Glossary of terms

Code of conduct: A set of business behaviours, practices and standards that a company sets out for themselves and others to follow as part of a business relationship – including their employees, suppliers and other business partners.

Due diligence: Investigation or activities to exercise a duty of care that a business is expected to take before entering into an agreement or contract, or completing a transaction, with another party. When referring to human rights and environmental due diligence, actions companies can take include supplier engagement, risk assessment and conducting audits,

Forced labour: Work or service that is done under threat of penalty and for which the person has not offered themselves voluntarily.

Modern slavery: Umbrella term that refers to the worst forms of exploitation. It describes a situation a person cannot refuse or leave because of threats, violence, coercion, deception, and/or abuse of power. It includes forced labour, debt bondage, forced marriage, the worst forms of child labour, and human trafficking.

Modern slavery legislation: Laws that require companies to take action against modern slavery and produce annual reports detailing their efforts.

Non-financial reporting: Reports that companies produce detailing their performance in non-financial areas, e.g. environmental, social and economic impact, as related to their current activities. Examples include sustainability or ESG reports.

Sanctions: Penalties or other means of enforcement used to provide incentives to comply with laws, rules and regulations, and punishments for those who don’t comply. Criminal sanctions can take the form of fines or imprisonment. In the context of human rights due diligence laws, sanctions take various forms including financial penalties or fines, or companies being barred from tendering for public contracts and accessing public funding.

United Nations Guiding Principles on Business and Human Rights (UNGPs): Comprehensive international guidelines created in 2011 for nations and companies to prevent, address and remedy human rights abuses in business operations and supply chains, consisting of 31 principles.

Withhold Release Orders (WRO): Under the U.S. Tariff Act of 1930, the US government issues WROs against imported goods, and/or the companies importing them, believed to be produced or manufactured in whole or in part by the use of forced labour, including prison labour or indentured child labour. The WROs prohibit and prevent these goods or services from entering the United States of America.