Source: Financial Times.

Do private equity firms bear responsibility for labor abuses in companies they invest in? This case study examines this issue through the example of a company owned by a major private equity firm, which was found to have illegally employed over 100 children at several of its facilities. While fined $1.5 million for these child labor violations, critics argue the penalty was negligible compared to the company’s annual revenues of $460 million. The incident raises broader questions about accountability in complex multi-tiered supply chains where large companies outsource work. Keep reading to learn more about the debate on whether private equity owners should face stricter oversight and regulations to address social risks throughout their portfolio companies’ global operations and supply chains.

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