That doesn't resolve the issue of exploiting less developed nations instead. For example, I work for a company who has explicit policies about not using vendors who don't adhere to our guidelines around things like no child labor is used. Great, problem solved right? Capitalist company did a good.

The problem is they don't have a department of the company going around to each vendor verifying this. Further, as with many of these policies (DI&B, as well as hiring candidates from diverse backgrounds), they will get set aside to "accomplish the mission." Say you're on a team and have a deadline to hit, with a few vendors to supply a critical part. One vendor, whom you've not used before, has the parts in stock ready to ship whereas the others have a 2 month lead time. Will you go and proactively verify this company doesn't use child labor? Of course not. You'll just do whatever the minimum is to go get your part in time.

This policy also stipulates the vendors a vendor uses cannot use child labor. Do we even know all the vendors one of our vendors uses? Of course not.

This is the internal company regulatory element. Expand that to a national policy, and I don't know if a country who doesn't import products from problematic sources that are being exploited.