Luxury fashion brand Prada has terminated contracts with over 200 suppliers in the past five years after a focused “zero tolerance” supply chain audit aimed at identifying compliance failings. The firm’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...