The Role of the Capital Market in Combating Modern Slavery
摘要
Combatting modern slavery is a joint effort by governments, supranational bodies, regulators and capital market players. While governments may enact legislation to monitor or prevent forced labour human trafficking, the real power lies with capital market players to ensure that companies are sanctioned for using these methods in their business. Capital market regulators may issue guidelines and provide incentives with access to debt markets for companies that have good employment practices. Stock market indicates reward such companies by placing them in ESG indices which improves their access to capital and improving these companies’ branding and reputation. Where smaller businesses are concerned, their labour practices can be managed through disclosures via the supply chain to ensure that the social aspect of ESG is adhered to. Companies need to have strict supply chain disclosure requirements for this purpose. It is only when all these groups work together that forced labour can be reduced and even eradicated in markets.