Social and Ethical Compliance

The resulting factory scandals damage not only the factory itself but also the image of any brand buying from the factory and can lead to consumer boycotts and, in many cases, lawsuits. To counteract these practices, there are a plethora of social and ethical compliance standards in place.

Social and ethical compliance refers to how a buyer holds its factories or suppliers accountable for the environmental impact of their production facility and for fulfilling a raft of social responsibility standards. To maintain company integrity, it has become standard practice for companies to conduct social and ethical compliance audits to ensure their entire supply chain meets the required local and/or international standards.