The truth is, efforts by the private sector cannot be a substitute for legal enforcement of labor laws, even though the private sector can try to help. Retailers encourage, or at least tolerate, violation of labor laws by their suppliers. The retail industry has taken a strong stand against violation of labor laws by our suppliers. The NRF Statement of Principles unequivocally states that suppliers must comply with local labor laws, and pledges cooperation with local officials to assist enforcement. Over 250 companies, including most of America's largest retailers, have signed the Statement.
Many retailers also have strong codes of conduct that apply to their suppliers.
These codes address such matters as wages, hours, and treatment of workers. Under the NRF's Statement of Principles, compliance with these provisions must be included in retailers' contracts with their suppliers, so that these labor standards become legally-binding contractual obligations of the suppliers. Many retailers have implemented elaborate systems for ensuring compliance with labor standards by their suppliers. There is no legal requirement to undertake this expensive and difficult task. Retailers do it because it is in their economic interest, and because it is the right thing to do.