Construction firms need to protect themselves from supply chain risk

Construction companies need to to protect themselves from supply chain risk, according to new research from Achilles. The research revealed that construction businesses across the globe are at risk of non-compliance with the Modern Slavery Act, after admitting failing to put in place safeguards to protect workers in all tiers of their supply chains.

Over a quarter (28 percent) of construction firms admitted they do not have a plan in place to find out who is in their supply chain – a first step for ensuring ethics among contractors through all the tiers. A further 11 percent did not plan to implement one.

The survey included construction companies across the UK, USA, Spain, Brazil, Australia, South Africa, the Nordics and the Middle East. The study was carried out by independent research agency IFF and commissioned by Achilles.

The Modern Slavery Act, introduced in 2015, requires any organisation operating a business or part of a business in the UK, with a turnover of over £36 million, must produce a slavery and human trafficking report each financial year. The statement must confirm the steps taken to guarantee that no slavery or human trafficking offences are happening in the supply chain or declare that no steps to confirm the existence of slavery or trafficking have been taken.  With penalties resulting in a public shaming for businesses who fail to comply or being taken to the High Court, construction businesses will not want to risk unwanted reputational damage.

Follow @ConstructionGL

Read the April 2016 issue of Construction Global magazine