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.
Prada’s internal auditors uncovered examples of suppliers subcontracting work to factories that made employees work excessive hours and sleep on the premises in dormitories. In addition, they also found a wide range of other compliance problems, including poor health and safety policies and non-compliant waste disposal processes. The purge of non-compliant suppliers was reported on Jan. 29 in the Financial Times.
