
Every couple of years some non-profit organization (War on Want) comes along to make allegations of sweatshop abuse against a major clothing retailer to call consumers’ attention to the deplorable plight of the global garment worker. This rounds’ target is Banana Republic, which is surprising for two reasons; first BR is part of the Gap group which is generally regarded as one of the better companies with regards to their labor compliance following changes made after their own sweatshop scandal. The second reason I was surprised to see the new complaints regarding Indian factories get headlines (in the UK’s Independent) is slightly more cynical. In the year 2008, is anyone in the US or UK really surprised that working in an Indian garment factory is probably a pretty lousy endeavor? Every time new complaints come forward, that particular brand’s sales drop for a quarter or so, and a few embarrassed corporate officers hold a press conference and say “We had no idea, its all our sub-contractors fault, we promise to get better.” Life goes on and other retailers pray that they will not be the next sacrificial lamb of the industry.

Now I should take a moment to clarify here, that I am well aware of the difficulties of overseeing a supply chain that spans dozens of countries and several continents, with contractors doing their best to hide problems. This is not say that North American apparel brands are free from blame, but rather that the very model of how apparel is produced does not work if you are concerned with labor and environmental standards. The fundamental problem is that treating workers (and the environment) better takes money, and buyers (at the wholesale and retail level) are not willing to pay it. Competition is so fierce amongst factories and even countries to win garment work, that there is very little incentive for factory owners to raise the bar. In other words, when companies squeeze every penny that they can out of their suppliers, than it shouldn’t be a surprise when those same suppliers spend less on things like taking care of their workers or processing wastewater. The fact that Wal-mart is the most successful retailer in the history of retail based on their delivery of the lowest prices, places significant guilt on consumers themselves.
Ultimately, its a circular question to try and place blame for sweatshop abuses in the garment trade. Is it the factory committing them, the American companies paying them, or the end consumers turning a blind eye and buying the products? In my opinion, it doesn’t matter, its a ‘none of us, but all of them’ kind of problem. Luckily encouraging a fix is much easier than assigning the blame. The best thing that any one individual can do is to be responsible for their own purchases, and know where they come from. Just as retailers respond quickly to price sensitivity, so to do they respond to ethical concerns, as the recent green-craze has demonstrated. If customers are vocal and vote with their dollars, than retailers have no reason not to want to improve their reputation.