Top tier construction firms should be doing more to prevent bribery, corruption and slavery in their supply chains, according to a new study.
“Even with the legislation, for companies, I think it comes down to a moral duty. Mitigate risk, but also at the same time improve and promote all areas of the supply chain.”
Top tier construction firms should be doing more to prevent bribery, corruption and slavery in their supply chains, according to a new study.
Risk management consultant Achilles polled 117 construction companies across the world, and found that 25% have no bribery and corruption policy in place when they award contracts to suppliers, while 39% do not know – or have no intention of finding out – who is in their supply chain. This leaves many at risk of non-compliance with ethic laws.
Lee Brunsden, building confidence community manager at Achilles, told Construction Manager: “Legislation such as the Modern Slavery Act puts companies under pressure to find out who and what are in their supply chain.”
Last week, Balfour Beatty and Interserve were put in the spotlight over concerns about their treatment of labour on projects in Qatar.
“It is up to tier one companies to set a precedent and follow through on the process; this equally encourages and supports smaller companies and SMEs,” Brunsden said.
He acknowledged that some construction SMEs may struggle with such requirements due to cost, time or manpower, however the responsibility to upskill and improve is still there.
The research conducted polled companies from the UK, USA, Spain, Brazil, Australia, South Africa, the Nordics and the Middle East.
Brunsden said that while no particular country stood out for failing to maintain and investigate its supply chain, it often depended on the maturity and attitudes of the market.
“I don’t think it is necessarily down to strictness; I think it is down to the maturity of the market,” he explained. “In the UK there is a strictness, but also it is a mature market and mature supply chains they are using. The risk isn’t necessarily a region or an area, it is dictated by the legislation of each country.
“Even with the legislation, for companies, I think it comes down to a moral duty. Mitigate risk, but also at the same time improve and promote all areas of the supply chain.”
Legislation, strictness is one side, the other side is commitment and being socially responsible. It is time British companies demonstrate maturity and responsiveness to rest of the world.
It has to come down to legislation before people will take heed. It is always the same story