In the context of globalisation and international competition, many companies source labour-intensive goods from developing and newly industrialised countries. However, working conditions in these countries often do not comply with basic labour standards, such as those established by the International Labour Organization (ILO). To address this issue, many companies and associations have created individual codes of conduct and monitoring systems.
SA8000 and BSCI are some of the monitoring systems. The audit process helps to identify the better suppliers who can take on more business as non-conforming suppliers drop out of the supply chain.