Purchasing practice trends: The impact of supply chain shocks on brands & workers
As part of the Business & Human Rights Resource Centre Who Pays For The Crisis? portal, we will round up the key trends at the intersection of labour rights and purchasing practices that we’ve monitored every six months. We also provide an overview of the allegations linked to supply chain instability and purchasing practices, and provide an analysis of brands’ responses to our requests for further information.
Why are we focusing on purchasing practices?
Brand purchasing practices significantly influence labour rights outcomes, and, recognising human rights cannot be upheld on a shoestring budget, we will be delving into the critical relationship between these practices and their impact on workers' well-being. At the same time, we have witnessed an alarming increase in disruptions to purchasing models, exacerbated by economic slowdowns, political instability, and the impacts of the climate emergency in sourcing countries. This has led to factory closures, reduced hours, and non-payment of wages; underscoring the urgent need for ethical purchasing models that prioritise human rights over profit margins.
As the industry experiences increased pressure on its business-as-usual operations, this moment provides an opportunity to centre sustainable growth and the rights of workers. We are also entering a new phase of accountability for the industry as we see the increasing shift from voluntary to mandatory due diligence with the EU’s Corporate Sustainability Due Diligence Directive moving ever closer to the statute books. Yet, we know meaningful due diligence is not just about the process, but the investments made by buyers and suppliers along supply chains to ensure human rights are respected and risk mitigated. This means working towards good practice when it comes to international buyers investing in a commitment to safe workplaces and decent livelihoods within their purchasing strategies.
“After the layoffs, my family has had to cut down to one meal a day. We're always worried about what tomorrow will bring.”Worker in Vietnam