An increasing number of companies in a variety of industries (apparel, toy, footwear, electronics) contract work out to other companies instead of owning and operating their own factories. Many global corporations contract with vendors that place orders with manufacturers who own the factories. Because the factories are not owned by the corporation that promotes, markets and sells the product, the challenge is to get the corporation to take responsibility for workplace conditions where its products are made.

Working conditions in many contract supplier factories fall far below the most basic standards of fair and humane treatment. Sweatshop conditions exist in too many factories where workers, often young women, are subjected to abusive conditions, including low wages, long hours, health hazards, psychological, physical and sexual harassment, and the denial of basic rights to form a union and bargain collectively. The challenge is to press companies to use their influence with their suppliers, vendors and factory management to respect the dignity of the workers and create a safe and healthy workplace where labor rights are enforced.

The approach ICCR members are taking to achieve this goal is to press companies to: 1) adopt supplier standards that apply to all factories where they place orders and include basic human rights and labor rights standards, including a sustainable living wage; 2) monitor factories for compliance with their vendor standards through internal and independent monitoring; 3) put resources into implementation of the vendor standards including training of workers and factory managers; and 4) issue public reports that are transparent about the conditions in factories and what changes have been made.