Fast fashion to high fashion - the importance of supply chain integrity
Fast fashion to high fashion - the importance of supply chain integrity
18 July 2024
All too often, and correctly so, consumers' attention is brought to the unsavoury practices of some fast fashion brands and their suppliers. Infringements of employment law and fair labour practices are regularly considered to be perpetrated by certain brands. Whether it be employee's rights that are neglected via sub-standard pay or working conditions, or unacceptable packaging and shipping, through to disposing of vast quantities of unwanted merchandise to landfill, logic dictates these actions are solely the preserve of fast fashion brands, who are seeking to produce and sell at the lowest possible price point.
It might be reasonable to conclude that high end, luxury fashion houses, selling expensive products, are immune to these sorts of charges. If consumers are paying high prices, then surely workers are paid properly and being looked after appropriately, right? Well perhaps not.
Yesterday, luxury fashion groups Armani and LVMH’s Dior were targeted by Italy’s Competition Authority. It opened an investigation into claims of unfair commercial practices in their Italian supply chains, including paying employees, “inadequate” salaries and forcing them to work illegally long hours.
It is difficult to believe these well-established fashion houses would knowingly engage in this sort of behaviour. More likely, it shows that even the most high-profile and widely respected businesses are not immune to falling foul of the disreputable and possibly unlawful practices of some of their suppliers. This investigation will likely run for some time and we do not seek to pre-judge it. Interestingly however, it does highlight the perils of supply chain management and the reputational damage when it goes wrong. We all have a duty to ensure the companies we buy from, who we work for, or look up to, are not complicit, either knowingly or unknowingly, in abuses against society.
All industries and companies have a supply chain. Employing various supply chain audit tools is essential to minimise the risk of falling foul of rogue actors. At ESGmark® we have helped many companies with their supply chain choices. This ranges from providing standard supply chain questionnaires that ensure suppliers understand and can evidence the strong environmental, social and governance expectations of their client, through to more bespoke supply chain audit processes. There will likely always be bad corporate actors in the supply chain but together we can take steps to minimise the risks, whilst at the same time encouraging the good actors to do better and meet new and higher standards of behaviour.
Regardless of your business, fashion or otherwise, please feel free to contact us for an informal, exploratory discussion to see if we might be able to help your business improve its supply chain audits and management.
You can contact us at info@esgmark.co.uk.
About ESGmark®
ESGmark® is the community for people and organisations who care about the planet and society. The ESGmark® certification is a symbol of trust and distinction which allows consumers to identify organisations who believe in and act to deliver a fairer, more sustainable future. Environmental, Social and Governance (ESG) objectives help organisations contribute to the UN’s 2030 Agenda for Sustainable Development, by working to improve the lives of global citizens and safeguarding our planet. ESGmark® helps simplify these complex and important issues, and supports businesses along their ESG journey. Belonging to the ESGmark® community shows that a company cares about making a positive change to the planet and society.