In a recent finding, compliance service provider AsiaInspection (AI) says that factory inspection results in Bangladesh improved gradually in 2014 as brands pushed for higher standards. The Acceptable Quality Level (AQL) inspection results in the country had improved through the year. It is likely due to the enormous pressure being applied on brands to demonstrate ethically compliant supply chains in Bangladesh following causing buyers to be more careful about selecting suppliers and push them to improve standards, AI said in its 2015 Q1 Barometer report.

Meanwhile, 5.6 per cent of ethical audits in Asia failed on child labour grounds, a slight increase, the company said. AI auditors continue to discover child labourers in factories. Tackling the issue is not easy for brands and retailers in supply chains that are increasingly complex and fragmented, but action can be taken to safeguard these children’s childhoods, said AI CEO Sebastien Breteau.

The main reason for failing ethical audits was health and safety, with India the worst offender, behind Bangladesh and China. Working hours and compensation was the second most common cause of failure, AI said. Changes in global manufacturing cost-competitiveness were likely to prompt buyers to target countries like Mexico in 2015, taking advantage of lower costs and proximity to markets, the company has said. The erosion of China’s estimated cost advantage would also give a potential boost to Asian rivals such as India and Indonesia.