Ethical TradingFair Trade is a buzzword these days, but what impact does it really have? As fair trade business models are around longer and grow in popularity, there is time to assess what positive impacts they actually have. The U.K.’s Ethical Trading Initiative is an alliance of organizations that work together to promote and support ethical codes of labor throughout the supply chain. Impacting the lives of more than 10 million workers every year, The Ethical Trading Initiative promotes giving a voice to local workers, transparent business practices and government intervention to protect workers’ rights. After 21 years of dedication to impoverished workers, people are able to measure the positive impacts of The Ethical Trading Initiative.

5 Positive Impacts of The Ethical Trading Initiative

  1. More Safety Regulations: One of the largest impacts has been on improving working conditions. This includes better training on emergency drills, improved fire safety and safer chemical use. Additionally, work environments have better hygienic standards as well as improved water and sanitation facilities. Changes in health and safety empower workers to feel safer at work and have better health, which improves their quality of life.
  2. Reasonable Working Hours: Overall, suppliers have reduced workers’ hours to be more reasonable although workers’ reactions to the reduced hours have been mixed. Those with families enjoy the extra free time while some single workers prefer to work (and thus earn) as much as possible. Additionally, workers are paid higher rates for overtime and earn double rates for working on Sundays. Ultimately, wages still need to be raised to combat the need to work as many hours as possible to support basic needs.
  3. A Reduction in Child Labor: Ethical codes and buyer pressure both aid in decreasing the employment of children. Specifically for children ages 16-17, an increase in checking age by official documents has contributed to lower rates in child employment. Poverty is the root cause of child labor. As ethical working conditions continue to improve, lifting more people out of poverty, child labor will continue to decrease.
  4. Worker & Manager Relations: Open, transparent dialogue between companies, managers and employees is key to establishing ethical working conditions. As a result of ethical labor codes, relations between management and workers continue to improve. On some sites, this has been the result of the establishment of workers’ committees that have improved communication practices. Establishing changes to increase communication and allow workers’ voices to be heard is foundational to deciding ethical labor codes.
  5. Physical and Social Well Being: As a result of all the previous improvements combined, workers’ physical and social well beings are increasing dramatically. Studies show that physical and social benefits are being felt by all workers and have effects not just in the workplace but also at home and on their long-term health. These improved and enforced ethical codes have a drastic impact on workers. Workers are less vulnerable to social problems resulting from income instability or health problems. This improves a worker’s ability to ultimately escape poverty.

In the face of increased demand for more products and faster production rates, the Ethical Trading Initiative helps raise awareness of ethical labor codes among managers. Ultimately, this awareness of codes pressures managers to adhere to more ethical practices. When companies take the time to think about the individuals behind every product produced as humans with rights, the ripple effects of change can begin. While there is still a lot of progress that needs to happen to empower impoverished workers globally, the positive impacts of the Ethical Trading Initiative continue to influence a consumer world that prioritizes human rights over profit.

Amy Dickens
Photo: Flickr