Many businesses fear the potential for reputational damage if modern slavery concerns are exposed in their supply chains. This fear can lead them to try and silence discussions or downplay issues. However, in today’s transparent world, silence is far more damaging than openness.
This article is your guide to navigating the power of transparent communication. We’ll explore how embracing transparency around tackling modern slavery can be a powerful tool for businesses to not only avoid reputational damage but also to build trust with stakeholders and achieve lasting success. We’ll equip you with practical strategies to leverage transparent communication effectively.
The power of openness: why transparency matters
Consumer demand for transparency is undeniable. A 2021 survey found that a staggering 88% of consumers prioritise buying from brands with strong ethical sourcing strategies. Younger generations are even more vocal, actively researching brands before making purchase decisions. Failing to be transparent can turn them from potential allies into vocal critics, leading to reputational damage and lost sales.
But by embracing transparency, businesses can unlock a wealth of benefits:
- Stronger consumer trust: Openness empowers consumers to hold you accountable, fostering loyalty.
- Competitive advantage: Transparency is a key factor in assessments like the CCLA Benchmark, which rank companies on ethical practices.
- Attract investors: Environmental, Social, and Governance (ESG)-conscious investors are drawn to transparent businesses. For example, organisations like the Investor Alliance for Human Rights, representing trillions of dollars in investments, prioritise companies with robust human rights policies.
- Legal compliance: New legislation like the 2024 landmark Corporate Sustainability Due Diligence Directive (CSDDD) mandates supply chain transparency. Non-compliance can result in fines and other penalties.
Strategies for transparent communication
Here are seven key strategies you can implement, focusing on strengthening communication with your suppliers and engaging openly with consumers.
Strengthening supplier communication
Your supply chain is a major risk area. Many businesses lack full visibility into who their suppliers are or where their materials come from. Open communications with suppliers, including those beyond Tier 1, is essential for managing risk and taking corrective action.
Tier 1 supplier data gathering
Knowing your tier 1 suppliers is crucial. This means having reliable tier 1 data, including industry type, address, and main contact. Regularly update this data to ensure accuracy.
Comprehensive supplier data allows you to conduct more informed and accurate modern slavery risk assessments. You can pinpoint high-risk areas and focus your efforts where they’ll have the most impact.
Regular supplier audits and assessments
Regular risk assessments help you focus resources. Conduct regular audits, including on-site visits with direct worker engagement, to identify potential issues. Be transparent about the purpose – it’s about improvement, not punishment.
Top Tip: Include clauses in your supplier contracts reserving the right to audit tier lower-tier suppliers.
Collaborative problem-solving
If a potential concern arises during an audit, it’s crucial to support the supplier with solutions, not blame. Work together to develop corrective action plans and provide ongoing support.
Encourage transparency by creating a safe space for suppliers to raise concerns without fear of repercussion. Meeting concerns with hostility or threats of contract termination will only lead to secrecy and hinder your ability to identify risks within your supply chain.
Recognition that modern slavery can occur within any business fosters trust and understanding. For SMEs, provide additional resources and ensure your expectations are proportionate to their capabilities.
Setting clear standards and expectations
When onboarding a new supplier or renewing a contract, ensure they understand your expectations regarding modern slavery and sustainability. You can do this through:
- Clear policies and processes: Review your policies and processes to ensure they include clear clauses and expectations concerning modern slavery and ethical sourcing. Be clear about your expectations but avoid language like “zero-tolerance” for modern slavery.
- Monitoring and enforcement: Establish a system to monitor and enforce adherence to your expectations. This will guide your decision-making moving forward. Consider setting clear KPIs to encourage suppliers to take the issue seriously or develop action plans for suppliers who lack expertise.
- Supporting your suppliers: Provide readily available resources and guidance to help suppliers comply with your anti-slavery standards. This can include training to raise awareness of modern slavery risks.
By implementing these strategies, you can build strong relationships, with your suppliers, improving transparency throughout your supply chain, and ultimately, demonstrate your commitment to ethical business practices.
Communicating with consumers
While transparency is becoming a business necessity, many companies still shy away from it. Showcasing your commitment to an ethical business model and the steps you’re taking to achieve it can be powerful to meet consumer demand and build trust.
Here’s how you can use open communication to demonstrate your dedication to ethical sourcing:
Be open about your journey
Transparency works best when you’re open about both successes and challenges. What initiatives have worked well? What haven’t? What lessons have you learned, and how will you adapt moving forward?
This can be shared in your modern slavery statement, documenting your yearly progress with clear KPIs. Make sure to include instances of potential exploitation and the steps taken to address them to demonstrate your commitment to continual improvement.
Make transparency a two-way street
Make it easy for consumers to ask questions about your ethical sourcing practices and receive clear answers. This two-way communication builds trust and demonstrates your commitment to transparency.
By addressing concerns promptly and proactively with clear information, you can gain valuable customer insights and build support for your sustainability efforts. Utilise surveys, social media engagement, and customer service channels to foster this dialogue.
Leverage transparency for marketing and consumer engagement
Modern slavery risk is a reality – it can occur anywhere in your operations and supply chains. But if you’ve taken action to tackle it, you have a powerful opportunity to connect with stakeholders on a deeper level. Human rights are personal, and impactful communication through digital channels can make a real difference.
Showcase your commitment to ethical sourcing in marketing campaigns and branding initiatives. Share positive stories like partnerships with anti-slavery charities, collaborations with ethical suppliers, or the setting of ambitious new KPIs.
Transparent communication is your competitive edge. Consumers seeking ethical choices will be drawn to your dedication. Take transparency a step further by creating a dedicated website section showcases your sustainability goals, achievements, and challenges. This empowers consumers to make informed choices. Don’t be shy about your good work, but always maintain honesty and avoid exaggerating your progress.
Remember, consumers are increasingly wary of greenwashing and socialwashing. Focus on concrete actions and substantiated claims to build genuine trust.
Leading by example: Tony’s Chocolonely case study
Tony’s Chocolonely stands as a beacon of how human rights transparency fosters trust and leadership. Sparked by a journalist’s exposé on child labour in the cocoa industry, Tony’s mission became 100% slave-free chocolate. Recognising the limitations of journalism alone, the founders launched a brand driven by a singular purpose: ending child labour in the chocolate supply chain.
This transparency is woven into the fabric of Tony’s. Their vibrant packaging and engaging communications, including videos and annual reports detailing their efforts on the ground, resonated with consumers and ignited a movement for change within the industry.
Since 2005, Tony’s has challenged the industry’s lack of transparency, unfair treatment of farmers, and relentless focus on profit over people. They lead by example with five core sourcing principles: traceability, fair pay, strengthening farmer cooperatives, long-term partnerships, and investment in farmers and their productivity.
Tony’s success goes beyond mere awareness-raising. They inspire others to fight against modern slavery. The unwavering transparency has garnered them international recognition, including the 2022 Stop Slavery Award 2022 and the 2023 Chocolate Scorecard’s Achievement Award.
Now one of the most successful chocolate producers, Tony’s Chocolonely is a thriving business model that proves that transparency and a strong social purpose, supported by clear performance metrics, can build trust and pave the way for lasting success.
How we can help
By embracing transparency, companies can build trust with stakeholders, attract ethically-minded consumers, and create a positive impact on the world. At Unseen, we offer a range of services to help you implement these strategies and integrate transparency seamlessly into your anti-slavery efforts:
- Worker wellbeing site visits: Our on-the-ground experts conduct in-depth site visits, engaging directly with workers. These visits provide valuable insights into working conditions, how your policies are functioning in practice, and help identify any potential exploitation concerns.
- Modern slavery awareness campaign support: We can help you raise awareness of modern slavery internally and externally. This includes providing resources to integrate the promotion of our Modern Slavery & Exploitation Helpline into your campaigns, empowering workers with a safe and confidential reporting mechanism.
- Unseen Business Hub membership: Join the Unseen Business Hub and gain access to our team of experts who will guide you in developing a customised modern slavery strategy. This includes:
a) In-depth risk assessments to pinpoint potential vulnerabilities within your supply chain.
b) Policy gap analysis to identify areas where your policies might need strengthening.
c) CPD-accredited training to equip your team with the knowledge and skills to tackle modern slavery effectively.
d) Supporting the development of a comprehensive and compliant Modern Slavery Statement, demonstrating your commitment to ethical sourcing and transparency.
Ready to take the next step? Contact us to learn more about how we can help your business build trust, embrace ethical sourcing, and become a leader in responsible business practices.
