Investor Potential to Improve Labor Conditions in Global Supply Chains: Generating Social Improvements and Protecting Financial Returns through Robust Due Diligence.

The global investor community increasingly takes into account environmental, social, and governance (ESG) performance when making decisions. Although the growth of ESG signals a positive trend toward improving global sustainability, investors often overlook or underexamine labor issues in global supply chains when reviewing and managing investments. According to the International Labour Organization, more than 120 million persons, including children, experience human rights abuses in private enterprise supply chains. To address the threats to human rights in global supply chains, as well as the financially material damage associated with these abuses, this article draws on primary and secondary research to formulate a set of actionable high-level recommendations to institutional investors. By adopting the outlined measures, investors can play a significant role in counteracting labor abuses while mitigating the risk to their portfolios. [ABSTRACT FROM AUTHOR]