Luxury fashion brand Prada has terminated contracts with over 200 suppliers in the past five years after a focused โ€œzero toleranceโ€ supply chain audit aimed at identifying compliance failings. The firmโ€™s program of audit investigations was prompted by concerns that labor law abuses permeate the entire Italian fashion industry.

Ruth Prickett graduated from Cambridge University with a BA hons in History and has specialized in business and finance journalism for the past 20 years. She was editor of Financial Management, the magazine...