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Social Auditing in Global Supply Chains: Forced Labor in the Malaysian Rubber Glove Industry

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This case is written from the perspective of Ting-ting Loh, CEO of Aguila Safety Group (ASG). A prominent UK-based personal protective equipment (PPE) procurement company, ASG was one of the main suppliers of medical equipment to the UK National Health Service (NHS).

During the COVID-19 pandemic, thousands of rubber glove factory workers in Malaysia tested positive for the virus. This reignited discussions and investigations of the labor practices in the factories. Numerous companies were accused of using forced labor, including some of ASG’s direct suppliers. Ting-ting had to make important decisions about how to address the allegations of forced labor in ASG’s supply chain, while continuing to meet demands for medical supplies during the pandemic.

Learning Objective:

  • To explain the risks and processes of forced and bonded labor in global supply chains.
  • To recommend ways for companies to respond to modern slavery risks and increase transparency in transnational supply chains using ESG principles.
  • To evaluate the effectiveness of social audits in increasing supply chain transparency.

Year of Publication: 2021
Ref. No.: 21/707C
Discipline: Accounting & Control, Environmental, Social, and Governance (ESG), Social Enterprises & Ethics, Strategy & General Management
Industry: Health Care Equipment & Services
Country: Malaysia, United Kingdom
Company: Aguila Safety Group
Languages: English
Pages of Text: 8