Corporate members’ reports are assessed against a rigorous set of criteria and give us a unique insight into ethical trade practice and progress among some of the UK’s major players. This enables us to share learning and to encourage better practice, both of which are vital if we are to put ethical trade on fast-forward.

The reporting process

All member companies reported and were assessed against a common set of criteria which reflect their membership commitments. The criteria were broadly similar to those used last year, although our assessment this year relied less on ‘hard statistics’ and gave more attention to a qualitative analysis of the information provided, for example, the nature of corrective actions.

The criteria used were:

• the match between the company code and the ETI Base Code
• top management commitment to ethical trade
• human resources allocated to ethical trade
• communication within the company and supply base about ethical trade
• the extent and quality of the monitoring programme
• the ability to detect non-compliances
• the ability to implement corrective actions where non-compliances are found
• involvement in capacity-building activities with suppliers, and trade unions and NGOs in supplier countries
• progress made against last year’s targets
• participation in ETI projects and activities
• overall standard of the report.

Each reporting company was given detailed feedback on their performance relative to other member companies and to the targets set last year. For those companies considered to be performing less well, a follow-up meeting was arranged with a senior representative of the company to agree steps that need to be taken to improve performance, and identify ways in which ETI can support them in this process.

Transparency and accountability

This year, all companies except one shared their annual report with the rest of the membership including competitors, trade unions and NGOs. This represents a positive advance towards greater transparency and accountability, and has led to a higher level of internal debate, sharing of good practice and better understanding of the issues faced by our corporate members.

glossary

• Non-compliance - A failure to meet one or more of the principles of the ETI Base Code.
• Corrective action - Action taken to rectify a non-compliance.
   

Picture:
A smallholder meets with a development agency representative working with an ETI member company.