Unethical allegations
In Ethical Corporation's new briefing, Rajesh Chhabara, our Asia Editor, states “It’s a familiar picture. Dirty Clothes, a report in April 2010 by the National Labour Committee, a US-based rights group, accused a Wal-Mart and JC Penney supplier in Jordan of human trafficking and abuse of young women migrant workers from Bangladesh, Sri Lanka and India.”
Are supply chain scorecards helping?
Traditional supply chain scorecards have made a significant impact in areas such as strengthening the rule of law and ethical norms, but have under-performed in areas such as worker awareness and temporary worker inclusion.
How can this scorecard/audit approach be improved?
Success in prevention
Sustainability professionals and consumers alike are applauding pro-active measures taken by companies such as P&G and Wal-Mart.
The UN Global Compact hosts a website on common human rights dilemmas. Through case studies, the UN hopes to educate and encourage discussion within companies.
The UN also recognises leaders, recently recommending an M&S supplier in Sri Lanka, the Brandix Group’s ‘Green factory’ as a model of sustainable production.
P&G recently introduced their supplier code.
Wal-Mart made headlines with the introduction of their sustainability index and supplier assessments this year.
More and more companies are realising faster change by openly working with suppliers to address ethical challenges.
Further reading
Recent supply chain allegations have been published by watchdog organisations such as War on Want, an Australian television company, and major newspapers such as the The Guardian, and reports of garment worker deaths due to a fire in a factory in Bangladesh.
Each of the companies featured in these reports now devote significant attention to factory conditions and preventative measures.
Read more in our Briefing on Supply Chains.
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