annual report 2002/2003 — harnessing difference
members’ perspectives

a supplier’s perspective

Suppliers have a great deal to contribute to ethical trade because of their close relationships with producers. However, taking ethical trading seriously offers suppliers no commercial advantage. This must change, starting with the companies at the top of the supply chain.

The perception of ethical trade in the market place needs to change. There needs to be greater buy-in from all relevant commercial actors, by ensuring that ethical trade principles are incorporated into core business activities. In particular, retailers and other sourcing companies need to make sure that commercial decisions, including pricing and choice of suppliers, take into account ethical sourcing considerations. Whatever the rhetoric about the ‘business case’ for ethical trade, today’s reality for suppliers is that taking ethical trading seriously offers us no commercial advantage. This must change.

Throughout the supply chain, suppliers who perform well in terms of labour practices need to be rewarded for their efforts. And this needs to start with those companies at the top of the supply chain who adopt the codes in the first instance, and who determine the final price of a product.

Going beyond audits

On the technical side, auditing is a critical first step towards trading ethically, but we also need to look beyond audits for their own sake. Sourcing companies need to remind themselves that auditing is only a means to an end, and that it is only one piece in the jigsaw of ethical sourcing.

In addition, we must improve the support we provide to producers, for example providing better technical advice and training, so that they are better placed to identify and resolve issues themselves. We have also found that linking our producers to local networks of relevant NGOs, trade unions and expert organisations can help them find locally appropriate solutions. This might be a slower process but is one we hope will bring greater changes that are sustainable.

What suppliers can offer

On our part, we need to ensure that our own management teams across different departments buy in to this vision, understand the issues and see ethical trade as part of our commercial operations. We believe we have much to contribute to making ethical trade a success. Most retailer members of ETI source a wide range of products across many different sectors. In contrast, many suppliers specialise in particular sectors, for example fresh produce, and as a result have strong relationships with their producers. This specialist sectoral knowledge and the strength of the relationships are critical for making ethical trade work.