Tag Archives: Reporting

Why Australia Needs an Anti-Slavery Commissioner

January 23, 2024Uncategorizedaddressing modern slavery, companies, Corporate Governance, corporate social responsibility, due diligence, exploitation, forced labour, global supply chains, government, labour standards, Martijn Boersma, modern slavery, modern slavery act, Reporting, transparency, worker exploitationmartijn

Last week, a 47-year-old Queensland man was charged with 46 offences, including torturing and enslaving deckhands on his fishing boats.

The accused allegedly intimidated and attacked his employees, and withheld food and water. He will appear in court next month.

Australia is estimated to have 41,000 people trapped in modern slavery. People can be subjected to modern slavery through coercion, deception and violence. This includes acts such as grooming, wage theft and restriction of movement.

In Australian and international law slavery is defined as:

the condition of a person over whom any or all of the powers attaching to the right of ownership are exercised.

Modern slavery is distinct from historical slavery in that people are no longer legally owned but are instead subjected to illegal control.

Continue reading Why Australia Needs an Anti-Slavery Commissioner →

New Research: Is the Australian Modern Slavery Act Fit For Purpose?

April 3, 2023Uncategorizedaddressing modern slavery, Australia, companies, Corporate Governance, corporate social responsibility, CSR, due diligence, exploitation, forced labour, global supply chains, government, human rights, human rights abuses, modern slavery, modern slavery act, remediation, Reportingmartijn

The Australian Modern Slavery Act 2018 (MSA) aims to combat modern slavery in the operations and supply chains of Australian businesses by requiring them to report on their efforts to address this issue. However, the question remains whether the Act is fit for purpose. This new report, based on data collected from a business survey and focus groups conducted in 2022 and 2023, offers new insights to inform policy change and business practices by examining the gaps between policy and practice in corporate modern slavery statements.

Effectiveness and barriers

Our investigation gathered input from respondents regarding the MSA’s effectiveness, best practices for implementing remediation measures, and potential reforms. The report presents evidence of corporate responses triggered by the MSA and stakeholders’ perceptions of its impact. Findings reveal a broad consensus that the current corporate responses to the Australian MSA are generally not benefiting victim-survivors of modern slavery. While the MSA raises awareness in the best case, it may also provide a superficial appearance of compliance for businesses that continue to depend on opaque supply chains and cheap labor without substantive commitment to addressing abuses.

Two critical issues highlighted by survey and focus group participants for improving policy and practices to address modern slavery are enhancing supplier relationships and stakeholder engagement. Respondents identified several barriers to effective remediation, including current procurement practices, low trust between suppliers and reporting entities, and inadequate resourcing by businesses for remediation efforts that would compensate and empower victim-survivors of modern slavery. Remediation is a crucial aspect of addressing modern slavery, and effective processes must prioritise risk to people over risk to business.

Remediation and potential reform

The findings also offer insights into practices that may contribute to more effective remediation of modern slavery, providing valuable lessons for government policy focus and businesses seeking to improve their approach to remedy. Survey data indicates that participants who engage key stakeholders in remediation, such as trade unions, report the most effective approaches. Other essential tools include risk management practices like supplier training and increased transparency from suppliers—practices currently utilised by Australian businesses.

Data from this report and previous research demonstrate a strong desire for MSA reform and the need to incentivise improved practices. A majority of survey respondents:

Endorse establishing an Anti-Slavery Commissioner;
Support harmonising the MSA with international standards, such as the UN Guiding Principles on Business and Human Rights (UNGPs), and emerging legislation in other countries;
Agree that mandating human rights due diligence requirements would lead to improved responses to addressing modern slavery;
Support a mix of policy measures, including sanctions and incentives (such as disqualification from government tenders, financial penalties, and director liability) to better tackle modern slavery.

There is a clear disconnect between policy and implementation when it comes to addressing modern slavery within the operations and supply chains of Australian businesses. This stems from a lack of transparency in corporate supply chains, which hinders both the detection and resolution of modern slavery issues. To effectively combat this, it is essential to prioritize enhancing supplier relationships and collaborating with key stakeholders such as trade unions. The problem can only be resolved if it is first acknowledged and understood. Gaining better insight into labor conditions in supply chains through engagement with frontline workers is a fundamental and indispensable initial measure in the battle against modern slavery.

All respondents advocated for reform of the MSA to drive company action that benefits victim-survivors of modern slavery, rather than merely promoting superficial compliance with the Act. This report, therefore, serves as a call to action for both policymakers and businesses to work together to enhance the effectiveness of the MSA and genuinely address the issue of modern slavery in corporate supply chains.

Broken Promises: business failure on modern slavery

November 21, 2022Uncategorizedaddressing modern slavery, civil society, companies, Corporate Governance, corporate social responsibility, exploitation, forced labour, global supply chains, human rights abuses, modern slavery, modern slavery act, Reporting, transparency, worker exploitationmartijn

A new report, Broken Promises: Two years of corporate reporting under Australia’s Modern Slavery Act, examines the second year of corporate statements submitted to the Government’s Modern Slavery Register by 92 companies sourcing from four sectors with known risks of modern slavery: garments from China, rubber gloves from Malaysia, seafood from Thailand and fresh produce from Australia.

It finds that:

66% of companies reviewed (down from 77% in the first year) are still failing to comply with the basic reporting requirements mandated by the legislation, with some companies not submitting reports at all;
Over half (56%) of the commitments made by companies in the first year of reporting to improve their modern slavery response remained unfulfilled based on their second year statements;
43% of companies reviewed (down from 52% in the first year) are still failing to identify obvious modern slavery risks in their supply chains;
There is a mere 6% increase in the number of companies appearing to be taking some form of effective action to address modern slavery risks, with two in three companies still failing to act.

The Law Down Under Podcast: Modern Slavery

September 9, 2022Uncategorizedaddressing modern slavery, Corporate Governance, corporate social responsibility, exploitation, forced labour, global supply chains, human rights, labour standards, migrant workers, modern slavery act, regulation, Reporting, Supply Chain, trafficking, transparency, worker exploitation, working conditionsmartijn

Modern Slavery Risks in the Cleaning and Security Industry

August 8, 2022Uncategorizedaddressing modern slavery, civil society, cleaning accountability frae, companies, consumers, Corporate Governance, corporate social responsibility, CSR, exploitation, forced labour, governance, labour standards, modern slavery act, regulation, Reporting, Supply Chain, supply chains, trafficking, transparency, Unions, vulnerable workers, worker exploitation, working conditionsmartijn

This briefing session brings together academic experts in the fields of modern slavery, labour law compliance, supply chain due diligence and temporary migrant workers, to share insights and advice on how universities can demonstrate leadership in promoting good labour practices. The aim of this briefing is to assist relevant stakeholders in the higher education sector to understand their role in promoting good labour practices, and provide guidance on practically how to do this. This briefing is aimed at professionals working in university procurement and contract management, university modern slavery working groups, university risk and compliance, cleaning and security contractors that currently hold contracts at university campuses.

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The Myth of the Social License to Operate

June 14, 2022Uncategorizedconsumers, Corporate Governance, corporate purpose, corporate social responsibility, CSR, environment, ethics, governance, governments, legitimacy theory, legitimizing myth, Martijn Boersma, myth, regulation, Reporting, social, social dominance theory, social license to operate, stakeholders, Sustainability, transparencymartijn

Over the last two decades many of the world’s largest companies have been involved in scandals, misconduct and dubious ethics. Rather than relying on interventions by public authorities, the dominant governing rationality is informed by the belief that the market is able to balance social, environmental, and financial interests. However, the vast majority of companies that have been involved in ethical transgressions have survived – and have even thrived. Potential damage to the reputation of companies, or threats to their ‘social license to operate’, seems to have had a limited effect. There is therefore reason to believe that market forces are not adequate by themselves to correct corporate misbehaviour.

This chapter from the upcoming ‘Research Handbook on the Sociology of Organizations’ explores the reliance on market forces to correct corporate actions that are not aligned with the common good. It examines to what extent legitimacy theory adequately explains the dynamics around organizational legitimacy, and it proposes an expansion of legitimacy theory to increase its explanatory power: the use of social dominance theory and legitimizing myths expands (organizational) legitimacy as a theoretical construct. In explaining why antagonistic stakeholders continue to rely on market-based approaches, this research suggests that they have either bought into the hierarchy-enhancing myths, or they have not yet developed compelling hierarchy-attenuating myths to challenge the status quo. The chapter concludes with the suggestion that the ‘social license to operate’ and ‘corporate purpose’ are legitimizing myths that uphold the idea that the market can balance social, environmental, and financial interests.

Consultation on Modern Slavery and Worker Exploitation (New Zealand)

June 14, 2022Uncategorizedaddressing modern slavery, civil society, companies, Corporate Governance, corporate social responsibility, exploitation, forced labour, governance, government, human rights abuses, justine nolan, Martijn Boersma, migrant workers, modern slavery, multistakeholder collaboration, Reporting, Supply Chain, trade unions, trafficking, worker exploitation, working conditionsmartijn

Modern slavery and worker exploitation are severe types of exploitation that can be found both internationally and in New Zealand. To address these behaviours, significant collaboration between government agencies as well as civil society, corporations, trade unions, academics, and international partners is needed.

The New Zealand Government sought feedback on a new law aimed at addressing modern slavery and worker exploitation in New Zealand and around the world. The law would introduce new obligations for organisations with operations and supply chains in New Zealand. Below is a submission made by academics and representatives from civil society that work on modern slavery and labour exploitation.

Paper Promises? Examining Australia’s Modern Slavery Act

February 8, 2022Uncategorizedcompanies, Corporate Governance, corporate social responsibility, exploitation, forced labour, global supply chains, government, human rights, human rights abuses, labour standards, modern slavery, modern slavery act, Reporting, supply chains, transparency, worker exploitation, working conditionsmartijn

Two years into its operation, close to 4,000 statements have now been published on the government’s modern slavery register. Yet the extent to which the legislation is transforming business practices or making a tangible difference to the lives of workers remains highly uncertain. This report analyses 102 company statements published in the first reporting cycle of the MSA, to evaluate how many companies are starting to implement effective measures to address modern slavery and how many are lagging.

This report is part of a two-year collaborative research project by academics and civil society organisations aimed at improving responses to modern slavery and access to remedy for affected workers.

Coronavirus Hits Precarious Workers in Supply Chains Hardest

March 18, 2020Uncategorizedaddressing modern slavery, Australia, brands, companies, exploitation, forced labour, government, governments, Martijn Boersma, modern slavery act, Reporting, Revenue, risk, Supply Chain, supply chains, trafficking, work, working conditionsmartijn

*Computer chip and circuit board factory, Jiangxi, China. Shutterstock*

The COVID-19 coronavirus is officially a pandemic, the US and Australian share markets have collapsed, both governments have unveiled stimulus packages, and Australia’s trade union movement is worried about the position of casuals. But things are worse overseas, including for the workers who make products for Australians.

20,000 garment workers in Cambodia face job losses from factory closures because of shortages of raw materials from China and reduced orders from buyers in the virus-affected locations including the United States and Europe. Thousands have already lost their jobs in Myanmar. Garment workers in Sri Lanka and Bangladesh are uncertain of their futures.

Continue reading Coronavirus Hits Precarious Workers in Supply Chains Hardest →

Submission to the Inquiry into the NSW Modern Slavery Act 2018

October 4, 2019Uncategorizeddue diligence, modern slavery, modern slavery act, nsw modern slavery act, regulation, Reporting, Supply Chainmartijn

The Standing Committee on Social Issues is inquiring into and reporting on the Modern Slavery Act 2018 (NSW) (the NSW Act), the consultation draft of the Modern Slavery Bill 2019 (the amendment Bill), and the consultation draft of the Modern Slavery Regulation 2019 (NSW) (the Regulation), with particular reference to:

(a) the operability of the proposed anti-slavery scheme
(b) the effect of the anti-slavery scheme on business, including the supply chain reporting obligations under section 24 of the NSW Act
(c) the intended application of the anti-slavery scheme with respect to charities and not-forprofit organisations, State Owned Corporations and local councils
(d) the appropriateness and enforceability of Modern Slavery Risk Orders under section 29 of the NSW Act
(e) the unintended consequences of drafting issues with the NSW Act, including with respect to the Human Tissue Act 1983 (NSW) and the sale and supply of human tissue
(f) the risk of a possible constitutional challenge to current provisions in the NSW Act due to inconsistencies with the Criminal Code Act 1995 (Cth)
(g) whether the passage of the Modern Slavery Act 2018 (Cth) renders parts or all of the NSW Act unnecessary, or requiring of amendment to address inconsistencies or gaps
(h) the preferred course of action to address the matters identified
(i) any other related matter.

Below is the submission made by Justine Nolan and Martijn Boersma.

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Tag Archives: Reporting

Coronavirus Hits Precarious Workers in Supply Chains Hardest

Submission to the Inquiry into the NSW Modern Slavery Act 2018