Social Sustainability
Shadow Factory
An undeclared production site used to fulfil orders away from auditors' sight — the hidden tier where the worst labour violations occur.
Definition
A shadow factory is a production facility that manufactures goods for a brand or its suppliers without being declared or approved, typically used to absorb overflow orders, evade audit requirements or cut costs. Production routed through shadow factories escapes labour, safety and environmental oversight entirely; they are a primary location of the worst documented abuses — excessive hours, unsafe buildings, child labour — in apparel and other audited industries.
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