Slave Labor and Costco? The Link

What’s not to like about Costco? Huff Post lists it among the top ten companies on the basis of a positive reputation with customers and employees. There is a dark side to this success story, however: Costco, like so many large firms, relies on an extensive supply chain that threads into the most remote, dangerous, and lawless corners of the world. Far-flung corporations not only have “contractors” who make their goods—those contractors have sub-contractors, who have their who own sub-contractors, and so on.  Actual goods are sometimes made by slave laborers. Today, the Wall Street Journal reports on recent lawsuits against food company Nestle SA and big-box retailer Costco Wholesale Corp. alleging they sold products made from materials produced with slave labor. This news comes on the heels of the conviction in Brazil of construction firm Odebrecht Group for keeping workers in slave-like conditions. The challenge is for companies to understand how people work in every phase of their supply chains. The fascinating article is here.