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1 – 10 of over 2000Katherine Leanne Christ, Roger Leonard Burritt and Stefan Schaltegger
With the initial focus on the extreme end of the work conditions continuum where, in the last decade, legislation has been introduced to combat illegal and illegitimate practices…
Abstract
Purpose
With the initial focus on the extreme end of the work conditions continuum where, in the last decade, legislation has been introduced to combat illegal and illegitimate practices, this issue's lead paper provides an overview on key topics of extreme work conditions of modern slavery and accounting. The paper introduces the Special Issue on “Accounting for modern slavery, employees and work conditions in business” and its selected papers.
Design/methodology/approach
The method adopted is a wide-ranging literature review exploring the continuum of work conditions and their relationship to accounting, especially extreme exploitation of workers through modern slavery.
Findings
Employment and workplace conditions and practices in business can be viewed as a continuum ranging from the illegal and illegitimate practices of modern slavery, through unethical and often illegal practices such as wages theft, to decent work. Given this continuum, in this Special Issue avenues are identified for accounting research to provide an account of the effectiveness of actions taken to eliminate modern slavery and overcome grey areas of work conditions.
Practical implications
The paper helps to create an improved understanding of different types of exploitation in work conditions in different industries and the role accounting might play in research and practice.
Social implications
Slavery did not end with abolition in the 19th century. Instead, it changed its forms and continues to harm people in every country in the world especially in certain industries, of which several are discussed and accounting advice proffered. Likewise, as reflected in Special Issue papers, the role of accounting in reducing less extreme forms of poor work conditions is also considered.
Originality/value
The paper provides an overview of different forms and degrees of exploitation in work conditions and identifies the need for and areas of accounting research in this emerging area.
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This paper aims to examine how homes can be purchased and financed by using Ijara-based diminishing Musharaka (IDM) modes of financing and thus both the home buyer (HB) and…
Abstract
Purpose
This paper aims to examine how homes can be purchased and financed by using Ijara-based diminishing Musharaka (IDM) modes of financing and thus both the home buyer (HB) and Islamic Bank (IB) become joint owners and share rental income jointly according to their respective shares. Such practice can help to avoid interest-based mortgage financing and eliminates excessive risks of bankruptcy as it often happens in conventional interest-based system.
Design/methodology/approach
A mathematical model as well as rental income, payments and share schedules for IDM will be developed where both the HB and IB will initially own the home. As the HB gradually pays off the principal amount, his or her share will increase while the share of the IB will gradually decrease as stipulated in the contract. Eventually, the HB will buy back all the shares and thus will own the home without paying for mortgage interest and taking excessive risks of foreclosures or living in constant fear of losing home over approximately 20 to 30 years of the tenure of the mortgage payments.
Findings
The HB can own home without paying any interest and without taking excessive risks of foreclosures. The HB is not borrower rather partners in business. In addition, the HB can minimize the total payments compared to interest-based mortgage financing. In the current IDM model, payments are flexible, and the HB will not be required to make regular installment payments, rather he or she receives regular rental income if the HB chooses not to live in the home. Even if HB lives in the home, part of the home can be rented, and the HB will receive regular share of rental income in each month. The HB will not lose the home even if he does not pay any installment while in interest-based mortgage system, the HB may lose the home if the HB stops installment payments even for a couple of months after paying for 29 years for 30 years mortgage. IDM mode of financing is risk free and worry free, and it instantaneously creates rental income for the HB, like any other business.
Originality/value
The current IDM model is one of the most recent, and unique approach of home financing, and it is extremely flexible and free from many restrictions compared to the existing similar models. Many of the existing diminishing Musharaka models impose many restrictions on the HB, such as the HB cannot even own or rent the place, cannot remodel or rebuild the place unless the HB pays off all the outstanding price of the home. If the current flexible IDM model is implemented, it will be truly revolutionary and even the people from other faith group will be extremely interested to join as HB and buy their homes by pursuing IDM mode of financing because it is risk free as well as it will free HB from the financial slavery of monthly installment payments for about two to three decades, especially during the most important and most valuable prime life time of the HB. The IDM model will unveil a potential and a promise to financial freedom by removing all constraints and preconditions in purchasing and financing homes.
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This paper aims to investigate the determinants of corporate compliance with the transparency in supply chains provision of the UK Modern Slavery Act. While recent scholarship has…
Abstract
Purpose
This paper aims to investigate the determinants of corporate compliance with the transparency in supply chains provision of the UK Modern Slavery Act. While recent scholarship has described what firms are doing to comply with this Act, no attempt has been made to explain their behaviour.
Design/methodology/approach
A predictive model of corporate compliance with modern slavery reporting is tested using secondary data from Financial Times Stock Exchange 350 firms. The model is informed by institutional theory and, in particular, by Oliver’s (1991) insights into the conditions under, which firms respond to institutional pressures.
Findings
Compliance with modern slavery reporting is found to be significantly related to firm size, prior social responsibility commitment, network involvement, industry and headquarter base (UK versus non-UK). Other predictors such as media exposure, shareholder concentration and profitability are found to be non-significant.
Research limitations/implications
The focus is on the 350 largest publicly listed companies in the UK. The stances that firms outside of this cohort are taking on modern slavery reporting still need to be investigated.
Practical implications
Compliance with the UK Modern Slavery Act varies by industry. Regulators should consider this as a part of risk profiling strategies and follow-up inspection of firms.
Originality/value
This paper provides the first theoretically grounded examination of the organisational and environmental factors that determine corporate compliance with modern slavery reporting.
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Kezban Yagci Sokat and Nezih Altay
Modern slavery is a humanitarian problem that affects global supply chains. Given the increasing pressures from legislature, consumers and investors, firms have a growing interest…
Abstract
Purpose
Modern slavery is a humanitarian problem that affects global supply chains. Given the increasing pressures from legislature, consumers and investors, firms have a growing interest in eliminating forced labor and modern slavery from their supply chains. However, the impact of modern slavery on firm performance has not been shown before. This paper aims to investigate the impact of modern slavery allegations on companies’ operational performance. It also looks at the role of corporate social responsibility (CSR) efforts with respect to modern slavery.
Design/methodology/approach
The authors collect news articles on modern slavery in the global supply chains. The authors use an event study and use a robust matching method to measure the operational impact of modern slavery allegations. The authors also analyze the effects of media coverage and CSR practices on the relationship between allegations and firm performance.
Findings
The results show that modern slavery allegations do have a negative impact on performance, but this impact does not last long. The authors also show that strong CSR practices help firms mitigate the negative effect of these allegations.
Research limitations/implications
Because the issue is hidden, as a result limited data, the research results may lack generalizability. Therefore, researchers are encouraged to retest the proposed propositions in the future.
Practical implications
The paper includes implications for the development of socially responsible supply chains and financial impact.
Originality/value
This paper presents the first empirical research investigating the impact of modern slavery allegations on companies’ operational performance.
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Kathyayini Kathy Rao, Roger Leonard Burritt and Katherine Christ
There is a growing concern over the need for greater transparency of quality information by companies about modern slavery to contribute toward elimination of the practice. Hence…
Abstract
Purpose
There is a growing concern over the need for greater transparency of quality information by companies about modern slavery to contribute toward elimination of the practice. Hence, this paper aims to examine factors behind the quality of voluntary modern slavery disclosures and major sources of pressure on Australian company disclosures in a premodern slavery legislated environment.
Design/methodology/approach
Content analysis and cross- sectional regression modeling are conducted to analyze factors determining the quality of voluntary modern slavery disclosures of the top 100 firms listed on the Australian Stock Exchange and their implications for institutional pressures.
Findings
Results indicate that size, assurance by Big-4 firms and publication of stand-alone modern slavery statements are significant drivers of disclosure quality in the sample. Profitability, listing status and the degree of internationalization are found to be unrelated to the quality of voluntary modern slavery disclosures. Industry classification is significant but only partly supports the prediction, and further investigation is recommended.
Practical implications
This paper provides a foundation for regulators and companies toward improving the quality of their modern slavery risk disclosures with a particular focus on prior experience, assurance and size. In practice, contrary to suggestions in the literature, results indicate that monetary penalties are unlikely to be an effective means for improving the quality of modern slavery disclosure. Results of the study provide evidence of poor quality of disclosures and the need for improvement, prior to introduction of modern slavery legislation in Australia in 2018. It also confirms that regulation to improve transparency, through the required publication of a modern slavery statement, is significant but not enough on its own to increase disclosure quality.
Originality/value
To the best of the authors’ knowledge, this is the first research examining company level factors with an impact on voluntary modern slavery disclosure quality and the links to institutional pressures, prior to the introduction of the Commonwealth Modern Slavery Act 2018.
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Anthony Flynn and Helen Walker
Drawing on statements made under the transparency in supply chains provision of the UK Modern Slavery Act, this paper aims to examine how firms are responding to modern slavery…
Abstract
Purpose
Drawing on statements made under the transparency in supply chains provision of the UK Modern Slavery Act, this paper aims to examine how firms are responding to modern slavery risks in their supply chains.
Design/methodology/approach
Using an institutional theory lens, a content analysis of modern slavery statements by financial times stock exchange (FTSE) firms is carried out. The analysis focusses on sources of modern slavery institutional pressure and changes that firms have made in their structures, policies and practices in response to modern slavery risks.
Findings
Three sources of institutional pressure are inferred from modern slavery statements: international human rights accords (coercive), multi-stakeholder initiatives (mimetic) and professional standards (normative). Changes made by firms in direct response to modern slavery include adopting new policies, strengthening contract terms, establishing working/steering groups and creating new key performance indicators. FTSE 100 firms have been more proactive than FTSE 250 firms in making these changes, as have firms in higher risk industries.
Research limitations/implications
The analysis covers FTSE firms only. Responses to modern slavery risks by non-FTSE firms deserve attention.
Practical implications
The UK Modern Slavery Act relies on non-government organisations and consumers to hold firms to account over modern slavery. Policymakers should be aware that while this strategy might work with high profile firms, it is less applicable to firms that operate below the public radar.
Originality/value
The paper shows that institutional theory has validity for explaining corporate responses to modern slavery risks.
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Irene Pollach and Stefan Schaper
Social and environmental reports have become an increasingly regulated area of corporate reporting and communication. Nevertheless, the substance and level of detail present in…
Abstract
Purpose
Social and environmental reports have become an increasingly regulated area of corporate reporting and communication. Nevertheless, the substance and level of detail present in such disclosures is largely at the discretion of companies, which has implications for the value of such disclosures to stakeholders. The purpose of this study is to shed light on social visibility as a determinant of the variation in substance found in social disclosures in order to understand underlying reasons for why some firms offer more substance than others in their social disclosures.
Design/methodology/approach
Based on a number of hypotheses, which are combined into social visibility, the paper investigates whether a firm's social visibility is a determinant of substance in social disclosures. To this end, the case of modern slavery statements is used as a recently introduced and legally mandated form of social sustainability disclosures.
Findings
The findings suggest that social visibility can explain part of the variation in the substance of social disclosures. However, for the remaining part, it is argued that substance in social disclosures can also be driven by institutional logics, which shape organizational outcomes in specific contexts, but are largely unobservable.
Originality/value
This article contributes new insights to the literature on the relationship between corporate social visibility and the substance of social disclosures.
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Joanna Kidd and Jill Manthorpe
The inclusion of modern slavery in the Care Act 2014 as a form of abuse means that the subject of modern slavery is now included in the remit of adult safeguarding in England. The…
Abstract
Purpose
The inclusion of modern slavery in the Care Act 2014 as a form of abuse means that the subject of modern slavery is now included in the remit of adult safeguarding in England. The purpose of this paper is to discuss the background to the Modern Slavery Act 2015 and its provisions.
Design/methodology/approach
A policy analysis was undertaken in 2016 drawing on research and commentary related to the interface between modern slavery and adult safeguarding.
Findings
There is little material as yet focussing on adult safeguarding and modern slavery but the inclusion of modern slavery in this area of practice and organisations will require practitioner responses, organisational collaboration and revisions of data collection and analysis. Newspaper accounts of criminal charges under the Modern Slavery Act 2015 may be important first evidence of the interface potentially between modern slavery and adults at risk of abuse and neglect that are the focus of adult safeguarding concern.
Practical implications
Information about modern slavery may provide relevant background and contextual detail for adult safeguarding communities, furnishing links and resources for this new area of their work.
Originality/value
This paper is likely to be of interest to policymakers, researchers and practitioners in examining their new duties under the Care Act 2014 and the Modern Slavery Act 2015, and to wider public and private bodies considering their responsibilities in responses to modern slavery more broadly.
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2020 has proved to be a challenging year. In addition to the challenges of COVID-19, yet again, the USA has witnessed police brutality leading to the death of a Black man, George…
Abstract
Purpose
2020 has proved to be a challenging year. In addition to the challenges of COVID-19, yet again, the USA has witnessed police brutality leading to the death of a Black man, George Floyd. The Black Lives Matter (BLM) movement, founded in the US but now an international organisation which challenges white supremacy and deliberates harm against Black people, mobilised hundreds of thousands of people to take to the streets across the globe. Increasingly, the protests focus not only on George Floyd's murder but also the continued failure to challenge the celebrity of those involved in the transatlantic slave trade and European imperialism. In this article, the author will contend that many organisations are now reexamining their association with these historical wrongs against Black Africa and its diaspora. Further, the author will contend but that the failure to highlight the role of Black chattel slavery and imperialism in the accumulation of economic, commercial and political benefits reaped by the global north is a source of shame not only for many firms and institutions but also for universities.
Design/methodology/approach
The author has reviewed the online media for the latest developments in response to Black Lives Matter's George Floyd campaign in 2020 and reviewed the literature on the link between European global ambition and its impact on the Americas and sub-Saharan Africa.
Findings
Internationally, there is a discernible change in outlook towards the importance of the evils of slavery and colonialism on the Black experience today. These small steps will require scholars to embark on a fresh reexamination of race, society and work.
Originality/value
For decades, the slave trade and colonialism were issues rarely raised in government, firms and business schools. This will inevitably change especially in those countries that are the main beneficiaries of Black chattel slavery and colonial exploitation. Much Equality, Diversity and Inclusion (EDI) practice is fundamentally tokenism. A root and branch reappraisal will be needed to create more effective EDI policy and practice in support of race equality and anti-racism.
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This chapter offers insight on how existing paradigms within Black Studies, specifically the ideas of racial capitalism and the Black Radical Tradition, can advance sociological…
Abstract
This chapter offers insight on how existing paradigms within Black Studies, specifically the ideas of racial capitalism and the Black Radical Tradition, can advance sociological scholarship toward greater understanding of the macro-level factors that shape Black mobilizations. In this chapter, I assess mainstream sociological research on the Civil Rights Movement and theoretical paradigms that emerged from its study, using racial capitalism as a lens to explain dynamics such as the political process of movement emergence, state-sponsored repression, and demobilization. The chapter then focuses on the reparatory justice movement as an example of how racial capitalism perpetuates wide disparities between Black and white people historically and contemporarily, and how reparations activists actively deploy the idea of racial capitalism to address inequities and transform society.
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