The modern social compliance movement emerged from public scrutiny, worker advocacy, and growing demands for accountability in global supply chains. Over the past 25 years, it has evolved from reactive responses to high-profile scandals into a structured system of standards, legislation, and continuous improvement. Created as part of the industry’s early response to these challenges, Worldwide Responsible Accredited Production (WRAP) has grown into a global leader—continually refining its standards while remaining committed to promoting lawful, humane, and ethical manufacturing.
Public Scrutiny and Industry Response
The late 1990s marked a turning point for the apparel industry. In 1996, the National Labor Committee alleged that Kathie Lee Gifford–branded apparel was produced in Honduran “sweatshops.” Allegations of child labor, forced labor, poverty wages, and harsh working conditions quickly captured the attention of U.S. media and lawmakers. For the first time, labor conditions deep within global supply chains became a mainstream public issue.
In response, U.S. President Bill Clinton convened the Apparel Industry Partnership in 1997, bringing together brands, manufacturers, labor groups, and NGOs. This effort led to the creation of the Fair Labor Association, focused on training, monitoring, and workplace improvement. At the same time, manufacturers recognized the need for a factory-focused solution. In 1998, the American Apparel Manufacturers Association (AAMA) formed a social compliance committee, emphasizing practical implementation at the facility level.
WRAP’s Formation: A Facility-Focused Model
That same year, what would become WRAP conducted its first audit at a Jockey facility in Costa Rica. In 1999, the AAMA committee recommended establishing an independent nonprofit dedicated to compliance through certification rather than buyer enforcement.
WRAP was incorporated on January 7, 2000, and from the outset, it was designed to be independent, global, and manufacturer-focused—distinct from buyer-led compliance programs. That year also saw the formation of the American Apparel & Footwear Association, reflecting broader industry alignment around responsible sourcing.
As global supply chains expanded, WRAP strengthened its on-the-ground presence with the opening of its offices in Hong Kong in 2009 and Dhaka in 2011, expanding support in key manufacturing regions across Asia and South Asia.
Regulation, Tragedy, and Industry Change
The 2010s reshaped social compliance through regulation and crisis. The passing of the California Transparency in Supply Chains Act signaled a shift toward mandatory disclosure. In 2013, the Rana Plaza collapse in Bangladesh killed more than 1,100 garment workers, prompting global reform efforts. The Accord on Fire and Building Safety in Bangladesh was signed, and the Alliance for Bangladesh Worker Safety was formed. WRAP participated directly in these initiatives, reinforcing its leadership in spearheading industry-wide solutions. The UK Modern Slavery Act followed in 2015, expanding expectations for human rights due diligence.
Adapting to a Changing Compliance Landscape
As compliance grew more complex, WRAP continued to evolve. In 2019, WRAP revised Principles 11 (Customs Compliance) and 12 (Security) to align with U.S. Customs-Trade Partnership Against Terrorism standards, reflecting the growing link between labor compliance, trade security, and enforcement.
The COVID-19 pandemic in 2020 disrupted traditional audits. In response, WRAP introduced Alternative Desktop Assessments, ensuring continuity of oversight while global travel was suspended.
The 2020s marked a decisive shift from voluntary compliance to mandatory regulation. The U.S. Uyghur Forced Labor Prevention Act (2021) transformed expectations around traceability. Canada followed with its Forced Labour and Child Labour Act in 2023, and in 2024 the European Union adopted the Corporate Sustainability Due Diligence Directive (CSDDD) and Corporate Sustainability Reporting Directive (CSRD).
Looking Ahead
From its origins in the late 1990s to today’s era of mandatory due diligence, social compliance has fundamentally transformed. For 25 years, WRAP has evolved alongside the movement for higher standards around ethical manufacturing, remaining independent, globally engaged, and grounded in local realities. As expectations continue to rise, WRAP is well positioned to remain a trusted partner for facilities, brands, regulators, and consumers worldwide.
