A panel of industry experts has called on apparel buyers to exercise responsible purchasing practices to avoid supplier exploitation after hearing that laggard brands are undermining the whole apparel industry, and that suppliers are scared to speak out for fear of losing business.
The event in London last month looked at ‘Downward Pressures: Reforming the Apparel Sector by Tackling Purchasing Practices,’ and included speakers from the C&A Foundation, the OECD Responsible Business Conduct Unit and Human Rights Watch.
Panellists suggested greater industry transparency, as well as a more robust regulatory framework, are needed to improve apparel brand purchasing practices.
Bangladesh factory owner Mostafiz Uddin said there is a trend of suppliers “being at the mercy of buyers, leaving them highly vulnerable and with little recourse to action in the face of deeply unethical behaviour” and called for stronger regulation around purchasing practices to ensure all buyers are operating on a level playing field.
“The entire apparel industry may need to restructure with respect to purchasing. We need to shine a light on chinks in the business model which are leading to irresponsible purchasing practices” – Mostafiz Uddin
“The entire apparel industry may need to restructure with respect to purchasing,” said Uddin. “We need to shine a light on chinks in the business model which are leading to irresponsible purchasing practices.”
He added that regulatory reform might be required at the buyer end, possibly in the form of tax breaks for brands that demonstrate responsible purchasing practices.
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By GlobalData“Ultimately, change will start with individuals. As suppliers, we have to stand up to brands and hold our ground when negotiating with them.”
Aruna Kashyap, senior counsel for the Women’s Rights Division at Human Rights Watch, added that from research she carried out around apparel brand buying practices, “alarm bells begin ringing when one mentions unauthorised sub-contracting.”
“The reality is that so many of their purchasing practices are drivers of these problems. They are sitting on liabilities in their supply chains but they are getting away with it – for now anyway.”
Kashyap also noted a “lack of monitoring by brands on labour relations in supply chains.”
Jennifer Schappert, policy advisor at the OECD Responsible Business Conduct Unit, said apparel brands have a responsibility to provide access to remedy where their purchasing practices have caused issues in supply chains, including labour abuses.
“Brands have responsibilities in [several] areas. The first is to assess whether their purchasing practices are contributing to issues in their supply chain. Secondly, companies need to have control measures in place to address these issues.”
Schappert suggested that while there are some measures brands can take by themselves to improve purchasing practices, ultimately collective action would be required.
“What have companies ever done in this sector on their own? It is hardly anything because the accountability mechanism is not there. There are actions companies can take, but we need accountability to ensure they are doing that.”
