It is crucial that companies continue to recognise the importance of ethical trading even in the midst of an economic downturn, senior corporate responsibility and union officials have warned.
That was the clear message from last week’s tenth anniversary conference of the Ethical Trading Initiative (ETI), which carried out a survey of its corporate members showing that retailers did not rate the credit crunch as a top three factor in blocking progress in ethical trade. Instead, they cited lack of action by developing country governments, buyer impact and a lack of capacity on the ground as the three major barriers.
ETI chair Alan Roberts said: “With crisis comes change, and change brings opportunity. Our agenda today has never been more relevant to the world in which we live. Workers in the supply chain will feel [the economic crisis] hardest, so it is a time to be decisive and speak clearly for the workers.”
Ebrahim Patel, deputy chair of the International Labour Organisation, urged delegates to ensure the current global context strengthens, rather than weakens, their commitment to social justice. “This crisis could wipe out a decade of progress,” he said. “But if anything, the storm clouds of crisis and recession should energise the drive to end poverty.”
George Jaksch, senior director of corporate responsibility and public affairs for multinational banana firm Chiquita Brands International, used his own company as an example of the importance of ethical trade. “In 2002, Chiquita stared into the abyss of bankruptcy,” he said. “But our ceo insisted our corporate social responsibility efforts should not stop. Looking back, it was the right decision.
“We are justifiably concerned with our situation today, but we should not forget that most people worldwide can only dream of decent wages. In truth we are only at the end of the beginning - only a fraction of the supply chain has been touched by our efforts.”
Jaksch urged companies committed to ethical trading to sustain and complete their efforts despite the financial climate, and called for thousands more companies to come to the table.
Jon Wragg, merchandise planning director at Asda, said: “Despite economic pressure on consumers and retailers offering basic and value products to help hard-working British families, it is important to us as a business that we retain our ethical values even through these tough times.”
Speakers also called for governments to play a stronger role in protecting workers’ rights, with voluntary efforts not enough on their own to implement change on a large scale.
Patel added: “The lesson we have learnt from this crisis is that urgent, purposeful action by governments is possible. If they can bring answers to the financial crisis, why not to the social crisis too?”
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