HR can use statement requirements to showcase positive action
Prime Minister Theresa May recently confirmed her commitment to the fight against modern slavery by calling for further international action at the United Nations conference in New York.
For the UK, progress on this has been rapid. The introduction of the Modern Slavery Act 2015 requires organisations with an annual turnover of more than £36m (estimated to number 12,000) to publish an annual statement for each financial year from 31 March 2016 onwards on what actions they have taken to address slavery in their supply chains. Ideally the statement should be published within six months of their year end, so some organisations may be expected to publish their statements this September.
The government has published guidance on compliance with the Act, but the content and quality of initial statements has been publicly questioned by lobbyists, suggesting businesses have struggled to deliver what’s expected of them. This in turn has had a negative impact on the reputation of those businesses who have been targeted.
Modern slavery shouldn’t be a concern for just CEOs, compliance officers, and the lawyers who help prepare the statements. Putting in place the policies, procedures and behaviours that underpin robust statements should be a combined effort from a range of individuals or teams within a business, and HR professionals are best placed to spot, and help others spot, modern slavery risks in their business and take steps to remedy them. The process may be painful at first, but once these measures are in place they can be refined, updated and developed to show progress year-on-year.
Arming an entire workforce to be on the lookout for modern slavery risks might seem daunting, but organisations aren’t expected to do it all at once. They can be pragmatic, and take a bite-sized, targeted approach. For example, training could be focused on those most likely to encounter a modern slavery risk and organisations could decide which policies and procedures should be updated as a matter of priority.
Employee engagement is crucial to a successful business, and people who care about their work will take the initiative to protect their organisation and feel more invested in rooting out risks to the business, like that posed by modern slavery. Organisations want to attract and retain the best talent, and getting it right on modern slavery will support a talent strategy, while getting it wrong could have a disastrous impact on an employer’s brand.
Top tips
- Devise ‘smart’ training plans – for example, the first training cohort could include those in charge of hiring, or supervising agency and contracting staff, and focus on matters relevant to them, like ‘right to work’ checks or minimum wage compliance
- Find policy overlaps – for example, modern slavery, bribery and corruption can go hand-in-hand, particularly in respect of human trafficking. Existing policies and procedures could be adapted to cover modern slavery risks
- Take a risk-based approach – particular sectors or locations can present different risks for slavery and human trafficking, so what might be appropriate for one may not be right for others
- Ensure new joiners are trained on modern slavery risks during the induction process, alongside other compliance areas such as bribery and corruption, money laundering and so on
- Make compliance with the Act important - appoint someone with sufficient stature (such as the head of HR, or chief compliance officer) to be responsible for this to emphasise how critical it is to the business and its culture
- Publish information on whistleblowing advice and helplines (including independent helplines) prominently to help remove the stigma from the act of ‘telling’. Fostering a workplace in which employees’ concerns are heard, and seen to be heard, through action is likely to boost employee morale and engagement
- Use the requirement to produce a statement as an opportunity to showcase strong policies and practices. Promoting the steps taken to combat modern slavery and demonstrating year-on-on progress will enhance the organisation’s social responsibility credentials, and encourage employees to feel proud of where they work
- Create an environment in which employees feel safe to speak up in order to produce a better overall culture at the organisation.
Chris Cartmell and Laura Nadel are solicitors at PwC Legal
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