BlogpostEvery year on Juli 1st, we celebrate Keti Koti – the festival of broken chains. It reminds us of the end of slavery. Yet, fair value chains remain a challenge today. Slave labor still exists, even in unexpected places. We often associate it with cheap products like Shien t-shirts made in faraway factories. But exploitation happens closer to home, even with luxury brands in Europe
Slave labor in unexpected places
Take the recent case of Dior handbags. last week, Italian police raided a sweatshop near Milan. They found Chinese and Filipino workers in unsafe, primitive conditions. Some workers were undeclared and lived above the factory. “Made in Italy” may sound trustworthy, but it doesn’t guarantee slavery-free production.
Similarly, in Italy’s tomato industry, migrant workers often face harsh conditions. In 2022, ImpactBuying conducted a human rights assessment on this issue. This example shows how unfair labor practices are not just distant problems – they happen right here in Europe.
The shift towards transparency
Thankfully, progress is underway. Europe is pushing fair value chains through new regulations. Starting this financial year, large companies must report transparently on their supply chains. Empty promises are no longer enough. Businesses are now responsible for abuses, even those occurring at their suppliers.
Looking ahead, barcodes will be replaced by QR codes by 2027. These QR codes can provide rich information – like the product’s origin, satellite images and sustainability scores. Including working conditions in these codes would make supply chain even more transparent.
Responsibility lies with everyone
Despite the scandals, bosses at companies like Dior often escape accountability. Subcontractors bear the blame, while keep their profits – sometimes selling goods for 49 times their purchase price.
Ultimately, consumers hold the power. Every purchase shapes the world we want. But this power only works if we truly know what we’re buying. The growing attention to Keti Koti is a hopeful sign that fair and ethical value chains are becoming a priority
Want to learn more about how companies can improve transparency in their supply chains? Visit our Transparency page to see how ImpactBuying supports businesses in building fair value chains.