3458 Q&A

Q&A: "How do you ethically source products made in overseas factories?"

There are lots of advantages to sourcing products from an overseas factory — but how do you know the working conditions are fair and environmentally responsible?

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Q&A: "How do you ethically source products made in overseas factories?"

There are lots of advantages to sourcing a product from an overseas factory, and in this day and age, it's not terribly difficult to learn how to do that. We've had many case studies featuring people who've successfully navigated those waters.

But how can you ethically source products coming from overseas? How can you know for sure that what you're buying is made under fair working conditions, in environmentally safe surroundings, and all-around not destroying the planet or the lives of people who aren't that well off?

It's a fair question—but a hard one to answer. I always want to be fully honest with you.

I'm thinking about creating a product and I'm interested in ethical sourcing. The product needs to be assembled from a few basic components, and I have concerns about overseas factories. I know it's cheap to get products made in China or elsewhere, but can I make sure there are fair labor laws and good working conditions for the employees? I want to make money, but not at the expense of someone's welfare.

How can you know for sure? Here is the honest truth: you can't.

In the past, companies like Apple, Nike, and the Gap have gotten in a lot of trouble when journalists published exposés about the working conditions of their factories—and in some cases, the companies themselves didn't know, or had been assured the situation was better. This is a massive industry and it's difficult to police all of it.

I totally understand why some people prefer not to source from these countries whenever possible. At the same time, often the jobs that factories in these countries provide are better than any alternatives available locally.

A couple of things you can do:

  • Avoid the middleman. Ask to see photos of the factory, ask how many people work there—brokers don't usually know.

  • Look for vendors with certification, whether it's Fair Trade or the SQFI Ethical Sourcing program or something else. The problem is there's no standardization—we live in a world without borders in terms of commerce, so there's no global authority that says "the standards of Canada apply in Cambodia." Buyer beware.

In the end, you do what you reasonably can, then decide to move on—either with sourcing from overseas or finding an alternative if it bothers you too much.

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