Standards of performance in the supply chain: the (un)reliability of assurance and surveillance in the garment industry

Purpose The aim of this paper is to examine the reliability of assurance offered by the supply chain audits of workplace standards. Customers, companies and society increasingly rely upon assurances concerning the standards which are applied in the supply chains of goods. There is, however, a growing anxiety about the application of those standards as well as about the reliability of the assurances expressed about them. This paper seeks to explore these matters. In particular, we review what is known about the audits which are undertaken to assess supply chain practices and seek to assess the extent to which the outcomes of such audits might be considered reliable. Design/methodology/approach The paper reviews the (relatively sparse) literature and concludes that it is unlikely that any reliance should be placed upon the surveillance offered by such audits. In order to add to this emerging literature, a case study on a Sri Lankan garment manufacturer is undertaken and the views of both the company managers and those of the auditors are explored. Findings The research confirms that, in the instance of the case study company and, by implication, other companies assured by these auditors, any assurance must be treated with the greatest scepticism; it seems increasingly likely that only in the most extreme sense might current surveillance practices offer any basis for reassurance about standards of behaviour in garment manufacturing. Limitations The principal limitation of the research is that it relies upon a single case and upon interviews. That the research confirms and extends the extant literature, suggests that these limitations may not be critical. Implications The major implications of this work are that the purchasing companies and the customers who rely upon the assurances would probably be ill-advised to do so. This, inevitably, raises questions for governments and NGOs who set and police the standards within supply chains. Perhaps the more profound implications are for our understanding of the condition of those who work in the manufacturing companies, in that the protection of their rights, health and safety cannot be assumed. Contribution The paper provides further evidence that the increasing alarm about the reliability of the audits of supply chains is probably well-founded.