While incidents of bribery remain the most common form of supply chain corruption, employees holding conflicting business interests is an ongoing challenge. Consumer brands and retailers, operating sourcing offices in China, are at particular risk.
The majority of Chinese factories subcontract at least one production process to a separate, undisclosed, manufacturer. This poses a significant risk to responsible sourcing programs.
A Responsible Sourcing Program is a significant investment. Much more should be done before, during and after the audit, to maximize return.
Responsible sourcing is a complex challenge with a multitude of moving parts.
Forced labor has never been more topical. The subject is complex. Forced labor comes in many forms and exposure to the issue, and how you mitigate risk, is dependent on the industry you operate in as well as the nature of your supply chain.
Consumer brands and retailers have clear protocols governing unethical supply chain practices within their own organizations. However, very few have equivalent procedures for managing cases of bribery involving external partners. This is a major blind spot.
Whether you are building a responsible sourcing program in 2016, or evaluating the effectiveness of your current model, we have identified 5 key questions you should be asking.
The pervasiveness of bribery in supply chains is not always fully understood by those without business experience in Asia.