Overcoming consumer scepticism: harnessing the Modern Slavery Act to effect change

Views on what information we think we have a right to see, what institutions we trust with our data, as well as what we expect of those in power or even from those who provide us with goods and services, are changing very rapidly, writes our Executive Director Peter McAllister

ETI's new Base Code Guidance: Modern slavery - practical guidance for brands and retailers.

The demand for greater transparency has been partly enabled by technology; data can be shared easily, but equally, we lose control of it very quickly. At the same time, all that is needed is a mobile phone with a camera, and a story can be filed from anywhere in the world within minutes if not seconds.

But technology alone cannot explain the desire for citizens to know more about who governs them, or consumers to know more about the things they buy. This concern also appears to be driven by changing perceptions around who or what to trust.

Consumer trust or the lack of it

We have moved from a situation where most consumers inherently trusted big brands, banks, service providers and others, to a situation where for most, there is limited trust if not scepticism, about promises made.

Of course, this is not limited to commerce and has been building for several years.

Many were appalled, for example, at the UK’s 2009 parliamentary expenses claims scandal when widespread financial abuse by members of parliament was uncovered. Likewise, this year, “Post-Truth” seems to have gathered momentum, when a more accurate phrase might be “No Truth” straining what little belief in politicians that might have remained.

Meanwhile, in the world of ethical trading, Rana Plaza stands out as a tragedy. Some 1,100 workers lost their lives and the factory complex became synonymous with the unacceptable cost of cheap garments, shattering the idea that we can have it all at ever reducing prices; another promise was broken.

Unfortunately, while Rana Plaza was particularly tragic, it is not alone; whether that be factory fires, child labour, paying less than minimum wages or working practices that have been described as Victorian, consumers are all too often confronted with abuses. And they want them to stop.

Upholding human rights within a business environment

As anyone who works in ethical trade or business and human rights will tell you, there is a myriad of problems to be addressed. Some are simple but many are complex and systemic; which is why the UK government’s action on Modern Slavery is important, and which should help to galvanise more effective responses from businesses.

In all of this, what role can transparency play? And why did the Modern Slavery Act include a requirement on large companies to report on their policies, actions and progress with respect to modern slavery?

While modern slavery – typically the most severe abuse of rights – should not become the sole focus of our attention, it is right that in a world where this scourge is taking new forms, there is a renewed effort to tackle it.

This action requires collaborative efforts and it makes sense to harness the resources and reach of business in this endeavour, particularly as no business worthy of our custom can condone any form of slavery or remain inactive or complacent, as leading companies already recognise.

In a complex and competitive environment, where business must respond to many demands, it was felt that the most effective way to get modern slavery up the business agenda was to harness the interests of customers, consumers, campaigning groups and their peers.

This is what the Modern Slavery Act does through its transparency in supply chains clause.  

To summarise the clause, this means that companies operating in the UK with an annual turnover of £36 million or more must issue a report once a year on what they are doing with respect to eliminating modern slavery. Additionally, the statement must be signed off by a senior executive and placed in a prominent position on their home page.

So far so good, although you might be surprised how much resistance there was to this proposition among some.

Harnessing the Modern Slavery Act to effect change

To really harness the value of the availability of some 13,000 reports, from companies of every sector, large and small, experienced and novice, they need to be accessible and easy to compare. However, the Act made no provision for this and so private initiatives have emerged to fill the space.

Key to any such initiative – call it an accessible database, or a repository – is its credibility. What makes it credible will be a combination of how it is governed, funded and managed so that it can be an unbiased resource, easily accessible and informative.

After looking at the options from the perspective of some key criteria including but not limited to independence, robustness and accessibility, ETI is supporting a ‘free to upload and search’ platform hosted by the Business and Human Rights Resource Centre (BHRRC). We’ll also be part of the Steering Committee as we all learn how best to harness this tool.

Currently, 1,000 companies have uploaded their Modern Slavery Statements to the BHRRC registry, which as well as hosting statements will assess the quality of company reporting. That’s important – sharing lessons and insights will help drive increased transparency and better reporting and responses by companies to tackle modern slavery. Hopefully, concerned consumers and those that seek to represent them, can look at what their favourite brands are doing, compare them to others and give them feedback.

Companies should upload their statements to the BHRRC registry here.

The image of a Syrian fruit picker in Jordan is courtesy of the ILO and is for illustrative purposes only. It does not relate to any known incidence of modern slavery.