Post on 11-Apr-2017
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UK Modern Slavery Act: Does Your Disclosure Hit the Mark?
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Today’s Moderator
Sarah CarpenterAssent ComplianceBusiness & Human Rights Analyst
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What Does the Legislation Say?
Why Was It Developed?
Are Statements Hitting the Mark?
How Do Statements Get a Passing Grade?
How Is the MSA Driving Change?
Q&A
Agenda
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INTRODUCTION
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Assent Product SuitesOur Market Leading Platform
Ethical Sourcing
Materials Management
Supplier Information Management
InspectionsConfigurable Surveys & Declarable Substance
Lists
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IntroductionWhat Does the Legislation Say?
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The Legislative Landscape
September 2010 January 2015 March 2015 February 2016 January 2017
California Transparency
in Supply Chains Act
US Trade Facilitation and
Trade Enforcement Act, elimination of
consumptive demand exception
EU Non-Financial
Disclosure Directive
US Federal Acquisition
Regulation Final Rule on Combating
Trafficking in Persons (52.222-50)
UK Modern Slavery Act
French Duty of Care Law, etc.
More to Come...
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The Legislative Landscape
1. Disclosure-Based Requirements◆ MSA, California TiSCA, Proposed French Due Diligence Regulation, EU NFR Directive
2. Affirmative Action & Prohibited Activities◆ FAR Rule 52.222.50
3. Customs & Trade Laws◆ U.S. Trade Facilitation & Trade Enforcement Act
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The UK Modern Slavery Act
Who? Commercial organizations carrying out business in the UK with a total annual turnover of £36M or more
What? Disclose efforts made during the previous financial year to ensure their business operations and supply chains are free from slavery and human trafficking
Remedy? Action for injunctive relief brought by the Secretary of State
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Notable Dates
26 March 2015 29 October 2015 30 September 2016
The UK Modern Slavery Act passed
into law
UK Home Office publishes guidance on the UK Modern
Slavery Act
First qualifying organizations
(financial years ending 31 March 2016) due to
publish their Statement*
*The UK Home Office guidance suggests companies should publish their statements within six months of the end of the financial year.
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Today’s Presenter
Patricia CarrierBusiness & Human Rights Resource Centre Project ManagerUK Modern Slavery Act Registry
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Organization Overviews
Assent Compliance provides best-in-class compliance solutions that help organizations with their global, environmental and human
rights compliance strategies.
Business & Human Rights Resource Centre is an international NGO that tracks the human rights impacts of over 6,900 companies, making information available on its
nine-language website. The Resource Centre seeks responses from companies when concerns are raised by
civil society. Further, the Resource Centre seeks to amplify the voice and work of activists on the ground through the work of its regional researchers located around the globe.
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Feature PresentationPRESENTER, TITLE & COMPANY Feature Presentation
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Section 54 – Transparency in Supply Chains
◆ Result of lobbying efforts of civil society and big business
◆ Civil society wanted mandatory transparency
◆ Big business wanted level playing field, not just focus on usual suspects
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MSA & California Transparency in Supply Chains Act of 2010
◆ MSA is aimed at all sectors, not just retailers and manufacturers
◆ MSA applies to goods and services, not just product supply chains
◆ MSA applies to companies with a much lower turnover threshold (£36 million vs $100 million)
◆ MSA requires annual reporting
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UK Modern Slavery Act Registry
https://business-humanrights.org/en/uk-modern-slavery-act-registry
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Minimum Legal Requirements
◆ Signed by a director (or equivalent)
◆ Approved by the board (or equivalent)
◆ Link on homepage of company website
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Six Suggested Criteria
Business Structure and Supply Chains
Policies
Due Diligence
Risk Assessment and Management
Effectiveness
Training
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FTSE 100 at the Starting Line
An Analysis of Company Statements Under the UK
Modern Slavery Act
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Tiering of Statements
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The Highest Performing Companies Provided Detailed Disclosure:
◆ Risks and/or instances of modern slavery
◆ Where in supply chain
◆ How these have been addressed and/or remedied
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Failure to Meet Expectations
Lack of reporting on:
◆ The structure and complexity of supply chains
◆ Specific risks in the supply chain
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Why Are There So Few Leaders in Reporting?
◆ First year
◆ Risk averse advisors (risk of litigation)
◆ Herd mentality
◆ Fear of reputational risk
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MSA Driving Change
◆ Anticipatory positive action taken by 15 of the 27 FTSE 100 companies
◆ Report by Ethical Trading Initiative and Hult International Business School◇ Leadership◇ Priority issue◇ Investor
◆ International trend toward mandatory due diligence legislation
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Race to the Top
More companies have published statements and are showing improved standards of reporting
◆ Associated British Foods◆ Barratt Developments ◆ Primark◆ Debenhams
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Striking a Balance: Highlighting Positive Action While Promoting Improvement
Baroness Young’s Private Members’ Bill proposes three amendments to MSA: ◆ Include public bodies procuring goods and services into Section 54(1) to
require them to prepare a slavery and human trafficking statement
◆ Require the Secretary of State to publish a list of all commercial organisations that are captured by the reporting requirement
◆ Exclude companies that fail to publish a statement from bidding for public sector contracts
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Registry as a Resource
◆ BHRRC – Promote transparency and accountability in reporting
◆ Companies – Learn from peers
◆ Investors – Assess company risks
◆ Civil society – Award companies showing leadership and pushing laggards into action
https://business-humanrights.org/en
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Q&A Discussion
Questions?
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Upcoming Events: Webinars & Conferences
Learn more about Assent events:www.assentcompliance.com/events
[Webinar] AMA: Bill Wheatley - Compliance Team of One Wednesday, February 22nd | 1PM EST
[Webinar] Compliance Essentials: Company & Supply Chain EducationTuesday, February 28th | 11AM EST
Upcoming ConferencesSilicon Valley ForumFebruary 23, 2017 | Sunnyvale, CA