Wal-Mart Stores, Inc. (WMT), The Walt Disney Company (DIS): Change Is Gonna Come

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There’s a serious disconnect between compliance departments and procurement officers. In the battle for cheaper goods, procurement departments focus myopically on price and delivery times. These tragedies won’t be prevented until compliance is fully embedded in the procurement process.

Change is gonna come
Maybe we’ve reached a turning point. It’s happened before. NIKE, Inc. (NYSE:NKE) learned the hard way that using sweatshop labor can lead to boycotts. A fire in the Triangle Shirtwaist factory in New York in 1911, which killed 146 people, prompted major changes in U.S. factory working conditions. Beyond the fact that it’s the right thing to do, it’s also just good business to understand your supply chain, protect your labor force assets, and keep your brand squeaky clean. Consumers and investors should expect it.

The article The Tragedy of Cheap Clothes originally appeared on Fool.com and is written by Sara Murphy.

Sara Murphy has no position in any stocks mentioned. Follow her on Twitter at @SMurphSmiles. The Motley Fool recommends and owns shares of Nike and Walt Disney.

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