Supply Chain Governance

The Modern Slavery Act 2015 is a ground-breaking law aiming to address slavery in the UK and in overseas supply chains, taking the form of bonded or forced labour, child labour, human trafficking or similar types of exploitation of vulnerable people.

Additional information relevant to supply chains and outsourcing can be found here

> Why engage with Clarkslegal’s Supply Chain Governance service?

There are important reporting and auditing requirements under the Modern Slavery Act 2015.

Organisations should be concerned about potential criminal legal liability under the Bribery Act 2010, including prison sentences for directors and unlimited corporate fines. Liability may be triggered in circumstances where a company fails to prevent a range of corrupt activities in the supply chain, even if these are carried out by overseas subsidiaries.

Competitive disadvantage, as consumers start to gravitate towards companies who are demonstrably compliant with their ethical responsibilities.

Higher insurance premiums, as the market develops a differential pricing mechanism, resulting in higher premiums for non-compliant firms.

Difficulty in attracting long term investment, as fund managers move towards a ‘shared value’ model, which incorporates sustainability metrics into calculations of long term risk adjusted returns.