Doing business ethically

In addition to the obvious legal and moral motivations to ensure compliance with various labour laws and regulations, there are also commercial incentives for taking a principled approach to business.

Ethics are in fashion

Recent research conducted by the MobiumGroup found the Australian consumer market for more sustainable — including ethically sourced — products and services reached $19 billion in 2009, and the market is expected to reach $27 billion by 2011. Trends in the UK, Europe and the USA would suggest that the Australian textile, clothing and footwear industry stands to capture a healthy slice of this market.

Australian brands are well placed to build a profile both locally and internationally as providers of not only quality, but also sustainable and ethical products. However, to do so, they must first ensure they are not supporting the type of sub-standard legal conditions that can tarnish a business’s reputation.

The need for transparency in the supply chain

Brands will often give work out to a number of makers that in turn pass work on to sub-contractors that are also likely to be passing some work on to other contractors or home-based workers. It does not take long before a brand can lose track of the various participants in its own supply chain and its garments can end up being made in illegal sweatshops or backyard workshops - even here in Australia - with machinists receiving as little as $3 or $4 an hour. Such situations can potentially be very damaging to a brand’s public image and consumer trust and can also result in poor quality management.

A support system exists

The good news is that a system to ensure ethical local manufacturing exists. It has the support of Government, unions, peak industry groups and individual businesses. Ethical Clothing Australia (previously known as the Homeworkers Code of Practice and the No Sweat Shop label) offers practical, hands-on and affordable assistance to provide your business with the peace of mind that can come from engaging in an independent third-party verification system.

By registering with Ethical Clothing Australia, textile, clothing and footwear businesses are committing to take practical steps to keep their Australian-based supply chains transparent and ensure that they and any sub-contractors are compliant with the relevant Australian laws.

Once this is the case, accredited brands are licensed to display the Ethical Clothing Australia trademark on their Australian-made products to provide consumers and buyers with a way to identify and support ethical Australian-made products.