Retailers fret over human rights abuses in supply chains
Concern among retail leaders comes amid controversy over Shein’s planned blockbuster listing on the London Stock Exchange.
Retail bosses are fretting over human rights abuses in their manufacturing facilities as pressure grows on Western firms to better monitor their supply chains, according to a survey of executives.
Some 75 per cent of retail chief executives across the UK, Europe and US have said they are worried about human or labour rights issues in their supply chains, according to a survey of 3000 senior decision makers from across industries by consultancy firm Proxima.
The sector placed behind only utilities and manufacturing, which came in at 78.2 and 77.1 per cent, respectively.
It comes amid controversy over the Chinese-founded fast-fashion retailer Shein’s planned blockbuster listing on the London Stock Exchange.
Campaign groups have called on the UK’s financial regulator to block the float amid allegations of forced labour at some of the company’s manufacturers in China. The firm admitted it found two instances of child labour at its suppliers last year but suspended the companies in questions and is now tightening its monitoring processes.
Proxima’s annual survey found around 70 per cent of all leaders from across sectors hold concerns over the potential for human rights-related issues in the supply chain.
The report also noted a wider lack of resiliency in global supply chains, with 86 per cent of chief executives seeing resiliency issues. Overall, 96 per cent of CEOs are dedicating more time to supply chain issues amid rising geopolitical tension and wider macroeconomic difficulties.
But commenting on the results, Proxima’s chief procurement officer, Simon Geale, said the concerns around human rights issues were perhaps “most worrying.”
He also noted issues surrounding decarbonising supply chains, after some 29 per cent of leaders flagged the complexity of bringing down emissions in the supply chain, while 22 per cent flagged a lack of access to data.
“It’s fair to say that the complexities of global supply chains continue to have CEOs around the world scratching their heads,” Geale said.
“The results of this this year’s Barometer show that business leaders are spending more and more time tackling supply chain challenges, reflecting the multiple challenges to address.”
