Tag Archives: Value Chain

New Paper: Addressing Downstream Human Rights Risks in the Cotton Value Chain

The textile and apparel industry, although immense in its economic contributions and global reach, harbours persistent challenges in working conditions. In my latest co-authored paper, conducted alongside a fantastic team of co-authors, I set out to explore how actors at the very beginning of the value chain—namely Australian cotton producers—could help address downstream human rights risks that arise far beyond the farm gate. While cotton grown in Australia is widely considered to have a low risk of exploitation, it journeys through multiple tiers of spinners, fabric mills, and garment factories in overseas locations. Understanding and mitigating the labour and human rights risks in these downstream stages became our focal pursuit.

Conceptualising the Cotton Value Chain

We began by examining the way in which the value chain is typically framed. It is easy to imagine a neat, linear progression—cotton fields to yarn spinners to textile producers to garment assemblers, ultimately reaching retailers and then consumers. Yet the reality is very different. Cotton bales from Australia may be blended with fibres from other regions; apparel production occurs in distant factories run by subcontractors, and retailers may struggle to track exactly which fields supplied the cotton in their clothing and apparel. This fragmentation is precisely what makes oversight and accountability so difficult.

Through interviews and desktop analyses, we find that cotton producers typically focus on on-farm issues, such as pesticide use or water management, while fashion brands and retailers concentrate on labour rights in the cutting-and-sewing stages. The zone in between—the realm of yarn and fabric manufacturing—remains partially neglected. Our findings highlight that, although the Australian cotton industry cannot monitor or control every tier of the supply chain, it can still make headway through strategic actions that extend past its usual sphere of influence.

Finding Points of Intervention

Our research revealed several possible intervention points, which include ramping up transparency, implementing robust traceability systems, promoting meaningful certification, forging deeper partnerships with mills and merchants, and supporting worker-driven initiatives on the factory floor. These strategies, however, bring their own obstacles. Small producers rarely have leverage over large global mills. Merchants seldom track precisely where bales travel after a sale, and it can be daunting for an Australian grower to impose contract terms on spinning or weaving facilities in multiple countries. Despite these barriers, there is a shared understanding that doing nothing is neither practical nor sustainable in a world where regulators, investors, and consumers are increasingly scrutinising each link in global production.

Establishing stronger ties with downstream actors rests on recognising that value chains are more intertwined than many of us imagine. Where there is trust and transparency, everyone stands to benefit: crop cultivators gain a more credible reputation for quality and ethical standards, mills secure reliable cotton supplies, retailers reduce reputational risks, and workers find themselves less vulnerable to exploitation. A willingness to break away from purely transactional arrangements—and form stable, multi-year collaborations—could pave the way for improved labour conditions. It may also enhance resilience for all involved in the chain.

Taking a Strategic Enforcement Approach

Another central concept in our work is strategic enforcement. Traditionally, enforcement falls to government agencies that inspect workplaces and impose sanctions for non-compliance. Yet the apparel industry’s far-flung operations have made it difficult for regulators to keep pace. Our research suggests that private, industry-led efforts can complement public regulation by focusing on areas where modest shifts—like including labour clauses in purchase contracts or participating in worker-driven social responsibility programs—may produce outsized effects. This hinges on identifying pivotal points of influence rather than attempting wholesale reform in one swift motion.

Some readers may wonder what this means for brands and consumers. Retailers keen to demonstrate responsible sourcing could champion Australian cotton precisely because it offers well-documented environmental and labour credentials at the farm level and shows promise for strategic engagement downstream. Shoppers, meanwhile, can look for products that disclose meaningful information about the fibres’ origins and the standards maintained throughout the supply chain. While certification logos and traceability innovations are no magic bullet to address downstream human rights risks, they can at least illuminate that formerly opaque passage from field to fashion.

Addressing Downstream Human Rights Risks

Our research underscores the significance of looking beyond the farm gate, of forging new collaborations, and of recognising the potential for downstream and upstream stakeholders to contribute to a fairer, safer, and more transparent value chain. The work is not merely about diagnosing downstream human rights risks, but about proactively brainstorming and testing constructive solutions. In the complex network of global fashion and apparel, Australian cotton has a chance to stand out as a trusted and responsible fibre if it is willing to follow its crop downstream and help cultivate better outcomes for the people who spin, weave, sew, and ultimately wear cotton around the world.

Cotton Value Chain – Labour Risk Heat Maps

The Queensland University of Technology and the University of Technology Sydney have been funded by the Cotton Research and Development Corporation to research “Strategies for improving labour conditions within the Australian cotton value chain”  (2019-2022).

Non-Government Organisations are active in pressuring fashion brands to be accountable for their social and environmental claims. Labour is currently in the spotlight. Over 20 million employees in garment manufacturing in Asia Pacific are paid below the minimum wage. ILO ratification in Australia’s export countries is low and non-compliance high (up to 90%). This project will provide information to enable the cotton industry to understand labour issues along its value chain and recommend strategies for the industry to explore.

Phase 1 produced a heat map, based on secondary data, which provides an overview of labour issues affecting the textile and apparel industry in primary export destinations in the Australian cotton value chain. Click on the image below to see the full interactive heat maps which were created using Tableau.

Labour Risk Heat Maps

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Apple’s $1 trillion riches based on innovation and exploitation

Apple has become the first American company to reach US$1 trillion in market capitalisation – US$1,000,000,000,000 in stockmarket value. Behind this glittering success, however, lies a series of unresolved ethical dilemmas a history of staggering labour exploitation.

The approaches of Apple and the other giant US platform technology companies (Google, Facebook, Amazon) to corporate taxation, concentration and privacy have attracted widespread criticism.

But as a manufacturing company Apple faces a more deep-seated problem. This involves the millions of people employed in its supply chain, which is largely located in China with the major contractor Foxconn.

Our research shows human rights, environmental and ethical problems persist inside Apple’s vast global supply chains.

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Ethical Dilemmas in Modern Supply Chains

Modern supply chains are long, complex and global, making it harder for businesses to know who they’re really dealing with, and for consumers to feel confident they’re buying ethically. The negative consequences of that complexity can be as devastating as the deadly Rana Plaza collapse in Bangladesh in 2013, which galvanised public opinion about the conditions under which our clothing is produced. Revelations about Australia’s food industry in a recent ABC Four Corners report show there are issues to be addressed at home too. So, the conversation has turned to the need to build responsible supply networks and the challenges in doing that. That’s the focus of the Sustainable Supply Network Initiative at UTS Business School and  this #think public lecture.

supply chain lecture UTS

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Apple Profits From Decade-Long Supply Chain Labour Exploitation

Apple Cash Trend 2015
Apple Cash, Cash Equivalents and Marketable Securities
2006 to March 2015 (US$ billions) – Source: Apple Annual and Quarterly Reports

Apple Inc. is the richest and most iconic corporation in the world. In 2010 Apple became the most valuable brand, with an 84% jump in brand value to $153.3 billion. By March 2015 Apple’s revenue was up to $212.2 billion, while in February 2015 Apple attained a market capitalisation of $770 billion, nearly double that of ExxonMobil, Google and Microsoft. Apple’s large profit margins have contributed to a cash hoard of $193.5 billion, which means that the company has more cash on hand compared to cash balances of most industries in the United States combined. In a stark illustration of how extreme inequality disfigures operations in global value chains, Apple’s abundant wealth ultimately rests on the suffering of young workers in electronic sweatshops where human rights, labour standards, environmental safety, and business integrity are routinely ignored.

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