Working Capital Fund's Fight Against Labor Exploitation in Global Supply Chains (#028)

SRI360 | Socially Responsible Investing, ESG, Impact Investing, Sustainable Investing

In this episode, we explore Ed Marcum's unique journey from Santa Cruz to leading the charge against labor exploitation as the Managing Director of Working Capital Fund.
Marcum's career choices were heavily influenced by his parents' commitment to social activism. After studying political science at UC Berkeley, Marcum had a brief but impactful tennis career, instilling in him lessons of resilience and hard work.
Following his tennis stint, Marcum recognized the need to integrate business skills into mission-driven work. Pursuing an MBA at Wharton broadened his skill set, opening the door to impact investing. This transition began at the Omidyar Network, working for Pierre & Pam Omidyar and focusing on human rights issues.
Within Humanity United, Marcum spearheaded efforts against labor exploitation in multinational companies' supply chains. Identifying technological innovations to tackle supply chain issues, Marcum laid the groundwork for the Working Capital Fund. Initially incubated within Humanity United, the fund became an independent entity in 2020, marking a pivotal moment in its evolution.
They invest in startups offering scalable solutions to enhance supply chain accountability, promoting a more equitable and sustainable global supply chain ecosystem.
Marcum highlights a significant change in recent years – the global push for supply chain transparency. Companies must now take responsibility for knowing who is in their supply chain and ensuring responsible practices. This shift creates a vast and growing market for investments aimed at improving transparency and accountability.
I enjoyed my discussion with Ed and learned a lot about the dark side of global supply chains.
Please enjoy!
Show notes: https://sri360.com/podcast/ed-marcum/
About the SRI 360° Podcast: The SRI360° Podcast is focused exclusively on sustainable & responsible investing. In each episode, I interview a world-class investor who is an accomplished practitioner from all asset classes.
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Key Takeaways
Intro (00:00)
Ed Marcum's career journey (02:43)
Working Capital Fund (09:39)
Who is in the global supply chains? (16:30)
The scale of the labor exploitation problem (21:27)
What constitutes labor exploitation (24:34)
Working Capital Fund's theory of change (28:20)
How Working Capital Fund deploys capital (39:49)
Investment selection process for the fund (41:33)
Red flags to look out for in supply chains (55:03)
Outro (01:06:29)
Additional Resources
Ed Marcum’s LinkedIn
Working Capital Fund Twitter/X
Company Website
Other links mentioned in this episode
Global Education Partnership
Humanity First Initiative
Omidyar Network
Pierre Omidyar
Pam Omidyar
Humanity United
Save Darfur Advocacy Movement