New analysis finds boardrooms should nonetheless do extra to eradicate fashionable slavery

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New analysis led by Lancaster University and revealed in the present day by the United Kingdom’s Financial Reporting Council (FRC), at the side of the UK Anti-Slavery Commissioner, has recognized important shortcomings within the high quality of corporations’ fashionable slavery reporting.

The analysis, led by Lancaster University Management School, checked out a pattern of 100 main corporations’ fashionable slavery statements and their strategic and governance studies. The findings reveal one in ten corporations don’t present a contemporary slavery assertion regardless of it being a authorized requirement. Where corporations did comply, solely one-third of those statements have been thought-about clear and straightforward to learn.

The majority of contemporary slavery statements reviewed have been fragmented, lacked a transparent focus and narrative, and sometimes contained boilerplate language. Disclosures about key efficiency indicators (KPIs) to measure the effectiveness of steps to attenuate fashionable slavery dangers have been significantly poor. Only 1 / 4 of corporations disclosed KPI outcomes and simply 12% confirmed they’ve made knowledgeable choices based mostly on these KPIs.

The evaluation means that too many corporations seem to not view human rights points of their workforce and provide chain as a principal supply of threat for his or her enterprise, and that fashionable slavery concerns are nonetheless not a mainstream concern for a lot of boardrooms.

Researchers say these findings are a chance for corporations to current a extra joined-up method to reporting and supply data on the effectiveness of their insurance policies.

The UK’s Independent Anti-Slavery Commissioner, Dame Sara Thornton DBE QPM, mentioned, “With an estimated 16 million fashionable slavery victims working within the personal sector, companies carry important materials and reputational threat of contemporary slavery being discovered someplace of their provide chains.

“Modern slavery is perpetrated by organized criminals and cynical opportunists; however, irresponsible commercial practices and poor governance can also create the conditions that allow exploitation to thrive. Companies have a responsibility to demonstrate the steps they are taking to minimize modern slavery risks and to show strong leadership in this area.”

Professor Steve Young from Lancaster University Management School led the analysis, alongside Dr. Mahmoud Gad. Prof. Young mentioned, “Slavery, trafficking and human rights are important points for enterprise and society. Our evaluation of company reporting observe means that these dangers could also be passing beneath the radar in some corporations, whereas others appear to be adopting a compliance-oriented method with processes and disclosures satisfying regulatory necessities moderately than in search of to grasp and handle elementary issues.

“At the other end of the spectrum, however, we see a number of companies that are leading the way in terms of their thinking and transparency. We hope our evidence helps to promote best practice and illustrate the stakeholder benefits that are possible when boards prioritize the issue.”

The FRC’s CEO Sir Jon Thompson mentioned, “High-quality reporting is important to shining a light-weight on how significantly companies take social points of their day-to-day operations.

“It is therefore unacceptable that many companies did not produce a modern slavery statement and that modern slavery considerations appear to not be a mainstream concern for many boardrooms. Looking ahead, companies must clearly set out the actions they are taking to deal with modern day slavery in all aspects of their operations.”

Modern slavery nonetheless not a precedence for one in 5 Australian companies

More data:
The report titled Modern Slavery Reporting Practices within the UK is obtainable as a PDF.

New analysis finds boardrooms should nonetheless do extra to eradicate fashionable slavery (2022, April 25)
retrieved 26 April 2022

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