Franchise NZ - Spring 2024

41

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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odern slavery is the violation of fundamental human rights and

can take many different forms. These include worker exploitation,

forced labour, child labour, human trafficking and debt bondage. By

adopting standards and policies in their franchise networks, franchisors

are setting a benchmark for responsible business conduct, ensuring that

both franchisees and their suppliers adhere to high standards of human

rights and labour practices.

Many overseas companies have a strong emphasis on ethical business

practices, with increased pressure to demonstrate transparency and

responsibility in ESG reporting and compliance. This means New Zealand

businesses are often required to show steps they have taken to combat

modern slavery when doing business overseas, or trading with overseas

entities. Similarly, domestic consumers are more aware of ethical issues

and prefer to support companies with strong human rights records.

As a result, businesses are increasingly adopting stringent measures

to ensure their operations and supply chains are free from exploitation

and modern slavery. Franchises, in particular, are responding to this by

implementing robust ethical standards across their networks, ensuring

that both franchisors and franchisees adhere to policies that promote

human rights and prevent modern slavery.

Many franchise networks are now also adopting modern slavery and

whistleblower policies. Although not legally required, a modern slavery

policy details obligations on the franchise network to combat the risks of

modern slavery. Equally, a whistleblower policy provides an opportunity

for someone to raise their concerns about the business through a

protected disclosure.

The adoption of these two policies is becoming increasingly common,

with franchisors wanting to take steps against modern slavery and not

risk any reputational damage, legal ramifications and financial losses,

particularly given the increased scrutiny of franchisors in the media.

If you’re trading with overseas companies that ask about your modern

slavery practices, or if you’re wanting to protect your business, now

is the right time to prepare your franchise network to comply with any

obligations. The Wynn

Williams team will be

keeping a close eye

on this area of law,

so do not hesitate

to get in touch to

develop relevant

policies, or discuss

other reporting and

compliance that may

be appropriate for

your franchise.

Wynn Williams

www.wynnwilliams.co.nz

Contact

Katrina Hammon

09 300 2647

021 221 8847

katrina.hammon@

wynnwilliams.co.nz

Advertiser Info

Katrina Hammon, Wynn Williams

partner, on franchisors adopting

measures to combat modern slavery.

STOPPING

MODERN

SLAVERY

Franchise Management