Bangladesh second in ethical audit practices in the supply chain: survey

Bangladesh came second on a list comparing the ethics audit practices of leading industrializing countries, this too during the 2020 pandemic, according to a first quarter report from the chain’s compliance solutions provider. ‘QIMA supply released last week.

The Hong Kong-based entity cited best practices from local suppliers in the global supply chain for the country’s placement.

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In the ethics audit survey, which mainly focuses on health and safety, hygiene, waste management, child labor, working hours, benefits and working practices, Taiwan obtained the highest score.

Vietnam came in third, followed by Thailand, Pakistan, Turkey, China, India and Brazil.

Even though China had a better year than expected, the pandemic has given a powerful boost to the long-term trend of shifting purchasing volumes to its regional competition, said QIMA, derived from “Quality Inspection Management “.

The demand for inspections and audits in Southeast Asia grew by 19% year-on-year in 2020.

As a whole, this region saw double-digit growth in inspection and audit demand from July, supported by buyers looking for alternatives to China in the short and long term, as well as by massive orders of personal protective equipment (PPE).

At the same time, the recovery has been significantly slower in South Asia, including Bangladesh, and only increased by 2.6% year-on-year, a fraction of double-digit growth. year over year recorded in 2019.

Manufacturers in the region struggled to come back from the April and May collapse, made catastrophic by the combination of regional lockdowns and demand decimated by lockdowns in the West.

The continued waves of quarantine measures and the unprecedented number of people working from home in the West have already been reflected in changing consumption patterns, which in turn has an impact on global trade flows.

Keeping up with fashion trends and updating wardrobes has clearly slipped down the consumer priority list.

Demand for textiles, clothing and footwear inspections fell 11 percent year-over-year globally, remaining down in all areas since March except for a brief rebound in September and October.

The interrelated challenges of the Covid-19 pandemic have sharply exacerbated human rights risks in global supply chains.

Problems range from increased vulnerability to modern slavery and child labor (resulting from high poverty risks caused by massive job losses), labor violations in factories and less oversight of security measures. unrelated to the virus due to scarce health and safety resources.

QIMA ethics audit data collected in reopened factories as well as during remote audits paint an alarming picture of critical non-conformities.

Some of the most pressing issues relate to working hours and wage compliance. For example, in China, 14 percent of audited factories received a failure rating due to critical violations in the area of ​​working hours and wages.

Examples of violations include sanitation fees imposed as unpaid overtime, as well as workers forced to work excessive hours to meet tight schedules for high-demand products, such as PPE.

Almost a year after the start of the Covid-19 crisis, uncertainty and disruption continue to dominate global trade.

In 2021, global sourcing is likely to remain at the mercy of the pandemic, underscoring the importance of supply chain agility and efficiency to the continued survival of any business.

Looking back on a year of truly unprecedented global supply disruption, 2020 data from QIMA paints a picture of increasingly diverse supply chains, shifts in consumer habits and an alarming rise in ethical risks , said QIMA.


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