Firms that outsource production to supply partners are at risk if those suppliers engage in unethical behavior. Such issues have been particularly acute in the apparel industry. If suppliers engage in unethical practices, firms may suffer brand and reputation damage, lost sales, cancelled contracts, legal penalties, lower employee morale, and more. An innovative program, originated at Reebok and expanded to become an interorganizational non-profit, the Fair Factories Clearinghouse, leverages technology to improve industry standards, lower costs, and reduce risks. The Fair Factories Clearinghouse offers an information systems-based solution that allows members to record, capture, and share audit information. This case study discuses the genesis of the FFC, the functionality and benefits of the system, and highlights an area where globally-focused technology can be used for deep and lasting social impact.
Gallaugher, John, "The Fair Factories Clearinghouse: Sourcing Ethics Improved Through Information Systems" (2010). AMCIS 2010 Proceedings. 98.