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Shadows on Solar: A Teaching Case on the Role of Corporate Governance in Addressing Forced Labor Concerns*

Nava Cohen, Lukas Helikum Orcid Logo

Accounting Perspectives, Volume: Forthcoming

Swansea University Author: Lukas Helikum Orcid Logo

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Abstract

Forced labor continues to affect millions of people in the 21st-century and has worsened globally between 2016 and 2021 (ILO 2022). Notwithstanding its importance, the issue receives little attention in contemporary business school seminars. This teaching case explores the role of corporate governan...

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Published in: Accounting Perspectives
ISSN: 1911-382X 1911-3838
Published: Wiley 2024
Online Access: Check full text

URI: https://cronfa.swan.ac.uk/Record/cronfa65495
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Abstract: Forced labor continues to affect millions of people in the 21st-century and has worsened globally between 2016 and 2021 (ILO 2022). Notwithstanding its importance, the issue receives little attention in contemporary business school seminars. This teaching case explores the role of corporate governance as a means toward meaningful changes in the behaviour of large, multinational corporations using the recent case of Canadian Solar Inc., a leading solar energy company. The case delves into the allegations that the firm has benefited from forced labor by Uyghur Muslims and other ethnic minorities in China’s Xinjiang region, exploring the board of directors’ actions and a proxy proposal submitted by shareholders. Through this case, students will gain insights into the importance of robust corporate governance, accountability, and transparency in addressing sensitive issues like forced labor. The case highlights corporate governance best practices for companies to adopt, such as proactive board oversight, risk assessment, and transparency.
Keywords: corporate governance; forced labor; business ethics; corporate social responsibility
College: Faculty of Humanities and Social Sciences