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US NGO urges firms for greater supply chain transparency
28 May '19
2 min read
A new report by US-based non-governmental organisation (NGO) International Corporate Accountability Roundtable (ICAR) recently urged companies to adopt greater supply chain transparency measures, claiming businesses enjoy better reputation, greater operational efficiency, improved legal compliance and increased access to capital because of such initiatives.
The report, ‘The Benefits of Transparency: A Business Case for the Apparel and Footwear Supply Chain Transparency Pledge’, called on companies to adopt a transparency pledge that increases the level of information they disclose about their supply chains, which helps businesses achieve these benefits.
“Far from being a liability, we’ve seen that, when business take steps to make their supply chains more transparent, members of the public, governments, and investors respond positively,” said Meg Roggensack, interim executive director of ICAR, in a press release.
“Businesses that take their human rights obligations seriously are the ones that, increasingly, consumers want to buy from and investors want to invest in, meaning that they are better positioned – compared to those brands that opt for less disclosure – to compete and thrive in today’s global marketplace. Transparency is a net positive for companies’ bottom lines,” he said.
The Apparel and Footwear Supply Chain Transparency Pledge requires companies to publish and regularly update public, searchable information about the factories in their supply chains, including factory names, addresses, product category, parent companies, and number of workers.
Brands including Nike, Patagonia and Esprit are signatories of the pledge.
Benefits of signing the pledge are a positive impact on the company’s reputation, greater operational efficiency, higher legal compliance and more access to capital, the report added. (DS)
The report, ‘The Benefits of Transparency: A Business Case for the Apparel and Footwear Supply Chain Transparency Pledge’, called on companies to adopt a transparency pledge that increases the level of information they disclose about their supply chains, which helps businesses achieve these benefits.
“Far from being a liability, we’ve seen that, when business take steps to make their supply chains more transparent, members of the public, governments, and investors respond positively,” said Meg Roggensack, interim executive director of ICAR, in a press release.
“Businesses that take their human rights obligations seriously are the ones that, increasingly, consumers want to buy from and investors want to invest in, meaning that they are better positioned – compared to those brands that opt for less disclosure – to compete and thrive in today’s global marketplace. Transparency is a net positive for companies’ bottom lines,” he said.
The Apparel and Footwear Supply Chain Transparency Pledge requires companies to publish and regularly update public, searchable information about the factories in their supply chains, including factory names, addresses, product category, parent companies, and number of workers.
Brands including Nike, Patagonia and Esprit are signatories of the pledge.
Benefits of signing the pledge are a positive impact on the company’s reputation, greater operational efficiency, higher legal compliance and more access to capital, the report added. (DS)
Fibre2Fashion News Desk – India
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