To be fair, there are a few companies that really put a lot of effort in checking whether their foreign producers are abiding the local law and universal human rights. Those producers offer a better quality of work life, than the average in that particular region.
However, even then the producers still do crap to spend less money and break rules.
It’s very hard for a European company to be so sure about what the producer does behind the doors, when nobody is there to check them. Sometimes, it’s just impossible to check and make sure they are working according to the rules.
Additionally, it’s a devious circle, which the good parts of the industry can do nothing against. Who will be the first to sacrifice their profits? It does not work like that. If 90% are corrupt and doing “evil” things, then you simply cannot survive being the 10%. You are doomed to be a failure and lose your company. So even the good people and businessmen are forced to at least partially break the rules to stay competitive.
Now, that makes a majority breaking the rules. So, when you are new to the scene and want to abide all the rules, you are again sucked into this hole of exploiting your workforce, etc. essentially becoming a bad company holder, when in actuality you don’t want to be and in your heart are not.
What I’m saying: it’s not so simple to just blame the investing companies here. It’s sometimes really hard for them. Yes, most of them do not care that much and suck, but some of them really care and still cannot accomplish the task of properly checking if everything’s alright in their foreign producers’ companies.
A very simplified example, that only points out the most obvious aspects:
I am “EU Company”.
I go to India and pay for my waste to be disposed of, properly.
I discuss.
I tell them to follow the rules.
They show me the warehouse, where all the trash is disposed of, properly.
Again, I discuss.
Again, I tell them, either they follow the rules, or we will break the deal as soon as we notice a rule was broken.
Again, I force the rules upon them and tell them to abide them, because it is extremely important to me.
They repeat and repeat, “yes, we abide the law, of course”.
As soon as I step out that door, my trash gets dumped into the river.
What can I, “EU Company”, do, which will not ruin my company financially?