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Article

16 Jun 2013

Author:
Ruth Sullivan, Financial Times

The devastating cost of cheap outsourcing

Retailers and their investors face a wake-up call as new findings flag up health and safety risks in the supply chain of clothing producing countries...A report by the Supplier Ethical Data Exchange [Sedex] shows that fire safety is the main risk in Bangladesh, where more than 1,100 workers lost their lives when a building collapsed in April, and also in China, Pakistan and India…Nearly a quarter (22 per cent) of independent audits showed non-compliance in fire safety in Bangladesh, 18 per cent in China, 17 per cent in Pakistan and 15 per cent in India and Sri Lanka…The research, which was carried out by independent auditors, comes in the wake of the devastating loss of life after the collapse of the Rana Plaza in Dhaka…[also refers to Gap, H&M, Zara (part of Inditex), Tesco, Walmart]