Ethical supply chains: Why retailers need them and who is watching.

Hye and hello..!

This article i found at leading company website. I think this article is interesting..

The past 20 years has seen consumers take on a new role, ethical watchdogs. Scandal after scandal has played out on the front pages of newspapers as revelations of labour exploitation and environmental destruction have come to light.

These revelations have brought forth a new era where consumers are asking corporations to be transparent and accountable.

Since the late 1980s, there has been a shift in consumer shopping habits toward ethical consumerism. Aided by the internet, consumers have become curious. They want to know how something is made, where it’s made and who it’s made by.

No longer are companies able to use underage labour, engage in deforestation or use cotton from Uzbekistan without someone, somewhere, finding out and making the news known.

But despite the increasing scrutiny of retailers, tragedies have continued. On April 24 this year the Rana Plaza factory in Bangladesh collapsed, killing a total of 1129 people in what became known as the deadliest garment factory incident in history.

In response to the accident, a global push began for retailers to sign the Bangladesh Fire and Safety Accord (a legally binding contract in which 1600 factories will be inspected and safety training conducted), but only nine of the 29 brands which were manufacturing products in the factory have signed the agreement.

With consumer campaigns more powerful than ever thanks to the popularity of social media, knowingly or unknowingly having an unethical supply chain can have a direct, significant impact on a business’s bottom line.

SmartCompany spoke to University of New South Wales Business School economics professor Tim Harcourt, Baptist World Aid advocacy manager Gershon Nimbalker and Dearin and Associates founder Cynthia Dearin about the importance of ethical supply chains and how to go about creating one.

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