STOPPING MODERN SLAVERY

Katrina Hammon, Wynn Williams partner, on franchisors adopting measures to combat modern slavery.

Modern slavery is the violation of fundamental human rights and can take many different forms. These include worker exploitation, forced labour, child labour, human trafficking and debt bondage. By adopting standards and policies in their franchise networks, franchisors are setting a benchmark for responsible business conduct, ensuring that both franchisees and their suppliers adhere to high standards of human rights and labour practices.

Many overseas companies have a strong emphasis on ethical business practices, with increased pressure to demonstrate transparency and responsibility in ESG reporting and compliance. This means New Zealand businesses are often required to show steps they have taken to combat modern slavery when doing business overseas, or trading with overseas entities. Similarly, domestic consumers are more aware of ethical issues and prefer to support companies with strong human rights records.

As a result, businesses are increasingly adopting stringent measures to ensure their operations and supply chains are free from exploitation and modern slavery. Franchises, in particular, are responding to this by implementing robust ethical standards across their networks, ensuring that both franchisors and franchisees adhere to policies that promote human rights and prevent modern slavery.

Many franchise networks are now also adopting modern slavery and whistleblower policies. Although not legally required, a modern slavery policy details obligations on the franchise network to combat the risks of modern slavery. Equally, a whistleblower policy provides an opportunity for someone to raise their concerns about the business through a protected disclosure.

The adoption of these two policies is becoming increasingly common, with franchisors wanting to take steps against modern slavery and not risk any reputational damage, legal ramifications and financial losses, particularly given the increased scrutiny of franchisors in the media.

If you’re trading with overseas companies that ask about your modern slavery practices, or if you’re wanting to protect your business, now is the right time to prepare your franchise network to comply with any obligations. The Wynn Williams team will be keeping a close eye on this area of law, so do not hesitate to get in touch to develop relevant policies, or discuss other reporting and compliance that may be appropriate for your franchise.

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Wynn Williams

www.wynnwilliams.co.nz

Contact Katrina Hammon

09 300 2647

021 221 8847 katrina.hammon@ wynnwilliams.co.nz