Ethical trade is concerned with basic human, environmental and labour rights within the supply chain and it means that people at all points of the trade chain should take responsibility for the social and environmental impact of their business. It is demonstrated by implementing and adhering to management systems that promote various core principles recognised as essential in establishing and protecting the rights of workers in the work place.

 

 

Retailers in the north have, over the past couple of years, come under increasing pressure from consumer groups to monitor the social and environmental conditions under which goods they import are produced. In response to this many initiatives such as the Ethical Trading Initiative have emerged. The Ethical Trading Initiative (ETI), established in 1998, is an alliance of companies, trade unions and non-governmental organisations (NGOs) committed to working together to identify and promote good practice in the implementation of codes of labour standards thereby improving working conditions in global supply chains. The ETI is funded by member contributions and the UK Department for International Development. The ETI Base Code was negotiated and agreed by the members of the ETI and contains nine clauses which reflect international standards with respect to labour practice. ETI member companies are expected to adopt the Base Code, demonstrate implementation and develop ways to verify and monitor implementation. Ethical auditing has emerged as a means of assessing compliance of producers to the ETI Base Code.

 

 

South Africa has some of the most progressive labour laws in the world and its own legal requirements happen to be more stringent than those set out in the ETI Base Code. Ethical practice is assessed against the ETI Base Code and local legislation and the latter takes precedence over the ETI Base Code.