Member Article

Modern Slavery Act prosecution cases increase 425% in 2016

The Ministry of Justice has published its ’Criminal Justice System Statistics Quarterly’ report, highlighting trends in activity in the criminal justice system from January to December 2016. While the data has been compiled by the Office of National Statistics, Igniyte, the online reputation management consultancy, has uncovered a startling 425% increase in UK Companies being taken to court for breaching the Modern Slavery Act 2015. This growth, from 12 companies in 2015 to 51 companies in 2016, indicates a substantial rise in UK businesses being legally pursued by the Department of Justice. One such case in January found two brothers jailed for six years for recruiting and trafficking vulnerable men from Poland to work at the Sports Direct warehouse in Derbyshire.

With this significant increase in prosecutions, businesses are urged to check their supply chain activity, to ensure compliance with the Modern Slavery Act 2015 and to avoid the inevitable bad publicity that comes from such an event.

In addition to potential prosecution and jail time, a number of high-profile cases in the press show that there’s also significant potential for breaches of the Modern Slavery Act to have a devastating impact on a company’s reputation, its directors, and company profits. With the press eager to ‘out’ the non-compliant, the news of breaches travels far and may have long-lasting effects on brand, company, and director’s reputation.

Notably, Primark was met with public outcry in recent years after being exposed for using cheap labour in supply chains, and failing to provide safe working conditions for employees. Similarly, Nike has also been shamed in public for its labour practices, which damaged the company’s reputation and hurt sales. In 2013 a factory collapse at the Rana Plaza in Bangladesh was another reminder of the horrors of modern slavery. While today the likes of Nike and Primark have turned their reputations around, it’s taken a lot of positive action and time to change public opinion.

It’s been two years since the ground-breaking Modern Slavery Act 2015 came into force; requiring public and private companies and partnerships with a global turnover of over £36 million, conducting business in the UK, to be responsible for preventing human trafficking and exploitation entering both their company and supply chain. While a number of UK companies have developed processes for monitoring their immediate employment network, many are still falling foul of their requirement to audit and report on their supply chain’s adherence to the Modern Slavery Act 2015.

While it is obviously harder for an organisation to review its supply network, Igniyte have made the task easier with their bespoke monitoring service, where Igniyte’s team of experts will audit the online reputation of a company’s supply chain across the globe, prepare risk assessments, identify potential issues, draft official statements and offer practical advice and actions. As the government advises companies to enlist the help of PR specialists to proactively avoid press scrutiny, Igniyte also provides ongoing online reputation monitoring and reporting of suppliers for any potential risks. You can also read the latest Igniyte article: ‘Is your company or supply chain falling foul of the Modern Slavery Act 2015?’

Many businesses still aren’t complying with the law, risking their online reputation and more. Make sure your business isn’t one of them. To find out how Igniyte can help your business comply with the Modern Slavery Act 2015, contact Simon Wadsworth at simon@igniyte.com or call him on 0203 542 8689, or visit: www.igniyte.com

This was posted in Bdaily's Members' News section by Igniyte .