LCCS: Beyond the Sweat Shop

If your organization is currently carrying out or investigating low cost country sourcing activity, it's essential to better understand the model labor practices of the regions you're involved with. Over on European Leader's Blog, I came across a good post that talks about one textile supplier in Sri Lanka who is making serious investments in its community -- and it's workers. According to the post, "The company has seen double-digit annual growth while avoiding the sweatshop conditions and spending 3%-4% of costs on employee and philanthropic programmes." Now, obviously activities like this makes for good PR, which is critical when you're supplying textiles and retail goods to companies like Nike and the Gap, organizations which live in fear of discovering their latest duds were woven together by child labor. But it's also a model for other low cost suppliers to follow that shows that you don't need to take advantage of your employees to still deliver the best total value to your customers.

Jason Busch

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