Using the risk-based approach to curb modern slavery in the supply chain. The Anglo American and Marks and Spencer example
| Pages | 313-322 |
| DOI | https://doi.org/10.1108/JFC-05-2019-0056 |
| Published date | 28 January 2020 |
| Date | 28 January 2020 |
| Author | Ehi Eric Esoimeme |
| Subject Matter | Financial risk/company failure,Accounting & Finance |
Using the risk-based approach
to curb modern slavery in
the supply chain
The Anglo American and Marks
and Spencer example
Ehi Eric Esoimeme
Department of Public Law, Faculty of Law, University of Lagos,
Akoka Yaba, Nigeria
Abstract
Purpose –This paper aimsto critically examine the modern slavery statements of Anglo AmericanPlc. and
Marks and Spencer Group Plc. to determine the level of effectiveness of the risk assessment and risk
mitigation measures of both companiesand provide recommendations on how the risk assessmentand risk
mitigationmeasures of both companies could be strengthened.
Design/methodology/approach –The analysis took the form of a desk study, which analysed various
documents and reports such as the UK Modern Slavery Act 2015, the UK Modern Slavery Act 2015
(Transparency in Supply Chains) Regulations 2015, the UK Guidance issued under Section 54(9) of the
Modern Slavery Act 2015, the 2018 Global Slavery Index, funded by Forrest’s Walk Free Foundation, the
Anglo American Plc. Modern Slavery Statement of 2017/18, the Marks and Spencer Modern Slavery
Statement of 2017/18,the Financial Action Task Force Guidance on the Risk Based Approachto Combating
Money Laundering and Terrorist Financing (High Level Principles and Procedures) 2007, the Financial
Action Task Force International Standards On Combating Money Laundering and the Financing of
Terrorism and Proliferation(The FATF Recommendations) 2012, the Australia Anti-MoneyLaundering and
Counter-Terrorism Financing Rules Instrument 2007 (No. 1) (as amended), the Financial Transactions and
Reports Analysis Centre of Canada Guidance on the risk-based approach to combatting money laundering
and terrorist financing 2017 and the Central Bank of Nigeria (Anti-Money Laundering and Combating the
Financingof Terrorism in Banks and Other Financial Institutions in Nigeria) Regulations,2013.
Findings –This paperdetermined that the standard due diligence measuresand the enhanced due diligence
measures of Anglo American Plc. are not effectiveenough to identify/assess the risk(s) of modern slavery in
the supply chainsreason being that Anglo American Plc. doesnot use diverse methods/methodologies forher
due diligenceprogramme. This paper, however, determined that the standarddue diligence measures and the
enhanced due diligencemeasures of Marks and Spencer Group Plc. are effective enough to identify/assessthe
risk(s) of modern slavery in the supply chains because Marks and Spencer adopts diverse methods/
methodologies for her duediligence programme. This paper also determined that bothAnglo American Plc.
and Marks and Spencer Group Plc. adopt diversemethods for the monitoring of their corrective action plans
which are designed to mitigate the modern slaveryrisk(s) associated with high-risk suppliers. For example,
Anglo AmericanPlc. monitors anti-modern slavery compliancewith the use of both internal Anglo American
teams and third-partyauditors to ensure that the identified issuesare adequately addressed.
Research limitations/implications –This paper focuses on Section 54 of the UK Modern Slavery Act
2015 and the Modern Slavery Statements of Anglo AmericanPlc. and Marks and Spencer Group Plc for the
year 2017/18.
Originality/value –Several articleshave been published on this topic. Among them, is an article by Stefan
Gold, Alexander Trautrimsand Zoe Trodd titled “Modern slavery challenges to supply chain management”,
Supply Chain Management: An InternationalJournal, Vol. 20 Issue: 5, pp.485-494 and an article by Stephen
John New titled “Modern slavery and thesupply chain: the limits of corporate social responsibility?”,Supply
Chain Management: An International Journal, Vol. 20 Issue: 6, pp.697-707. The article by Stefan Gold,
Modern
slavery in the
supply chain
313
Journalof Financial Crime
Vol.27 No. 2, 2020
pp. 313-322
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-05-2019-0056
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