Corporate modern slavery and worker rights reporting: What does corporate board? Evidence from emerging economy

Sohel Mehedi, Shamsun Nahar, Md Sahadat Hossain, Md Arifur Rahman and Mosammet Asma Jahan

Asian Review of Accounting, 2025, vol. 34, issue 2, 342-372

Abstract: PurposeThis study investigates the prevalence of corporate reporting on modern slavery and worker rights reporting (MSWRR) within the context of countries facing an elevated risk of modern slavery. Furthermore, it explores the impact of corporate governance mechanisms on enhancing MSWRR practices in such high-risk environments.Design/methodology/approachGrounded in stakeholder theory, we employed a sample comprising 300 firm-year observations from the textile industries of three South Asian countries (India, Pakistan and Bangladesh). The robustness of our findings, validated through a two-step system generalized method of moments (GMM), substantiates the significant contribution of this study to the corporate governance and MSWRR literature in developing economies.FindingsThe findings reveal a notably limited extent of modern slavery disclosure (MSD). Our results indicate a positive and statistically significant association between MSWRR and corporate governance elements such as directors engaged in social issues, directors with political connections and the presence of an audit committee. Conversely, a board with a concentrated family ownership structure is found to exert a significant negative influence on MSWRR.Originality/valueIn light of the imperative nature of the subject matter, a dearth of scholarly inquiry is evident within the corporate domain pertaining to contemporary slavery and the reporting of worker rights. Addressing this gap, our study underscores the role of stakeholder pressures in fostering improvements in corporate governance mechanisms, thereby strengthening corporate initiatives aimed at mitigating modern slavery risks and promoting worker rights.

Keywords: Modern slavery; Worker rights; Director with social engagement; Director with political connection; Audit committee; Family concentrated board; Stakeholder theory (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:arapps:ara-01-2025-0023

DOI: 10.1108/ARA-01-2025-0023

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