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hi this is Anita the global trade gal
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Today I want to talk a little bit about
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ethical sourcing and exactly what does
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ethical sourcing mean you know right now
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in the global supply chain there's a lot
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of these sort of like buzzwords And one
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of the buzzwords that's out there is
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ethical sourcing or ethical
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manufacturing And what exactly does
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ethical manufacturing mean and why
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ethical factory can matter well ethical
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manufacturing home decor can ensure fair
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labor practices In other words but when
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we talk about fair labor practices it
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doesn't mean that nec fair labor or or
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the price that the cost that somebody
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earns per hour in a country like the
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United States or Europe needs to be the
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same as somebody let's say in India or
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Vietnam or even China It means that
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somebody has a you know a safe and clean
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working environment The manufacturer can
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support some type of environmentally
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sustainable production Promotes
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community well-being You know when you
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go into a lot of these factories in Asia
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you know you you might look at some of
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these ladies that are there you know
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weaving or doing other types of work and
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there might be some people say like "Oh
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I feel so sorry for them How terrible
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that they need to do this." But for them
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it might be "Wow I I love being here
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because I have a community This is sort
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of like my community." and they you know
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sometimes they're you know they're doing
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production and other things and they're
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sitting around there talking and maybe
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gossiping or you know other things like
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other people would do maybe in another
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type of factories and for them this
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could be their community This could be
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their place where they feel they belong
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It could be you know factories uphold
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strong governance and compliance
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standards So all that has to do with
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ethical sourcing And you might ask well
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why does ethical sourcing matter let's
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talk about what it means to be unethical
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Unethical practices could mean that you
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know somebody's working in an unsafe
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working environment You know unfair
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wages or exploitative labor
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child labor or forced labor
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and environmental pollution and waste
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Now I can say that we in all of our
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factories check and make sure there is
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no child labor no exploitative labor or
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no slave labor And you know today in
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Asia you know I I really don't see that
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in most of the good factories at least
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at the factories at the level that we
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work at in home decor and home
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furnishing You know part of it could be
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that we're working in a medium to
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high-end industry And so because of that
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you know price is important yes but
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quality is also very important And so
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since quality is something that's very
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important to us that that means that we
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have to have labor or we have to have
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people who know what they're doing
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basically that if I'm going to have
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somebody doing finishing I need somebody
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who knows how to finish a product and
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that will not be a child or that will
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not be a slave labor So a lot of the
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factories that you go in you know in
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Asia today I at least have not found
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this with you know child or slave or
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exploitative labor um going on because a
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lot of the factories require somebody
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with some skill They need people that
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have the skills that they require
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Especially in today's world of
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manufacturing where machineries are
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taking over more and more manufacturing
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they need people who know how to run the
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machineries They need people that can be
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safe around the machineries They want to
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ensure that their production is going to
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continue Where I think you find a lot of
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the exploitative or unethical labor is
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in areas or places where price is
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extremely sensitive where somebody has
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you know knocked down the price so low
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on an item because they need to buy it
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so cheap that the only way that the
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manufacturer can really make it work is
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through using this type of labor Maybe I
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believe in a good world that's doesn't
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exist but I believe that a lot of the
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managers of the factories they want
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people working in their factories where
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they're not going to have problems
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because they don't want to have problems
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with their production You know whenever
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you have problems with your production
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it kills a factory or kills the
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manufacturing So they want to have the
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labor in there that knows exactly what
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they're doing They don't want to have
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the people in there who don't know what
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they're doing or who are going to not be
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efficient not be effective They
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essentially do not want people in there
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who are going to mess up their
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production cost them money and cause
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problems So you might ask well you know
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how do we my company Muro how do we
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assume that the factories we work with
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are you basically using ethical
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at Muro in case you haven't been
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listening we are b specialized in home
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decor and home furnishing the first
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thing we do is we conduct on-site
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inspections my team and I are in the
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factories we are actively in the
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factories checking production it is just
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part of what we do We a lot of times for
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many of our products we may even inspect
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you know 100% check everything because
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of the fact that we're medium to
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high-end We need to make sure what goes
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out is correct We maintain open dialogue
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with the workers We talk directly to the
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workers We know many of the workers We
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know who they are We we talk to them You
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know in fact when we have a lunch break
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my inspector and others might be over
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there smoking a cigarette and playing
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chess with the workers So you know they
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know the workers on a friendly basis so
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they know what is going on We have our
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factories and others understand that we
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prohibit child labor in or forced labor
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on all of the operations that we work
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with and they all understand that We
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make sure there's a safe working
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environment and we try to encourage all
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any manufacturers we work with whether
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it's submanufacturers vendors others to
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be environmentally conscious wherever
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possible And I should say that now in
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Asia especially in countries like China
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Vietnam and other places the environment
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has become a huge issue In fact if you
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go to China and you even come to Vietnam
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there's a lot of electric vehicles here
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electric vehicles more than probably you
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know in places like the United States
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The reason is because pollution is bad
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They understand the pollution is bad So
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the government cracks down on
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environmental issues because they know
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that this is a problem that they need to
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have to deal with You know ethical
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sourcing doesn't stop just at the
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factory gate We believe in contributing
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to community and wherever we can we try
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to contribute to the factory the
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community and work together with the
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factory through charitable and other
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type of organizations
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Ethical doesn't have to necessarily mean
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expensive and that's one of the things
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is but for us it means that a quality
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product and as I mentioned before that
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really most manufacturers need to have
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skilled people in their factories
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especially those that are dealing with
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medium to higher end and as I've said
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before and I'll repeat it again the main
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problem is when that happens with child
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or forced or other labor is where
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somebody's going in and saying to
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somebody you know that some a factory
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says "Well I can only produce this for
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let's say you know $3." And the then the
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company's saying "Well I can only buy it
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for $150." So you do whatever you need
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to do And then the factory gets greedy
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They get hungry They want to take the
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order Maybe it's a really large order
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And so then they resort to some
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unethical practices And I point this out
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because a lot of times these problems is
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on the buyer as well as the supplier In
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other words if the buyer is pressing the
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supplier for something which is
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unreasonable and just cannot be done and
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then the supplier gets greedy because
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they really want to have that business
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then they resort to unethical practices
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I've written a blog post on this and
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it's called what is ethical home decor
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manufacturing We'll put a link in the
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description You should we welcome you to
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be able to read this and to understand
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more about this Also understand that you
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know really when it comes to ethical or
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unethical or when we talk about things
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like child labor you know you can't
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really all the time just put the blame
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exactly on to the supplier because a lot
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of times as I mentioned before it could
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be the buyer making unreasonable demands
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And I say this because of the the fact
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that I have seen this myself in Asia or
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heard about this myself in Asia where
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somebody has put an you know a demand
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upon a supplier that they just couldn't
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do because it was just completely
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unreasonable but then they got greedy
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and said well look if I get slave or
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prison or child labor then I can be able
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to do it But if you're dealing like we
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are in medium to higher end we need to
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have skilled workers because of the fact
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that we do not want to have quality
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issues So we ensure that we have skilled
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workers in there can that do the quality
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of the product we require This is Anita
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from Global Trade Gal Thank you so much
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for listening We hope that this has
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given you a kind of a bit of a different
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perspective on you know ethical sourcing
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and some of the issues of maybe just the
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global supply chain itself If you've
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enjoyed this we hope that you'll
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