Ethical Denim Council aims to expose ‘exploitative practices’
The Ethical Denim Council (EDC) has issued a formal finding against EFT Capital, declaring the company guilty of unethical behaviour after it failed to honour an insurance claim from a supplier and refused to participate in arbitration proceedings.
The EDC found EFT in violation of several core ethical principles, including promise-keeping, fairness and accountability.
“This case reflects a disturbing trend we’re seeing in the industry, companies shirking responsibility and leaving suppliers to bear the financial and emotional burden alone,” said Sharmon Lebby, Project Manager of the EDC.
Founded in 2020 following research by the Transformers Foundation and the creation of the Eight Ethical Principles, the Ethical Denim Council is a non-profit entity committed to restoring ethical business practices in the denim supply chain. The Council brings together experts from law, academia and nonprofit sectors to evaluate cases of alleged misconduct and offer guidance to affected parties.
Ms Lebby told Inside Denim, when we asked what power the council has: “The power doesn't lie with EDC. The power lies in the collective voice of suppliers who are no longer willing to accept unfair conditions. The Council supports this by documenting, validating and amplifying those claims publicly.
“It’s about accountability, holding brands and buyers to standards of fair practice in the denim industry. For way too long, suppliers have been expected to absorb the consequences of exploitative buying practices, and the Ethical Denim Council provides a platform to challenge that imbalance.”
Legal recommendations have been made to the supplier. “This process isn’t just symbolic, it’s part of a broader effort to reclaim leverage and spotlight the harmful dynamics that suppliers have been expected to tolerate in silence,” she added.
