REPORTS ON THE ETI IMPACT ASSESSMENT 2006
The ETI code of labour practice: Do workers really benefit?

About this report

This report presents the main findings and recommendations from the second phase of the ETI Impact Assessment, during which the research team looked in detail at the impact of the ETI Base Code in selected supplier sites in five countries (India, Vietnam, UK, South Africa and Costa Rica) and three sub-sectors (garments, footwear and horticulture). It contains four chapters:

Chapter 1 outlines the aims and objectives of the impact assessment and provides a brief overview of how the study was conducted.

Chapter 2 presents the main areas of impact resulting from implementation of the ETI Base Code. It covers:

• impacts related to each of the nine principles of the Code, and other impacts at the worksite
• the key labour problems that are not yet being effectively addressed by code implementation
• differences in impact experienced by different types of worker
• impacts beyond the worksite, i.e. at household and community level and beyond.

Chapter 3 outlines the key factors that were found to affect impact. These include:

• differences in how companies implement their codes, and which implementation approaches appeared to work best
• nature and characteristics of the supply chain, and how these affected impact
• other factors that were found to affect the impact of code implementation.

Chapter 4 presents IDS's recommendations on how the impact of code implementation can be improved. It includes 15 general recommendations, each of which is broken down into specific recommendations for ETI, brands and retailers, suppliers, trade unions, NGOs, auditors and government.

An appendix summarises the key findings from the first phase of the study, which examined how and where ETI members were implementing codes of labour practice.

 

 

Detailed contents

• Contents
• Foreword
• Abbreviations

• 1 Introduction
  • 1.1 Overview of this report
  • 1.2 Codes of labour practice and the context of the study
  • 1.3 Objectives of the ETI Impact Assessment
  • 1.4 Overview of the Impact Assessment methodology
    • 1.4.1 The research process
    • 1.4.2 Four key components underlying the impact assessment
    • 1.4.3 Limitations of the study
• 2 What impact has the implementation of the ETI Base Code had?
  • 2.1 Summary of impacts by ETI Base Code principle
  • 2.2 Impact by Base Code principle
    • 2.2.1 Employment is freely chosen
    • 2.2.2 Freedom of association and the right to collective bargaining are respected
    • 2.2.3 Working conditions are safe and hygienic
    • 2.2.4 Child labour shall not be used
    • 2.2.5 Living wages are paid
    • 2.2.6 Working hours are not excessive
    • 2.2.7 No discrimination is practised
    • 2.2.8 Regular employment is provided
    • 2.2.9 No harsh or inhumane treatment is allowed
  • 2.3 Other worksite impacts
    • 2.3.1 General awareness of codes of labour practice
    • 2.3.2 Awareness and enforcement of national law
    • 2.3.3 Management-worker relations
  • 2.4 Key issues remaining at case study worksites
    • 2.4.1 Employment is freely chosen
    • 2.4.2 Freedom of association and the right to collective bargaining are respected
    • 2.4.3 Working conditions are safe and hygienic
    • 2.4.4 Child labour shall not be used
    • 2.4.5 Living wages are paid
    • 2.4.6 Working hours are not excessive
    • 2.4.7 No discrimination is practised
    • 2.4.8 Regular employment is provided
    • 2.4.9 No harsh or inhumane treatment is allowed
  • 2.5 Impact by type of worker
    • 2.5.1 Impacts by employment status
    • 2.5.2 Impacts by gender
    • 2.5.3 Impacts by ethnicity, religion and caste
  • 2.6 Wider impacts
    • 2.6.1 Household and community impacts
    • 2.6.2 Poverty impacts
    • 2.6.3 Impact on employment patterns
• 3 What affects impact?
  • 3.1 Introduction
  • 3.2 Key factors related to code implementation management approaches
    • 3.2.1 General
    • 3.2.2 Communication and learning
    • 3.2.3 Monitoring compliance
    • 3.2.4 Capacity building
    • 3.2.5 Integration with core business
  • 3.3 Key factors related to the value chain
    • 3.3.1 Structure of the value chain
    • 3.3.2 Buyer leverage
    • 3.3.3 Business strategies
    • 3.3.4 Supplier attitudes and professionalism
    • 3.3.5 Sector-specific pressures
  • 3.4 Other influences on change
    • 3.4.1 Political and regulatory context
    • 3.4.2 Social and cultural context
    • 3.4.3 Trade union organisation
    • 3.4.4 Civil society campaigns
    • 3.4.5 Other code initiatives
    • 3.4.6 International regimes
  • 3.5 China scoping study
• 4 How to improve impact - our recommendations and conclusions
  • 4.1 Summary of recommendations
  • 4.2 Recommendations in relation to workers
    • 4.2.1 Emphasise workers' rights in communications about codes
      Good practice example: Costa Rica - focus on workers' rights
    • 4.2.2 Ensure migrant workers are covered by codes of labour practice
      Good practice example: UK - Trade union strategies for organising migrant workers
    • 4.2.3 Ensure casual and contract workers are covered by codes of labour practice
      Good practice example: UK - 'Gangmaster' labour
  • 4.3 Recommendations on specific code provisions
    • 4.3.1 Increase focus on freedom of association for all workers
      Good practice examples: Trade union representation - examples from the UK and South Africa
    • 4.3.2 Increase focus on tackling discrimination based on gender and ethnicity
    • 4.3.3 Enhance payment of living wages
    • 4.3.4 Address overtime as a supply chain management issue
    • 4.3.5 Ensure young workers are not excluded through over-zealous code implementation
  • 4.4 Recommendations on supply chain management and code management approaches
    • 4.4.1 Address the challenges of code implementation in complex supply chains
      Good practice example: Long-term relationships with suppliers
    • 4.4.2. Enhance communication about codes in supply chains
      Good practice example: Company information for suppliers and workers
    • 4.4.3 Put greater emphasis on capacity building
      Good practice example: Supplier conference in South Africa
    • 4.4.4 Improve auditing practices
    • 4.4.5 Make ethical trade more central to core business practice
      Good practice example: Supplier perspective on codes in China
  • 4.5 Broader recommendations
    • 4.5.1 Shift focus of activity to sourcing countries
      Good practice example: Wine and Agricultural Ethical Trade Association (WIETA)
    • 4.5.2 Harmonise company codes and code initiatives
  • 4.6 Conclusions

• Appendix 1 - Key findings from the first phase of the study: how and where ETI member companies are implementing codes

 

 

Downloads

Download PART 1 (main findings and recommendations) in PDF format [PDF, 1.0Mb]

Clickable list of all reports in this series.

 

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This series of reports has been prepared by the Institute of Development Studies (IDS) and the views expressed do not necesarily represent the views of ETI or of its member organisations. IDS is responsible for the accuracy of information contained in the document and its recommendations have not necessarily been endorsed by ETI.

© Institute of Development Studies, University of Sussex, 2006

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See also:

A preliminary response by the Ethical Trading Initiative to IDS’ study (19 October 2006)

ETI Activities: Research projects: Impact assessment.

ETI Events: Conferences: Biennial conference 2005: Workshop - Assessing our impact

ETI Resources: Other resources: Impact assessment