Tackling Audit Fatigue: STAR's Position

What is 'Audit Fatigue'?

The issue of audit fatigue in the textile industry is a significant and multifaceted challenge that warrants closer examination.

In this mini article, the STAR Network revisits our recent white paper: "Addressing Audit Fatigue: Facts, Challenges, and a Call for Action".

Audit fatigue occurs when suppliers are subjected to repetitive audits by different clients and certification bodies, consuming significant financial and human resources. This issue is further compounded by standard fatigue, where suppliers must comply with varying standards set by different stakeholders, adding to the complexity and resource wastage. These challenges create unnecessary strain on manufacturers and workers, hindering the development of unified industry practices.

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STAR's Position Paper

The STAR Network includes 9 associations from 6 countries: Bangladesh, Cambodia, China, Myanmar, Pakistan, and Vietnam. Together, the network represents around 50% of the global textile export market, and its members are committed to promoting responsible production & consumption patterns. In this paper, we identified several key challenges in addressing audit fatigue.

With the recognition that Audit Fatigue poses as a major factor driving inefficiency and redundancy- STAR firmly believes that more dialogue and collaboration is needed.

To address this, we crafted a position paper that identified several key challenges in addressing audit fatigue and brainstormed on a viable solution.

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Challenges

Audits are important and necessary, but redundant audits are counterproductive. A major issue is the redundancy and inefficiency of current audit practices. These practices focus more on policing rather than creating collaboration, which leads to wasted resources that could be better spent on improving working conditions. Another challenge is fragmentation within the industry, where different brands and retailers maintain proprietary standards. This hinders the development of unified industry practices and creates additional burdens for suppliers.

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Mr. Miran Ali, Vice-President of the Bangladesh Garment Manufacturers and Exports Association (BGMEA), a member of STAR Network, shares his concern:

"The cost of repetitive audits, in terms of both financial resources and human toll, is enormous. Our analysis reveals a staggering annual expenditure that could instead be redirected towards genuine improvements in working conditions and labour practices. "

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MythBusters!

The paper challenges widely held beliefs that sustain the current audit-heavy compliance model in the garment industry. These narratives often justify duplicative audits that place unnecessary burdens on manufacturers. Here are the key myths debunked:

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Myth: Social audits are a means of brand differentiation.

• Reality: Compliance should not be a competitive advantage. Audits exist to ensure baseline standards, not to create unnecessary competition among brands.

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Myth: Audits do not cost retailers anything.

• Reality: While audits may not be a direct cost for buyers, the financial burden is ultimately passed down to manufacturers, adding pressure to already tight margins.

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Myth: Buyers are unwilling to take risks

• Reality: A collaborative approach to compliance—rather than excessive audits—offers better protection for all stakeholders.

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Myth: Audit companies will lose business

• Reality: Many auditing firms benefit financially from expanding their scope to Tier 2 and 3 suppliers. Streamlining is necessary.

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Myth: Manufacturers have no influence in the compliance process

• Reality: Manufacturers, as the backbone of the industry, are the most capable of driving meaningful improvements. However, their voices must be included in shaping compliance frameworks.

Our consensus

Reducing audit fatigue is not just a matter of efficiency, it’s about sustainability and fairness in global supply chains.

We urge stakeholders to collaborate to develop solutions that benefit both businesses and workers. Brands, retailers, governments, and certifying bodies are encouraged to join initiatives that promote mutual recognition of audits and adopt internationally recognized standards. Customers and consumers also play a crucial role by supporting fair trade initiatives and choosing products from brands that prioritize responsible production practices.