When the landmark lawsuit involving Dyson and allegations of forced labour in global supply chains made headlines, it sparked an important conversation in the UK.
Across the world, governments are introducing stronger measures to address forced labour and human rights risks in global supply chains. What might once have been seen as a reputational or ethical issue is rapidly becoming a defining feature of global trade. For businesses that rely on international markets, responsible sourcing is no longer simply about corporate values or voluntary commitments; it is quickly becoming a prerequisite for competitiveness, market access, and resilience.
For the UK, this moment presents urgent challenges, but also opportunities.
Preventing the UK from Becoming a Market of Last Resort
The challenge is clear. As major economies introduce import bans on products linked to forced labour, such as the US ban on goods imported from the Xinjiang Uyghur Autonomous Region, markets without comparable safeguards risk becoming destinations for goods excluded elsewhere.
The UK already imports around £20 billion worth of goods from sectors considered high risk for forced labour each year. Without stronger frameworks, there is a real possibility that our market could inadvertently become a ‘dumping ground’ for products that cannot enter other jurisdictions.
At the same time, UK exporters are navigating a rapidly evolving regulatory environment in key markets, including the EU, US, Australia, Japan, South Korea and others that are moving towards mandatory standards. If responsible markets close their doors to goods linked to forced labour while the UK does not act, we risk distorting our own markets, allowing illicit practices to undercut businesses that are investing in responsible sourcing and supply chain transparency.
Designing smart, UK-specific legislation aligned with global frameworks such as the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises would help ensure that British firms remain competitive in global markets.
Preparing Supply Chains for a More Volatile World
Supply chains today are under enormous strain. Geopolitical tensions, climate disruption, and economic volatility are reshaping global production networks. In this environment, responsible sourcing is increasingly recognised as a resilience strategy that strengthens businesses in the short-term, while supporting the wellbeing of local communities, in turn sustaining a healthy environment for long-term business success.
Businesses that invest in transparent, long-term supplier relationships are better able to anticipate risks, maintain continuity, and innovate together when disruptions occur. Evidence increasingly supports this, a five-year UNDP study found that companies improving their human rights performance saw operational and strategic benefits without financial penalties. In many sectors, the cost of supply chain disruption, such as production stoppages, delayed shipments, and reputational damage, far outweighs the initial investment required for proactive due diligence.
The implication is clear: identifying and addressing risks earlier in the supply chain is often far less costly than reacting once a crisis has already occurred.
Investors are paying attention as well. Asset managers representing £1.45 trillion in UK assets, and more than $5 trillion globally, have signalled support for mandatory standards that provide clearer, comparable information on supply chain risks.
For many investors and companies alike, stronger human rights due diligence is therefore not simply about avoiding harm or ticking a box, it is about building supply chains capable of withstanding the shocks and disruptions that are increasingly shaping the global economy.
The Economic Opportunity of Ending Exploitation
Research from the International Labour Organisation suggests that the global investment required to address forced labour amounts to just 0.14% of global GDP, yet the economic returns could generate a 0.41% increase in GDP — a three-to-one multiplier.
In 2024, forced labour generated an estimated $236 billion in illegal profits globally. Redirecting that activity into the formal economy would not only protect vulnerable workers but also strengthen public finances, potentially generating $114 billion in tax revenues while contributing hundreds of billions to global economic output. Put simply, exploitation is not only morally unjust, it is also economically inefficient.
Allowing bad actors to externalise costs onto workers, communities and taxpayers effectively rewards those who cut corners while penalising those who invest responsibly. The result is a race to the bottom that ultimately weakens economic productivity. Effective frameworks can help reverse that dynamic, ensuring that responsible business practices are not coping with a competitive disadvantage, but part of an established level playing field.
The UK’s Opportunity to Shape the Future of Trade
The Dyson case reminds us that while supply chain issues often happen elsewhere in the world, they will usually make their way home. They are part of the economic system we all participate in.
From my conversations with businesses in the UN Global Compact Network UK, the message is clear: companies want clarity and consistency so they can compete internationally with confidence. But systemic challenges require systemic solutions, and governments must provide the policy frameworks that enable responsible companies to thrive.
The question now is not whether expectations around responsible supply chains will evolve – they already have. The real question is whether the UK will embrace the opportunity to shape that evolution in a way that supports competitive businesses, resilient supply chains, and more economically productive global markets.
