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Home > News

CSI now helping buyers and suppliers comply with new UK law

Friday, April 21, 2017

  • About the UK Modern Slavery Act

    What is it?

    The Modern Slavery Act (MSA) is a UK law that came into effect on 1 October 2015. It places a legal duty on commercial organisations to produce and publish an annual statement. The statement must outline the steps they have taken to ensure their operations and supply chains are free of slavery and human trafficking or report that no such steps have been taken.

    Does it apply to our organisation?

    If your company has a turnover of £36M or more and does business in the UK, even if it is incorporated or formed abroad, then the Act applies and, to comply, your organisation has a duty to publish a slavery and human trafficking statement annually. Your organisation must detail what you are doing to address these issues in your supply chains and your own business.

    Even if you are a UK public sector entity or, a smaller organisation with turnover below the amount identified that supplies a larger company that has to comply with the Act, you may be asked to disclose whether you have taken steps to ensure your own operations and supply chains are free of slavery and human trafficking.

    What does the annual MSA statement need to include?

    The statement by an organisation meeting the turnover threshold must outline the steps it has taken during its financial year to ensure slavery and human trafficking are not taking place—(i) in any of its supply chains, and (ii) in any part of its own business

    The Act also states that organisations may choose to say in their statement that no such steps have been taken. That said, due to the increasing awareness of the tragic impact of slavery and human trafficking on individuals, as well as the increasing risk of incurring reputational and financial damage, organisations are choosing to be proactive.

    Although the Act is not prescriptive, it suggests the MSA statement reports on the policies, training, due diligence processes and steps taken to assess and manage the risks of slavery and human trafficking taking place as well as improvements in performance over time.

  • Why CIPS Sustainability Index?

    CIPS Sustainability Index (CSI) provides an independent and cost effective way for buyers and suppliers to demonstrate due diligence in keeping their supply chains free of slavery and human trafficking. Through an online audit, buyers can quickly gather information about their supply chains’ compliance and suppliers can submit their credentials with respect to the Act just once, regardless of the number of prospects or clients who ask.

    Benefits of CSI for Buyers

    Demonstrate due diligence Check whether your suppliers are taking steps to ensure their own business and their supply chains are human trafficking and slavery free.
    Monitor compliance Report on whether or not steps are being taken by your suppliers to ensure slavery and human trafficking is not taking place.
    Show progress Over time, show the extent of progress across your supply chains.
    Benchmark conformance Gain a picture of your supply chains’ conformance with the Act.
    Manage risk Identify potential weak spots in your supply chains and mitigate accordingly.
    Improve performance Identify suppliers who are not being proactive and work with them to encourage and introduce improvements.
    Save time Gain a comprehensive view of the status of your supply chains’ complianceby harnessing the efficiencies that come from online auditing.
    Scale to suit Go deeper into your supply chains to minimise risk without placing additional burden on your procurement staff .

     

    Benefits for Suppliers

    Prove compliance Evidence that you are taking steps to ensure your business and your supply chains are human trafficking and slavery free.
    Demonstrate due diligence Obtain a credible and independent assessment, validated by our specialist evaluation team, of your compliance with the Act.
    Secure business Confirm for your buyers and prospects that your organisation is meeting its human rights obligations.
    Build reputation Gain credibility with your prospects, customers and key stakeholders by undertaking an independently validated assessment of your credentials.
    Gain advice Receive customised feedback on how you can improve.
    Show progress Evidence progress being made, over time, by your organisation and across your supply chains.
    Save time Submit evidence of your credentials just once a year, yet use your scoring to again and again to signal your compliance.
    Reduce cost Respond to multiple requests from clients and prospects for evidence of compliance without the overhead of filling in multiple questionnaires.

     

    Find out more

    For more information on the UK Modern Slavery Act and how CSI can support you in meeting its obligations, please contact us.