In 2018, Fortune Global 500 firms spent around $20 billion a year on Corporate Social Responsibility (CSR) activities.
An analysis of 175 companies has revealed that organisations that were most committed to CSR reported an average return on assets that was 19 times higher than the average of those least committed to CSR (a gain of 4.83%, against a mere 0.25%).
A survey of 388 fund managers and financial analysts found that 79% indicated that social management has a positive impact on firm value in the long-term. More importantly, 51% of fund managers and 37% of financial analysts would grant a stock price premium to socially responsible companies.
HACE can help companies reallocate their CSR funds to address the context-specific causes of child labour and/or modern slavery to create a unique selling point compared to competitors.
Companies with child labour in their supply chains risk a drop in share prices, investors and sales. Companies could also be subject to lawsuits which are costly in terms of time, funds and reputation.
Brand reputation is difficult to economically quantify but discovering child labour can cause brands to suffer irreparable damage that can last for years to come.
Lead Data Scientist, India
Due to the vast but intangible value of brand reputation many private sector organisations want to ensure that their reputation is intact. Finding unethical practices within their supply chain can cause huge economic damage.
Brand image and reputation is particularly important if companies are to stand out in a heavily saturated and competitive market. We offer companies the opportunity to become market leaders in tackling child labour and become CSR pioneers, adding brand value, longevity and customer and employee retention. This is particularly vital now, with the UN’s Year for the Elimination of Child Labour spotlighting what companies are doing for this cause.
While eradication of child labour within a supply chain is difficult, HACE offers companies a fast and simple way to understand where child labour occurs in their supply chain, why it occurs, and what they can do to address it.
We offer an alternative solution to supply chain mapping, which can be costly and untimely, therefore potentially inaccurate.