Field research by Students and Scholars against Corporate Misbehavior (SACOM) shows that Wal-Mart – China’s eighth largest trading partner – consistently fails to catch and stop serious labor violations in its Chinese supplier factories, despite recent reforms to its monitoring system. Indeed, the working conditions in WalMart’s Chinese supplier factories are increasingly falling below the International Labor Organization’s defined minimum standard for socially acceptable work.

Interviews conducted between June 2005 and December 2006 with eighty-two workers at five Wal-Mart toy supplier factories in the industrial zones of Shenzhen and Zhuhai in Guangdong province uncovered widespread illegal and unethical labor practices that previously [...]