Over the past year, Ivanka Trump’s fashion label has contended with multiple threats to its brand, from politically motivated boycotts to department stores dropping its products lines. Most recently, the label has been accused of practicing unethical labor standards.


In October 2016, one of the fashion label’s Chinese manufacturers, Xuankai Shoes Co., allegedly mistreated workers by paying low wages and requiring excessive hours of labor. Then in June, a news story investigated working conditions at its factory in Subang, Indonesia. Workers there complained of verbal abuse, “impossibly high production targets,” and “poverty pay” wages so low that workers are forced to live away from their children.


Compliance Concern

The long-term impact of this negative publicity – both on the fashion label itself and the fashion industry as a whole – remains to be seen. But clearly, the company’s immediate priority should be to conduct a “deep dive” analysis of its supply chain.


The fashion label’s foibles serve as a compelling call to action for suppliers today. If your company is truly committed to corporate social responsibility, you will simply not tolerate unfair labor practices, no matter where they exist in the supply chain.


Publicity challenges like these are a sobering reminder of the importance of maintaining social compliance. It’s critical to a supplier’s success, not only to meet regulatory requirements but to protect the integrity of their brand and reputation.


Eliminating Exposure

Today’s consumers will avoid purchasing items that are linked to human rights abuses and unfair working conditions. For this reason, many companies are now incorporating social compliance messaging into their sales campaigns; spotlighting the company’s commitment to fair labor standards may now be a key component of their marketing strategy.


Companies that don’t adequately invest in third-party compliance programs expose themselves to potential brand and reputational damage down the line. Noncompliance bites back, sooner or later. Risk mitigation is one reason Quality Certification Alliance exists.


QCA Accredited companies have policies, procedures and protocols that effectively address local and national laws for labor compliance in their facilities. For more information on social compliance and how it relates to QCA Accreditation, including best practices, human rights, and QCA monitoring standards, contact us today.