Skip to main content
Home

Main menu

  • Home
  • Why ETI
    • Why join ETI
  • ETI Base Code
    • Base Code overview
    • Base Code clause 1: Employment is freely chosen
    • Base Code clause 2: Freedom of association
    • Base Code clause 3: Working conditions are safe and hygienic
    • Base Code clause 4: Child labour shall not be used
    • Base Code clause 5: Living wages are paid
    • Base Code clause 6: Working hours are not excessive
    • Base Code clause 7: No discrimination is practiced
    • Base Code clause 8: Regular employment is provided
    • Base Code clause 9: No harsh or inhumane treatment is allowed
  • Our approach
    • Membership
    • Programmes
    • Transparency
    • Meaningful stakeholder engagement (MSE)
  • Our expertise
    • Climate change & Just transitions
    • Crisis response
    • Gender equity in supply chains
    • Worker representation
    • Forced labour & modern slavery
    • Responsible purchasing practices
      • RPP in manufacturing
    • Human rights due diligence
      • HRDD legislation tracker
  • Resources
    • Guidance & reports
    • Blog
      • Blog series: Tackling gender-based violence through GRACE
    • Case studies
    • Training
    • Events
      • ETI Insights series
    • Impact report 2024-25
  • About ETI
    • Who we are
      • ETI's origins
    • What we do
    • Our members
      • Public reporting performance
    • Global presence
    • Governance
    • Our Strategy
    • Our team
      • ETI Board members

Breadcrumb

  1. Home
  2. faq

Our investors are increasingly asking about human rights in our supply chain. How should we be responding?

Investor scrutiny of human rights performance has moved well beyond a niche ESG concern. Institutional investors, asset managers and proxy advisors are now routinely asking companies to demonstrate not just that they have a human rights policy, but that they have a credible, operational process for identifying and addressing risks — and evidence that it's working.

The challenge is that the responses many companies currently give — a published policy, a supplier code of conduct, an annual Modern Slavery Act statement — are no longer sufficient. Sophisticated investors know what genuine human rights due diligence looks like, and they are increasingly able to distinguish between companies that are doing the work and those that are managing appearances.

ETI membership provides something that self-reported policies simply cannot: independent, multi-stakeholder validation that your approach is credible. Our tripartite structure — bringing together companies, trade unions and NGOs — means that ETI member status carries a form of external accountability that investors recognise and respect. It signals not just intent, but genuine engagement. When investors ask hard questions, ETI membership gives you answers that stand up to scrutiny.

Find out more about what ETI membership involves

FAQ subject
General

More frequently asked questions

  • A major customer has asked us to demonstrate our approach to human rights due diligence. What does 'good' look like to them?
  • How does ETI membership compare to hiring a consultancy to help us with human rights due diligence?
  • What training does ETI offer?
  • How does ETI hold its members accountable? 
  • What does ETI do?
  • Are ETI member companies ethical and responsible?

Get the latest

Subscribe to our email newsletters and stay up to speed on responsible business.
Subscribe

ETI elsewhere

  • Twitter
  • LinkedIn
  • YouTube

Footer

  • ETI Community
  • Accessibility
  • Contact
  • FAQ
  • Jobs at ETI
  • Press resources
  • Security & privacy
Other ETIs: Bangladesh, Denmark, Norway, Sweden
Ethical Trading Initiative | Registered No. 3578127