The importance of due diligence in modern slavery legislation

What is modern slavery? 

Currently there are an estimated 50 million people enslaved around the world; forced or coerced into labour exploitation, sexual exploitation, domestic servitude, and many more abusive practices. 

At Caritas Aotearoa New Zealand, we value human dignity – Te Mana o te Tangata. We believe that basic protections of human rights should be afforded to everybody, and that pursuing justice for those who are often neglected is a core responsibility. 

Unfortunately, people in vulnerable situations continue to be exploited by their employees in many parts of the world. Behind many of the goods and services we consume in Aotearoa are people who are forced to work extreme hours with minimal to no pay, their wellbeing and dignity threatened for the sake of someone else’s income. 

Consequently, governments are increasingly enacting new laws designed to expose current exploitative practices in supply chains and prevent future exploitation.  

Modern slavery legislation in Aotearoa 

In July 2023, following three years of campaigning from NGOs, the public, and Aotearoa businesses, the government announced that it will begin drafting legislation to address modern slavery and worker exploitation in supply chains and operations. This modern slavery act will require businesses that earn more than $20m per year in revenue to report on slavery and exploitation in their operations and supply chains, and these reports will be published in a public register. 

Unfortunately, currently their proposed legislation does not include due diligence obligations – requirements for businesses to take action if situations of exploitation are discovered.  

Why does due diligence matter? 

The inclusion of due diligence obligations in the legislation would lead to tangible changes being made to protect workers, as companies would have to prove they are taking steps to stop practices of exploitation. 

The current proposed consequence of ‘naming-and-shaming’ companies through the public register to pressure them into action is good in theory, however, has been proven to be ineffective. 

Examples from Australia and the UK  - which have similar legislation in place - have demonstrated that the naming-and-shaming has had little impact on businesses, and as a result levels of compliance with reporting are extremely low. Without proper structures for due diligence and consequences for a lack of action, a modern slavery act achieves very little. 

Where to from here? 

The drafting of modern slavery legislation is the first step in the journey of protecting workers and promoting human dignity. 

However, we also recognise that slavery and exploitation is not just an issue in our businesses’ supply chains, but in our communities here in Aotearoa. Reports of financial exploitation, abominable living conditions, and physical and mental abuse of migrant workers in our agriculture industry have caused outrage and reinforced the call for the proper protection of workers' rights. 

With your help, we continue to advocate for comprehensive and effective legislation which prioritises the wellbeing of those exploited in Aotearoa’s business operations locally and internationally.