Across Malaysia and other garment-producing countries we investigated, workers described being held hostage in the same trap: debt bondage after paying exorbitant recruitment fees to unscrupulous recruiters.
The apparel industry suffers from what economists call an “agency problem.” Brands rely on auditors to uncover violations in factories — then often require the factories to pay for their own audits. Unsurprisingly, the typical audit is short, untrustworthy and, as Transparentem found at most audited factories we investigated, easily gamed. Suppliers, already operating on razor-thin margins, cannot afford to lose customers. Nor can the auditors, who often show little interest in scrutinizing their clients to the point of discomfort.
Younger consumers, who tend to be progressive and skeptical of received wisdom, offer the world’s best hope for change. They are concerned about moral consumption, seeing it as a question of self-identity. In 2015, 73 percent of global millennials said they would pay more for sustainable products. That figure may grow even larger as millennial incomes continue to rise. Millions of users of sites like Poshmark and Depop — websites that specialize in helping users buy and sell used clothing — are millennials and Gen Zers, many of whom are looking for a way to avoid primary fast fashion consumption entirely.
Many young consumers are also obsessed with truth, and they aren’t buying some brands’ superficial “greenwashing” or flimsy claims of ethical production. Nor should they. To date, precious few companies — Patagonia is a rare exception— even attempt to be sufficiently transparent about true working conditions in their supply chains. Although young consumers would pay more for sustainable products, brands lack the transparency needed to close the deal.
This presents an opportunity. We know young consumers are willing to pay more for clothing made by workers whose voices can be heard. And we all need to know that those workers are OK. A first, urgent step: Apparel companies should publish full, detailed social compliance audits, which purport to evaluate working conditions, at all upstream factories. Such disclosure would allow investors, other brands, consumers, activists, unions and, critically, the workers themselves, to audit the auditors and, progressively, be a part of more inclusive monitoring.
