Combating Modern Slavery in Supply Chains – A Corporate Responsibility

A BBC investigation exposed the disturbing exploitation of 16 Czech trafficking victims working in a McDonald’s in Cambridgeshire and a UK bakery supplying supermarkets. The abuse went unnoticed for years, underscoring the necessity for companies to improve oversight in their supply chains.

BBC England Investigations 30 September 2024

"The recent case is a powerful reminder of the risks in supply chains and the critical role companies play in combating modern slavery. By prioritising transparency, adopting GRI standards, and fostering vigilant reporting, companies can help create a fairer, more ethical global economy." Bindi Jacob, Consultant at Simplify Climate.

Missed warning signs at McDonald's and a major bakery supplier

As detailed by the BBC, modern slavery indicators at McDonald’s and a bakery supplier went undetected. Warning signs included wages paid into gang-controlled accounts, excessive hours, and gang-attended job interviews—all signals of forced labour.

Despite receiving minimum wage, victims lost most earnings, lived in unsafe, cramped housing, and endured poor conditions. This case highlights substantial gaps in oversight and the corporate need for due diligence and worker protection.

Integrating Global Reporting Initiative (GRI) is essential

The Global Reporting Initiative (GRI) offers standards to aid companies in tracking and reporting social impacts, including forced labour and supplier assessments:

• GRI 409: Forced or compulsory labour – Emphasises disclosing preventive measures, supplier risk assessments, and corrective actions.

• GRI 414: Supplier social assessment – Recommends reporting the frequency of supplier evaluations and any corrective actions taken.

• GRI 407: Freedom of association – Encourages policies supporting workers’ rights to mitigate risks of forced labour.

  
  

Implementing these standards helps companies create transparency and accountability, enabling the early detection of modern slavery within supply chains

Our consultant, Bindi Jacob, has listed practices business can integrate to prevent modern slavery across their business and supply chain:

• Conduct enhanced due diligence on all suppliers, especially those in high-risk sectors.

• Establish supplier codes of conduct defining acceptable working conditions and mandatory compliance.

• Implement transparent audits and unannounced inspections with third-party assessors to detect signs of exploitation.

• Develop grievance and reporting mechanisms offering safe, anonymous channels for reporting abuses.

• Regular worker training programs to raise awareness of modern slavery indicators.

• Strengthen contractual agreements with modern slavery clauses, enabling action against non-compliance.

• Foster partnerships and collaboration with NGOs and industry bodies to improve due diligence efforts.

• Increase transparency through reporting by publishing actions and findings according to GRI and similar standards.

How can we support you?

In the initial phase of our social impact work, we conduct a Social Impact Diagnostic Assessment to establish a strong foundation for identifying and integrating social impact risks and opportunities.

Visit our website at www.simplifyclimate.co.uk or email help@simplifyclimate.co.uk, to schedule a discussion with our consultant Bindi Jacob.

Sources:

• BBC News (2024): “Signs that modern slavery victims were forced to work at a McDonald's branch and a bread company supplying UK supermarkets went undetected for years,” reporting on a recent UK-based case revealing significant oversight gaps. BBC News

• Global Reporting Initiative (GRI) Standards: Standards such as GRI 409, 414, and 407 provide guidance for companies on reporting forced labour and social risks within supply chains. Available at: Global Reporting Initiative

• Walk Free Foundation (2023): The Global Slavery Index 2023 offers data on modern slavery worldwide, highlighting risks in global supply chains. Access at: Global Slavery Index

• International Labour Organization (ILO): The ILO outlines forced labour indicators and guidelines for employers to combat modern slavery risks. Visit: ILO Forced Labour

• Anti-Slavery International: This organisation offers insights on tackling forced labour within corporate supply chains and beyond. See more at: Anti-Slavery International

• UK Modern Slavery Act (2015): Sets obligations for large companies to disclose actions taken against modern slavery, reinforcing corporate responsibility in the UK. Details at: UK Government Modern Slavery Act.