Modern slavery remains a heartbreaking reality in today’s global economy, affecting around 50 million people worldwide. More than half of these victims are trapped in forced labour, where individuals are coerced into working against their will through threats of or actual violence to themselves or their families. The magnitude of this issue means that businesses have a critical role and must take responsibility for their part in ending modern slavery.

Step 1: Map and Conduct a Risk Assessment of the Supply Chain

The first step for any business seeking to address modern slavery is understanding its supply chain. In industries where low wages are common, or in countries with weak worker protections, the risk of modern slavery is significantly higher. Mapping the entire supply chain, particularly for companies with manufacturing in their supply chain, is crucial.

Once the supply chain is mapped, businesses should conduct a thorough risk assessment. This involves identifying areas where forced labour is most likely to occur, such as in high-risk regions or industries. While focusing on the most vulnerable sectors is a good first step, lower-risk areas shouldn’t be ignored.

It’s important for businesses to evaluate all suppliers, not just those directly involved in manufacturing. Service providers, subcontractors, labour providers, and recruitment agencies, often described as Goods Not For Resale (GNFR), all need to be considered, as modern slavery can occur anywhere within the supply chain.

Several resources are available to help businesses unsure where to begin. The U.S. Bureau of International Labor Affairs offers a list of goods and source countries known for forced and child labour, and the International Trade Union Confederation publishes an annual Global Rights Index, ranking countries by workers’ rights violations. These reports provide a solid foundation for identifying potential risks.

Mapping and assessing risks in the supply chain is not just about compliance—it’s about taking the first steps toward eradicating forced labour.

Verisio is well-versed in helping companies start from scratch. Through our expertise, supplier engagement programmes and user–friendly Optimus platform, we have successfully mapped supply chains from nothing to full coverage for many of our clients.

Step 2: Implement risk grading and ethical sourcing practices

Once the supply chain is mapped and a risk assessment is complete, businesses have a clear idea of where to start. They need to adopt transparent, ethical sourcing practices. A zero-tolerance policy toward modern slavery should be established and embedded across the organisation to promote a culture of responsibility. Here are a few methods businesses can implement to encourage ethical sourcing:

Some methods for ethical sourcing:

  • Audits: Regular, independent third-party audits of your supply chain provide a snapshot of working conditions. Employing recognised audit schemes, such as SMETA, ensures consistency across sites. To maintain high standards, audits should be conducted by auditors who are members of the Association of Professional Social Compliance Auditors (APSCA). You can find APSCA member firms here, and Verisio is one, too.
  • Code of Conduct: Ensure all suppliers sign a company code of conduct, setting clear expectations for ethical behaviour.
  • Contracts: Establish signed terms and conditions with your suppliers so they are bound by ethical standards, ensuring that the right to audit is included and expectations are clear.
  • Whistleblowing: Ensure each site and worker has access to an anonymous whistleblowing service to report any concerns. Details of the whistleblowing service should be displayed in confidential areas, like toilets, to reduce the risk of retaliation from management.
  • Unannounced spot checks: Once an established audit programme is in place, incorporating unannounced audits into the monitoring process is highly recommended. A third-party audit is one tool in the ethical compliance toolkit, and unannounced visits are crucial to understanding a site’s setup without preparation.

Adopting these ethical practices strengthens a company’s commitment to responsible sourcing and provides a more transparent view of its operations.

Step 3: Develop Corporate Governance

For any anti-modern slavery strategy to succeed, there must be a firm commitment from the top. Boards, shareholders, and top executives must champion the cause and ensure that ethical sourcing is not just a box-ticking exercise but a core value embedded in the company.

Top-level buy-in ensures that modern slavery is prioritised as part of the broader corporate social responsibility strategy. When leaders are engaged and actively support anti-slavery measures, it becomes easier to foster a company-wide culture of accountability, ethics, and transparency.

Modern slavery may be deeply entrenched in today’s global economy, but businesses are uniquely positioned to help end it. By mapping their supply chains, implementing ethical sourcing practices, and fostering strong corporate governance, companies can drastically reduce the risk of forced labour within their operations and work collectively to improve working conditions.

While the steps toward eradicating modern slavery require continuous effort, the impact is profound. Not only does ethical sourcing protect human rights, but it also builds a more sustainable, transparent, and trustworthy business. When companies decide to take responsibility for their supply chains, they contribute to a future where modern slavery no longer exists in the global economy.

Verisio’s Role

At Verisio, we offer comprehensive support for businesses seeking to address modern slavery within their supply chains. With extensive experience in ethical compliance, we help companies map their supply chains, identifying areas at high risk for forced labour through our user-friendly platform, Optimus.

Our expertise doesn’t end at risk assessment, though. We are a full APSCA member firm and can carry out ethical audits, unannounced spot checks and training programmes to help your business embed ethical sourcing and responsibility into your business, and meet all legal requirements. Contact us here to learn more.