(Institutional Investor) These risks are not trivial: As of 2017, 40.3 million people worldwide were victims of modern slavery, which generates $150 billion in profits annually in the United States alone, according to the International Labor Organization, a subsidiary of the United Nations.
But it’s not easy for investors to reliably get information about companies’ supply chain conditions. Because shareholders have limited capacity to conduct on-site research for individual companies, they largely rely on the management to report key performance indicators and draft action plans. This requires a certain degree of honesty and dedication from the management side.
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