Socially responsible superannuation and managed funds that have invested in a childcare operator are calling for the company to address concerns about child welfare and employee screening processes. This comes after Joshua Dale Brown, a 26-year-old childcare worker, was charged with over 70 offenses involving eight alleged victims ranging in age from five months to two years old. Brown worked at 20 childcare centers across Melbourne between 2017 and 2025, according to police.
The centers were operated by for-profit providers including Affinity Education and G8 Education, who deny claims that profits were prioritized over children’s welfare. Hesta, a major super provider, said it has a small investment in G8 and will continue to monitor the situation and G8’s response to child safety concerns. The Australian Retirement Trust also holds shares in G8 and called for an explanation from the company regarding their staff screening and child safety measures.
Other funds that screen for investment for moral reasons would likely sell their shares if they deemed a company’s response inadequate. G8 stated that they conduct background and working-with-children checks for employees and that child safety is embedded in their leadership, governance, and culture.
Investor concerns increased after Brown’s allegations, with the government threatening to cut payments to non-compliant centers. While the for-profit sector is not universally condemned, critics argue that for-profit entities responsible for vulnerable populations, like children, should go beyond the minimum legal requirements for staff suitability checks. Indeed, prior profit-maximizing strategies in the childcare sector, such as those employed by ABC Learning Centers, ended in financial collapse.
Source: https://www.theguardian.com/australia-news/2025/jul/05/super-funds-demand-answers-from-for-profit-childcare-operator-where-children-were-allegedly-sexually-abused-ntwnfb
