Behavioral Invisibility

Abstract

This chapter focuses on assessing data reliability, using data provided by AUDCO (a large auditing company) from more than forty thousand audits spanning seven-years across twelve countries and thirteen industries. It highlights China, which reports very high levels of unreliable audit information, and examines the role played by a “gray” actor — the audit consulting company (ACC) — in helping suppliers “pass” audits. ACCs provide a variety of services, including falsification of audit records. The chapter then considers how ACCs “advertise” their services and how they work, through a detailed analysis of an audit consultant's work logs, as well as an assessment of why ACCs may be so successful. The analysis suggests that getting a clear picture of what is really happening in a factory requires a nuanced understanding of the nature of the data that auditors examine. It points to the need for auditors to be better trained at spotting falsified data but also to triangulate with other data and information sources (perhaps from workers). Ultimately, the results show that the lack of reliable data provided to auditors is a major reason for the decoupling we see between private regulation practices and sustainable improvements in working conditions in global supply chains across multiple industries and countries.