Modern Slavery Policy vs Statement: Why You Need Both

While the requirement to publish an annual modern slavery statement is widely known, many businesses often confuse this with or overlook the necessity of a robust internal modern slavery policy. Both are crucial yet distinct components of an effective anti-slavery strategy. This guide will clarify the differences between a modern slavery policy and a modern slavery statement and explain why every responsible business needs to implement both.

Understanding the Modern Slavery Act 2015

The Modern Slavery Act 2015 is a landmark piece of legislation in the UK designed to consolidate existing offences relating to slavery and trafficking, introduce new powers for law enforcement, and provide greater protection for victims. Crucially for businesses, Section 54 of the Act, known as the “Transparency in Supply Chains” provision, mandates that certain commercial organisations publish an annual modern slavery statement.

Who Needs to Publish a Statement?

A commercial organisation or business needs to publish a slavery and human trafficking statement if it meets all of the following requirements:

• It is a body corporate or a partnership.
• It carries on a business, or part of a business, in the UK.
• It supplies goods or services.
• It has a total annual turnover of £36 million or more.

It's important to note that charities, if incorporated as a charitable company or charitable incorporated organisation, and meeting the turnover threshold, are also required to publish a statement.

The Act's aim is to make modern slavery more difficult by encouraging larger businesses to take proactive steps and disclose their efforts, encouraging transparency throughout supply chains.

Modern Slavery Statement: The Public Disclosure

A modern slavery statement is a public document that outlines the steps an organisation has taken during its financial year to prevent modern slavery and human trafficking in its own operations and supply chains. It is primarily a reporting and transparency mechanism, intended to inform the public, consumers, investors, and other stakeholders about a company's commitment to tackling modern slavery.

What to Include in a Modern Slavery Statement:

While the content can vary, the UK government guidance suggests that a modern slavery statement should include information on:

• Organisation Structure and Supply Chains: A description of the organisation's structure, business, and supply chains. This provides context for the efforts undertaken.

• Policies Related to Modern Slavery: Details of any policies related to modern slavery and human trafficking. This is where your internal modern slavery policy would be referenced and summarised.

• Due Diligence Processes: The processes undertaken to identify, assess, and manage risks of modern slavery in its operations and supply chains. This demonstrates the proactive steps being taken.

• Risk Assessment and Management: An explanation of the parts of its business and supply chains where there is a risk of modern slavery and human trafficking, and the steps taken to manage that risk. This often involves identifying high-risk areas based on geography, sector, or type of labour.

• Key Performance Indicators (KPIs): Relevant KPIs to measure the effectiveness of steps taken to ensure that modern slavery and human trafficking are not taking place in its operations or supply chains. These might include metrics on training completion, audits conducted, or issues identified and remediated.

• Training: The training available to staff on modern slavery and human trafficking. This highlights efforts to raise awareness and equip employees to recognise and respond to potential issues.

The modern slavery statement is typically signed by a director or equivalent and published on the organisation's website, with a prominent link on the homepage. It must be updated and published annually.

The primary purpose of the statement is to:

• Promote Transparency: Shine a light on corporate efforts to combat modern slavery.
• Drive Accountability: Hold businesses accountable for their commitments and actions.
• Inform Stakeholders: Provide critical information to consumers, investors, and civil society organisations who increasingly use this data to make ethical purchasing or investment decisions.
• Encourage Best Practice: By publicly reporting, companies are incentivised to improve their practices year-on-year.

Modern Slavery Policy: The Internal Framework

In contrast to the public-facing modern slavery statement, a modern slavery policy is an internal document. It sets out the organisation's formal stance against modern slavery, outlining its commitments, principles, and the internal procedures and responsibilities for preventing, detecting, and responding to modern slavery and human trafficking within its own operations and supply chains.

Think of the policy as the blueprint: the internal rules and guidelines that dictate how the organisation will achieve its anti-slavery objectives. It is the practical guide for employees and partners, translating the organisation's high-level commitment into actionable steps.

Key Elements of a Modern Slavery Policy:

A robust modern slavery policy typically includes:

• Statement of Commitment: A clear, unequivocal declaration that the organisation has a zero-tolerance approach to modern slavery in all its forms.

• Scope and Applicability: Clearly define who the policy applies to, including all employees, contractors, suppliers, and business partners.

• Definitions: Provide clear definitions of modern slavery, human trafficking, forced labour, and child labour to ensure a common understanding across the organisation.

• Roles and Responsibilities: Assign responsibilities for implementing, monitoring, and enforcing the policy across different departments (e.g., HR, Procurement, Legal, Operations).

• Due Diligence Procedures: Detail the processes for conducting due diligence on new and existing suppliers, including risk assessments, audits, and contractual clauses.

• Supplier Management Expectations: Outline clear expectations for suppliers regarding their adherence to anti-slavery principles, including requirements for them to cascade these expectations down their own supply chains.

• Training and Awareness: Describe the types of training provided to employees, particularly those in roles that interact with supply chains or vulnerable workers (e.g., procurement, HR, site managers).

• Reporting Mechanisms (Whistleblowing): Establish clear, accessible, and confidential channels for employees, suppliers, or other stakeholders to report concerns or suspicions of modern slavery, along with a commitment to protect whistleblowers.

• Investigation and Remediation: Outline the procedures for investigating allegations of modern slavery and the steps to be taken for remediation, including support for victims and disciplinary actions against perpetrators.

• Review and Update: State the frequency and process for reviewing and updating the policy to ensure it remains relevant and effective.

The modern slavery policy serves several critical internal purposes:

• Guidance for Employees: It provides clear instructions and expectations for employees on how to identify, prevent, and report modern slavery.

• Framework for Action: It establishes the operational framework for managing modern slavery risks within the business.

• Legal Protection: It demonstrates the organisation's commitment to compliance and can serve as evidence of due diligence if an issue arises.

• Internal Accountability: It assigns responsibilities and promotes vigilance against modern slavery.

Why You Need Both: Policy and Statement Working Together

The modern slavery policy and the modern slavery statement are not interchangeable; they are complementary tools that form a comprehensive approach to combating modern slavery.

The policy is the "doing": it outlines the internal commitment, operational procedures, and responsibilities. It’s what drives the organisation's efforts to prevent modern slavery. Without a robust policy, the statement would be an empty promise, lacking the practical foundation to support its claims.

The statement is the "telling": it publicly reports on the actions taken and the effectiveness of the policy. It demonstrates transparency and accountability, showing stakeholders that the organisation is actively working to address modern slavery. Without a statement, even the best internal policy would remain hidden, failing to contribute to the broader goal of corporate transparency and public awareness.

Consider the relationship:

Together, the policy provides the operational backbone, and the statement provides the necessary transparency and accountability.

Best Practices for Effective Modern Slavery Compliance

Beyond having both a policy and a statement, organisations should strive for best practices in their anti-slavery efforts:

• Go Beyond Legal Minimums: While the MSA sets a threshold, all organisations, regardless of size, have an ethical responsibility to address modern slavery. Even if not legally required to publish a statement, having an internal policy and taking proactive steps is crucial. Government guidance encourages using buying power to tackle modern slavery in supply chains, which applies to organisations of all sizes involved in procurement.
  
  
• Risk-Based Approach: Focus due diligence efforts on areas of higher risk (e.g., sectors known for modern slavery, specific geographies, vulnerable worker populations).
  
  
• Supply Chain Mapping: Gain deep visibility into your supply chain, not just Tier 1 suppliers, but cascading down to identify all entities involved in producing your goods or services.
  
  
• Collaboration: Work with industry peers, NGOs, and experts to share best practices and address systemic issues.
  
  
• Technology and Data: Utilise technology to manage supplier data, conduct risk assessments, and monitor compliance.
  
  
• Continuous Improvement: Modern slavery risks are dynamic. Regularly review and update your policies, procedures, and statements based on new insights, emerging risks, and evolving best practices.
  
  
• Auditing and Verification: Conduct unannounced audits, human rights impact assessments, and independent third-party verification to ensure compliance within your supply chain. Services provided by organisations like Veriforce CHAS can offer valuable support in assessing and verifying supply chain compliance, particularly in complex areas like modern slavery, helping contractors demonstrate their adherence to high standards.

Combating modern slavery requires both internal commitment and public accountability. Your modern slavery policy outlines your organisation's internal actions, procedures, and responsibilities to prevent and address modern slavery.

Meanwhile, your annual modern slavery statement provides crucial transparency, publicly demonstrating your efforts and progress to stakeholders.

Together, these complementary tools ensure legal compliance and fortify your commitment to ethical conduct and contribute meaningfully to a world free from exploitation. By creating a robust policy and a clear statement, your business can lead in responsible practice.