Corporate liability for modern slavery

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kadriye Bakirci ◽  
Graham Ritchie
Keyword(s):  
Due Diligence ◽  
Socially Responsible ◽  
Content Type ◽  
Modern Slavery ◽  
Dutch Child ◽  
Global Movement ◽  
To Come ◽  
Legal Frameworks ◽  
The Uk ◽  
Corporate Liability

Purpose The purpose of this paper is to provide an overview of evolving developments in international, regional and EU law including the UK and Turkish jurisdictions for the liability of corporate businesses for modern forms of exploitative labour practices described as the modern forms of slavery. Design/methodology/approach In the first part, this paper outlines international, regional and EU instruments, UK and Turkish jurisdictions in relation to modern forms of slavery. The second part reviews legal frameworks for corporate liability for modern forms of slavery. Findings Slavery, slavery-like practices or some other exploitative practices are prohibited by numerous international law instruments starting from 1904. Apart from old forms of defined exploitative practices, multiple relevant current exploitative practices, called contemporary or modern forms of slavery exist all over the world. Under various international or regional conventions signatory States have been held responsible for exploitative practices by the international or regional courts or supervisory bodies, yet businesses were largely overlooked as a participating partner in the global movement to eradicate modern forms of slavery. For many years, multi-national businesses have engaged with various voluntary international corporate social responsibility initiatives in response to demands to operate in a socially responsible manner. There is a growing global recognition of the role corporate businesses can and should play in tackling crime and exploitative practices. A number of initiatives at the international and EU level and the introduction of the California Transparency in Supply Chains Act, (2010 – effective from 2012), the UK Modern Slavery Act 2015, the French Act on Due Diligence of Corporations and Main Contractors 2017 (loi sur le devoir de vigilance), the Australian Commonwealth Modern Slavery Act 2018, the Dutch Child Labour Due Diligence Act 2019, (which is due to come into effect in mid-2022), reflect this recognition. Originality/value This paper argues that it is important for companies to use available tools, participate in joint initiatives and advocate for binding international and regional instruments and effective national legislation and action – all aimed at ending business involvement in modern forms of slavery.

Using the risk-based approach to curb modern slavery in the supply chain

2020 ◽  
Vol 27 (2) ◽  
pp. 313-322
Author(s):  
Ehi Eric Esoimeme
Keyword(s):  
Risk Assessment ◽  
Supply Chain ◽  
Supply Chains ◽  
Money Laundering ◽  
Mitigation Measures ◽  
Due Diligence ◽  
Content Type ◽  
Modern Slavery ◽  
Anglo American ◽  
The Uk

Purpose This paper aims to critically examine the modern slavery statements of Anglo American Plc. and Marks and Spencer Group Plc. to determine the level of effectiveness of the risk assessment and risk mitigation measures of both companies and provide recommendations on how the risk assessment and risk mitigation measures of both companies could be strengthened. Design/methodology/approach The analysis took the form of a desk study, which analysed various documents and reports such as the UK Modern Slavery Act 2015, the UK Modern Slavery Act 2015 (Transparency in Supply Chains) Regulations 2015, the UK Guidance issued under Section 54(9) of the Modern Slavery Act 2015, the 2018 Global Slavery Index, funded by Forrest’s Walk Free Foundation, the Anglo American Plc. Modern Slavery Statement of 2017/18, the Marks and Spencer Modern Slavery Statement of 2017/18, the Financial Action Task Force Guidance on the Risk Based Approach to Combating Money Laundering and Terrorist Financing (High Level Principles and Procedures) 2007, the Financial Action Task Force International Standards On Combating Money Laundering and the Financing of Terrorism and Proliferation (The FATF Recommendations) 2012, the Australia Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1) (as amended), the Financial Transactions and Reports Analysis Centre of Canada Guidance on the risk-based approach to combatting money laundering and terrorist financing 2017 and the Central Bank of Nigeria (Anti-Money Laundering and Combating the Financing of Terrorism in Banks and Other Financial Institutions in Nigeria) Regulations, 2013. Findings This paper determined that the standard due diligence measures and the enhanced due diligence measures of Anglo American Plc. are not effective enough to identify/assess the risk(s) of modern slavery in the supply chains reason being that Anglo American Plc. does not use diverse methods/methodologies for her due diligence programme. This paper, however, determined that the standard due diligence measures and the enhanced due diligence measures of Marks and Spencer Group Plc. are effective enough to identify/assess the risk(s) of modern slavery in the supply chains because Marks and Spencer adopts diverse methods/methodologies for her due diligence programme. This paper also determined that both Anglo American Plc. and Marks and Spencer Group Plc. adopt diverse methods for the monitoring of their corrective action plans which are designed to mitigate the modern slavery risk(s) associated with high-risk suppliers. For example, Anglo American Plc. monitors anti-modern slavery compliance with the use of both internal Anglo American teams and third-party auditors to ensure that the identified issues are adequately addressed. Research limitations/implications This paper focuses on Section 54 of the UK Modern Slavery Act 2015 and the Modern Slavery Statements of Anglo American Plc. and Marks and Spencer Group Plc for the year 2017/18. Originality/value Several articles have been published on this topic. Among them, is an article by Stefan Gold, Alexander Trautrims and Zoe Trodd titled “Modern slavery challenges to supply chain management”, Supply Chain Management: An International Journal, Vol. 20 Issue: 5, pp.485-494 and an article by Stephen John New titled “Modern slavery and the supply chain: the limits of corporate social responsibility?”, Supply Chain Management: An International Journal, Vol. 20 Issue: 6, pp.697-707. The article by Stefan Gold, Alexander Trautrims and Zoe Trodd drew attention to the challenges modern slavery poses to supply chain management. Although the article briefly talked about the risk-based approach to monitoring supply chains for slavery, it did not discuss about the due diligence measures that UK firms are required to apply during risk identification and risk assessment, and the risk mitigation measures that will address the risk(s) that have been identified. The article by Stephen John New examines legal attempts to encourage supply chain transparency and the use of corporate social responsibility methods. Though the article mentions the UK Modern Slavery Act 2015, more attention was paid to the California Transparency in Supply Chains Act [S.B. 657], State of California, 2010), enacted in 2011 and in effect from 2012. The article analysed the California Act without critically discussing the risk assessment procedures for UK companies. In addition to discussing the different stages of the risk assessment/risk management process, this paper will examine the modern slavery statements of Anglo American Plc. and Marks and Spencer Group Plc. This paper will provide recommendations on how the risk assessment/risk mitigation measures of both companies could be strengthened. This is the only paper to adopt this kind of approach. The analysis/recommendations in this paper will help UK companies to design effective due diligence procedures for their supply chain.

Internet gambling stock returns: empirical evidence from the UK

2017 ◽  
Vol 13 (1) ◽  
pp. 36-49
Author(s):  
Daniel Perez Liston
Keyword(s):  
Stock Returns ◽  
Multivariate Garch ◽  
Online Gambling ◽  
Future Research ◽  
Time Varying ◽  
Conditional Correlation ◽  
Socially Responsible ◽  
Content Type ◽  
Starting Point ◽  
The Uk

Purpose The purpose of this paper is to quantify beta for an online gambling portfolio in the UK and investigates whether it is time-varying. It also examines the dynamic correlations of the online gambling portfolio with both the market and socially responsible portfolios. In addition, this paper documents the effect of important UK gambling legislation on the betas and correlations of the online gambling portfolio. Design/methodology/approach This study uses static and time-varying models (e.g. rolling regressions, multivariate GARCH models) to estimate betas and correlations for a portfolio of UK online gambling stocks. Findings This study finds that beta for the online gambling portfolio is less than 1, indicative of defensiveness toward the market, a result that is consistent with prior literature for sin stocks. In addition, the conditional correlation between the market and online gambling portfolio is small when compared to the correlation of the market and socially responsible portfolios. Findings suggest that the adoption of the Gambling Act 2005 increases the conditional correlation between the market and online gambling portfolio and it also increases the conditional betas for the online gambling portfolio. Research limitations/implications This paper serves as a starting point for future research on online gambling stocks. Going forward, studies can focus on the financial performance or accounting performance of online gambling stocks. Originality/value This empirical investigation provides insight into the risk characteristics of publicly listed online gambling companies in the UK.

Who is vulnerable? Adult social care and modern slavery

2017 ◽  
Vol 19 (1) ◽  
pp. 21-32 ◽  
Author(s):  
Gary Craig ◽  
Stephen Clay
Keyword(s):  
Design Methodology ◽  
Social Care ◽  
Real Life ◽  
Care Needs ◽  
Content Type ◽  
Modern Slavery ◽  
History Of ◽  
Forced Labour ◽  
The Uk ◽  
Practical Implications

Purpose The 2015 Modern Slavery Act focusses attention forms of modern slavery (human trafficking and forced labour), within the UK. The contemporaneous 2014 Care Act, identifies modern slavery as a new form of risk within adult social care, listing forms of abuse and vulnerability. However, it does not consider whether those providing care may themselves be vulnerable to forms of modern slavery. The paper aims to discuss these issues. Design/methodology/approach The authors describe the history of the development of modern slavery legislation in the UK, outline key provisions of the Care Act, illustrated with real-life cases. The analysis suggests that adult social care – characterised by informality, fragmentation and vulnerability – is one where instances of modern slavery may be more common than considered to date. Findings The data collected, though relatively modest, suggests that a thorough investigation should be undertaken into the possibility of modern slavery taking place within the realm of adult social care. Research limitations/implications Data have been collected through a snowball process, rolling out a survey to relevant groups of individual and organisations. A more rigorous investigation is required to examine the extent of modern slavery within adult social care. Practical implications The training of those responsible for the regulation/management of adult social care needs to ensure that they are fully equipped to understand the nature of modern slavery and how to identify its symptoms and victims. Social implications There is also a need for heightened awareness of those close to people being cared for that they may also identify the symptoms of modern slavery. Originality/value This area has not been explored to date.

Fincen requires financial institutions to obtain beneficial ownership information for legal entity customers

2016 ◽  
Vol 17 (4) ◽  
pp. 34-44
Author(s):  
Ignacio Sandoval ◽  
Charles Horn ◽  
Melissa Hall
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Due Diligence ◽  
Legal Entity ◽  
Content Type ◽  
Financial Crimes ◽  
The Us ◽  
Beneficial Ownership ◽  
To Come ◽  
Customer Due Diligence

Purpose To provide an overview of the legal entity customer due diligence rule recently adopted by the Financial Crimes Enforcement Network (FinCEN), a bureau of the US Department of the Treasury. Design/methodology/approach This paper provides an overview of the requirements of the legal entity customer due diligence rule as well as some observations regarding the scope of the rule, its interplay with other regulatory requirements, and some of the rule’s ambiguities. Findings While the preamble to the new rule suggests that FinCEN was attempting to accommodate industry concerns, the literal terms of the rule may have the opposite effect. Practical implications Although financial institutions will have until May 2018 to come into compliance with the rule’s requirements, they should begin developing the infrastructure to support compliance with the rule as soon as possible. Originality/value Practical insights into issues that financial institutions may encounter when implementing the rule’s requirements from experienced financial services lawyers.

Organisational responses to mandatory modern slavery disclosure legislation: a failure of experimentalist governance?

2020 ◽  
Vol 33 (7) ◽  
pp. 1505-1534
Author(s):  
Michael Rogerson ◽  
Andrew Crane ◽  
Vivek Soundararajan ◽  
Johanne Grosvold ◽  
Charles H. Cho
Keyword(s):  
Public Sector ◽  
Supply Chains ◽  
Mandatory Reporting ◽  
Content Type ◽  
The Public ◽  
Modern Slavery ◽  
Improve Compliance ◽  
Experimentalist Governance ◽  
The Uk ◽  
Board Level

PurposeThis paper investigates how organisations are responding to mandatory modern slavery disclosure legislation. Experimentalist governance suggests that organisations faced with disclosure requirements such as those contained in the UK Modern Slavery Act 2015 will compete with one another, and in doing so, improve compliance. The authors seek to understand whether this is the case.Design/methodology/approachThis study is set in the UK public sector. The authors conduct interviews with over 25% of UK universities that are within the scope of the UK Modern Slavery Act 2015 and examine their reporting and disclosure under that legislation.FindingsThe authors find that, contrary to the logic of experimentalist governance, universities' disclosures as reflected in their modern slavery statements are persistently poor on detail, lack variation and have led to little meaningful action to tackle modern slavery. They show that this is due to a herding effect that results in universities responding as a sector rather than independently; a built-in incapacity to effectively manage supply chains; and insufficient attention to the issue at the board level. The authors also identity important boundary conditions of experimentalist governance.Research limitations/implicationsThe generalisability of the authors’ findings is restricted to the public sector.Practical implicationsIn contexts where disclosure under the UK Modern Slavery Act 2015 is not a core offering of the sector, and where competition is limited, there is little incentive to engage in a “race to the top” in terms of disclosure. As such, pro-forma compliance prevails and the effectiveness of disclosure as a tool to drive change in supply chains to safeguard workers is relatively ineffective. Instead, organisations must develop better knowledge of their supply chains and executives and a more critical eye for modern slavery to be combatted effectively. Accountants and their systems and skills can facilitate this development.Originality/valueThis is the first investigation of the organisational processes and activities which underpin disclosures related to modern slavery disclosure legislation. This paper contributes to the accounting and disclosure modern slavery literature by investigating public sector organisations' processes, activities and responses to mandatory reporting legislation on modern slavery.

Towards a common identity? The harmonisation of identity theft laws

2015 ◽  
Vol 22 (4) ◽  
pp. 492-512 ◽  
Author(s):  
Jonathan Clough
Keyword(s):  
Identity Theft ◽  
Comparative Approach ◽  
Law Enforcement Agencies ◽  
Content Type ◽  
Global Challenge ◽  
Legal Responses ◽  
The Usa ◽  
Legal Frameworks ◽  
The Uk ◽  
Modern Identity

Purpose – The purpose of this paper is to consider potential criminal law responses to the global challenge of “identity crime”. In particular, it focuses on a specific offence of “identity theft”. It begins with a discussion of the meaning of “identity” in the context of modern transactions, before defining “identity crime” and related terms. Legal responses are then considered before turning to the importance of harmonisation. The transnational nature of modern identity crimes makes it essential that law enforcement agencies not only have suitable offences at their disposal but also the frameworks to facilitate international cooperation. Design/methodology/approach – Given the increasingly transnational and organized nature of modern identity crime, this paper adopts a comparative approach. It draws upon provisions from Australia, Canada, the UK and the USA. It also looks at responses to identity crime at the regional and international level. Findings – Although there is currently no international instrument which specifically and comprehensively addresses identity theft, it is argued that there is an urgent need for further international discussion as to the desirability and form of identity theft provisions. While international agreement may not be reached, such discussions are important in assisting countries to develop appropriate legal frameworks and capacity to address the modern fraud environment. Originality/value – It is hoped that this paper will contribute to, and facilitate, important ongoing discussions as to the most effective ways in which to tackle identity crime at the national and international levels.

Content in the context of welfare configurations: a comparative institutional analysis of self-reporting on corporate social responsibility

2019 ◽  
Vol 16 (4) ◽  
pp. 487-506
Author(s):  
Brita Backlund Rambaree
Keyword(s):  
South Africa ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Emerging Economies ◽  
Institutional Arrangements ◽  
Welfare States ◽  
Socially Responsible ◽  
Content Type ◽  
The Uk ◽  
Corporate Social

Purpose The purpose of this paper is to examine corporate social responsibility (CSR) content in the context of four differing national institutional arrangements for welfare. An analysis is presented on how self-reported CSR differs in content across two western welfare states (the UK and Sweden) and two emerging economies in southern Africa (South Africa and Mauritius). Design/methodology/approach This paper is based on a qualitative content analysis of the CSR self-reporting of 40 companies. This involved 10 of the largest companies incorporated in four countries, namely, Sweden, the UK, South Africa and Mauritius. The content is categorised into community involvement, socially responsible production and socially responsible employee relations. For each category, an analysis is provided of the reported issues (the question of what), the geographic focus of reported issues (the question of where) and ways of working with these issues (the question of how), as well as the extent of reporting and level of reporting (the question of how much). Findings The study shows that companies place focus on aspects, issues and localities in ways that differ between countries and can be understood in relation to current institutional arrangements for welfare. The content of self-reported CSR can be both complementing and mirroring the welfare arrangements. Differences in self-reported CSR agendas are particularly evident between the two western welfare states on the one hand and the two emerging economies on the other, as these represent two distinct contexts in terms of welfare arrangements. Originality/value This paper contributes to research on the institutional embeddedness of CSR in three ways: first, by going beyond measures of country differences in terms of extent of CSR to consider differences in CSR content; second, by focusing on the social aspects of CSR and placing these differences in relation to welfare configurations; and third, by contributing with empirical findings on how CSR content differs across national settings and across the established/emerging economy divide.

scholarly journals Oxfam GB Statement on Modern Slavery for the financial year 2019/20

2020 ◽  
Author(s):  
Sophie Brill ◽  
Beck Wallace
Keyword(s):  
Human Rights ◽  
Supply Chains ◽  
Corporate Responsibility ◽  
Initial Response ◽  
Due Diligence ◽  
Public Statement ◽  
Modern Slavery ◽  
The Uk ◽  
Human Rights Due Diligence

The UK Modern Slavery Act 2015 requires organizations with a turnover of over £36m to make a public statement on the steps they are taking to identify and prevent modern slavery in their operations and supply chains. Oxfam GB advocated for this legislation to be enacted. In this, our fifth statement, we share our progress against the three-year objectives set last year, which focus on corporate responsibility governance, human rights due diligence and inclusion of our country programmes. Due to the particularly devastating impacts of the coronavirus pandemic, we have added a section to highlight our initial response in March 2020, which fell under this reporting period.

Study shows big differences between experiences of LGBT people in Turkey and the UK

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Research Question ◽  
Workplace Culture ◽  
Transgender People ◽  
Content Type ◽  
Working Environments ◽  
To Come ◽  
Lgbt People ◽  
The Uk ◽  
Different Cultures ◽  
Lgbt Individuals

Purpose The authors wanted to compare the experience of LGBT people in two very different working environments, the UK and Turkey. The countries have different state structures and legislative frameworks. Design/methodology/approach The authors opted to answer the research question: How LGBT NGOs understand and perceive the inclusion and exclusion of LGBT individuals at work? They interviewed 40 individuals (20 in each country) working at LGBT organizations Findings Analysis showed that in Turkish workplaces, LGB individuals tend not to express their sexuality openly because they fear dismissal. Few individuals feel able to “come out” at work. Transgender people, especially transgender women, face a lot of discrimination in Turkey. Meanwhile, in the UK, there is a far more inclusionary workplace culture. Nevertheless, LGB individuals may still face some discrimination in the UK. Working within LGBT organizations in both countries was much easier. Originality/value Studying two such different cultures revealed major differences, but also some commonalities. The study revealed the importance of unions in the UK in driving policies for LGBT individuals.

The impact of the Salomon principle on directors’ remuneration in the UK

2017 ◽  
Vol 59 (2) ◽  
pp. 257-270
Author(s):  
Ernestine Ndzi
Keyword(s):  
Design Methodology ◽  
Case Law ◽  
Driving Factor ◽  
Separate Entity ◽  
Content Type ◽  
Legal Personality ◽  
To Come ◽  
The Uk ◽  
The Impact ◽  
A Company

Purpose This paper aims to examine the Salomon principle of separate legal personality and its impact on the regulation of directors’ remuneration in the UK. The aim of the paper is to explore the Salomon principle to determine whether it serves as a driving factor for directors’ remuneration levels. The paper will also examine the restrictive approach of the courts to move away from the principle and their reluctance to get involved in directors’ remuneration issues of a company. The paper explains the Salomon principle, describes the nature of the problem on directors’ remuneration and provides an analysis on how the Salomon principle impacts on the directors’ remuneration. Design/methodology/approach The paper reviews case law, statutory provisions and academic opinions on the directors’ remuneration and the concept of separate legal entity. The paper critically reviews the impact of the concept of separate entity on directors’ remuneration. Findings The paper finds that the courts are reluctant to come away from the concept of separate legal personality as well as reluctant to get involved with directors’ remuneration. This reluctance of the court makes the concept of separate legal personality to act as one of the drivers of directors’ remuneration. Originality/value The paper offers a different explanation into why directors’ remuneration continuous to be an issue in the UK. It points out that the concept of separate legal personality is a potential driver of directors’ remuneration in the UK.

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