Modern slavery, also known as human trafficking, is a serious and widespread problem that affects many industries, including the supply chains of many companies. Modern slavery is defined as the recruitment, transportation, transfer, harboring, or receipt of persons by means of threat or use of force, coercion, abduction, fraud, deception, or abuse of power for the purpose of exploitation. Exploitation includes, at a minimum, the exploitation of the prostitution of others, sexual exploitation, forced labor, slavery, or servitude.
The prevalence of modern slavery in supply chains is a growing concern for companies, consumers, and society at large. Many products that are sold in developed countries are made in developing countries, where labor standards may be lower and the risk of modern slavery is higher. Companies that are unaware of the risks of modern slavery in their supply chains may be unknowingly contributing to this problem and may face reputational, legal, and financial risks as a result.
There are several factors that contribute to the risk of modern slavery in supply chains. One factor is the low wages and poor working conditions that are often found in developing countries. When workers are paid very low wages and are subjected to poor working conditions, they may be more vulnerable to exploitation. Other factors that increase the risk of modern slavery include the lack of strong labor laws and enforcement, the lack of transparency in supply chains, and the use of intermediaries or subcontractors, which can make it more difficult for companies to monitor and address potential issues.
To address the risks of modern slavery in their supply chains, companies can implement a range of strategies. One strategy is to conduct risk assessments to identify potential risks in their supply chains and to develop plans to mitigate those risks. Companies can also implement policies and procedures to ensure that their suppliers and subcontractors comply with their standards on labor practices, including prohibiting forced labor and child labor. In addition, companies can engage with stakeholders, such as NGOs, workers, and customers, to understand their concerns and to develop and implement effective strategies to address those concerns.
In conclusion, modern slavery is a serious and widespread problem that affects many industries, including the supply chains of many companies. Companies that are unaware of the risks of modern slavery in their supply chains may be unknowingly contributing to this problem and may face reputational, legal, and financial risks as a result. To address the risks of modern slavery in their supply chains, companies can implement a range of strategies, such as conducting risk assessments, implementing policies and procedures, and engaging with stakeholders.