80% of BSCI-Audited Factories Fail Working Hours Standards

In 2025, amfori reported that 80% of factories certified under its BSCI (Business Social Compliance Initiative) audit standard failed to comply with working hours requirements, revealing a systemic issue in global supply chain labor practices. This widespread non-compliance exposes brands and retailers to significant reputational damage and financial liability, as excessive overtime violations indicate inadequate factory monitoring and enforcement mechanisms. The data suggests that traditional audit-based compliance approaches may be insufficient to ensure meaningful labor standards adherence across global manufacturing networks.

For supply chain professionals, this finding underscores a critical operational and strategic vulnerability. Beyond the ethical imperatives, companies face tangible risks: regulatory scrutiny, consumer backlash, supply chain disruptions from workforce burnout, and potential sanctions from major retailers and stakeholders who demand transparent labor practices. The scale of the failure—affecting four-fifths of audited facilities—indicates that the problem is structural rather than isolated, pointing to systemic weaknesses in how factories are monitored, how audit standards are enforced, and how corrective action requests are implemented.

This development signals an urgent need for supply chain leaders to reassess their labor compliance frameworks. Real-time monitoring technologies, stronger supplier partnerships focused on root-cause resolution, and revised audit cadences may be necessary to bridge the gap between certification and actual practice. Organizations that proactively address these compliance gaps will reduce risk exposure and strengthen supplier relationships, while those that rely solely on periodic audits face mounting operational and reputational consequences.