New research shows UK Businesses ‘Woefully Unprepared’ for the new Modern Slavery Act’s reporting requirements
February 8, 2016
According to a recent study by The Chartered Institute of Procurement & Supply (CIPS), UK businesses are ‘woefully unprepared’ for the Modern Slavery Act’s reporting requirements that are coming into force this spring. From 1st April, organisations with a turnover of more than £36m will be required to demonstrate and report on the measures they have in place to ensure modern slavery is not taking place in their business or supply chains.
With under two months to go until the deadline, the CIPS report highlights that supply chain managers responsible appear ‘underwhelmed and unprepared’ for compliance with the Act’s requirements;
• One in five UK supply chain managers are unaware of the new rules
• 27% do not fully understand what their business is required to do to
• One in four cannot name a single step they have taken to comply with the law
• Just a third of supply chain managers claim to have mapped their suppliers to understand the potential risks and exposure to modern slavery
The new requirements are part of the Modern Slavery Act passed in March 2015. The aim of the Act is to safeguard against the use of forced labour in the UK economy by encouraging companies to take a more responsibility for the practices of their suppliers at home and abroad.
David Noble, Group CEO of the Chartered Institute of Procurement & Supply (CIPS) said: “The Act means it’s no longer acceptable for businesses to ignore what they can’t see. It’s true that the modern supply chain is becoming longer and more complicated, but it is possible to take definite steps to put a process in place to achieve the level of transparency and traceability to ensure that their procurement practices do not contribute to modern slavery at any stage in their supply chains.”
The requirements of businesses in the Modern Slavery Act are part of a growing responsibility large organisations have on not just their own practices, but that of their suppliers. The ARCUS® SIM – Supplier Information Management module helps organisations effectively risk manage their suppliers by ensuring due diligence and best practice are in place around the issue of vendor governance.
“ARCUS® SIM provides businesses with much greater visibility into their supply chain’ says Simon Brake, Director at Trade Interchange. “It gives companies a tool to gather in-depth information from their suppliers on any area that the business requires. It provides a fully auditable process to ensure traceability over supplier information whilst demonstrating due diligence and best practice procedures are in place. As long as businesses are asking the appropriate questions of their suppliers (and even their supplier’s suppliers) our SIM module can offer a useful tool and part of the solution for businesses having to adhere to The Modern Slavery Act reporting requirements.”
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