"There is a universal lack of transparency and cooperative business practices to ensure that consumers have adequate information to determine if their products and services are connected to slavery"
This is Part 2 in a two part conversation on how consumers are not well informed with regard to modern slavery being evident in products or services they are purchasing. In this blog Manfred Ewikowski (one of our Directors), continues to take a look at the business opportunities that exist for those who blot out slavery in their supply chain.
The Rewards of a Proactive Business Approach
There is much that businesses can do prior to the government establishing a more rigid and robust review process of business practises here in Australia. In fact, New Rivers Enterprises would favour a more industry-led approach supported by robust legislation. Unfortunately modern business practises have tended to turn a blind eye to slavery within their supply chains both here in Australia and abroad. Therefore, governments throughout the world are beginning to legislate in this space. We do not believe that legislation is the sole or necessarily the most effective means by which slavery can be eliminated to the satisfaction of consumers. Rather, a more proactive approach by businesses to seek out and identify slavery within their business practices will ultimately give consumers the confidence they need to purchase Australian products and services.
Businesses can benefit from taking the issue of slavery out of the 'too hard basket'. The possibility exists for businesses to work in consultation with anti-slavery organisations and businesses, like New Rivers, to develop processes and practices which will ultimately improve the profitability of their businesses while reducing their risk of engaging in practices which benefit slavery. Ultimately, what is needed is a cultural shift within businesses and consumers to simply demand that business is done in a manner in which slavery is not an appropriate business practice.
To again provide an Australian example, business and consumers need to actively search out slavery as we have learnt to do with asbestos in the building industry. There is a benefit that anti-slavery minded businesses have which did not exist with respect to the transition away from asbestos. Asbestos was considered to be a fantastic product for a very long time. Arguably very few businesses and consumers here in Australia would hold that same view with respect to slavery. Therefore there is not the level of education that is required to encourage consumers to seek products and services which do not benefit from slavery. Consumers simply need to be educated that they cannot presume that the businesses and services with which they interact do not rely in some form on slave labour.
Again, the purpose of this article is not to dissuade people from purchasing products when they have no certainty that they are not inadvertently supporting slavery. Instead, consumers need to start asking 'how connected is the product or service I am purchasing with slavery?'.
Many businesses may object to the premise of this question that all products and services are connected to slavery. Admittedly, this premise is flawed in that it is very clear that not all products and services are connected to slavery. However, there is a universal lack of transparency and cooperative business practices to ensure that consumers have adequate information to determine if their products and services are connected to slavery. Therefore, the appropriate starting point is to presume that all products and services have that connection unless proven otherwise. Essentially, consumers are best placed if they begin with a skeptical position that they are contributing to slavery.
This presumption does not suppose that consumers do not want access to products and services which guarantee, to as reasonable a standard as possible, that they are not connected to slavery.
The businesses which most effectively and quickly provide this certainty to consumers will see their efforts rewarded. Essentially, businesses need to treat slavery as they would a research and development component of their business. R&D improves efficiency and productivity and promotes innovation within businesses. Businesses that innovate do better than businesses that do not. Similarly businesses that take an active approach to inform their customers about the work they have done to ensure that their products do not rely on slave labour will secure a market share that consumers may not yet know they are looking for. That said, consumers are becoming more aware of the need to ask questions about slavery. In years to come legislation and a broader consumer base will more fully understand the need to address the epidemic of slavery throughout the world.
Back to the original question
How can consumers today know that their purchases are not connected to slave based industries or from businesses that benefit from slavery? Sadly the answer to that question is they cannot. What consumers can do is begin to understand that products and services are being supplied to them which rely on slave labour. The next thing consumers need to do is to not want to buy products that rely on slave labour. This step is not difficult. Especially when it does not, at this stage, require a change in spending and consuming patterns.
For example, I like eating seafood throughout the year and especially at Christmas. However it is almost guaranteed that the seafood I purchase, if it comes from any major grocery supplier, will likely have its origin in a fishing fleet in another part of the world which uses slaves. Consumers then have three options. Firstly, we can choose to not eat seafood which is sourced outside of Australia. However this seafood is often the only seafood that is affordable. Therefore, it is unlikely that the average consumer will be sufficiently motivated to deprive themselves of something they want to purchase when the alternative is too expensive or not available at all.
Secondly, consumers could look for local options for seafood. I live near a fishing town in Tasmania and know some of the local fishers so I can easily (but not always affordably) access local seafood. This option is not available to the average Australian consumer living in a large city who does not have access or even know anyone within the fishing industry in Australia.
Thirdly, consumers can continue with their current purchasing practices but keep an eye out for affordable slave-free alternatives. These alternatives are coming.
A business opportunity
Eventually products and services will be marketed in a way which allows consumers to identify the risk of those products being connected to slavery. Much like the “Made in Australia” labels which identify how much of a product is actually made in Australia. Consumers will hopefully, sooner than later, be able to easily navigate their purchases and understand the real and potential connection their purchases have to slavery.
This information is already available in a limited form. A clever example is the Chocolate Scorecard from Be Slavery Free. Online information like this example requires effort and diligence from consumers to identify every product and service they may want to purchase. Clearly, there are few consumers who will engage in this practice to the extent required to ensure that they only purchase products with no or minimal connection to slavery. It would be absurd to think that consumers would en masse engage in this form of monitoring of businesses when they simply want to buy what they need for their families, be it seafood for Christmas or chocolate for Easter.
The use of these guides will eventually become more commonplace as technology and consumer and business practices improve. However, a more realistic outcome will be that businesses will see the benefit of providing transparency and certainty to their customers. The first business to adopt this approach will reap greater rewards. This approach is not so much about complying with government regulation. It is more about recognising a business opportunity and market share.
The future is bright - with businesses taking the lead
Let's return to the seafood example. Imagine buying your seafood for Christmas one year and you see two products in front of you. Both products are effectively the same in terms of quantity and quality. One of the products, however, clearly marks that it is not connected to slavery. The other product makes no such claim. Arguably, if both products were the same price the consumer would purchase the one that is provided with the slave-free guarantee. Consumer protections here in Australia could be used to prevent companies from making false or misleading statements regarding slavery.
It is not too idealistic to presume that the average Australian consumer would prefer a product which legitimately claims to be slave-free over one which does not make that same claim. In many ways the anti-slavery space is providing an entirely new market opportunity for many businesses and services. Presuming the existence of an established standard by which a business could be assessed with respect to anti-slavery practices and procedures (these are starting to emerge), a market of slave free products and services is on the cusp of emerging here in Australia.
New Rivers intends to be part of that emerging product and service space. Our plan is to either consult or assist businesses in entering into these markets. Contact us if you would like to learn more about how New Rivers is working with businesses to address slavery within their international supply chains. New Rivers also works to develop and operate businesses and services in industries where there is little appetite to prevent the use of slave labour.
Clearly one business does not have the capacity to realise the business potential of the anti-slavery space across all business and services. Therefore, New Rivers is simply positioning itself within the new wave of slave-free businesses which are emerging. These changes to consumer spending will not happen overnight, however, it would be wise for businesses to understand that this trend is coming and to make adjustments before they're left behind.
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For more information on how you can be part of making slavery obsolete through your investment with New Rivers, follow this link to learn more and join other investors.
We are always interested in feedback and new ideas that people may have with respect to changes that can be made at the brick factories and any other businesses that New Rivers is involved in. We look forward to hearing from you - email us at info.newrivers@gmail.com.
Pictured: Manfred, Michelle (centre) and the New Rivers Team
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