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India’s garment industry put through the wringer

Neil Hodge | March 27, 2018

Over the past decade, there has been a much stronger focus on the actions that third parties and suppliers based in developing countries take on behalf of the multinational companies they are commissioned by.

Very often, these locally based operators are blamed for many of the corrupt, unethical—and frankly unsafe—practices that their western customers are forced to account for from regulators, investors, charities, campaign groups, consumers, and the media.

In the past, multinationals have pleaded ignorance about the activities that these contractors have engaged in. Times have changed, however: As every compliance professional ought to know, it is now their own organisations—rather than the third parties working for them—that will be ultimately held responsible (and potentially legally culpable) for the actions in their own supply chains. And as a result, potentially dangerous or illegal behaviour committed by overseas suppliers cannot be ignored or tolerated....

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