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Supply Chains

The challenges of maintaining ethical supply chains are evident in the case of Shein, a company scrutinized for its labor practices. Scott Galloway highlights Shein's efforts to address these issues, noting their decision to sever ties with suppliers using forced labor 1. He acknowledges the company's commitment to improving its supply chain transparency, contrasting it with other fast fashion brands. Ed Elson remains skeptical, associating Shein with negative perceptions due to its Chinese supply chain origins 1.

I think it's on them to address that. And I think that starts with doing a very thorough audit of their supply chains, which they appear to be doing.

--- Ed Elson

Despite Shein's growth, Ed questions its moral viability, pointing out past child labor incidents that the company disclosed and rectified 2.

   

Food Safety

Food safety remains a critical concern for fast food giants like McDonald's, especially in light of recent E. coli outbreaks. Ed Elson discusses the typical investor reaction to such crises, noting that while these incidents are common, they can severely impact a company's reputation and financial performance 3. Scott Galloway adds that the real danger lies in the long-term health effects of fast food consumption, which often go unnoticed.

If you price McDonald's to its externality, specifically if you price beef to what it costs because of water, subsidized water, and the health externality, you know, a Big Mac would be 50 bucks.

--- Scott Galloway

The conversation also touches on Chipotle's past E. coli crisis, which, despite its severity, did not deter Scott's appreciation for the brand 4.