This toolkit provides guidance for businesses to enhance their responses to the Australian Modern Slavery Act (MSA) and conduct human rights due diligence. It focuses on improving stakeholder and supplier engagement, which are critical in combating modern slavery.

Stakeholder engagement

Stakeholder engagement should be ongoing and present throughout the different stages of human rights due diligence. Engagement begins with the design of policies and is sustained via ongoing identification and monitoring of the workplace, and at the point of remediation. Key elements include:

• Meaningful engagement with workers and their representatives
• Engagement with relevant stakeholders in the design of policies
• Sustained engagement with worker organisations and relevant stakeholders
• Using effective grievance mechanisms as an engagement tool
• Using digital technologies to engage with workers
• Participation in credible multistakeholder schemes

Meaningful engagement

Engagement with workers and their representatives is crucial. Research indicates that most businesses fail to consult workers during human rights due diligence, especially in high-risk supply chains.

Engagement with relevant stakeholders in the design of policies

Effective engagement should start at the policy design stage. Businesses should involve stakeholders to ensure policies are realistic and actionable. Evidence shows only marginal improvements in stakeholder consultation in policy development.

Sustained engagement

Ongoing engagement with worker organisations and stakeholders is necessary to address the root causes of workplace issues. However, sustained engagement is often lacking, with many companies relying on ineffective one-off questionnaires or contractual representations.

Engagement of workers through grievance mechanisms

Grievance mechanisms are essential for addressing human rights abuses. Effective practices involve co-designing these mechanisms with workers and their representatives, ensuring accessibility and transparency.

Using digital technologies to engage with workers

Digital tools, such as social media, apps, and blockchain, can help detect and address modern slavery. These technologies should be chosen based on their suitability for the specific problem and must ensure users’ privacy and security.

• Digital tools: Strengths and weaknesses

Each digital tool has its benefits and drawbacks. Social media and apps are effective for detection and information provision, while blockchain and remote surveillance help trace provenance and monitor working conditions.

Supplier engagement

Prioritisation of suppliers with demonstrated respect for human rights

Businesses should prioritise suppliers who respect human rights, incorporating robust evidence of such respect into their selection processes. Currently, only 26% of Australian companies undertake human rights due diligence on new suppliers.

Working in partnership with suppliers

Collaborative engagement with suppliers, including co-designing policies and conducting training, is essential. Only 39% of Australian businesses frequently train their suppliers on human rights due diligence.

Demonstrating sustained engagement with suppliers

Regular and meaningful engagement with suppliers is vital. Businesses should avoid terminating relationships upon discovering labour abuses and instead work to address the issues collaboratively.

Conclusion

Effective human rights due diligence requires robust stakeholder and supplier engagement. Sustained collaboration, transparency, and continuous improvement are essential for eradicating modern slavery in business operations and supply chains. The toolkit offers practical examples and recommendations to help businesses, governments, and civil society enhance their modern slavery responses.