A report into the impact of voluntary ethical codes commissioned by the Ethical Trading Initiative shows that ETI members have achieved improvements to worker conditions but also points out that in some cases buyer pressure is forcing supply companies to cut corners.
ETI director Dan Rees said: “ETI member companies are clearly making a very real difference to the lives of poor workers and their families, and on a large scale - last year the scope of our members’ ethical trade activities reached at least three million workers.
“But many fundamental issues remain to be addressed. Notably, migrant and casual workers have so far achieved little benefit from ethical trade.”
Dr Stephanie Barrientos of the Institute of Development Studies, Sussex, which was commissioned by ETI to carry out the research into its members’ activities, said: “There have been some improvements for workers in global supply chains, but significant challenges remain. Collaboration between companies, along with trade unions and non- governmental organisations, can have greater positive impact on working conditions than companies acting alone. ETI provides an important forum for this”
Rees welcomed the institute’s report, noting that common company purchasing practices, including lower prices for suppliers, are constraining suppliers’ ability to comply with their codes, often forcing them to reduce wages and cut corners in health and safety to satisfy buyers’ demands.
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