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Competing in a Flat World: Building Enterprises for a Borderless World by Yoram Wind, William K. Fung, Victor K. Fung

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4. Take Responsibility for the Whole Chain (Whether You Own It or Not)

How can companies take responsibility for factories that they do not own, particularly in a world in which human rights, environmental impact, and other areas of social responsibility are attracting more intense scrutiny? The answer is focusing on taking responsibility for the whole network and using rigorous compliance auditing, prevention, inspection, training, and other levers to achieve this goal.

About 70 minutes by high-speed ferry up the coast of China from Hong Kong, the city of Zhuhai has become a major manufacturing center. The Mun Li Garment Factory was started there by Jimmy Leung 15 years ago after the success of his first factory in Macau. His Zhuhai factory ...

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