Modern slavery: spotting the red flags

In today’s modern world, the sad fact is that many products such as electronics, clothing or some foods are, in some way, tainted by modern slavery practices.

“Businesses play a crucial role in preventing modern slavery.”

Modern slavery manifests in various forms including human trafficking, forced labour, debt bondage and involuntary domestic servitude. It’s a global issue affecting tens of millions of people which, despite international laws and regulations designed to combat it, persists in both developing and developed nations.

A recent report from the International Labour Organisation estimates the economic profits resulting from forced labour exploitation sit at around US$236 billion every year. The ILO suggests this trend is made possible by several factors including:

• Extreme poverty and lack of economic opportunities which drives individuals to accept exploitative conditions in hopes of improving their livelihoods.
• Limited access to education which leaves individuals, especially children, more susceptible to exploitation.
• War, political unrest, and natural disasters which displace populations, making them vulnerable to traffickers and exploiters.
• Corruption in governments and law enforcement agencies which allows traffickers to operate with impunity.
• Consumer demand for low-cost goods and services, which fuels the need for very cheap labour, often resulting in exploitative labour practices.

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Source: International Labour Organisation

Playing a role

Businesses play a crucial role in preventing modern slavery. By regularly screening their supply chains for exploitative practices, companies can significantly support the fight against modern slavery. Businesses can also adopt and enforce policies that prohibit forced labour and ensure fair working conditions. In fact, it is a requirement in certain jurisdictions.

Financial institutions like ANZ can also engage with their business customers to advise them of their expectation that they identify and manage actual or potential adverse impacts on human rights, including modern slavery.

Education of employees, suppliers, and partners about the signs of modern slavery and their responsibilities in preventing it may also help to prevent issues arising.

Spotting red flags

Identifying modern slavery can be challenging due to its covert nature. However, several red flags can help to indicate its presence:

• Victims may be confined to a specific location or have restricted movement and communication;
• Traffickers often confiscate victims' identification documents to control them;
• Victims are often unpaid or receive minimal compensation despite working long hours;
• Victims may exhibit signs of fear, anxiety, or submissiveness, especially around their controllers;
• Victims often show signs of physical abuse, malnutrition, or untreated medical conditions;
• Poor living conditions, overcrowded housing, and lack of basic amenities are common among victims; and
• Victims might be working excessively long hours without breaks or days off.

If you observe some of the above or believe something is wrong - even if you are not 100 per cent certain - you should report it to the Australian Federal Police.

Modern slavery is a complex and pervasive issue that requires concerted efforts from all sectors of society to eradicate. By understanding the red flags, implementing preventive measures and fostering collaboration, we can move closer to a world free from this inhumane practice.

Through vigilance, education, and unwavering commitment, modern slavery can be consigned to history, ensuring freedom and dignity for all individuals.

David Doyle is ESG Advisory Lead at ANZ