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Ethical Trading Initiative
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Ethical Trading Initiative
The Ethical Trading Initiative (ETI) is a UK-based independent body founded on 9 June 1998, which brings together companies, trade unions and non-governmental organisations (NGOs) to ensure compliance with international labour standards in the global supply chains of member companies. Minimum ethical standards are set out in the ETI Base Code.
The mid 1990s saw increased awareness of sweatshop working conditions for overseas garment and factory workers. This triggered calls for radical change regarding the ethics of employment overseas factories. As a reaction, companies created their own codes of conduct and set moral expectations for their supply chains. These set maximum working hours, minimum pay and codified the employees' freedom of association. Investigation had found that former companies’ codes of conduct were, in effect, futile as they inadvertently controlled the workforce further. Additionally, enforcement of these codes was through in-house or company-paid monitoring programmes. These were often described as "piecemeal" and "lacking credibility".
The subsequent formation of the ETI was backed therefore by NGOs, UK businesses, and the then UK Secretary of State for International Development, Clare Short. Acting independently from the companies, it could more credibly implement the code and provide protection for workers.
As of 2025[update], ETI membership includes 90 companies, employing 10 million workers globally within their supply chains. High-profile members include the BBC, Co-op, Fat Face and ASOS. The ETI relies on annual subscriptions from its member organisations. These formerly comprised a few, albeit large, companies (such as ASDA and The Body Shop). Companies may apply for membership regardless of their size or type of business.
The ETI is registered with Companies House as a company limited by guarantee, number 03578127. The current Executive Director of ETI is Giles Bolton. Bolton took over the role from Peter McAllister in 2024.
The ETI requires members to adopt and enforce the base code. This is expected to form the base for workers' conditions and rights.
The code includes the following principles:
The ETI admit that some of these points have better compliance than others, and work towards them is still required. This lies in the more subjective points. For example, working hours and no child labour are measurable and quantifiable aims, whereas freedom of association does not factor in the unmonitorable atmosphere and culture that may prevent someone from feeling free to join any such association. There is also difficulty in implementing the living wages point, due to factors outside of companies such as rising costs of housing, fuel and schooling that decrease the workers’ wages. There is also an economic theory that points out that by increasing the paid wage, in accordance to the perceived living wage can eventually decrease the ‘take home’ wage. This is because the pay increase means that the costs of goods will have to increase to cover the higher labour costs. Therefore the consumers (who include the ones making the goods) will have to pay more from their new ‘living wage’, decreasing how much they have left to live with.
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Ethical Trading Initiative
The Ethical Trading Initiative (ETI) is a UK-based independent body founded on 9 June 1998, which brings together companies, trade unions and non-governmental organisations (NGOs) to ensure compliance with international labour standards in the global supply chains of member companies. Minimum ethical standards are set out in the ETI Base Code.
The mid 1990s saw increased awareness of sweatshop working conditions for overseas garment and factory workers. This triggered calls for radical change regarding the ethics of employment overseas factories. As a reaction, companies created their own codes of conduct and set moral expectations for their supply chains. These set maximum working hours, minimum pay and codified the employees' freedom of association. Investigation had found that former companies’ codes of conduct were, in effect, futile as they inadvertently controlled the workforce further. Additionally, enforcement of these codes was through in-house or company-paid monitoring programmes. These were often described as "piecemeal" and "lacking credibility".
The subsequent formation of the ETI was backed therefore by NGOs, UK businesses, and the then UK Secretary of State for International Development, Clare Short. Acting independently from the companies, it could more credibly implement the code and provide protection for workers.
As of 2025[update], ETI membership includes 90 companies, employing 10 million workers globally within their supply chains. High-profile members include the BBC, Co-op, Fat Face and ASOS. The ETI relies on annual subscriptions from its member organisations. These formerly comprised a few, albeit large, companies (such as ASDA and The Body Shop). Companies may apply for membership regardless of their size or type of business.
The ETI is registered with Companies House as a company limited by guarantee, number 03578127. The current Executive Director of ETI is Giles Bolton. Bolton took over the role from Peter McAllister in 2024.
The ETI requires members to adopt and enforce the base code. This is expected to form the base for workers' conditions and rights.
The code includes the following principles:
The ETI admit that some of these points have better compliance than others, and work towards them is still required. This lies in the more subjective points. For example, working hours and no child labour are measurable and quantifiable aims, whereas freedom of association does not factor in the unmonitorable atmosphere and culture that may prevent someone from feeling free to join any such association. There is also difficulty in implementing the living wages point, due to factors outside of companies such as rising costs of housing, fuel and schooling that decrease the workers’ wages. There is also an economic theory that points out that by increasing the paid wage, in accordance to the perceived living wage can eventually decrease the ‘take home’ wage. This is because the pay increase means that the costs of goods will have to increase to cover the higher labour costs. Therefore the consumers (who include the ones making the goods) will have to pay more from their new ‘living wage’, decreasing how much they have left to live with.