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What Companies Should Know About Modern Slavery

Fox Rothschild • Jun 23, 2021

By Karen H. Davis and Brittney R. Powell


This article was originally published here


Companies are increasingly focusing on the environmental, social and governance (ESG) aspects of their businesses. In 2019, 90% of the S&P 500 index companies published sustainability reports. In contrast, in 2011, only 20% of these companies published such a report.[1] Many companies have come to recognize that a strong ESG program is important to investors, customers and other stakeholders. In particular, companies that sell products into consumer markets and have significant brand recognition face growing expectations that their products and business operations will address ESG considerations. Promoting human rights and preventing human trafficking is an important component of an effective ESG program. Human trafficking does not require the relocation of people. Rather, human trafficking includes forced labor, child labor and slavery, as well as coercion, abduction, fraud and exploitation connected with labor and is sometimes referred to as modern slavery.


The U.S. State Department estimates that human traffickers are denying nearly 25 million people their fundamental right to freedom.[2] This is not an isolated problem. Slavery and human trafficking exist throughout the United States and globally.[3] Human trafficking cases have been reported in all 50 states and the District of Columbia.[4] The U.S. Department of Labor has identified 155 goods from 77 countries produced by child or forced labor.[5] Researchers found that 71% of companies believe there is a likelihood of modern slavery occurring at some point in their supply chains.[6] Apparel has been identified as one of the top five products imported into the United States at risk of having been made using forced labor, along with electronics, fish, timber and cocoa.[7]


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