A recent Populus survey of 1185 adults about high street clothing retailers has found that 69 percent consider the social issues of a store’s supply chain to be important than its environmental issues. Read the Times article here.
These social issues — such as child labour practice, minimum wage rates, and working conditions and hours — affect the values underpinning the clothing’s brand, which in turn represents the consumer herself.
Supply chain issues are complex and can require huge resources to manage successfully. Multinationals like the Gap (in India) and Mattel (in China) have faced accusations of late for ethically questionable or sub-standard work from suppliers.
As global flows of information and demands for transparency continue to increase (80% of Brits still think retailers are not doing enough on the CSR front), premium brands may be able to differentiate themselves further form competitors but must also build the necessary infrastructure to monitor, control, and report on their ethical credentials if they hope to substantiate their premium prices.