Yeah, I get what they mean but it doesn’t work as written. They mean that it is “designed to fail as a measure to protect workers“

US and UK companies with foreign operations use audits to prevent worker abuse – but auditors say the checks aren’t working

I think they mean that they fail to accomplish their goal. But you’re not wrong in that it’s poorly worded.

And how can you fail at worker abuse? it’s the easiest thing, everybody’s doing it.