Le Lézard
Classified in: Business
Subject: SVY

42% of North American Companies Would Still Work with International Suppliers Engaged in Slave Labor, Fraud, Money Laundering or Bribery

Despite Regulatory Pressure and Cancel Culture, Brands Still Are Not Taking Ethical Sourcing Seriously, Finds Creditsafe Study

ALLENTOWN, Pa., May 9, 2023 /PRNewswire/ -- We live in an age where consumers expect the products they buy to be produced sustainably and ethically ? and are even willing to pay more for these products. When brands fall foul of these expectations, consumers will call them out publicly ? damaging the brand's reputation and costing them both customers and revenue. Meanwhile, more regulations are being passed in the U.S. and Canada requiring companies to prove their goods are not produced using forced or child labor. Despite these pressures, North American companies still aren't taking ethical sourcing and supplier due diligence seriously, according to 'The Murky Waters of Overseas Manufacturing' study released by Creditsafe.

The study uncovers a glaring contradiction between what businesses do as a due diligence exercise and how seriously they take ethical sourcing. On the one hand, 83% of the respondents said they run compliance checks on international suppliers at least once a quarter. This is likely driven in large part by the regulatory pressure and fear of being 'canceled.' However, the results of these compliance checks carry little weight in a manufacturer's decision to work with suppliers. In fact, nearly half (42%) of businesses in the U.S. and Canada admitted they would still work with an international supplier that has been found to be on a sanctions list or involved in slave labor, corruption, bribery, fraud or money laundering.

Matthew Debbage, CEO of the Americas and Asia for Creditsafe, believes this contradiction highlights a bigger problem in global supply chain management. "Many companies are simply running compliance checks to tick a box and show that they did the necessary due diligence. But they're not using the results to protect the integrity of their global supply chains. This needs to change if brands want to restore customer confidence and position themselves for long-term growth. The key is not to just run a compliance check once and then be done. Just like with credit risk, brands should regularly monitor their global supply chain for compliance issues. That's the purpose of compliance checks ? to give you the information you need to avoid working with unethical, corrupt suppliers and, ultimately, prevent your company from incurring financial, legal and reputational damage as a result."

Key findings from the research study include:

As SVP of Research and Education at Credit Research Foundation, Mike Bevilaqua understands how important the supplier selection process is. He explains, "Ultimately, the decision to work with a supplier should be based on a holistic assessment of all relevant factors, including the supplier's credit report, payment history as well as their product quality, pricing and customer service. It's important to perform due diligence and conduct thorough research to minimize risks and ensure a successful business relationship, including understanding the magnitude of ongoing litigation or legal filings and potential impact to ongoing operations."

Survey Methodology

The study surveyed over 480 finance and supply chain professionals in the United States and Canada who use international suppliers to produce their goods. Our goal was to understand their key challenges and priorities with financing, ethical sourcing and supplier due diligence ? and how this impacts their decision to work with international suppliers. The survey included companies across the following industries: retail and wholesale, healthcare and pharmaceutical, manufacturing, aerospace, automotive, technology/electronics and transportation.


Creditsafe, the global expert in credit monitoring and risk management, is the world's most used provider of business reports. Today, over 115,000 customers globally depend on Creditsafe to make critical business decisions. Using real-time data from over 9,000 sources across 160+ countries, Creditsafe's mission is to help businesses mitigate financial, legal and compliance risks, while also empowering them to make more informed decisions. To learn more, visit http://www.creditsafe.com

Media Contacts
Crackle PR for Creditsafe (US)
Emily Shuler, Senior Account Manager
Email: creditsafe@cracklepr.com
Phone: +1 609 751 4712

Ragini Bhalla, Head of Content & PR, US & Canada
Email: pr@creditsafe.com

SOURCE Creditsafe

These press releases may also interest you

at 02:18
On 10 January 2023, Crayfish BidCo...

at 02:00
Cornish Metals Inc. ("Cornish Metals" or the "Company"), a mineral exploration and development company focused on its projects in Cornwall, United Kingdom, is pleased to announce that it has released its unaudited financial statements and...

at 01:55
Tetragon has released its Monthly Factsheet for August 2023. -     Net Asset Value: $2,782m-     Fully Diluted NAV Per Share: $29.87-     Share Price (TFG NA): $9.78-     Monthly NAV per share total return: -1.3%-     Monthly Return on Equity:...

at 01:00
Today, Fireblocks is excited to announce the acquisition of BlockFold, a smart contract development and consulting firm specializing in advanced tokenization projects for financial institutions. The acquisition enriches Fireblocks'...

28 sep 2023
The market size of banking as a service market in Latin America is estimated to grow by USD 2.43 billion from 2022 to 2027, growing at a CAGR of 14.27%. The banking as a service market in Latin America is fragmented owing to the presence of many...

28 sep 2023
Landore Resources Limited (AIM: LND) ("Landore Resources" or the "Company") is pleased to announce its unaudited interim results for the six months ended 30 June 2023. The Company notes that the interim results also include results for the three...

News published on and distributed by: