Global Modern Slavery and Sustainable Development Goals: Does Institutional Environment Quality Matter?

Moussa, T., Allam, A. and Elmarzouky, M. 2022. Global Modern Slavery and Sustainable Development Goals: Does Institutional Environment Quality Matter? Business Strategy and The Environment. 31 (5), pp. 2230-2244. https://doi.org/10.1002/bse.3018

TitleGlobal Modern Slavery and Sustainable Development Goals: Does Institutional Environment Quality Matter?
TypeJournal article
AuthorsMoussa, T., Allam, A. and Elmarzouky, M.
Abstract

Modern slavery is a persistent human tragedy and a growing organisational risk. The United Nations’ Sustainable Development Goals highlight the significance of governments in shaping firms’ sustainability agenda and combating modern slavery. However, little is known about the effects of the institutional environment on modern slavery risk. This study, therefore, investigates the crucial policy question of whether the quality of the institutional environment has any effect on modern slavery and whether sustainable human development reinforces this relationship. Using data from 167 countries, we find that institutional environment quality is negatively associated with the prevalence of and vulnerability to modern slavery, and positively associated with its modern slavery risk mitigation. Our results suggest that democratically elected governments operating in politically stable societies with higher quality of voice and accountability, higher levels of control of corruption, and stricter rule of law are more accountable and responsive to modern slavery risks. We also find that sustainable human development (HDI) has a moderating effect on the relationship between institutional environment quality and modern slavery, and this effect is mainly noticeable in low HDI countries. These results imply that governance reforms alone might not yield the desired effects for all countries and, hence, have significant implications for policymakers, companies, and societal stakeholders.

KeywordsSustainable development goals, modern slavery risk, institutional environment quality, sustainable human development, institutional theory, stakeholders
JournalBusiness Strategy and The Environment
Journal citation31 (5), pp. 2230-2244
ISSN1099-0836
Year2022
PublisherWiley
Publisher's version
License
CC BY 4.0
File Access Level
Open (open metadata and files)
Digital Object Identifier (DOI)https://doi.org/10.1002/bse.3018
Web address (URL)https://doi-org.uow.idm.oclc.org/10.1002/bse.3018
Publication dates
Published online16 Feb 2022
Published in printJul 2022

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