ETHICAL BUSINESS
UNETHICAL EMPLOYMENT PRACTICE IS ENDEMIC IN THE UK – ARE WORKERS TREATED FAIRLY ACROSS YOUR SUPPLY CHAIN?
W
hile progress has undoubtedly been made to curtail modern slavery, particularly in the UK, the reality is there is still some way to go - it is estimated that around 40 million people worldwide are directly impacted by modern slavery with just under 25 million being in forced labour. It presents a significant risk for businesses and demonstrates the importance of transparent and ethical supply chain management. Failure to uphold responsible business practices could carry a heavy cost in the form of serious reputational damage, criminal charges, and financial and operational impact. For those businesses who must measure and report against stringent ESG criteria, any association with unethical employment practices could carry very serious consequences indeed - not only for its leadership team, but for its ability to attract partners and raise new investment in the future. Modern slavery is an extremely serious offence. However, it’s important to remember that unethical employment practices are wide ranging, from the most critical forms of modern slavery, such as human trafficking, through to poor working conditions and practices such as unlawful wage deductions all of which could impact very large numbers of people. Achilles’ Ethical Employment Trends Report, compiled following 1,368 confidential worker interviews and 48 management system audits over 12 months, certainly provides businesses with food for thought and highlights the work that remains to be done. Companies must be alive to the risk of poor employment practices infiltrating their supply chain, with frameworks in place to quickly identify and mitigate any potential or emerging issues.
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ACHILLES ETHICAL BUSINESS PROGRAMME Achilles supports companies in the energy and utilities sectors to maintain responsible business practices within their supply chain via our Ethical Business Programme. The Achilles’ Ethical Business Programme supports business’ social and regulatory compliance, providing a holistic view across labour practices, along with guidance to help companies prevent unethical business practices across their operations. We endeavor to keep supply chains free of unsafe practices, human trafficking and modern slavery, with services tailored to target any sector-specific risks.
PRE-QUALIFICATION QUESTIONNAIRES The first step for any business in building and maintaining an ethical supply chain is obtaining a clear, transparent view of suppliers and partners. A key part of our supplier pre-qualification process is collecting and verifying data relating to health and safety, which provides buyers with a more complete, accurate view of the risk profiles of potential and current suppliers. It removes the uncertainty of working with new companies and helps to strengthen existing relationships. All Achilles suppliers are verified to ensure they are compliant with regulations and are operationally sound, helping buyers manage risk and ensure they are working with companies that share similar values.
ETHICAL BUSINESS PROGRAMME AUDITS Site audits are a key component of Achilles’ Ethical Business Programme, created to assess social and regulatory compliance, equipping companies with an action plan to get ahead of any form of unethical business practices. There are two types of audit within
ENERGY MANAGER MAGAZINE • MARCH 2022
the programme, designed to identify and investigate how organisations treat their employees and those working within their supply chain. An Ethical Site Survey includes confidential worker interviews on operational project sites, while Ethical Employment Audits look at a company’s processes of engagement and employment of both direct and indirectly employed workers. The team inspects company documents and employment records, identifying any potential issues and mitigating any risks before they develop. Common issues are failure to verify eligibility to work, unlawful wage deductions and best practice on terms and conditions of employment. Insights from recent audits found that 11% of companies were unable to confirm that written terms and conditions had been issued to workers.
VERIFYING RIGHT TO WORK Our report revealed 26% of companies had not requested or verified appropriate right to work documentation, while 5% of workers weren’t asked to present any documents before starting work. Ethical Employment audits highlighted failures in the supplier due diligence processes including checks carried out by their supply chain. Risks often increase when reliance for completing checks is placed on third party providers - given the potential risk and scale of the problem, companies may wish to consider undertaking their own checks as part of an onboarding process, or conducting their own due diligence checks by reviewing employment records of those operating on site and engaging with the workforce as part of a defined process. Due diligence checks on the supply chain should also be completed. Companies should familiarise themselves with legislation and the most recent Home Office guidance on accepted documentation to verify right to work, which now includes settled status.
