Ethical Denim Council shines spotlight on ‘unfair’ practices
Nonprofit organisation Ethical Denim Council (EDC) has published a report on the denim industry, revealing how purchasing practices impact the workforce downstream.
Report advisor Mark Anner said: “The EDC 2023 State of the Denim Supply Chain report clearly demonstrates that brand pricing and other purchasing practices often undermine our sustainability and worker well-being goals. The inclusion of a compliance rider to protect suppliers and their workers is a crucial step toward addressing this concerning trend.”
Born from the Transformers Foundation's 2020 report exposing unethical practices within the industry, the Ethical Denim Council emerged as a platform pushing for a fair and equitable denim industry. It aims to bridge the gap between purchasing practices and workers' compensation while dismantling power structures that favour brands and retailers.
EDC founder Andrew Olah said: “It's disheartening to observe that suppliers within the denim industry are not treated with the same commitment to compliance that is readily embraced when it comes to social compliance. Neglecting commercial compliance equally impacts the rights and security of workers. One would expect that brands, valuing their reputation, would seek to avoid the issues our poll has unfortunately uncovered."
The report, gleaned from a voluntary survey of players in the denim supply chain, highlights three areas that the authors deem most important:
1. Supply Chain Struggles: The denim supply chain is reeling from reduced production and lower costs. Even as consumers grapple with rising prices, the cost being paid to suppliers has dropped.
2. Fair Wages Disconnect: A disconnect emerges between purchasing practices and the pursuit of fair wages. Suppliers find themselves unable to raise wages or ensure equitable compensation when brands cancel orders and delay payments
3. Call for Compliance Clauses: Overwhelmingly, suppliers express a pressing need for compliance clauses within their contracts, offering them a vital safeguard against unethical behaviour.
Find out more on the EDC website.
Photo credit: EDC report
