitigate significant risks but also strengthen their supply chain resilience and enhance their global competitiveness. It's no longer just about meeting minimum compliance; it's about fostering ethical, sustainable, and ultimately more profitable business operations.
Ready to move beyond mere compliance and build a truly resilient and ethical supply chain?
For businesses seeking practical strategies to assess risks, enhance transparency, and engage suppliers effectively in the fight against modern slavery, download EcoVadis' essential guide: "The Fight Against Modern Slavery: Building Ethical and Resilient Supply Chains." This ebook provides actionable steps and a proven framework to help you protect workers, mitigate business risk, and build a sustainable future.
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