Why worker wellbeing and ethical initiatives are the foundation of supply chain resilience
Let’s start with an introduction to you and your career history.
I’m Carmel Giblin, President and CEO of the Ethical Supply Chain Program (ESCP), a global non-profit dedicated to improving the lives of supply chain workers worldwide. I’ve worked in supply chain transparency and corporate responsibility for more than 20 years, with previous roles including CEO of SEDEX and Head of Corporate Responsibility at Sky. I joined ESCP in 2015 and am responsible for helping our members to protect workers while building resilient and responsible supply chains.
Can you tell us about ESCP’s operations, history, and mission?
Our guiding vision is to create better lives for workers worldwide. We do this via a range of programs and initiatives that help to protect the rights of workers, the communities in which they operate, and the environments in which they live and work. 
The foundation of ESCP activities is our supplier certification program, which provides assurance to suppliers and their customers that they meet the required labor standards. Certification is achieved through onsite audit, with issues found being fully remediated before certification is awarded.
Beyond audits, we offer a range of programs and initiatives including our Family-Friendly Spaces (FFS). This is a workplace-supported childcare program developed in response to research that identified a lack of childcare as the primary reason for worker attrition. In the ten years since the program has been running, we’ve provided employer-funded childcare in 95 factory and community sites, supporting 10,000 children and their families across China and Southeast Asia. In that time, 93 percent of workers have cited FFS as the reason they have continued to work at their current factory, with 83 percent also saying they have a closer relationship with their children.
The program is scalable and sustainable because it achieves measurable financial benefits. For example, one participating factory calculated they had saved US$621,000 over a four-year period through better worker retention rates and reduced training and recruitment costs. In 2026, we will launch an ambition to benefit one million children of supply chain workers by the end of 2031, directly supporting the achievement of several of the UN Sustainable Development Goals.
Why is it important to go beyond traditional supplier audits?
Audits are an important tool in a company’s supply chain due diligence system. It is critical that suppliers’ processes are checked, and potential risks are identified and mitigated. However, audits can only achieve so much. To achieve greater value, organizations need to move beyond the mindset of simply ‘passing the audit’ and focus on acting on the findings.
Many of the organizations we work with have complex supplier networks. To ensure that supplier assessments or audits are reaching all supplier tiers and business functions, organizations should start by mapping their supply chain. They can then implement the most appropriate due diligence tool and help suppliers improve by providing development plans that will fix problems and improve standards.
Of course, it’s not just a case of fixing issues, preventing them from recurring is also key. To do this, organizations need to understand the root cause of any issues. This is something we work closely with our members on as part of our supplier assessment and certification process – our teams are on the ground working directly with suppliers to identify what might be causing an issue and providing guidance on how it can be addressed.
What is your view on the state of gender equality within global supply chains? How does the ESCP support and empower female workers?
The Global Gender Gap Report 2023 indicates that it will take an estimated 132 years to close the gender gap in economic participation and opportunity at the current rate of progress. Delivering programs that empower female workers is therefore something all organizations should be prioritizing. This is particularly important in manufacturing where female workers make up a large proportion of the workforce – amongst ESCP members, it’s around 65 percent.
Our Gender Equality program is key to our worker wellbeing initiatives. Our Worker Helpline also helps to promote gender equality; a confidential, person-to-person service that gives women and men a safe space to ask questions and to raise any grievances or concerns. This could range from gaining a better understanding of workplace policies to more serious issues like withheld wages or unsafe practices. Data from the Helpline – which has been accessible to over ten million workers since it was launched 15 years ago – can also be used to inform training, tackle recurring problems, and improve supplier practices.
What role does supplier certification and worker wellbeing play in wider supply chain transparency and stability?
Our audit requirements are the backbone of our certification program; these are based on International Labour Organization conventions and ensure the fair treatment of workers – covering areas such as pay, working hours, and health and safety. But we recognized there was more we could do to support the wellbeing of workers in the supply chain. Our Family-Friendly Factory program was launched in 2016 at two pilot factories. One factory in Guangdong, China, reported employee turnover decreasing from 19.7 percent in 2016 to 5.1 percent in 2024 and have also reduced absenteeism and work-related injuries. They estimate that the program saves them US$450,000 annually.
How are you seeing increased regulation impacting supply chains and how can supply chains navigate these challenges?
The biggest impact for manufacturers hasn’t necessarily come from tariff levels per se; it’s the unpredictability and inconsistency of the messaging that has made managing supply chains incredibly difficult.
Increased costs have also been a huge factor and have prompted companies to look at where they can cut expenditure. This, in turn, could have a devastating effect on supply chain workers. Especially if companies only see due diligence as a cost and not an investment. Even when geopolitical tensions ease, some decisions are not necessarily reversed, and the impact and consequences will be felt for longer.
What is your advice for companies looking to diversify their supply chains in the face of uncertainty?
What is your advice for companies looking to diversify their supply chains in the face of uncertainty? Many brands have already taken steps to diversify their supplier base outside of China. This may require companies to find new suppliers in locations that are not well known to procurement teams. Indonesia is one location seeing huge investment, for example, with factories being constructed in as little as 18 months.
Organizations are having to move quickly to remain agile and resilient. However, it’s vital that they don’t rush their due diligence and that any factory partners being incorporated into the supply chain uphold ethical and social standards. One of the best ways to achieve this is to connect with facilities that already meet ESG requirements. This is where industry collaboration – and tapping into existing networks and partnerships – can make a huge difference and can ensure that supply chains are both ethical and agile.
Can you elaborate on the link between worker wellbeing and productivity? How can we shift the mindset to one that prioritizes wellbeing in return for supply chain resilience?
We know that workers who feel heard, protected, and valued are more productive at work. For example, one factory that has participated in our Family-Friendly Factory program since 2021 reported a 91 percent fall in employee turnover in the two years after joining the program. They also experienced an increase in the number of promotions and employee recognition awards amongst workers who benefited from the employer-funded childcare program.
What do you see as the biggest challenges facing supply chains in 2026?
My top five supply chain challenges for 2026 are: continued geopolitical instability, sustainability demands, technological integration, labor shortages, and changing consumer behaviors.
Navigating the challenges will require a proactive, flexible, and collaborative approach. By focusing on diversification, sustainability, technological integration, workforce development, and resilience, businesses can better position themselves to thrive in an increasingly complex and dynamic environment. In my opinion, embracing innovation and fostering strong partnerships will be key to overcoming these challenges and achieving long-term success.
What impact can ethical initiatives have on long-term sustainability and stability?
Ethical initiatives significantly enhance the success of an organization. By fostering trust, mitigating risks, ensuring compliance, attracting talent, and promoting innovation, these initiatives create a foundation for resilient and responsible business practices. As consumers and stakeholders increasingly prioritize ethical considerations, companies that embrace these values will likely thrive in an increasingly complex and dynamic environment. In my opinion, embracing innovation and fostering strong partnerships will be key to overcoming these challenges and achieving long-term success.
What impact can ethical initiatives have on long-term sustainability and stability?
Ethical initiatives significantly enhance the success of an organization. By fostering trust, mitigating risks, ensuring compliance, attracting talent, and promoting innovation, these initiatives create a foundation for resilient and responsible business practices. As consumers and stakeholders increasingly prioritize ethical considerations, companies that embrace these values will likely thrive in the evolving business environment.