By JoAnne Wadsworth, Communications Consultant, G20 Interfaith Forum.
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On April 24th, 2025, the G20 Interfaith Forum, in partnership with Praeveni Global, hosted a webinar on “The Power of Corporate Governance to Combat Modern Slavery” as part of a monthly series commemorating the 25th anniversary of the Palermo Protocol, leading up to the G20 in South Africa in November. The webinar’s panel included Reverend Sarah Duggin, Director of Compliance Investigations and Corporate Responsibility Program and Professor of Law at Columbus School of Law at Catholic University of America; Reverend David Schilling, Senior Advisor to the Interfaith Center on Corporate Responsibility; and Abby Wilhelm, Senior Policy Advisor at Hogan Lovells. The webinar was moderated by Duncan Jepson, Director of Strategy and Operations at Praeveni Global.
The session began with a tribute to Pope Francis, with Jepson reading quotes highlighting the Pope’s commitment to anti-modern slavery efforts, including his statement:
“Human trafficking is an open wound on the body of contemporary society, a scourge upon the body of Christ. It is a crime against humanity.”
Complex Systems and Stakeholder Dynamics
The panel opened by examining corporate governance within complex global systems, using the global food system as an illustrative example. Jepson explained how these systems involve numerous actors with varying levels of power and influence, where exploitation occurs when small, powerless actors—often individual workers—become trapped within systems controlled by much larger, more powerful entities.
Duggin emphasized the intimidating nature of these complex systems but stressed the importance of finding pathways through them, noting that corporations must be nimble in navigating complexity while maintaining strong governance that serves workers, investors, and the public. Schilling provided a concrete example from the sugarcane sector in Maharashtra, India, where corporate engagement following New York Times reporting on forced hysterectomies led to the establishment of fair labor programs that brought together workers, companies, and other stakeholders in systematic reform efforts.
Internal Corporate Governance and Information Flows
A central challenge discussed was the failure of information to flow from factory floors and plantations where workers exist up to corporate boardrooms where decisions are made. Jepson outlined the typical corporate hierarchy, from shareholders and boards down through management layers to the actual business operations in various countries, noting the systematic barriers that prevent critical information about working conditions from reaching decision-makers.
Wilhelm emphasized this critical challenge, explaining how difficult it is for large corporations to maintain effective information flows throughout their organizations. She stressed that companies have an obligation to track and share this information, and that prioritization from the top will influence behavior throughout the organization. Duggin highlighted the importance of compliance and ethics programs with genuine integrity, including robust grievance processes that enable information flow from lower levels of corporate hierarchy to higher levels.
Shareholder Primacy vs Stakeholder Theory
The panel extensively discussed the tension between shareholder primacy—the idea that businesses should function primarily to benefit shareholders—and stakeholder theory, which considers the interests of all affected parties. Duggin explained how this dynamic has evolved, noting that while Delaware never adopted alternative constituency statutes like many other states, even Delaware law has moved beyond requiring companies to focus solely on shareholder profits.
However, she expressed concern about recent developments, including changes to Delaware corporate law that give controlling shareholders more power, which she fears benefits “those who are wealthiest and most powerful rather than workers and other folks who are most vulnerable.” Wilhelm discussed the evolution from financial materiality to impact materiality and now double materiality, which requires companies to disclose both their financial risks and their impacts on society. She emphasized the need for leadership willing to exceed standard disclosure requirements to enable stakeholder accountability.
Accountability and Personal Responsibility
A significant theme was the need for personal accountability at senior corporate levels. Duggin made a powerful argument about executive responsibility:
“It shouldn’t be enough to say, I don’t understand what’s happening in my own supply chains. Granted, I do understand that it’s incredibly complex, but I think there are some things that could be done.”
She advocated for tying anti-slavery measures to executive compensation, noting that financial incentives create powerful motivation for performance.
Schilling discussed the UN Guiding Principles on Business and Human Rights as a framework that creates specific expectations for boards of directors, requiring them to ensure comprehensive human rights due diligence throughout their value chains. The panel agreed that consequences for failures in governance are essential, with Duggin noting that directors can be held personally liable for improper corporate actions and suggesting that similar accountability should apply to human trafficking oversight.
Faith-Based Approaches and Values
The role of faith in shaping corporate culture and governance received significant attention. Schilling explained how faith has informed human rights frameworks, noting the connection between religious concepts of human dignity and fundamental human rights principles. He provided examples of successful corporate engagement where the faith values of executives became turning points in addressing labor violations.
Wilhelm emphasized the power of collective faith-based action, while Duggin stressed the importance of finding common ground among people of faith rather than focusing on divisive issues. The panel agreed that faith-based approaches often emphasize trust-building and long-term relationship development that can lead to sustainable corporate culture change over decades.
Prevention Strategies
The webinar concluded with discussions about prevention approaches within corporate governance structures. Wilhelm emphasized a fundamental principle:
“We have to make human trafficking a crime that no longer pays.”
She noted the stark disparity between an estimated 49.9 million victims globally and only about 5,500 convictions. She stressed the need for consequences for bad actors and restoration for victims.
Schilling outlined a concrete prevention approach developed by his organization:
No worker should ever pay for a job. “The employer pays” is really the principle.
This approach addresses the recruitment phase where workers often become bonded through debt, preventing exploitation before it occurs. He explained that this principle benefits both workers and companies by avoiding the need for costly remediation processes later. Duggin emphasized the need for clear consequences and suggested learning from anti-corruption efforts, advocating for both institutional accountability and grassroots awareness-raising in congregations and communities.
Conclusion
The webinar emphasized that effective corporate governance requires systematic attention to information flows, stakeholder engagement, personal accountability, and prevention-focused approaches. The panelists agreed that while corporate systems are complex, targeted interventions combining regulatory requirements, executive accountability, faith-based values, and worker-centered approaches can create meaningful change in combating modern slavery.
Jepson concluded by noting the importance of personal liability for senior executives responsible for governance failures, emphasizing that those with remits covering social and environmental issues must be held accountable for what happens to workers at the bottom of their organizations.
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JoAnne Wadsworth is a Communications Consultant for the G20 Interfaith Forum Association and Editor of the Viewpoints Blog.