My Understanding on the Study Presented in Chapter 5 (Social Audits and Global

Clothing Supply Chains: Some Observations)

With globalization, many companies have shifted their production facilities to

developing nations. Ample of reasons have caused these companies to do so. One of
which is the cheap and very low cost of production, including the cost of raw materials
and cost of labor. However, some big companies become too much greedy that they
prioritize earning profit at the expense of their employees’ health and safety. Some even
committed criminal acts like human trafficking and child labor. Others also are abusive
to their employees by compensating them below the minimum wage, causing unhealthy
and insufficient living conditions for them.
Social audits therefore are one way by which companies can achieve particular
social standards associated with employees, the environment and society. Social audits
are voluntary and help companies develop and implement fair practice programs that
are transparent across supply chains. It can be undertaken with the aim of establishing
whether an organisation is complying with its own (or other recognised) principles and
standards. It is a tool by which an organization can plan, manage and measure social
responsibility activities and monitor both internal and external consequences of these
activities.
It can be said that a social audit is used to evaluate the working conditions
existing in a facility or supply chain of a company. This process may take from a few
hours to a few days, and involves a number of steps. Three general processes are
involved in the social audit. These include document review, the site inspection and
interviews with workers, management and third-party stakeholders.
With this kind of concept, we can ensure that employees are well-protected, their
rights are respected and they are given the right remuneration and good, healthy and
wholesome working conditions.

Submitted by: JHUN VIRGIL D. LAURENTE