Forced labor is often assumed to be a problem of distant supply chains. The case of Packers Sanitation Services Inc. (PSSI) dismantles that assumption entirely.

PSSI was a leading U.S. industrial cleaning contractor, servicing major meatpacking plants and backed by a top-tier private equity firm. Yet between 2022 and 2024, it became the center of one of the most significant child labor scandals in the U.S., one that had been quietly signaling its risks for years. SESAMm's controversy monitoring platform captured those early signals long before regulators intervened.

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The Scandal

In November 2022, the U.S. Department of Labor discovered that PSSI had employed minors as young as 13 in hazardous overnight roles across 13 locations in 8 states. A federal investigation confirmed 102 children had been illegally employed, many handling dangerous chemicals and machinery. Three years earlier, in 2019, PSSI had already been sued for wage violations. The signal was there. It went unheeded.

The Fallout

The consequences were swift. A $1.5 million DOL fine. Contract terminations by Cargill and JBS. A DHS trafficking investigation. A replaced CEO. By late 2024, PSSI had shut its corporate office entirely. Even the private equity owner, Blackstone, faced direct scrutiny from pension funds, a reminder that labor violations travel up the ownership chain.

The Lesson

Every warning sign in this case was publicly visible before the crisis broke out. Wage lawsuits, labor complaints, and media coverage are all available in the public domain. Real-time controversy monitoring can surface these signals early, giving companies and investors the chance to act before exposure becomes unavoidable.

Forced labor is not only a humanitarian crisis. It is a material risk that demands better data, earlier detection, and stronger accountability.

Download the full case study infographic to see the complete timeline of events and key takeaways

As 2025 kicks off, we stopped to take a look at the significant environmental, social, and governance (ESG) controversies of 2024, as we do every year. In this article, we dive into the three public companies with the most controversies for each pillar: environmental, social, and governance, analyzing the companies and the wider impact of the controversies themselves. Join us as we analyze these key moments that have not only influenced public opinion but also shaped the future of responsible business practices.

ESG Risks: Focus 2024

Starting with environmental risks, biodiversity and ecosystems, climate change, waste management, and atmospheric pollution emerged as the most scrutinized sub-risks in 2024. These issues were primarily tied to greenwashing, such as the Mercer Super case and energy companies' expansions at the expense of climate change.

Meanwhile, for social controversies, working conditions and fundamental human rights took center stage. Notably, some companies were linked to forced labor, while coffee supply chains were linked to child labor. Boycotts over the war on Gaza have also been a major highlight of 2024.

Finally, for governance, fraud and legal investigations have been a big driver of controversies, mainly linked to financial fraud cases. This was followed by terrorism financing linked to the war on Gaza, as well as corruption and bribery charges.

Environmental Controversies: Top 3 Public Companies

Shell

In 2024, Shell faced a host of environmental controversies, particularly through its Nigerian subsidiary, Nigeria Delta, which was implicated in serious water pollution due to oil spills. The company dealt with several other notable controversies, including a €15 million compensation related to the spills, a New York City lawsuit over climate change, and a landmark emissions ruling from a Dutch court. Additionally, the company faced condemnation from U.S. lawmakers for alleged greenwashing practices, a carbon credit scandal, and a water contamination lawsuit resolved with a  $230 million settlement.

ExxonMobil

2024 was a challenging year for ExxonMobil. First, its Hammerhead project was hit by an FDA-required Environmental Impact Assessment to evaluate the potential ecological risks. Then, conflicts with Venezuela arose over environmental concerns, followed by several U.S. lawsuits. California, Kansas, and Puerto Rico all sued the company for issues ranging from global plastic pollution and greenwashing to trade law violations. Additionally, ExxonMobil was targeted in a climate lawsuit and faced ongoing fallout from the 1989 oil spill. Protests from groups like CalPERS and student activists highlighted dissatisfaction with ExxonMobil’s environmental practices, emphasizing the company's broad regulatory and public relations challenges.

TotalEnergies

Coming in at number three, TotalEnergies dealt with several environmental controversies, notbably protests related to its East African crude oil pipeline project in Tanzania and Uganda. The company has also been accused of greenwashing and misleading sustainability claims while struggling with oil leaks at its Donges refinery and Egina field. On top of these environmental controversies, TotalEngeries faced key governance and social controversies, including a $48 million fine by the U.S. Commodity Futures Trading Commission (CFTC) for attempting to manipulate the European gasoline market in March 2018. There are also ongoing investigations into an attack in Mozambique.

Social Controversies: Top 3 Public Companies

Boeing

In 2024, Boeing faced significant challenges due to safety concerns and production controversies, which have fueled employee unrest and public skepticism. Recent incidents, including a missing door plug attachment on a Boeing 737 Max and investigations into quality control lapses at Boeing and its supplier Spirit AeroSystems, have eroded trust among small businesses reliant on the manufacturer. Whistleblower testimonies and increasing scrutiny from Congress and the FAA highlight systemic safety failures. These developments suggest a difficult path ahead for Boeing as it works to regain credibility amid ongoing struggles.

Pfizer

In 2024, Pfizer faced scrutiny after EU documents revealed over 4.9 million adverse events and 3,280 deaths linked to its COVID-19 vaccine, especially among women and individuals aged 31-50. Critics allege Pfizer continued distribution despite knowing the risks, questioning the EMA's approval. Additionally, DNA contaminants, including carcinogenic SV40 sequences, have been reported in the vaccines. A whistleblower disclosed that Pfizer employees were offered a "separate" COVID vaccine, raising concerns about access inequality. Kansas has filed a lawsuit accusing Pfizer of misleading the public about vaccine safety; meanwhile, the company faces fines in the UK for excessive pricing of an anti-epileptic drug.

Meta

In 2024, Meta faced intense scrutiny and legal challenges due to multiple controversies, including a significant data breach, allegations of failing to protect children, and privacy concerns. The company settled a $1.4 billion lawsuit related to facial recognition practices and was fined $220 million by Nigeria for violating data laws. Additional lawsuits from school districts and the Consumer Protection Association highlighted issues related to social media addiction and mental health impacts on teenagers.

Governance Controversies: Top 3 Public Companies

Alphabet

2024 was a legally challenging year for Alphabet, facing numerous antitrust issues globally. For instance, Allegro sued Alphabet for $568 million over anti-competitive practices, and the U.S. Justice Department accused Google of monopolies in the search engine and Android app markets. It has also faced an antitrust ruling, which it plans to appeal. In Europe, Google was scrutinized under the Digital Markets Act and fined 71 million euros in Turkey for anti-competitive behavior. Additionally, France imposed a $271 million fine on Google for using news content without publisher consent, and India began investigating Google's gaming app policies. These incidents highlight Alphabet’s ongoing regulatory battles across multiple continents.

Meta

2024 was not only full of social controversies for Meta. The company also encountered governance challenges across multiple jurisdictions. In Europe, Meta faced hefty fines totaling over €1 billion for a data breach and violating EU antitrust rules, alongside investigations for non-compliance with the Digital Markets Act. The company was also involved in a lawsuit from the AMI media association over advertising practices and investor lawsuits linked to the Cambridge Analytica scandal. In South Korea, Meta was fined $15 million for collecting personal information illegally, and in Ireland, a €91 million GDPR compliance fine was imposed. In addition, further complications arose from EU investigations into potential election interference and foreign disinformation. On top of that, Meta faced new lawsuits in Japan over fake advertisements, illustrating the global extent of its legal and regulatory challenges.

Apple

2024 saw Apple wrestling with significant legal and regulatory issues worldwide. The Democratic Republic of Congo accused Apple of using conflict minerals, raising ethical sourcing concerns. In Europe, Apple settled for $14.4 billion over illegal tax benefits and faced a $2 billion EU antitrust fine related to Spotify. Additional investigations included non-compliance under the EU's Digital Markets Act, anti-competitive probes in Spain, and a UK class action over monopolistic data storage practices. In Brazil, Apple was required to remove restrictions on in-app payments. The company also settled a lawsuit involving an iTunes gift card scam and contended with a patent infringement lawsuit in China from Shanghai Xiao-I, highlighting Apple's extensive legal challenges in its global operations.

Conclusion

In conclusion, the controversies surrounding environmental, social, and governance issues in 2024 have underscored the urgent need for accountability and transparency within corporations. As these companies grapple with significant backlash and legal challenges, it is clear that stakeholder expectations are evolving. The demand for responsible practices is louder than ever, and the consequences of neglecting these issues can be severe, impacting not just public perception but also financial stability and sustainability.

SESAMm’s AI Technology Reveals ESG Insights

Discover unparalleled insights into ESG controversies, risks, and opportunities across industries. Learn more about how SESAMm can help you analyze millions of private and public companies using AI-powered text analysis tools.

This Labor Day, we take a moment to celebrate the contributions of workers worldwide and reflect on the critical labor issues and milestones that have shaped the past year. From corporate controversies to strides in workplace wellbeing, 2024–2025 underscored the ongoing importance of protecting fair, dignified work across industries.

Key Trends Shaping Labor Risks

Data from the past year shows that labor-related risks remain a significant and rising concern within the broader landscape of social risks affecting businesses and the global workforce.

• Working conditions overwhelmingly dominate the labor risk landscape, reflecting widespread worker actions, negotiations, and demands for higher standards.
• Workplace diversity and inclusion continues to be a significant area of focus, as organizations navigate evolving expectations around equity, representation, and belonging.
• Although smaller in proportion, forced labor and child labor risks remain critical concerns, attracting heightened regulatory scrutiny and public attention.

Real-world examples from the past year illustrate how companies have confronted—and, in some cases, exacerbated—these challenges.

Labor Controversies: A Year of Struggle and Advocacy

Several major companies faced notable labor controversies over the past year, revealing systemic issues and prompting calls for change:

• Starbucks Corp weathered a turbulent year, battling union disputes and a lawsuit alleging the company sourced coffee from a Brazilian supplier linked to slave-like working conditions. Domestically, tensions escalated with Starbucks Workers United amid widespread strikes across nine states, unlawful store closures, and stalled contract negotiations. Meanwhile, the company announced over 1,000 corporate layoffs as part of broader restructuring efforts.
• Volkswagen AG grappled with deep unrest, both at home and abroad. Mass strikes erupted over layoffs and wage cuts in Germany following the company’s decision to scrap its historic no-layoffs policy. Internationally, Volkswagen’s sale of its Xinjiang plant, under scrutiny for alleged human rights violations, highlighted the persistent pressure to address ethical concerns in global supply chains.
  
• Glovo faced intensifying scrutiny in Europe. Labor inspections and court rulings in Spain and Italy found the company had misclassified thousands of workers, evaded Social Security contributions, and skirted labor laws through subcontracting. Substantial fines, criminal complaints, and penalties for illegal worker surveillance have kept Glovo in the labor rights spotlight.
  

Other companies also faced investigations over child and forced labor violations. To mention a few, HelloFresh faced an investigation in the U.S. regarding allegations of migrant child labor at its Illinois facility, which has led to lawsuits from shareholders. Similarly, JBS USA reached a $4 million settlement related to child labor violations identified in its meatpacking plants. Additionally, Temu, managed by PDD Holdings, is being investigated in both the U.S. and Europe for purported connections to forced labor in China, highlighting ethical issues in global e-commerce supply chains.

Positive Highlights: Advancing Workplace Excellence

Despite these challenges, 2024–2025 also featured companies making meaningful strides in promoting employee well-being and ethical labor practices.

The steady engagement around Sustainable Development Goal 8—promoting decent work and sustained economic growth—remains a bright spot. While progress is ongoing, consistent attention to this goal underscores its critical role in shaping future business and social outcomes.
Several companies stood out for their positive contributions:

• Alight Solutions was recognized by Newsweek as one of America’s Greatest Workplaces for Mental Wellbeing 2025. Initiatives like Mindful Mondays, peer mentoring, and partnerships with organizations such as NAMI-NYC demonstrate Alight’s commitment to fostering a thriving, mentally healthy workforce.
  
• KnowBe4, a cybersecurity training leader, was named one of the Best Workplaces in Technology for the GCC region. Its culture of transparency, ownership, and continuous professional growth has positioned it as an exemplary employer.
  Cushman & Wakefield earned dual accolades: inclusion in the 2025 Global Outsourcing 100 by IAOP and a perfect score on the Human Rights Campaign Foundation’s Corporate Equality Index. These honors reflect the firm’s dedication to operational excellence and workplace inclusivity.
  

Looking Ahead: Progress and Persistence

As we mark Labor Day 2025, one truth stands out: while important progress has been made, much work remains. Workers continue to push for safer conditions, fair treatment, and respect across industries, prompting organizations to adapt and evolve.

Happy Labor Day!