What is modern slavery?
Modern slavery is an umbrella term for practices where people are controlled, threatened, or abused for someone else's gain.
It’s estimated that over 50 million people are living in modern slavery globally with children representing 1 in 4 people trapped in slavery, and many of them are working in the supply chains of industries such as construction, agriculture, hospitality, and manufacturing.
Types of modern slavery
Slavery in the contemporary world doesn’t exist in one singular definition – it takes many forms. The most common subtypes are:
Human trafficking
Using violence, threats, or coercion to transport, recruit, or harbour people in order to exploit them for illicit purposes such as forced prostitution, labour, criminality, marriage, or organ removal.
Forced labour
Any work or services people are forced to do against their will, usually under threat of penalty or punishment.
Debt bondage
Impoverished people who borrow money and are forced to work to pay off the loan, losing control over both their employment conditions and the debt. This is the most widespread form of modern slavery.
Descent-based slavery
A very old form of slavery, in which people are treated as property, and their ‘slave’ status has been passed down the maternal line.
Child slavery
Exploiting children for financial, material, or other gain. This form of modern slavery can include child trafficking, child labour, child soldiers, child marriage, and child domestic slavery.
Forced and early marriage
When someone is married against their will and can’t leave. Most child marriages can be considered slavery.
Domestic servitude
Domestic work doesn’t always count as modern slavery, depending on the conditions, as it can be an important source of income for many who are legally and ethically employed. However, someone working in another person’s home is particularly vulnerable to abuse, exploitation, and slavery, as they might be hidden from sight and lack legal protection – especially migrant workers and children.
Why this matters for SMEs and business owners
As mentioned above, this issue affects not just one area or industry. However, there are certain geographical areas that are more vulnerable, especially in the global supply chains. Modern slavery can exist at any touch point of the supply chain: from raw material sourcing in India or abroad, to packaging and distribution in Europe and the UK. So, even if your business doesn’t operate in high-risk sectors directly, your suppliers might.
If your business is linked to unethical practices, it can cause serious reputational, legal, and financial harm. You should exercise due diligence both in where you source your materials from, and how you report your business dealings.
The legal landscape has changed dramatically over the last few years in efforts to stop the illegal practices of modern slavery within the supply chain. Some notable examples include:
Beyond compliance and risk, it’s a matter of values and responsibility. People and businesses shouldn't exist and succeed at the expense of the exploitation of basic human rights, no matter how far removed from them we are.
What you can do as a small business owner
You don’t need to be a large corporation to take meaningful steps to make sure your business is ethical and against modern slavery. Here’s how you can start:
1. Know your suppliers
Understand who you’re doing business with. Ask questions about their practices, policies, and how they ensure ethical labour standards. If they can’t answer or avoid the conversation, that’s a red flag. If you notice any suspicious activity, you should report it to the relevant financial authorities.
2. Map your supply chain
Identify where your goods or services come from, especially the parts of your supply chain that you or your supplier outsource or get delivered from overseas. Look out for known high-risk regions or industries.
3. Set expectations
Clearly communicate to your suppliers that you expect fair labour practices and transparent reporting. If possible, include anti-slavery clauses in your contracts, and carefully and continuously review their policies to ensure alignment.
4. Train and educate your team
Make sure your staff, especially those involved in procurement or supplier management, understand what modern slavery is, how to spot the signs, and what to do if they have concerns.
5. Speak up
If you suspect something isn’t right, take it seriously. You can report concerns directly to the local or national authorities, or through dedicated modern slavery helplines. A list of official reporting channels and further educational resources can be found at the end of this post.
At Tide, we also monitor for suspicious activity as part of our broader financial crime efforts to ensure businesses on our platform are run ethically and with responsibility.
Our commitment
At Tide, we’re committed to helping businesses grow responsibly. Our financial crime team monitors for suspicious activity, and we continue to improve our systems and training in order to protect against risks like modern slavery in all of its forms.
We encourage all our members to take an active role in ensuring their businesses and their business partners and suppliers operate ethically and lawfully.
For more information on what we do at Tide, see our Modern Slavery Statement, which we have been publishing annually since 2022. This maps our approach, tracks our commitments, and outlines what we’ll do next.
Let’s work together to break the cycle of exploitation. If you have any questions or want support reviewing your supply chain risks, we’re here to help.
Helpful resources
