Construction contractors are being urged to improve how they tackle modern slavery, according to a new report.
The Financial Reporting Council (FRC) with Lancaster University and UK independent anti-slavery commissioner Sara Thornton, found that firms across all sectors provide “limited and superficial commentary” on the risk of modern slavery within the supply chain.
It was reported that firms may be holding back their reporting due to fear of the impact on their reputation.
The FRC said this stance risks investors from holding back and that by improving reporting on modern slavery, firms can improve their conduct and protect their investor portfolio.
So, what is modern slavery, and what must the construction contractors do to help tackle it?
What is modern slavery?
Modern slavery comes in different forms and involves victims being forced to work against their will for little or no money. The different types of modern slavery that can be found in the construction industry include human trafficking, bonded labour, forced labour and slavery of children.
Who needs to publish a statement?
A company that fulfils the following criteria must publish a statement, making clear what steps they have taken to stamp out modern slavery in their business and supply chains.
This applies to any company that carries out business or part of a business in the UK; supplies goods and services and has an annual turnover of £36 million or more.
The Government is also set to introduce measures to ensure compliance, including requiring statements to be published on a new government reporting service.
How to tackle modern slavery
There are several actions firms can take to stamp out modern slavery in their supply chain.
- Improve transparency in the supply chain by checking the credentials of workers.
- Offer training at all levels of the supply chain to raise awareness of the signs of modern slavery and how to report it.
- Make sure the firm complies with the Modern Slavery Act 2015 to achieve the correct industry standards.
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