0:07
hi this is Anita the global trade gal
0:10
today I want to talk a little bit about
0:12
ethical sourcing and exactly what does
0:14
ethical sourcing mean you know right now
0:17
in the global supply chain there's a lot
0:19
of these sort of like buzzwords and one
0:21
of the buzzwords that's out there is
0:23
ethical sourcing or ethical
0:26
manufacturing and what exactly does
0:28
ethical manufacturing mean and why
0:31
ethical factoring can matter well
0:33
ethical manufacturing home decor can
0:36
ensure fair labor practices in other
0:39
words but when we talk about fair labor
0:41
practices it doesn't mean that nec fair
0:44
labor or or the price that the cost that
0:47
somebody earns per hour in a country
0:50
like the United States or Europe needs
0:52
to be the same as somebody let's say in
0:54
India or Vietnam or even China it means
0:57
that somebody has a you know a safe and
0:59
clean working environment the
1:01
manufacturer can support some type of
1:03
environmentally sustainable production
1:06
promotes community well-being you know
1:08
when you go into a lot of these
1:10
factories in Asia you know you you might
1:12
look at some of these ladies that are
1:13
there you know weaving or doing other
1:16
types of work and there might be some
1:18
people say like "Oh I feel so sorry for
1:20
them how terrible that they need to do
1:23
this." But for them it might be "Wow I I
1:26
love being here because I have a
1:28
community this is sort of like my
1:29
community." and they you know sometimes
1:31
they're you know they're doing
1:32
production and other things and they're
1:34
sitting around there talking and maybe
1:36
gossiping or you know other things like
1:38
other people would do maybe in another
1:40
type of factories and for them this
1:42
could be their community this could be
1:44
their place where they feel they belong
1:46
it could be you know a factories uphold
1:48
strong governance and compliance
1:50
standards so all that has to do with
1:52
ethical sourcing and you might ask well
1:54
why does ethical sourcing matter let's
1:56
talk about what it means to be unethical
1:59
unethical practices could mean that you
2:01
know somebody's working in an unsafe
2:03
working environment you know unfair
2:06
wages or exploitative labor
2:10
child labor or forced labor and
2:13
environmental pollution and waste now I
2:16
can say that we in all of our factories
2:19
check and make sure there is no child
2:21
labor no exploitative labor or no slave
2:24
labor and you know today in Asia you
2:28
know I I really don't see that in most
2:30
of the good factories at least at the
2:32
factories at the level that we work at
2:34
in home decor and home furnishing you
2:37
know part of it could be that we're
2:38
working in a medium to high-end industry
2:41
and so because of that you know price is
2:43
important yes but quality is also very
2:46
important and so since quality is
2:48
something that's very important to us
2:50
that that means that we have to have
2:52
labor or we have to have people who know
2:54
what they're doing basically that if I'm
2:57
going to have somebody doing finishing I
2:59
need somebody who knows how to finish a
3:01
product and that will not be a child or
3:05
that will not be a slave labor so a lot
3:07
of the factories that you go in you know
3:10
in Asia today I at least have not found
3:13
this with you know child or slave or
3:15
exploitative labor um going on because a
3:18
lot of the factories require somebody
3:19
with some skill they need people that
3:22
have the skills that they require
3:24
especially in today's world of
3:26
manufacturing where machineries are
3:28
taking over more and more manufacturing
3:31
they need people who know how to run the
3:32
machineries they need people that can be
3:34
safe around the machineries they want to
3:37
ensure that their production is going to
3:39
continue where I think you find a lot of
3:42
the exploitative or unethical labor is
3:46
in areas or places where price is
3:49
extremely sensitive where somebody has
3:53
you know knocked down the price so low
3:55
on an item because they need to buy it
3:58
so cheap that the only way that the
4:01
manufacturer can really make it work is
4:04
through using this type of labor maybe I
4:07
believe in a good world that's doesn't
4:09
exist but I believe that a lot of the
4:11
managers of the factories they want
4:13
people working in their factories where
4:15
they're not going to have problems
4:16
because they don't want to have problems
4:17
with their production you know whenever
4:19
you have problems with your production
4:21
it kills a factory or kills the
4:24
manufacturing so they want to have the
4:26
labor in there that knows exactly what
4:30
they're doing they don't want to have
4:32
the people in there who don't know what
4:34
they're doing or who are going to not be
4:38
efficient not be effective they
4:40
essentially do not want people in there
4:41
who are going to mess up their
4:42
production cost them money and cause
4:45
problems so you might ask well you know
4:48
how do we my company Muro how do we
4:51
assume that the factories we work with
4:54
are you basically using ethical
4:58
practices at Muro in case you haven't
5:01
been listening we are b specialized in
5:03
home decor and home furnishing the first
5:06
thing we do is we conduct on-site
5:09
inspections my team and I are in the
5:11
factories we are actively in the
5:14
factories checking production It is just
5:17
part of what we do we a lot of times for
5:20
many of our products we may even inspect
5:22
you know 100% check everything because
5:24
of the fact that we're medium to
5:26
high-end we need to make sure what goes
5:28
out is correct we maintain open dialogue
5:31
with the workers we talk directly to the
5:33
workers we know many of the workers we
5:36
know who they are we we talk to them you
5:38
know in fact when we have a lunch break
5:41
my inspector and others might be over
5:42
there smoking a cigarette and playing
5:45
chess with the workers so you know they
5:47
know the workers on a friendly basis so
5:50
they know what is going on we have our
5:52
factories and others understand that we
5:54
prohibit child labor in or forced labor
5:57
on all of the operations that we work
5:59
with and they all understand that we
6:02
make sure there's a safe working
6:03
environment and we try to encourage all
6:08
any manufacturers we work with whether
6:10
it's submanufacturers vendors others to
6:12
be environmentally conscious wherever
6:15
possible and I should say that now in
6:17
Asia especially in countries like China
6:19
Vietnam and other places the environment
6:22
has become a huge issue in fact if you
6:25
go to China and you even come to Vietnam
6:26
there's a lot of electric vehicles here
6:29
electric vehicles more than probably you
6:31
know in places like the United States
6:33
the reason is because pollution is bad
6:35
they understand the pollution is bad so
6:37
the government cracks down on
6:39
environmental issues because they know
6:41
that this is a problem that they need to
6:44
have to deal with you know ethical
6:46
sourcing doesn't stop just at the
6:47
factory gate we believe in contributing
6:49
to community and wherever we can we try
6:51
to contribute to the factory the
6:53
community and work together with the
6:54
factory through charitable and other
6:56
type of organizations
6:58
ethical doesn't have to necessarily mean
7:00
expensive and that's one of the things
7:02
is but for us it means that a quality
7:04
product and as I mentioned before that
7:08
really most manufacturers need to have
7:11
skilled people in their factories
7:14
especially those that are dealing with
7:15
medium to higher end and as I've said
7:18
before and I'll repeat it again the main
7:20
problem is when that happens with child
7:22
or forced or other labor is where
7:25
somebody's going in and saying to
7:27
somebody you know there some a factory
7:29
says "Well I can only produce this for
7:31
let's say you know $3." And the then the
7:34
company's saying "Well I can only buy it
7:35
for $1.50." So you do whatever you need
7:37
to do and then the factory gets greedy
7:40
they get hungry they want to take the
7:41
order maybe it's a really large order
7:44
and so then they resort to some
7:46
unethical practices and I point this out
7:49
because a lot of times these problems is
7:52
on the buyer as well as the supplier in
7:55
other words if the buyer is pressing the
7:58
supplier for something which is
8:00
unreasonable and just cannot be done and
8:04
then the supplier gets greedy because
8:06
they really want to have that business
8:09
then they resort to unethical practices
8:12
i've written a blog post on this and
8:14
it's called what is ethical home decor
8:17
manufacturing we'll put a link in the
8:19
description you should we welcome you to
8:21
be able to read this and to understand
8:23
more about this also understand that you
8:26
know really when it comes to ethical or
8:28
unethical or when we talk about things
8:30
like child labor you know you can't
8:32
really all the time just put the blame
8:34
exactly on to the supplier because a lot
8:37
of times as I mentioned before it could
8:39
be the buyer making unreasonable demands
8:42
and I say this because of the the fact
8:45
that I have seen this myself in Asia or
8:47
heard about this myself in Asia where
8:50
somebody has put an you know a demand
8:52
upon a supplier that they just couldn't
8:54
do because it was just completely
8:56
unreasonable but then they got greedy
8:59
and said well look if I get slave or
9:02
prison or child labor then I can be able
9:05
to do it but if you're dealing like we
9:07
are in medium to higher end we need to
9:10
have skilled workers because of the fact
9:12
that we do not want to have quality
9:15
issues so we ensure that we have skilled
9:19
workers in there can that do the quality
9:21
of the product we require this is Anita
9:24
from Global Trade Gal thank you so much
9:25
for listening we hope that this has
9:27
given you a kind of a bit of a different
9:29
perspective on you know ethical sourcing
9:31
and some of the issues of maybe just the
9:33
global supply chain itself if you've
9:36
enjoyed this we hope that you'll
9:37
subscribe and that you'll leave us a a
9:40
rating give us a thumbs up we'd honestly
9:42
we'd love to have you be part of our
9:44
community because we appreciate you our