Business models create downward pressure on labour standards in global supply chains, says ETI
Author: Ethical Trading Initiative, Published on: 8 March 2019
"Business models and labour standards, making the connection", 4 March 2019
A report commissioned by ETI has investigated how business models are at the forefront of creating pressures on labour standards in global supply chains.
The Business Schools of King’s College London and the University of Warwick find that aggressive price competition and a reliance on supplier sourcing models drive deteriorating standards.
Meanwhile, the rise of fast and super-fast fashion compounds problems. As do ‘no-frills discounters’ in food retail.
Against this backdrop, the report recommends changes across the business spectrum – at shareholder, consumer, competition and production levels.
The report's recommendations include:
- Help for corporate members to review their business models and integrate commercial and ethical strategies.
- Support to supply chain partnerships to improve supplier-buyer relationships.
- Greater pre-competitive collaboration to address social issues.
- Help with improved industrial relations as the most important factor in advancing working conditions, including wages.