Should Australia be Embracing the Modern Slavery Model of Regulation?

What is it about?

The Modern Slavery Act requires large companies in Australia to report on their efforts to combat modern slavery. The Australian government envisaged it resulting in a 'race to top', but will it work? We examine literature on disclosure regulation to anticipate the likely problems with a regulatory approach based on reporting, and examine outcomes from similar UK and US legislation. We conclude that, at best, it will likely result in normative change regarding the responsibility of focal firms for workers in their supply chains. At worst, though, it will result in millions of dollars being spent on glossy reports without an improvement in the human rights of the workers it is supposed to benefit.

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Photo by Arno Senoner on Unsplash

Photo by Arno Senoner on Unsplash

Why is it important?

Modern slavery is one of the most egregious human rights abuses, deserving urgent regulatory action. The Modern Slavery Act will result in businesses spending millions of dollars on shiny reports, but will it actually result in an improvement of working conditions for those in bonded, forced and child labour?