A Critical Reflection of Modern Slavery Disclosure Legislation, Supply Chain Practice and Reporting

This PhD is motivated by the Australian national agenda to combat modern slavery. In 2019, the Australian government published its National Action Plan to Combat Modern Slavery 2020-2025. Among the Plan’s five key strategic priorities is a call for further research into the wicked problem of modern slavery. In response, I developed three studies from an academic point of view, each answering a different research question, which formulates the main contribution of this thesis.

The first paper examines how universities across Australia have responded to the Commonwealth Modern Slavery Act 2018 (MSA). This study was part of an interventionist research partnership with Unchained Solutions Pty Ltd, a modern slavery consultancy firm in Sydney, Australia. By conducting a content analysis of Unchained existing and potential clients, I reviewed 22 modern slavery statements from Australian universities. The study reveals that most universities struggle to comply with the MSA, with 82% of statements falling short of satisfactory compliance. The majority of statements do not comprehensively explain the risks associated with modern slavery in the universities’ supply chains. Specifically, the universities do not adequately identify exposure to products from high-risk countries, nor do they identify those operating within their supply chains beyond Tier 1. Additionally, Romzek and Dubnick’s (1987) accountability framework is applied as a theoretical basis to critically analyse how the universities have responded to the MSA, with the findings providing evidence that a new accountability system – collaborative – emerged as an addition to the framework.

The second paper explores the critical issues that need attention by policymakers and proposes recommendations to enhance the MSA's effectiveness after three years of implementation. Motivated by the opportunity to provide feedback to the Australian government, this study provides new insights into potential changes to the MSA and evidence to help inform further improvements. This paper presents a critical literature review of 62 academic papers in interdisciplinary journals that report research findings on modern slavery disclosure legislation in Australia, California and the United Kingdom. Using eight key issues and 27 related questions outlined in Review of Australia's Modern Slavery Act 2018: Issues Paper as the overarching framework, I undertook an NVivo content analysis to conduct a critical literature review. The results informed a submission to the MSA review in 2022, which presents the findings of the literature review and outlines future policy recommendations.

The analysis reveals that the MSA is mainly ineffective for four key reasons – 1) The MSA focuses on large entities rather than those at high risk of supporting modern slavery; 2) The reporting entity is solely responsible for eliminating modern slavery from their supply chains; 3) The legislation appears to show more concern for corporate risk than the welfare of the victims; and 4) There are no penalties for non-compliance and whatever links there might be to criminal legislation are unclear. This study suggests four recommendations to the Australian government – 1) Setting the reporting threshold according to risk exposure rather than revenue; 2) Involving non-business actors in an ecosystem approach to compliance; 3) Embedding mandatory due diligence human rights; and 4) Introducing penalties for non-compliance and clear links to criminal legislation.

The third paper investigates how the MSA has impacted organisational practice, including reporting, while providing insights into the perceived effectiveness of the MSA. This study involves a qualitative case study that unravels the perspectives of different stakeholders, including business and non-business actors – modern slavery statement preparers, consultants, NGOs, civil society and academics through semi-structured interviews. Among the participants are members of the Modern Slavery Expert Advisory Group. This study also draws on various secondary data sources, such as press releases, news articles, and the websites of the Australian government and NGOs. By applying Schatzki's (2002, 2005) practice theory, this study provides holistic insights into the challenges faced by organisations in complying with the MSA.

The study finds that the MSA has increased awareness of modern slavery issues. However, organisations face several challenges in responding to the MSA, especially “finding the sweet spot of enough effort”. Most organisations find the legislative requirements ambiguous; they face difficulties in providing comprehensive information about the supply chains beyond Tier 1, and they lack internal expertise on modern slavery, which invariably leads to narrative disclosures. Most interviewees criticise the MSA for being ineffective - slow progress, steep learning curve, and its priorities are far from reality. Hence, there is a pressing need for modifications to the MSA.