MIT Sloan Management Review Article on Four Myths About Unauthorized Subcontracting

It has never been more important for a brand to know who, exactly, is making its products.

A case in point: A summer 2020 Sunday Times investigation revealed that during the COVID-19 pandemic, workers making clothes for “ultrafast” fashion brand Boohoo toiled for less than minimum wage in cramped conditions, with lax safety measures in place.1 Though Boohoo claimed that the factory was not a direct supplier, it lost more than 1.5 billion euros ($2 billion U.S.) in market value in the immediate aftermath of the Times report.

About the Author

Felipe Caro is a professor of decisions, operations, and technology management at the UCLA Anderson School of Management.

Leonard Lane is a senior lecturer of strategy at the University of California, Irvine’s Paul Merage School of Business.

Anna Sáez de Tejada Cuenca (@annasdtc) is an assistant professor of production, technology, and operations management at IESE Business School.

Learn more about MIT SMR.