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Article

20 Apr 2014

Author:
Sarah Labowitz and Dorothée Baumann-Pauly, NYU Stern Center for Business and Human Rights

[PDF] Business as Usual is Not an Option - Supply Chains and Sourcing after Rana Plaza

This report looks behind the headlines to reveal the way business operates at different levels of the supply chain in Bangladesh, the seventh most populous country in the world. We focus on global business relationships and especially what we call “indirect sourcing.” Indirect sourcing relies on the routine practice of subcontracting, often through purchasing agents and in a manner that is not transparent to buyers, to increase margins and boost production capacity while keeping costs low. As orders are subcontracted and in some cases re-subcontracted, production moves into facilities that are outside the scope of current regulation and often are “noncompliant” with minimum standards for safety and workers’ rights...

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