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Investors Controlling $947 Billion Demand Action on Workplace Violence in Global Supply Chains

Written by Aliyah Assegaf

13 February 2025

Workplace violence and harassment are no longer just human rights concerns—they’re investment risks. A coalition of 36 financial institutions managing a staggering $947 billion in assets has sounded the alarm, demanding urgent corporate and governmental action to combat violence in global supply chains. This movement highlights a fundamental shift: investors are no longer standing by as silent stakeholders; they are using their financial clout to drive accountability. 

 

The Rising Demand for Ethical Workplaces 

For years, reports of abuse in supply chains—ranging from gender-based violence in garment factories to physical intimidation in manufacturing plants—have painted a grim picture. A landmark International Labour Organization (ILO) study found that one in five workers worldwide has experienced some form of violence or harassment at work. Among the most vulnerable? Women, migrant workers, and low-wage laborers. 

Recognizing the moral and financial risks of inaction, this investor coalition, facilitated by the World Benchmarking Alliance (WBA), is pushing for the widespread adoption of ILO’s Convention No. 190 (C190) on violence and harassment in the workplace. Their message is clear: businesses must clean up their act—or risk financial consequences. 

 

Investor Pressure Hits Big Brands 

Investor pressure has already begun shaking up major corporations: 

  • Nike faced a shareholder resolution demanding better protection for garment workers following persistent reports of wage theft and sexual harassment. Norway’s sovereign wealth fund backed this call, signaling that ethical labor practices are now an investor priority. 

  • LVMH (the parent company of Dior, Louis Vuitton, and Givenchy) is under fire after a damning investigation exposed abusive conditions at Dior’s subcontractors. Investors, including Amundi and CCLA Investment Management, have demanded stricter supplier monitoring and greater transparency. 

  • Ernst & Young (EY) was thrust into the spotlight after a 26-year-old associate in India tragically died amid claims of workplace harassment and excessive workload. In response, governments in Maharashtra and Karnataka have begun drafting tougher labor protections for white-collar employees. 

 

The Financial Case for Ethical Supply Chains 

The push against workplace violence isn’t just about ethicsit’s about risk mitigation. Here’s why: 

Reputational Damage – Companies linked to workplace abuse face boycotts, lost partnerships, and declining brand trust. 

Legal & Regulatory Scrutiny – Governments worldwide are tightening labor laws, increasing penalties for non-compliance. 

Operational Disruptions – Unethical workplaces experience higher turnover, lower productivity, and greater worker unrest. 

Investor Flight – With sustainability-linked investing on the rise, firms that ignore workplace safety risk losing major capital. 

 

A New Era of Accountability 

The message from investors is unambiguous: "If you can’t protect your workers, you don’t deserve our capital." 

This movement is more than a call for corporate responsibility—it’s a signal that workplace violence is now a material risk that investors can’t afford to ignore. As more financial institutions join the push for ethical supply chains, companies that fail to act risk being left behind in a rapidly changing global market. 

For businesses, the choice is clear: adapt, or be forced to. 

 

References 

  1. International Labour Organization (ILO) “Violence and harassment at work have affected more than one in five people worldwide” (ILO News) 

  1. World Benchmarking Alliance (WBA) “Investor Statement on Violence and Harassment (World Benchmarking Alliance) 

  1. Reuters “Investor pressure on Nike builds over garment workers' rights” (Reuters) 

  1. Reuters “Some investors demand change at LVMH after probe into Dior contractors (Reuters) 

  1. Reuters “EY worker's death spotlights India's unprotected white-collar labour” (Reuters)