Ethical Sourcing and Modern Slavery Due Diligence
Ethical Sourcing and Modern Slavery Due Diligence in tender and procurement refers to the systematic process of ensuring that suppliers and contractors operate responsibly. It involves assessing supply chains for risks of unethical practices, such as forced labor or human trafficking, and implementing measures to prevent these abuses. This due diligence promotes transparency, legal compliance, and social responsibility by requiring suppliers to adhere to ethical standards throughout procurement processes.
Ethical Sourcing and Modern Slavery Due Diligence
Ethical Sourcing and Modern Slavery Due Diligence in tender and procurement refers to the systematic process of ensuring that suppliers and contractors operate responsibly. It involves assessing supply chains for risks of unethical practices, such as forced labor or human trafficking, and implementing measures to prevent these abuses. This due diligence promotes transparency, legal compliance, and social responsibility by requiring suppliers to adhere to ethical standards throughout procurement processes.
💡 Key Takeaways
- Define ethical sourcing and how it helps prevent modern slavery in supply chains.
- Map your supply chain, assess risks, and prioritize high-risk suppliers for due diligence.
- Use supplier codes of conduct, audits, remediation plans, and worker feedback to drive compliance.
- Understand key regulatory frameworks (e.g., Modern Slavery Acts) and implement practical due diligence steps.
❓ Frequently Asked Questions
What is ethical sourcing?
Ethical sourcing means acquiring goods and services in a way that respects human rights, fair labor practices, and environmental standards throughout the supply chain, with transparency about how products are made.
What is modern slavery and how does due diligence help?
Modern slavery includes forced labor, human trafficking, debt bondage, and child labor. Due diligence helps by identifying risks, preventing abuses, and driving corrective actions through policies, audits, and supplier engagement.
What steps are involved in modern slavery due diligence?
Map the supply chain, assess risks by region and product, set a supplier code of conduct, train staff, audit suppliers, and monitor remediation and improvements.
What are common red flags to watch for in suppliers?
Wage withholding, excessive overtime, child labor, restricted freedoms, sudden changes in workers, subcontracting to unverified entities, or consistently poor working conditions.
Which frameworks or laws guide ethical sourcing and due diligence?
Guidance includes the UN Guiding Principles on Business and Human Rights, OECD Due Diligence Guidance, ILO core conventions, and national laws like the UK Modern Slavery Act that require transparency and remediation.