Impact of Global Supply Chains on workers rights
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Over at opendemocracy.net they’ve just posted an interview with US labour leader Cathy Feingold which deals with the question of Global Supply Chains.
The concept of a Global Supply Chain is nothing new – major corporations have been chasing the cheaper labour markets and manufacturing centres for many years which offer some serious competitive advantage. From Tech firms such as Apple and Samsung through to Aerospace giants like Boeing and GE, there are many examples of global sourcing.
Cathy’s interview poses some very relevant questions about the challenges, namely workers rights, a living wage, predictable working hours and job security.
big companies make decisions about how the market is structured. They design things like our beloved cell phone, but don’t actually make it. The people who make it are halfway round the world, so the top-tier companies have no responsibility for the workers doing the making.
Of course most organisations have policies in place that govern workers rights but it becomes problematic when you dive into the supply chain to ensure these rigours are being adhered to. For every good tale of supplier sourcing comes 3 like this one.
These challenges operate at many many levels. Back in May 2016 thefashionlaw.com gave a good example when publishing a related article about the clothing firm H&M.
H&M operates in 61 markets with 3,900 stores; works with 900 suppliers representing 1,900 factories; and employs more than 116,000 employees across their global production network.
This is representative of the long tail supply chains involving many operators. As the piece makes clear
Brands like H&M wield the potential to transform working conditions through their supply chains.
Of course, these issues are not just for major organisations but should be on the agenda for any company that sources globally. All companies have the ability to do the right thing (no matter how difficult it is to police). Driving sustainability and driving genuine care and respect for all workers within the supply chain should come as a given.
How about you.
Does your company source globally? How does it review suppliers or issues such as workers rights? How does it audit suppliers to ensure these targets are maintained.
We’d love to hear.