Red Flags

The U.S. State Department and senior advisors to the private equity industry have documented the rampant criminality that exists in the domestic worker recruitment chain and the widespread abuse of these workers in executive-level households. The finance industry knows that its own executives have a high propensity to hire these workers. But, with a few exceptions, there is indifference, or even hostility, to the suggestion that safeguards be implemented to ensure the lawful hiring and employment of domestic workers.

This situation raises many red flags for the supply chain and other issues:

If a firm doesn’t know this is happening, it raises questions of competence. What else don’t they know?
If a firm does know and is taking no action, it raises questions of ethics. What other crimes are they ignoring?

This situation mirrors classic corrupt supply chain structures in which one party commits the crime and another party financially benefits.

If executives are looking the other way here, it raises questions about the integrity of ESG funds run by these same executives.

Firms already provide expats with many services such as abortion-
related travel expenses, gym memberships, and tax prep. Why wouldn’t firms want to provide a fully compliant way to hire help?

Why would any executive object to a service that helps them to act lawfully?

The objection itself raises red flags. Ethical executives would want such a service.

If executives were the victims here, firms would take action. But, because executives financially benefit from the crime, firms are silent.

If these fees were related to a government contract, they would constitute a clear violation of federal regulations and put the contractor at risk of suspension or disqualification.

Domestic Workers Justice Initiative

Domestic Workers Justice Initiative: Working with institutional investors to keep their supply chains trafficking free.

© Domestic Workers Justice Initiative

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