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Ethics

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Bushra Burge

on 19 November 2014

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Transcript of Ethics

Ethics
Background
Background
Background
Background
Background
Company CSR Policies
Company CSR Policies
Charity Partnership
Environmental
Social Compliance
Social Compliance
Social Compliance
Fairtrade
Environmental
Environmental
Certification & Monitoring Systems
Certification & Monitoring Systems
Certification & Monitoring Systems
People Tree Example
M & S Example
M & S Example
People Tree Example
People Tree Example
Peopletree designer collaborations
M & S Example
Ethical clothing, excluding charity shop and second-hand sales:
£175 million est in 2010
£40 million in 2004/05.

Since 2006 : London Fashion Week has been hosting an ethical section Estethica.
RE : Fashion Awards. Green Carpet Challenge.

ABC1 women and the better educated are prime potential buyers here, with substantially higher levels of interest already.(Mintel 2009)
Still undeveloped market .. with plenty of potential.

Although tiny in relation to the whole [at less than 1%], major retail players including Marks & Spencer, H&M, Topshop, Sainsburys, Tesco and others are increasingly adding their own ethical ranges which will drive up sales exponentially.
Each year Arcadia Group donates garments to charities. In 2010-11, almost 60,000 garments were donated to charities such as Traid, Barnardo’s, BDF Newlife and the Salvation Army. Our employees also donate via our Workplace Giving scheme. With around 2,800 employees involved, this year they donated over £200,000.

FASHION FOOTPRINT CHARITY – TENDER HEART, INDIA
Tender Heart is a community of teachers and volunteers who provide care for children with special needs and offer vocational training and skills to local women and children. Arcadia has been working closely with the school since 2009 to provide for its needs and to draw up a long-term plan for the school’s ongoing success.

BHS supports NSPCC and Breast Cancer Care.
Burton supports British Armed Forces.
Dorothy Perkins supports Breast Cancer Care.
Evans supports Breakthrough Breast Cancer (BBC) and Dress for Success.
Miss Selfridge supports The Lavender Trust
Outfit selects one charity partner each year and over 2010-11 raised an outstanding £170,000 for the Rainbow Trust.
Topman supports Teenage Cancer Trust.
Topshop supports Age UK.
Wallis supports Great Ormond Street Hospital
Risky Countries
Fashion Production is labour intensive process.

In order to minimize the costs, the production of fashionis often located in countries where labour costs are low. Countries like China, India, Bangladesh, Pakistan and Turkey are main exporting countries.

Due to the development stage of these countries, worker rights are often poorly protected.
Social Compliance
Risky Countries
Countries which are part of the UN are obliged to follow certain human rights and labour laws but these are not always enforced by the country government.

The list of countries respecting international labour law

Norway, Germany, Estonia, Iceland, Greece, Lithuania, Australia, Singapore, Slovakia, Ireland, Slovenia, Uruguay, Sweden, Portugal, Latvia, Canada, France, Japan, Italy, Switzerland, United Kingdom, Netherlands, Finland, Luxembourg, Cyprus, Belgium, Czech Republic, Austria Barbados, Denmark, Malta, Spain, Hungary, New Zealand, Poland
ETI was constituted in 1998 and is a multi-stakeholder initiative with members representing brands, unions and NGOs. ETI is active in the garment and footwear industry but also in the food industry. About 50 companies have joined the ETI among which Chiquita, Gap, Inditex, Marks and Spencer, Sainsbury’s, Burberry, Tesco, Stella McCartney etc. http://www.ethicaltrade.org
BSCI is an initiative of the Foreign Trade Association (FTA). The initiative was started in 2003 and has about170 members among which Ahold, Claudia Sträter, Coop Switzerland, De Bijenkorf, Esprit, IC Companys,Migros, M&S, Otto, V&D and WE. Besides retailers and brands also importers and associations can become member of BSCI. BSCI is active in food and non food. http://www.bsci-intl.org/
FWF is an initiative of business associations, trade unions, and NGOs. FWF was founded in The Netherlands in1999. 58 companies in company wear, promotional wear and fashion joined the FWF. Well known members areGsus, Filippa K, Mammut, Mexx and McGregor. FWF is only active in the garment industry.
http://www.fairwear.org/
Certification & Monitoring Systems
SA8000 is a social standard drafted by Social Accountability International (SAI). SAI was founded in 1997.About 1800 facilities worldwide are SA8000 certified. 23% of the certified facilities are active in the garment andtextile industry. 77% is active in a wide variety of other industries and services.
http://www.sa-intl.org/index.cfm?fuseaction=Page.ViewPage&PageID=937
Certification & Monitoring Systems
Worldwide Responsible Accredited Production is the organization behind the already longer existing WRAP standard and the recently introduced Universal Code of Ethical Conduct (UCEC). Since 1998 about 600 facilities were WRAP certified.

http://www.wrapcompliance.org/
International Labour Organisation conventions. Factories are audited to see whether the conditions in these factories are compliant with international labour law.
http://www.ilo.org/global/lang--en/index.htm
Social Compliance
Intermediaries
Company's in house audit teams eg Gap.

Independent Auditors eg Bureau Veritas.

Labelling Organisations some of which organise auditting by using on the ground auditors eg MADE-BY.

Certification Bodies eg Fairtrade
Evaluation of Certification Bodies
http://www.fairtrade.org.uk/
“Fairtrade is a strategy for poverty alleviation and sustainable development. Its purpose is to create opportunities for producers and workers who have been economically disadvantaged or marginalized by the conventional trading system. If fair access to markets under better trade conditions would help them to overcome barriers to development, they can join Fairtrade.”
Fairtrade
http://www.fairtrade.org.uk/
Fairtrade Labelling was created in the Netherlands in the late 1980s. The Max Havelaar Foundation launched the first Fairtrade consumer guarantee label in 1988 on coffee sourced from Mexico.

UK, the Fairtrade Foundation was established in 1992. The FAIRTRADE Mark is a registered certification label for products sourced from producers in developing countries.
Fairtrade
http://www.fairtrade.org.uk/
The FAIRTRADE Mark is a registered certification label for products sourced from producers in developing countries.

For a product to display the FAIRTRADE Mark it must meet international Fairtrade standards which are set by the international certification body Fairtrade Labelling Organisations International(FLO).
Fairtrade
http://www.fairtrade.org.uk/
Over 440 companies sell products carrying the FAIRTRADE Mark.

Fairtrade usually refers to the cotton process e.g. Fairtrade cotton used in T-shirts rather than Fairtrade T-shirts.

In 2008 Marks & Spencer estimated it would use a third of the world’s supply of fair trade cotton to make 20 million garments, Tesco aimed to sell between 15 million and 20 million garments using the fibre and Sainsbury’s aimed to sell 3 million. However by 2010, all have struggled to meet those targets. (Drapers, 2010)
M & S Plan A

"We launched Plan A in January 2007, setting out 100 commitments to achieve in 5 years. We've now extended Plan A to 180 commitments to achieve by 2015, with the ultimate goal of becoming the world's most sustainable major retailer.Through Plan A we are working with our customers and our suppliers to combat climate change, reduce waste, use sustainable raw materials, trade ethically, and help our customers to lead healthier lifestyles. Explore our Plan A commitments for 2010 – 2015, and watch our Plan A film for 2012 here."

http://plana.marksandspencer.com/


- Fast Fashion requires shorter and shorter leadtimes which leads to factories down the chain promising they can deliver products within a time frame they can't, so at the last minute they subcontract to other factories which could be sweatshops which have not been audited by the overall brand.

- Sweatshops are work environments that possess three major characteristics—long hours, low pay, and unsafe or unhealthy working conditions. Sweatshops may also have policies that severely restrict workers' freedoms, including limiting bathroom breaks and even conversations with fellow workers. At its worst, violence is used

- that sweat-shop conditions can exist anywhere there is a vulnerable population, including inside the United States. In this case, immigrants and undocumented workers can be especially susceptible to sweatshop labor and practices

- They also claim that sweatshops often provide the best wages and working conditions available to workers in the developing world, who might otherwise be condemned to prostitution, begging, or subsistence farming.
Gap's rigorous social audit systems launched in 2004 to get rid of child labour.

It's policy : children being used by contractors to make its clothes that contractor must remove the child from the workplace, provide it with access to schooling and a wage, and guarantee the opportunity of work on reaching a legal working age.

In 2007 - found child labour within its subcontractors
International pressure groups such as the Clean Clothes Campaign (CCC) and trade unions such as the ITGLWF have highlighted major labour violations in garment factories including low wages, excessive working hours, lack of freedom of association, dangerous working conditions, physical and verbal harassment and child labour (Dickson et al 2009; Jenkins 2002).

This in turn has led to high profile boycott campaigns against retail giants such as Nike and GAP over conditions in supplier factories.
Monitoring and certifying instruments and codes have been developed to help brands, retailers and factories to improve the social conditions in sewing factories. The used instruments and codes vary in its content and in its way of implementation and verification.

Business Social Compliance Initiative (BSCI), the Ethical Trading Initiative(ETI), the Fair Labor Association (FLA), the Fair Wear Foundation (FWF), Social Accountability 8000 (SA8000)and Worldwide Responsible Apparel Production (WRAP).
Fibres
Cotton and polyester account for more than 80% of world clothing output – dominating because they were available in abundance and cheaply. A way to change your product offer is choose environmentally friendly raw materials (other than organic certified cotton).

Fibre could be for instance :
- Recycled
- Technical / durable
- From a closed loop process
- Use less fertiliser
- Use less water

The garment could use dying processes which recycle or clean the water or boycott other finished processes such as sandblasting on denim.
Environmental
Fibres
MADEBY worked with consultants to create a benchmark by looking at parameters which impact the process from crop to raw fibre and weighted these parameters. Green House Gas emissions, Eco Toxicity and Human Toxicity have been allocated a weight of 20% while the remaining parameters are given a weight of 13.33%

Parameters looked at
Green house gases (GHG) : Carbon dioxide equivalents
Human toxicity : Acute toxicity, Chronic toxicity, Reproductive hazard, Carcinogenicity
Eco-toxicity : Including Acute aquatic toxicity to fish
Energy input : Total energy use including feedstock
Water input
Land Input
Organic Cotton
Environmental
Organic Cotton
Environmental
Organic Cotton
Environmental
Organic Cotton
Environmental
Organic Cotton
Environmental
Better Cotton Initiative
Environmental

Carbon Footprint : A carbon footprint is an estimate of the climate change impact of activity – such as making a product, living a lifestyle or running a company.
Typically, a carbon footprint is calculated by estimating not just the CO2 emissions that the activity in question causes, but also any emissions of other greenhouse gases (such as methane and nitrous oxide) and in some cases other types of climate impacts as well, such as vapour trails from aeroplanes. For simplicity, all these impacts are added together and expressed as a single number in terms of carbon dioxide equivalent (CO2e): the amount of CO2 that would create the same amount of warming.

Zero Waste : Zero-waste fashion refers to items of clothing that generate little or no textile waste in their production.It can be divided into two general approaches. Pre-consumer zero-waste fashion eliminates waste during manufacture. Post-consumer zero-waste fashion generates clothing from post-consumer garments such as second-hand clothing, eliminating waste at what would normally be the end of the product use life of a garment.

FSC : The Forest Stewardship Council, or FSC, was established in 1993 to develop standards for responsible forest management - a credible global system to certify responsibly produced timber. The FSC operates a chain of custody certification system so that the source of timber can be traced back to its point of origin and forest management certification based on a set of global principles and criteria. Since its beginning more than 130 million hectares in more than 80 countries have been certified to FSC Forest Management standards. Globally, FSC-certified businesses sell several thousand products that carry the FSC trademark. The FSC is an independent, non-government and non-profit organisation in 46 countries including Australia.

Solar Power : Solar power is the conversion of sunlight into electricity, either directly using photovoltaics (PV), or indirectly using concentrated solar power (CSP). Concentrated solar power systems use lenses or mirrors and tracking systems to focus a large area of sunlight into a small beam. Photovoltaics convert light into electric current using the photoelectric effect.
Milk- available in branded yarns Milkofil and Qmilch. German biologist turned designer Anke Domaske has created a fabric entirely out of milk (no chemicals), which she uses in her fashion brand, Mademoiselle Chi Chi. Qmilch, a smooth, silk-like fabric, is made from 100% pure casein, obtained from spoiled milk and is said to be good for skin allergies.

Coffee grounds- Taiwan fibre manufacturer Singtex recycles post-consumer coffee grounds into a composite fibre to make yarn branded S Cafe.

Paper - Paper No 9 is a material made from recycled kraft paper to create faux leather,
ES Salmon Leather - is turning discarded salmon skins from the salmon farming industry into salmon leather.

Crabyon is a yarn produced from crab shells, which is antibacterial, and made into jersey underwear fabrics by Boselli.
http://www.classecohub.org/
http://www.bitc.org.uk/cr_index/results_and_ranking/company_ranking.html
Business In the Community

Developed in consultation with business leaders the first CR Index survey was launched in 2002. In addition to it being a public exercise in transparency the Index was created as a robust tool to help companies systematically measure, manage and integrate responsible business practice.

It takes the form of an online survey and companies follow a self-assessment process intended to help them identify both the strengths in their management and performance and gaps, where future progress can be made.

All submissions must be signed off at main board level to ensure director-level commitment to the veracity of the responses to the survey. The team at Business in the Community reviews submissions to ensure consistency and reliability, both between and within company submissions.
Corporate Responsibility can be defined as how companies address the social, environmental and economic impacts of their operations and so help to meet our sustainable development goals. BIS leads the Government's interest in Corporate Responsibility (CR), also referred to as Corporate Social Responsibility (CSR).

ISO 26000 - Social Responsibility
ISO 26000, from the International Organisation for Standardisation (ISO), covers voluntary guidance on social responsibility. It is intended to be a worldwide standard and is aimed at both public and private organisations.

The standard is being developed to be consistent with other relevant declarations and conventions from the United Nations and the International Labour Organisation (ILO). www.iso.org/sr

http://www.bis.gov.uk/policies/business-sectors/green-economy/sustainable-development/corporate-responsibility
World Fair Trade Organisation
http://www.fairtrade.org.uk/
The World Fair Trade Organization (WFTO) is the global representative body of over 450 members committed to 100% Fair Trade. The WFTO is the authentic voice of Fair Trade and a guardian of Fair Trade values.

The WFTO operates in 75 countries across 5 regions; Africa, Asia, Europe, Latin America, and North American and the Pacific Rim, with elected global and regional boards, to create market access through policy, advocacy, campaigning, marketing and monitoring. It is the only global network whose members represent the Fair Trade chain from production to sale.
Greenwashing

"Greenwashing," derived from the term "whitewashing," was coined by environmental activists to describe efforts by corporations to portray themselves as environmentally responsible in order to mask environmental wrongdoings. The term "greenwashing" was originally confined to describing misleading instances of environmental advertising, but as corporations' efforts to portray themselves as environmentally virtuous have diversified and proliferated, so have charges of greenwashing. The term is now used to refer to a wider range or corporate activities, including, but not limited to, certain instances of environmental reporting, event sponsorship, the distribution of educational materials, and the creation of "front groups." However, regardless of the strategy employed, the main objective of greenwashing is to give consumers and policy makers the impression that the company is taking the necessary steps to manage its ecological footprint.


Davis, J. (1992). Ethics and Environmental Marketing. Journal of Business Ethics, 11:2, pp. 81-87.
2.5% of all farmland worldwide is used to grow cotton, yet 10% of all chemical pesticides and 22% of insecticides are sprayed on cotton. 8 times more pesticide is used on one hectare of conventional cotton, than on other crops.

Problems include ..
- Environmental destruction - Pesticides
- Spiral of debt - borrowing money to buy Pesticides
- Health -Many chemicals used in cotton farming are acutely toxic
- Water Usage - Conventional cotton farming also uses vast amounts of precious water. The Aral Sea has almost disappeared as the - water courses that flowed into it have been diverted to grow ‘white gold' in Uzbekistan and Kazakhstan.
Background

Traceability systems aggregate data from the extended supply chain to create a new level of visibility or transparency. Ideally, they have the ability to monitor, measure, analyze, and improve Key Performance Indicators for trading partners across the chain.

They are tools for the collection and analysis of vast amounts of data either currently stored in disparate systems, or newly available through the network of sensors enabled by the Internet of Things (examples are computers in farm equipment and condition monitoring devices in conveyances).
Organic cotton provides the following benefits:

It's better for the farm environment. Organic fibres are grown without the use of synthetic fertilisers or toxic pesticides. By building soil fertility naturally through the use of compost and manure organic farmers help lock CO2 into the soil, helping mitigate climate change, and they also avoid the greenhouse gas emissions assoicated with energy intensive fossil-fuel based fertilisers. It also avoids the use of the toxic pesticides that, in non-organic systems, are responsible for poisoning wildlife and rivers, as well as killing an estimated 16,000 people each year.

It's better for workers in the developing world. By avoiding toxic pesticides cotton workers benefit by avoiding the associated health problems and deaths common in non-organic cotton production. Avoiding pesticides also reduces production costs and farmer debts – the burden of pesticide debt has resulted in thousands of suicides in the developing world.

It avoids GM. GM is banned in organic systems – an estimated 30% of all cotton grown worldwide is genetically modified.

It doesn't use harmful manufacturing chemicals. Our standards ensure that the chemicals used in processing textiles meet strict requirements on toxicity and biodegreadability, and textile manufactures must also have a waste water treatment plant and a sound environmental policy. Factory conditions are higher. Poor working conditions and rights in the garments industry are common place and well documented. Manufacturers of Soil Association certified organic textiles must meet social criteria based on the International Labour Organisation (ILO) conventions. These cover minimum wages, working hours, child labour, freedom of association, discrimination, harsh or inhumane treatment and more.

The end garments are residue free. By prohibiting and restricting harmful chemicals in organic textile production and processing, final products don’t contain allergenic, carcinogenic or toxic chemical residues from them. Tests on conventional clothing have revealed traces of pesticides, fire retardants, formaldehyde and toxic dyestuffs. These residues can be inhaled or absorbed through the skin and may cause allergies, skin rashes or respiratory problems.
Soil Association
The Soil Association was founded in 1946 by a group of farmers, scientists and nutritionists who observed a direct connection between farming practice and plant, animal, human and environmental health. SA can use GOTs certification methods.

GOTs
The Global Organic Textile Standard (GOTS) is recognised as the world's leading processing standard for textiles made from organic fibres. It defines high-level environmental criteria along the entire organic textiles supply chain and requires compliance with social criteria as well.
Sales of clothing made from organic cotton bucked the gloomy picture for organic products in 2011, rising in the UK by 2% against the year before while food and drink fell 3.7% in the same period.

H&M, top user of organic cotton worldwide and sportswear brand Nike 3rd largest user of organic cotton in the world. M&S said in 2011/12 it had sold over 8m garments from 'sustainable' cotton, which can include clothes made from either Fairtrade, organic or 'Better Cotton Initiative' cotton.

But smaller brands such as People Tree and Seasalt have been pioneers in sustainability, producing organic clothes which are fully certified throughout production and processing.

Leading designers Vivienne Westwood and Paul Smith have both produced certified organic T-shirts. (Drapers, 2011)
BCI exists to make global cotton production better for the people who produce it, better for the environment it grows in and better for the sector’s future. bci works with a diverse range of stakeholders to promote measurable and continuing improvements for the environment, farming communities and the economies of cotton-producing areas. bci aims to transform cotton production worldwide by developing better cotton as a sustainable mainstream commodity.

4 specific aims:

1- Reduce the environmental impact of cotton production
2- Improve livelihoods and economic development in cotton producing areas
3- Improve commitment to and flow of Better Cotton throughout supply chain
4- Ensure the credibility and sustainability of the Better Cotton Initiative

http://bettercotton.org/about-bci/
Environmental
Better Cotton Initiative
http://bettercotton.org/about-bci/bci-structure/members/
http://www.marksandspencer.com/MS-TV/b/311612031?intid=emtv_337_0_1677092086001
Waste
Cut back its non-glass packaging across food, clothing and homeware by an average of 26 %. The weight of glass used in food packaging has also been reduced, saving 1,100 tonnes a year. And clothing packaging has decreased by 46 per cent, including reductions achieved through hanger recycling.

Carbon emissions
Reduced Carbon output by changing offices and warehouses coupled with M&S offset projects - Kasigau, Saving the forestry and wildlife in Kenya- reducing emissions and preserving natural resources.

Natural Resources
- animal welfare, sustainable fishing, and farming.

Fair partner
– paying a fair price to suppliers, supporting local communities and ensuring good working conditions for everyone involved in their supply chains.

Health
- we have reduced salt, fat, and saturated fat levels across our food and will continue to make sure we are offering healthier alternatives through our Eat Well and Count on Us offers. We've also improved labelling to make it easier for our customers to eat well, and have trained 1,500 in store Health Advisors to provide customers with advice on healthy living.

http://www.marksandspencer.com/Greener-Living/b/344919031
Specific Campaigns
About People Tree

People Tree Limited, recognised by consumers and the fashion industry media as a pioneer in Fair Trade and environmentally sustainable fashion, has been selling Fair Trade fashion in the UK since 2001.

The business was founded by Safia and James Minney to provide customers with desirable fashion, whilst working to improve the lives and environment of the artisans and farmers in developing countries who work to make the products.
People Tree's Mission

To support producer partners’ efforts towards economic independence and control over their environment and to challenge the power structures that undermine their rights to a livelihood.

To protect the environment and use natural resources sustainably throughout our trading and to promote environmentally responsible lifestyles and environmental initiatives to create new models to promote sustainability.

To supply customers with good quality products, with friendly and efficient service and build awareness to empower consumers and producers
to participate in Fair Trade and environmentally sustainable solutions.

To provide a supportive environment to all stakeholders and promote dialogue and understanding between them.

To set an example to business and the government of a Fair Trade model of business based on partnership, people-centred values and sustainability
http://www.peopletree.co.uk/content/147/whats-different-with-fair-trade--swallows
Bora Aksu
Peter Jensen
Orla Kiely
Richard Nicoll
Eley Kishimoto

Celebrity Collaboration -
Emma Watson, Minnie Driver, Sienna Miller, Laura Bailey
Despite continuing double-digit growth in the retail market for organic cotton last year, new research has also revealed a massive 37% drop in production - even though retailers say they intend to expand their use of the fibre. Just-Style 2012
Fast Fashion, Subcontracting and Sweatshops
Fast Fashion, Subcontracting and Sweatshops - Gap
Fast Fashion, Subcontracting and Sweatshops - Traceability
Social Compliance
(FoA & CB : Freedom Of Association & Right To Collective Bargaining)
Certification & Monitoring Systems
Fair Labor Association (FLA)

FLA was set up in 1999 and represents a multi-stakeholder coalition of companies, universities and NGOs.There are currently 27 companies participating in the FLA.
e.g. Adidas, H&M (China22production only), Nike, Nordstrom, Liz Claiborne, Patagonia, Puma and Nike.
Besides companies also suppliers can commit to implementing the FLA standard.
Environmental
Alternative Fibres
M & S Example
Detox Campaign
The British retailer Marks & Spencer has joined Nike, adidas, Puma, G-Star, C&A, H&M, Li Ning, Levi Strauss and Jack Wolfskin in the commitment to eliminate all releases of hazardous chemicals from their supply chains and products by 2020, through joining the Detox Campaign initiated by Greenpeace last year.

Shwooping
Marks & Spencer wants customers to hand over an old or unwanted garment whenever they buy a new one, to encourage a phenomenon it has dubbed "shwopping" to reduce landfill.

It wants to kick-start a "buy one, give one" culture which could allow unwanted items to be resold, reused or recycled by its charity partner Oxfam.

But the move has sparked fears that smaller charity shops could miss out on donations, while there are question marks over the logistics of the retailer becoming a dumping ground for large quantities of unwanted clothing.
Donors handing old M&S clothing into Oxfam stores received a £5 M&S voucher.

Similar schemes have already been seen on the high street, with retailer TK Maxx and Cancer Research UK urging people to "Give up Clothes for Good" in a bid to raise in excess of £2.5m to help the charity beat children's cancer.

M&S has already created a coat made almost entirely from recycled wool and cashmere from damaged clothing returned to stores. The clothes are collected and sent to a specialist fabric maker, where they are reduced to fibre, cleaned and spun into wool to make the item.
Examples
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