Do Modern Slavery Management Practices Enhance Business Performance? Exploring the Role of Inclusive Digital Culture

Abstract Despite significant attention from researchers, practitioners and policymakers, the impact of implementing modern slavery management practices on business benefits remains an unanswered question, particularly in the digital age. This study examines how modern slavery management capabilities (MSMCs) affect firm performance, specifically exploring the role of inclusive digital culture (IDC). We gathered survey data from China's manufacturing sector ( N = 210) to examine the hypothesized effects. Our findings reveal that IDC has a significant positive impact on MSMC and social sustainability, ultimately leading to improved market performance. Interestingly, IDC directly enhances MSMC rather than moderating the MSMC–firm performance relationship. Furthermore, our analysis indicates that MSMC and social sustainability play a significant mediating role in the IDC–market performance relationship. Our empirical findings suggest that managers should cultivate an IDC to create a supportive digital atmosphere for effectively implementing modern slavery management practices and enhancing social sustainability. This study answers a crucial question from practitioners by demonstrating that building MSMC can deliver business value rather than harm it.