Food manufacturers across the globe have admitted failing to put in place basic safeguards to protect vulnerable workers in their supply chains – almost one year on from laws to stop slavery, child labour and unethical working practices.

This is according to a trade report by Achilles, a research and data collection firm working on supply chain management.

The report goes on to show that 19 per cent of large food manufacturers admitted they don’t have a way of finding out even the name and address of suppliers in their supply chain, while 53 per cent admitted they do not have a plan in place to find out in the future who is in their supply chain.

Furthermore, 12 per cent of the food companies admitted they do not put in place corporate standards which suppliers must adhere to, on issues such as ethics, and health and safety, according to a survey of 42 large food manufacturers across the UK, USA, Spain, Brazil, Asia, Australia, South Africa and the Middle East.

As a result, 40 per cent of food manufacturers believe it is ‘likely or very likely’ they will be exposed to mounting legislation and 29 per cent say it is ‘likely or very likely’ that they will be exposed to reputational damage.

Luis Olivie, global business development director at Achilles, said: “Without knowing who is in the supply chain, or having basic information about how contractors do business, food manufacturers are putting themselves at risk of using ‘hidden’ slave labour, child labour or unethical working practices.”

Businesses found to be using unethical labour in supply chains face hefty fines under various laws such as the UK Government’s Modern Slavery Act.

“To prevent a ticking time-bomb of risk, we recommend large businesses map their supply chains through all tiers to identify and tackle potential risks. With a clear picture of who is in the supply chain, businesses can implement clear standards on ethics, which suppliers must adhere to before they are even considered to provide goods and services,” added Olivie. - TradeArabia News Service