We expect investee companies to recognise that their workforce is a key source of value for the business and that they respect International Labour Organisation (ILO) Core Conventions, the ILO Fundamental Principles on Rights at Work and promote ‘decent work’.
We expect all companies to be operating in line with the ILO Core Conventions and local labour laws in all jurisdictions in which they are operating, and that they should expect the same of suppliers and business partners. Furthermore, they should recognise the need to be transparent about their workforce policies and practices with investors.
Our better work stewardship covers modern slavery.
Modern slavery is an umbrella term encompassing slavery, servitude, human trafficking and forced or compulsory labour. Victims are controlled by punishment, debt bondage, threats, violence, deception and coercion. Whilst the true extent of this crime is hidden from view, the ILO now estimates that 50 million people worldwide are in a state of modern slavery.
While this is clearly a key issue for law-enforcement, it also impacts the business and investment community. Against a backdrop of increasing public scrutiny, a risk that may once have been reputational and short-term in nature is becoming financially material.
Modern slavery infiltrates the supply chains of many everyday products and commodities, including food, electronics and clothing. It is also rife in construction and hospitality. While some companies are more exposed than others, we believe that all businesses are linked to modern slavery in some way; either directly, or indirectly via their supply chains. Large, listed companies are in an influential position to set standards, implement policies, and take action to find, fix and prevent modern slavery.
