In a world where an estimated 49.6 million people are trapped in modern slavery, addressing forced labor in global supply chains has become an urgent priority. Chapter 31 of The Palgrave Handbook on Modern Slavery explores the impact of two pivotal pieces of legislation—the California Transparency in Supply Chains Act (CTSCA) and Australia’s Modern Slavery Act (MSA)—on corporate transparency and accountability. Authored by Martijn Boersma, Mary Graw Leary, and Hiruy Wubie Gebreegziabher, the chapter delves into how these laws influence corporate disclosures, the challenges they face, and what lies ahead in the fight against labour exploitation.

Understanding the Legislative Landscape

The CTSCA, introduced in 2010, set a precedent by requiring large businesses operating in California to disclose efforts to combat slavery and human trafficking in their supply chains. Eight years later, Australia followed with the MSA, which implemented stricter reporting requirements and sought to push businesses toward substantive action. Both laws share the goal of eradicating modern slavery through transparency, yet their approaches differ in scope and enforcement mechanisms.

While the CTSCA emphasizes consumer-driven accountability, the MSA demands board-approved statements and a public registry to facilitate oversight by civil society and investors. These distinctions reflect not only the regulatory philosophies of their respective jurisdictions but also their varying degrees of ambition in holding corporations accountable.

Key Findings: Transparency vs. Action

The comparative analysis presented in Chapter 31 paints a nuanced picture. On the one hand, the MSA’s more robust framework appears to have spurred meaningful corporate actions, particularly in sectors like food and agriculture. On the other hand, many businesses under both Acts demonstrate a tendency toward “technical compliance”—fulfilling minimum disclosure requirements without taking substantive steps to address forced labor risks.

The data revealed gaps in risk disclosure, particularly in identifying and addressing sector-specific challenges such as low wages, hazardous working conditions, and exploitative recruitment practices. For instance, while some companies provided detailed descriptions of supply chains and risk mitigation efforts, few reported on actual incidents of modern slavery or their remediation processes. This suggests a disconnect between policy commitments and practical outcomes.

Regulatory Challenges and Recommendations

Both the CTSCA and the MSA have contributed to a diffusion of accountability norms, prompting other jurisdictions to adopt similar legislation. However, their effectiveness is constrained by weak enforcement mechanisms. The CTSCA, for example, relies primarily on reputational risk rather than penalties for non-compliance. Similarly, while the MSA includes provisions for naming non-compliant entities, enforcement remains limited.

To bridge the gap between transparency and action, Chapter 31 calls for:

1. Stronger Enforcement Mechanisms: Regulators must move beyond voluntary disclosure models and impose meaningful sanctions for non-compliance.
2. Global Cooperation: Given the transnational nature of supply chains, governments and international bodies must coordinate efforts to enforce standards across jurisdictions.
3. Focus on Outcomes: Businesses should be required to report not only on policies and procedures but also on measurable impacts, such as improved working conditions and effective remediation for victims.
4. Norm Diffusion with Substance: The spread of transparency laws should emphasize substantive action rather than mere technical compliance.

The Road Ahead

The chapter highlights promising developments in legislative approaches, such as France’s Corporate Duty of Vigilance Law and the European Union’s Corporate Sustainability Due Diligence Directive. These laws mandate proactive risk assessments and remediation, shifting the burden from consumers to corporations and regulators. Ultimately, the fight against modern slavery requires a paradigm shift. As governments, businesses, and civil society work together, the focus must shift from symbolic compliance to meaningful action that addresses the root causes of labor exploitation. Transparency is a necessary first step, but it must be accompanied by accountability and enforcement to achieve lasting change.

This chapter serves as a compelling reminder that while progress has been made, there is still much work to do. By building on the lessons of the CTSCA and MSA, stakeholders can chart a more effective path forward in the global effort to eradicate modern slavery.