Question

To ask the Secretary of State for Business, Innovation and Skills, what steps his Department is taking to (a) encourage firms to pay a fair wage to workers in their overseas supply chains and (b) stop other forms of exploitation of those workers.

The Department for Business, Innovation and Skills (BIS) has introduced a requirement for large listed companies to include in their Strategic Report information on human rights issues. This requirement will be further enhanced by the Non-Financial Reporting Directive, due to come into force by 2017, which specifically includes human rights due diligence and supply chains.

In December last year, I announced support from BIS for the Corporate Human Rights Benchmark, which will assess and rank the human rights performance of 500 companies worldwide. The combination of enhanced disclosure and published assessments of company performance will provide a powerful incentive to businesses to ensure that workers in their overseas supply chains are free from exploitation and are paid fair wages.