Bull in the China shops

Concerns about sweatshops and ethical-labor practices have been on the contemporary public radar ever since the early to mid-1990s, when the Kathi Lee Gifford child-labor fiasco and other scandals erupted in the mainstream media.

I’ve been learning as much as I can about these issues recently, and I was excited to discover the existence of auditing organizations such as the Institute for Marketecology, Social Accountability International, and Verité that conduct independent inspections of factories and other types of production facilities to ascertain whether certain codes of conduct are being met. If the facility passes muster, it gets a certified stamp of approval.

What a great idea: a way for consumers to ensure that they’re not subsidizing exploitative business practices, and for responsible corporations to put their money where their mouths are. I’ve even started pestering companies to encourage them to take part in such certification programs.

So imagine my dismay when I came across this Business Week article about Chinese factories that deceive auditors in order to be certified. It’s well worth reading in its entirety, but the gist is that nowadays it’s commonplace for factories in China to maintain extra sets of books containing falsified records, and to distribute scripts for workers to recite if they are questioned by inspectors. Not only that, but “a new breed of Chinese consultant has sprung up to assist companies … in evading audits,” the article states.

Pretty depressing, huh? But not entirely surprising.

I’m still digesting the contents of this article, but a few thoughts come to mind. One is that, as much as I sometimes enjoy heaping scorn on big business and calling large companies “evil,” it’s not always as black-and-white as that. After all, big players such as Disney, Nike, and Wal-Mart regularly use auditing organizations, and the large-scale pressure these companies provide has undoubtedly helped check some of the worst abuses. The system is certainly imperfect, but at least these institutions are in place; that’s the first step to meaningful reform.

Another thought is just how much, for me, China represents so many of the complexities, contradictions, and shortcomings of the global economy. I’ll no doubt be thinking about that tonight when I see Manufactured Landscapes, a new documentary about Edward Burtynsky, whose awe-inspiring photographs capture just how massive industry in China is.

Comments

[Juli]

Hey there ~ while we're on the subject of ethical trade, i'm all jazzed about my own employer's developments into a broader ethical marketplace: World of Good (start-up fair trade crafts company) is partnering with ebay to create an online, social good marketplace with transparent "trustology" organizations that vouch for each product listing. It's not launched yet, but i got to see a presentation today that has me very happy to be a part of the project, albeit indirectly (i work with the finance team for World of Good). I believe it's going to be called Project Good.
If you're interested in it, my company's URL is www.worldofgood.com, and Project Good's landing page (more to come when the full project launches), is: http://projectgood.com/

[Bronwyn Ximm]

Hi, Juli - Wow, I'm so excited to hear about both World of Good and Project Good! It's yet another heartening sign that values-based buying is making inroads in mainstream culture.