Santa Claus Accused of Using Child Labor in His Supply Chain

Santa Claus is a beloved figure around the world, but recent reports suggest he might be using child labor in his supply chain. Hyundai Motor Company was recently accused of using child labor at an Alabama parts plant, and while the plant operator, SMART Alabama LLC, declared that it was in compliance with federal, state and local laws, the reputational damage is tangible.

It’s not enough for business leaders to just echo their company values across social media. Regulators, investors and consumers alike are demanding full visibility and accountability across organizations and their supply chains. Companies must invest in tools that promote visibility down the supply chain and hold suppliers and distributors accountable.

The Global Labor Justice Department report exposed slavery in the fast fashion industry, prompting H&M to become the first major fashion chain to publicly list its suppliers. This is a good example of how companies can be held responsible for the actions of third-party partners, even several degrees removed.

It’s clear that companies must do more to create a comprehensive supply-monitoring ecosystem. Action is crucial as regulations tighten, and the public expects companies to take responsibility for their supply chain partners. Santa Claus should take note and ensure that his supply chain is free from child labor and other unethical practices.