Corporate Responsibility The expansion of informal labour, high levels of unemployment in many countries, and restrictions on access to labour markets abroad have created a large and growing population lacking a viable and secure means of subsistence. These broad structural conditions give rise to vulnerabilities that can be exploited, creating a ready supply of workers that can be subjected to forced labour. In labour intensive industries such as construction and farming, wages and other non-wage costs (such as benefits) paid to workers constitute a major driver of profitability for producers. That is, these variable costs represent a large proportion of total costs and so reducing them is the single best way to increase profitability. Therefore, firms may look to minimise direct labour costs through coercion in order to undercut competition and maximise profitability. Low value-adding activities are also more likely to be associated with forced labour due to • requiring low skills, which attracts an extremely low-paid and frequently vulnerable workforce. • such activities being more likely to be subcontracted, which means less oversight by the primary producer, and more scope for informality and unscrupulous behaviour. • tendency to happen ’backstage’, sometimes at night, and are generally less visible to observers, including other workers, managers, and auditors (Allain, Crane, Lebaron, & Behbahan, 2013) “Wages and the human rights abuses they intertwine with, therefore, are not isolatable to the individual businesses that employ workers, but rather relate to broader business dynamics and relationships along the entire supply chain.” (Lebaron, 2021) In situations where low-skilled work is required in time sensitive situations or in volatile industries, the need for additional workers generally means that labour agencies will fill the gap. Where there is high demand for labour within a short period of time, the labour supply chain will be extended, with subcontracting being the norm. Within this context, where intermediaries are charging costs for their services and the amount of subcontracting creates a deeper labour supply chain beyond the knowledge of the principal contractor, the risks of exploitation escalate.). (ILO, 2016) In the different models of employment, one model as detailed by Allain, Crane et al. (2013) is where ancillary services (such as housing, transportation and food) by the employer also reaps benefits for them. This is prevalent among wage theft cases - employers leverage their existing assets (perhaps a porto-cabin for accommodation or a van for transport) to drive additional revenue, especially where profitability from the main business is relatively low. In forced labour contexts, this means that charges for these services are often hidden or only deducted at a later stage. Overall, charging for such services allows employers to diffuse these amounts into debts accrued by workers (such as for recruitment costs), which provides increased control for employers. In order to maximise returns on ancillary services, producers impose obstacles to workers leaving, such as threats, withholding of wages, or confiscation of documents (Allain, Crane, Lebaron, & Behbahan, 2013) Lebaron (2021) discusses that the prevailing rhetoric regarding forced labour being practised by ‘unscrupulous employer’ or ‘criminal’ agents has diminished corporate responsibility and accountability of their supply chain dynamics and a key reason why wage theft and forced labour is under-investigated. 30