A recent report by Know the Chain has shed light on the concerning issue of exploitation within the apparel and footwear industry supply chains. The report assessed 43 global companies and revealed that the majority are falling short in their efforts to prevent exploitation, with two-thirds scoring below 50 out of 100 and nearly a quarter scoring below 10 out of 100.
Luxury brands such as LVMH, Salvatore Ferragamo, and Prada were among the companies with low scores, while footwear giants like Skechers and Foot Locker performed even worse. However, companies like Adidas, Lululemon, and Gap Inc. were recognized as top performers for their efforts in addressing forced labor in their supply chains.
The evaluation criteria focused on seven key themes including commitment and governance, traceability and risk assessment, purchasing practices, recruitment, worker voice, monitoring, and remedy. It was noted that migrant workers are especially vulnerable to exploitation due to their precarious status within the industry supply chain.
A major concern highlighted in the report was the practice of charging workers excessive recruitment fees, leading to debt bondage. Companies such as Adidas and Lululemon were commended for their direct employment practices and accessible grievance mechanisms for workers, helping to mitigate the risk of exploitation.
Know the Chain stressed the importance of companies taking proactive steps to address exploitation within their supply chains. With an average industry score of only 37 out of 100, there is a clear need for improvement to ensure that workers are not subjected to forced labor and exploitation in the apparel and footwear industry.
For more information on the findings of the report and steps companies can take to combat exploitation, visit Know the Chain and Business & Human Rights Resource Centre.
