Ethical Trading Initiative members’ reach consensus on ethical buying decisions

At a conference during London Fashion Week, retailers, brands, campaigners, trade unions and labour standards reached a broad consensus on five key ways that fashion retailers can make sure their buying decisions are ethical and help improve the conditions of workers in global supply chains. 

Chaired by Dan Rees of the Ethical Trading Initiative (ETI), agreement was reached on five key ways that fashion retailers can make sure their buying decisions are ethical.
Companies including Gap Inc. and New Look outlined their plans for improving the conditions of workers in their global supply chains, as well as integrating ethical trade into their buying practices.

The International Development minister Gareth Thomas this week called on the fashion industry to ‘raise its game and ensure that suppliers pay a living wage to its workers,’ adding: ‘There is a lack of information for consumers who want to know where products are sourced from.’

Rees observed that “it is critically important that companies start to integrate ethical criteria into buying practices. It’s good to see companies starting to tackle the major challenges involved, and to talk more openly about their experiences. Let’s have more of it”.
ETI’s five top tips for buying ethically:
•         Know your suppliers – cut out the middle man and where possible, develop long-term, direct relationships with your suppliers. This will help you build the trust and leverage you need to help make sustained improvements to workers’ conditions.
•         Incentivise your suppliers. Make sure compliance with labour standards is built into your contracts with your suppliers, so they know how serious you are. Reward them for their efforts with repeat orders.
•         Incentivise your buyers to ‘think worker’. Educate your buyers about the impact of their decisions on workers, and make sure they include ethical criteria alongside cost and quality when selecting suppliers.
•         Improve production planning. Deciding to change an entire line of t-shirts from pink to blue when production has already started can mean workers are forced to work excessive hours in their efforts to get orders out in time. Give suppliers clear and predictable lead times, making it easier for them to ensure their employees work predictable and reasonable hours.
•         Look at the price you pay your suppliers. At the very least, make sure that it allows your suppliers to pay their workers a wage that they can afford to live on.