Retailers Try to Control Overseas Manufacturers
For the past few years, retailers in the U.S. and Europe have reassured consumers worried about overseas manufacturers' working conditions by saying that they monitor them frequently to ensure that workers are not mistreated or underpaid (by their own countries' standards). They have particularly emphasized steps taken to eliminate child labor. Their efforts have satisfied many and resulted in booming sales.
Following an investigation for a BBC television program, however, one of Britain's lowest priced fashion retailers, Primark, has dropped three of its Indian suppliers for sub-contracting embroidery work to companies using child labor.
Sarah Arnott's report of the story in The Independent included a statement from Primark's parent, Associated British Foods (ABF), that, "Under no circumstances would Primark ever knowingly permit such activities, whether directly through its suppliers or through third-party sub-contractors." They stressed their quick response and said that they acted immediately after "being made aware of the facts...canceling all new orders with the factories concerned and withdrawing from sale the embroidered garments involved."
ABF chairman George Weston also said that because the suppliers had denied the charges and been guilty of "wholesale deception," the company was not working with them to change conditions as they might have otherwise.
"Tracking the provenance of every process in a garment is, with the best will in the world, almost impossible," acknowledged Times journalist, Lisa Armstrong. For all the efforts being made by individual companies and the independently audited Ethical Trading Initiative which many have joined, critics still claim that voluntary sourcing codes need to be supplemented by government action to prevent exploitation. Pressure is often passed down the line from retailers to suppliers to sub-contractors. Each, in their turn, wants faster service and lower prices, which often results in compromises in both ethical standards and quality of the product. Relying on a voluntary code means that audits are infrequent and workers can be pressured to tell inspectors what their employers dictate in order to keep much-needed jobs.
Discussion questions: Do you think the retail industry is doing an adequate job looking after its outsourced workers? Are consumers recognizing these efforts? How can retailers persuade consumers that they are doing the best they can?