One of HR’s Vital Roles in Supply Chains

by Colleen B Kelly.

Forewarned is forearmed!

By reviewing and incorporating the principles of the new WHS Code of Practice, we can create more supportive and secure work environments. Let’s work together to make every workplace a safe place for everyone.

For more details, check out the full WHS Code of Practice documentation click here. Stay safe!

Despite existing legal frameworks, modern slavery and human trafficking in western countries is not just hidden – it’s the world fastest growing crime!

Human Resources (HR), People & Culture (P&C), Industrial Relations (IR), Employee Relations (ER) and Learning & Development (LD) thought leaders have a crucial role in eradicating modern slavery and human trafficking within organisations, especially in agriculture and construction.

As the previous Spokeswoman for the WorkCover Authority of NSW, I encourage organisations to raise awareness and taking decisive action to equip individuals and organisations with the necessary tools to combat these violations. Together we can create a future free from exploitation, where freedom and dignity are safeguarded for everyone.

Key Benefits TO YOUR ORGANISATION:

Eradicating modern slavery and human trafficking can provide significant benefits to an organization, including:

1. Enhanced Reputation: Demonstrating a strong commitment to ethical practices enhances the organization’s public image and builds trust with customers, investors, and partners.
2. Risk Mitigation: Proactively addressing human rights issues reduces legal and regulatory risks, including fines and sanctions related to non-compliance with laws against modern slavery.
3. Increased Investor Confidence: Ethical operations attract socially responsible investors and stakeholders who prioritize sustainability and compliance.
4. Improved Employee Morale and Retention: A commitment to dignity and respect in the workplace increases employee satisfaction, loyalty, and retention.
5. Access to New Markets: Ethical practices can open doors to new markets and partnerships with organisations that have strict ethical standards.
6. Consumer Preference: Increasingly, consumers are choosing to support brands that prioritise ethical practices, leading to potentially greater customer loyalty and market share.
7. Operational Efficiency: Identifying and eliminating exploitative practices can lead to more efficient and streamlined supply chains.
8. Culture of Integrity: Promoting ethical behavior throughout the organization fosters a culture of integrity, pride, and ethical decision-making at all levels.
9. Long-term Sustainability: Ethical practices contribute to the long-term sustainability of operations, ensuring the organization remains viable and competitive in the future.
10. Compliance and Legal Standing: Adhering to international standards and regulations enhances the organization’s legal standing and reduces the potential for reputational damage from lawsuits or scandals.

By taking decisive action against modern slavery, organisations not only contribute to a more just society – but also strengthen their own operational strategic resilience, and increase profitability, employee and customer engagement.

kEY RiskS TO YOUR ORGANISATION:

Organisations can face various serious risks related to modern slavery and human trafficking, including:

1. Reputational Damage: Being associated with modern slavery can severely harm an organisation’s brand and public image, leading to loss of customer trust and loyalty.
2. Legal and Regulatory Penalties: Non-compliance with laws and regulations targeting modern slavery can result in significant fines, legal action, and restrictions.
3. Supply Chain Disruption: Discovering modern slavery in the supply chain may necessitate immediate changes, causing potential disruptions and increased costs.
4. Loss of Business Partnerships: Companies with unethical practices may be dropped by ethical business partners and suppliers who prioritise compliance and corporate responsibility.
5. Investor Divestment: Investors may withdraw their support due to ethical concerns, leading to a potential decrease in stock value and market capital.
6. Consumer Boycotts: Products associated with unethical labor practices can lead to consumer boycotts and decreased sales.
7. Litigation and Compensation Claims: Victims or advocacy groups may file lawsuits against the organization, seeking compensation and further punitive measures.
8. Operational Risks: Exploitative practices can hinder productivity and operational efficiency, as they often involve unskilled labor and high turnover rates.
9. Employee Morale Issues: Knowledge of unethical practices can negatively impact existing employees’ morale and engagement, leading to decreased productivity.
10. Negative Media Coverage: Extensive media scrutiny and negative coverage can amplify damage to the organization’s reputation and brand integrity, making recovery difficult and costly.

These risks highlight the importance of ensuring comprehensive due diligence and transparent, ethical practices throughout an organisation and its supply chain.

“TOP TEN” MANAGEMENT ACTION PLAN

1. Developing Strong Policies: Establish and enforce clear anti-slavery and anti-trafficking policies within the organisation. These policies should outline the company’s commitment to human rights and ethical practices, ensuring alignment with Australia’s Modern Slavery Act.
2. Supplier and Partner Due Diligence: Conduct thorough due diligence on suppliers and business partners to ensure they adhere to ethical labor practices. This includes regularly auditing their operations and requiring them to comply with your organisation’s code of conduct regarding modern slavery.
3. Supply Chain Transparency: Promote transparency throughout the supply chain by mapping out all suppliers and gathering data on their labor practices. Encourage open dialogue with suppliers about their own modern slavery initiatives and improvements.
4. Awareness and Training Programs: Implement comprehensive training programs to educate all employees, especially those in roles related to procurement, management, and recruitment, about the signs of modern slavery and trafficking. This includes understanding how to identify potential risks and the steps to report suspected cases.
5. Support and Reporting Mechanisms: Establish secure and confidential communication channels for employees and partners to report instances of suspected modern slavery. Ensure there are clear procedures in place for dealing with these reports, including support for victims.
6. Partnerships with NGOs and Experts: Collaborate with external organizations, such as non-governmental organisations and experts, to gain insights and improve your strategies for identifying and combatting modern slavery.
7. Monitoring and Assessment: Implement systems to regularly monitor and assess effectiveness of anti-slavery measures. This can include setting KPIs related to human rights and utilising external audits to provide objective evaluations.
8. Incorporate Anti-Slavery into Corporate Culture: Foster a corporate culture that prioritises ethical practices and social responsibility. Leadership should consistently communicate the importance of anti-slavery efforts and integrate these values into the company’s overall mission.
9. Legal Compliance and Updates: Ensure the organisation is up to date with national and international laws regarding modern slavery. Regularly review and adjust company policies to maintain compliance with evolving legislation.
10. Public Reporting and Advocacy: Share the organisation’s efforts and achievements in combatting modern slavery in public reports and advocate for broader industry changes. Being transparent about your challenges and successes can influence others and contribute to broader societal change.

MORE IN-DEPTH …
50-POINT MANAGEMENT ACTION PLAN

HR professionals play a crucial role in combating modern slavery and human trafficking within organisations. Here are 50 ways HR practices can contribute to ending these issues:

1. Develop Clear Policies:
   Establish and enforce clear anti-slavery and anti-trafficking policies.
   
2. Code of Conduct:
   Implement a strict code of conduct for employees and suppliers.
   
3. Training Programs:
   Conduct regular training sessions on recognizing and preventing modern slavery.
   
4. Supply Chain Audits:
   Collaborate with supply chain teams to conduct regular audits for slavery conditions.
   
5. Due Diligence Processes:
   Include human trafficking risks in due diligence processes for new contracts.
   
6. Grievance Mechanisms:
   Establish safe and anonymous reporting channels for employees to report unethical practices.
   
7. Partnerships with NGOs:
   Collaborate with non-governmental organizations (NGOs) for guidance and support.
   
8. Vendor Screening:
   Require comprehensive screening of suppliers and contractors before engagement.
   
9. Employee Education:
   Educate employees about the signs of modern slavery and human trafficking.
   
10. Policy Communication:
    Clearly communicate anti-slavery policies to all staff and stakeholders.
    
11. Whistleblower Protection:
    Protect whistleblowers who report modern slavery concerns.
    
12. Fair Recruitment Practices:
    Ensure fair recruitment practices without charging job-seekers fees.
    
13. Living Wage Advocacy:
    Advocate for and ensure payment of a living wage to all employees and subcontractors.
    
14. Diversity and Inclusion:
    Promote diversity and inclusion to reduce vulnerabilities to trafficking.
    
15. Supplier Agreements:
    Include anti-slavery clauses in all supplier agreements.
    
16. Human Rights Impact Assessments:
    Conduct regular assessments to identify and mitigate human rights risks.
    
17. Collaboration with Law Enforcement:
    Work closely with law enforcement agencies to address suspected human trafficking.
    
18. Employee Support Programs:
    Create support programs for employees or victims identified within operations.
    
19. Community Engagement:
    Engage with communities to raise awareness and education about human trafficking.
    
20. Employee Assistance Programs:
    Implement EAPs that include resources for addressing human trafficking concerns.
    
21. Annual Reporting:
    Include modern slavery assessments and actions in annual sustainability reports.
    
22. Consult External Experts:
    Seek guidance from experts in human rights and anti-trafficking efforts.
    
23. Enhanced Onboarding:
    Incorporate modern slavery education into the onboarding process.
    
24. Internal Audits:
    Schedule regular internal audits focused on labor practices.
    
25. Risk Assessment Tools:
    Utilise tools to frequently assess and measure trafficking risks in operations.
    
26. Stakeholder Dialogues:
    Engage stakeholders in discussions to inform anti-trafficking initiatives.
    
27. Victim Support Programs:
    Partner with organisations that support human trafficking victims.
    
28. Ethical Supplier Certification:
    Work towards certification of ethical supply chain practices.
    
29. Transparent Reporting:
    Ensure transparency in reporting labor practices and issues identified.
    
30. Modern Slavery Working Groups:
    Establish internal teams dedicated to addressing these issues.
    
31. Review and Improve Contracts: Regularly review contracts for ethical compliance in labor terms.
    
32. Freedom of Movement Guarantees:
    Ensure all worker policies respect freedom of movement.
    
33. Survey Tools:
    Use surveys to anonymously gather employee insights related to labor practices.
    
34. Internal Campaigns:
    Run internal campaigns to highlight and bring awareness to ending slavery.
    
35. Translation of Policies:
    Provide translated resources for non-native language speakers to ensure understanding.
    
36. Temporary and Migrant Worker Support:
    Focus on protections for vulnerable workers, including temporary and migrant staff.
    
37. Cross-Department Collaboration:
    Collaborate across departments for comprehensive risk management.
    
38. Digital Tools and Platforms:
    Use technology to monitor for and manage risks of slavery and trafficking.
    
39. Advocate for Industry Standards:
    Support and promote industry-wide standards on ethical labor practices.
    
40. Emergency Preparedness Plans:
    Equip the organisation to respond effectively to discovered incidents.
    
41. Staff Engagement Surveys:
    Regularly conduct surveys to gauge employee sentiment on company ethics.
    
42. Ongoing Professional Development:
    Encourage continuous learning about labor rights issues.
    
43. Transparency in Communication:
    Regularly update staff and stakeholders on progress towards eliminating risk.
    
44. Employment Relationship Evaluations:
    Regularly evaluate employment relationships to expose risks.
    
45. Encourage Speak-Up Culture:
    Foster an environment where employees feel they can safely report concerns.
    
46. Align with Corporate & Sustainable Development Goals (SDGs):
    Align organisational goals with the UN Sustainable Development Goals related to work.
    
47. Safe Working Environment Initiatives:
    Commit to creating and maintaining a safe and fair working environment.
    
48. Risk Analysis Frameworks:
    Develop frameworks for ongoing risk analysis of slavery and trafficking.
    
49. Industry Participation:
    Actively participate in industry networks focused on ending modern slavery.
    
50. Leadership Engagement:
    Ensure leadership is aware, committed, and regularly informed of efforts and progresses in combating modern slavery.

Promoting these actions within an organisation can significantly bolster anti-trafficking efforts and create a culture of ethics and respect for human rights.

MANDATORY TRAINING

Human trafficking training may now be mandatory for police, and other industries such as mandatory for beauty industry and many other industries – so HR professionals can start planning for the industry now.

MORE INFO…

If you’re lost…start here: How to register a human trafficking statement