With the recent recalls of toys and other products made in China (Mattel issued its third recall last week), the “made in China” brand is taking a hit. In a column in Ethical Corporation Magazine by Chandran Nair he rightly asks: “why is this so surprising?”. Chinese manufacturing thrives on low prices and often low quality, producing for US and European companies. Pressure for lower prices are an invitation to cut corners.
His main argument is that despite outrage in the West there is clearly a shared responsibility between the government and buying companies: “outsourcing responsibility doesn’t work”, to quote the title of the column.
In the case of lead paint in toys and loose magnets, the flaw was caught relatively easily: it was something that could be tested on the products themselves. What about economic, social and environmental issues which are also under pressure due to a similar mentality?
Mr. Nair perceives that “[t]he situation presents challenges with a strong moral core that rests on individuals and companies doing the right thing.” The solution he presents is the extension of Nike-style full disclosure of suppliers: “Such lists invite partnerships that pave the way for full, open co-operation on labour, environment and business issues.”
In many sectors such transparency is very feasible. To add a specific step to Mr. Nair’s train of thought: sustainability reporting by suppliers could be a great tool to start dialogue and partnerships. This will benefit not just product quality and safety, but will also start to address the social and environmental issues very concretely.
“Doing the right thing” is premised on knowing what’s right. A reporting process is a way to find out and plan and communicate how to move forward.
Read Chandran Nair’s full column here:
