Supply chain ethics have been a hot topic in manufacturing for years, mainly due to human rights, environmental violations and an increase in the public’s demand for transparency into consumer products. For Chinese biopharmaceutical company Changsheng Bio-Technology,
this meant more than $500,000 USD in fines, public outrage and major brand damage for falsifying data for vaccines that were not manufactured to government standards. Earlier this year, Apple
was faced with allegations of unfair working conditions at Catcher Technology Co., a company that manufactures its iPhone casings out of China.
It’s evident that ‘ethical compliance’ should be a priority for manufacturers, but global factory audits have uncovered some shocking statistics: only 20 percent
of factories are fully compliant with worker health and safety conditions, receiving the “green light” ranking for operations in 2018. This means that most international manufacturers require significant improvements to operate as an ethically compliant business. Even if your internal organization is ethically sound, the reputation of suppliers and manufacturers is directly correlated with the reputation of any business that associates with them and therefore, steps should be taken to ensure the entire supply chain is compliant.