A statement isn’t enough: What businesses need to do about modern slavery

Modern slavery can be difficult to see. That makes it easy for businesses to assume that if there is a risk, it is somewhere else. But findings from Professor Matt Gitsham’s research point to a different starting point: organizations should recognize that modern slavery will probably be present in their value chain, and ask what they can do about it. 

We spoke with Professor Gitsham about what has changed since the Modern Slavery Act, why progress varies between organizations, and how businesses can move beyond reporting toward meaningful action. 

“Ten years after the Modern Slavery Act, what does the research tell us about the scale of the challenge? 

One headline finding is that 87% of organizations believe modern slavery is likely to occur somewhere in their value chains. This tells us that the risks are widespread, and that awareness has grown in the ten years since the Modern Slavery Act was introduced. 

As a business leader, you can’t start from the assumption that you probably don’t have modern slavery in your supply chain and therefore can ignore the issue. You have to start from the assumption that it may be there, and ask: what are you going to do about it? 

There have been some successes. Sixty-nine percent of survey respondents said the Modern Slavery Act has increased senior leaders’ attention to modern slavery in their organizations. 

Why has the Act driven meaningful change in some businesses but not others? 

Our research suggests that the most substantive change has happened when the Act has acted as a catalyst alongside other factors. 

Progress is more likely when senior leaders understand the risks to people and to the business; when investors and business-to-business customers raise concerns; when benchmarks help organizations compare progress; and when cross-sector initiatives give businesses opportunities to learn from one another. Where some or all of these factors are present, the Act can help raise awareness of the seriousness of modern slavery and the need to make progress. 

Where those factors are absent, the Act has often had less impact. Respondents pointed to weaknesses in its design. Ninety percent said a key weakness is that organizations must publish a statement, but are not required to carry out specific activities, such as human rights due diligence. Eighty-five percent said the penalties for poor compliance are not strong enough. 

55% of organizations identified a case in the last three years. Does that mean the problem is worsening, or detection is improving? 

Modern slavery is difficult to find by its nature. Perpetrators work to keep it hidden, and people experiencing exploitation may face barriers to seeking support or making their situation known. 

The fact that 55% of organizations responding to our survey identified at least one actual or suspected case in the past three years is a sign that businesses are investing in processes to find modern slavery, and that those detection systems are working. 

How can business leaders make sure reporting leads to action for workers? 

Many people identify a weakness in the Act: it requires organizations to publish a statement, but does not mandate particular actions that organizations should take and then report on. 

When budgets are under pressure, this can mean that resources go toward meeting the reporting requirement, with little left for practical work to address modern slavery. The more business leaders and their stakeholders understand the risks to people and to their organizations, the more likely they are to see reporting as a tool to guide investment in tackling an important risk, rather than as a compliance obligation to meet with as few resources as possible. 

What change would make the biggest difference over the next decade? 

Our research points to the importance of combining action by government, business leaders, investors, and industry groups. Organizations working hardest on modern slavery say stronger, clearer rules would help them do more to find and address exploitation, and would raise expectations across industries. 

Ninety-four percent of respondents said stronger enforcement, including more meaningful penalties for poor compliance, would help. Ninety-two percent said enhanced UK regulation requiring mandatory human rights due diligence would help.

Stronger regulation needs to be supported by action from others, too: more scrutiny from investors and business-to-business customers, more cross-sector collaboration, more benchmarking, and more education for senior leaders on the risks to people, the risks to the business, and how to manage them. 

Explore Professor Matt Gitsham’s research into what has changed since the Modern Slavery Act and what businesses can do to move from reporting to action.