Modern slavery is not confined to any one country or region—it is a global issue that transcends borders and industries. As awareness grows, governments worldwide have introduced legislation to address modern slavery in corporate supply chains, forcing businesses to take greater responsibility for ethical practices. Some examples of global legislation are:

1. California Transparency in Supply Chains Act (2010)

The California Transparency in Supply Chains Act was one of the first laws to target large corporations and their supply chains, aiming to increase transparency for consumers. Businesses with more than $100 million in annual revenue doing business in California are required to publicly disclose their efforts to eradicate slavery and human trafficking.

Key responsibilities under this law include:

  • Companies must report on their websites the steps they are taking (if any) to prevent slavery in their supply chains.
  • Businesses must advise whether they verify product supply chains beyond Tier 1 to evaluate the risk.
  • Companies should report whether they audit suppliers and, if so, what methodologies they subscribe to.

There are no financial penalties for non-compliance, only potential legal action by the Attorney General.

2. Australia’s Modern Slavery Act (2018)

Australia’s Modern Slavery Act (2018) applies to businesses with annual revenues of at least AUD 100 million. These businesses must report annually on the risks of modern slavery within their operations and supply chains and the actions they’ve taken to address said risks.

Key responsibilities under this law include:

  • Companies must submit a modern slavery statement that outlines potential risks, due diligence processes, and measures to assess and address modern slavery in their supply chains, similar to the UK Modern Slavery Act requirement (LINK TO PREV BLOG).
  • All modern slavery statements are published on a public registry.

The act is very similar to the UK offering, and the weaknesses are similar in that many companies are not reporting as required due to a lack of consequences.

3. France’s Duty of Vigilance Law (2017)

France’s Duty of Vigilance Law is one of the most comprehensive corporate social responsibility laws globally. It applies to large multinational companies headquartered in France, with over 5,000 employees in France or 10,000 globally.

Key responsibilities under this law include:

  • Companies must conduct a thorough risk assessment of their supply chains, identifying areas where human rights violations, including forced labour, are most likely.
  • Develop and publish vigilance plans outlining how businesses will monitor, mitigate, and remediate risks associated with modern slavery.

Companies that fail to comply can face lawsuits from affected parties, including NGOs and trade unions. This makes it one of the few pieces of legislation with real legal consequences for non-compliance.

4. The EU Corporate Sustainability Due Diligence Directive (upcoming)

The EU Corporate Sustainability Due Diligence Directive, commonly known as EU CSDDD (CS Triple D), is currently in development and is set to introduce far-reaching obligations for businesses operating within the EU. This legislation ensures that large companies, including EU-based and international firms with significant operations in the EU, actively prevent human rights abuses and environmental harm within their supply chains.

Key responsibilities under EU CSDDD include:

  • Companies must identify, prevent, and address modern slavery and environmental damage within their supply chains. This means assessing risks, implementing corrective measures, and regularly monitoring compliance.
  • Businesses must report publicly on their due diligence practices and demonstrate what steps they are taking to mitigate risks.

Under the directive, companies could be held legally accountable for the harm caused by modern slavery in their supply chains, potentially facing penalties or lawsuits if they fail to prevent exploitation and could even be taken to court by modern slavery victims.

The EU CSDD is expected to raise the bar for corporate responsibility in the EU significantly, and member states will have until 26th July 2026 to transpose it into their national laws.

The Increasing Role of Corporate Responsibility

With modern slavery becoming an increasingly critical issue for investors and consumers alike, companies can no longer afford to overlook the human impact of their operations.

Businesses are being held accountable for their supply chains, whether through mandatory due diligence, public reporting, or the risk of legal action. The implications for companies are clear: failing to act can not only damage their reputation but also lead to legal and financial penalties.

Verisio’s Support

To ensure compliance with international modern slavery legislation, businesses need more than just awareness of the requirements—they need guidance and practical solutions. Verisio specialises in helping organisations meet their global obligations, offering comprehensive auditing, due diligence, and reporting services tailored to modern slavery legislation and often going above and beyond. By partnering with Verisio, businesses can identify and mitigate risks in their supply chains and demonstrate their commitment to ethical practices. Contact us here for more information on how we can help.