page_title: Ethical trade
section_title: Criticism
hierarchical_section_title: Ethical trade / Criticism
caption_attribution_description: Justin Madut tends his groundnut and sorghum fields in Warrap State. South Sudan has considerable agricultural potential, but a lack of infrastructure – such as roads and storage facilities – and ongoing insecurity has limited production. Many markets are almost empty of fruit and vegetables, and rely heavily on imports and food aid. Oxfam is supporting small-scale farmers like Justin by providing a variety of seeds, tools and equipment to help increase the amount and quality of crops they are able to grow. Photo: Abdullah Ampilan/Oxfam Find out more at oxf.am/oYS
context_page_description: The term "ethical trade" first gained currency in the mid-1990s, where it was used as a term for socially responsible sourcing. Ethical trade addresses the ethical aspects of organisations including worker welfare, agricultural practice, natural resource conservation, and sustainability of the environment. Since then, numerous multinational organisations have adopted ethical trade policies by outsourcing to auditing companies to monitor the conditions of workers in their supply chains. The leading alliance of these companies, trade unions and non-governmental organisations is the Ethical Trading Initiative. to support business
context_section_description: In 2006, findings published by the Institute of Development Studies at Sussex University showed that the ETI base code, signed by some of Britain's leading companies, failed to prevent the exploitation of workers in their supply chains. British and foreign workers employed by companies such as Marks & Spencer, Tesco, Gap Inc. and Sainsbury's were treated harshly by their employees, remained on low incomes, and had no union representation. The authors of the study stated that "in general codes had almost no impact in terms of ensuring workers receive a living wage" and urged British retailers to "take responsibility for ensuring prices paid to suppliers are sufficient to cover labour costs based on a living wage." Therefore, raising questions on whether ethical trade has had any impact on the conditions of workers in disadvantaged areas.
  However, the Institute of Development Studies also concluded that there have been some major improvements for workers. Neil Kearney, General Secretary of the International, Textile, Garment and Leather Workers’ Federation, stated that progress had been made "particularly with regard to the issues of health and safety and child labour." In Vietnam, local communities have benefited from improvements to health and safety as well as reductions in working hours. Improvements have also been made particularly in regards to fire safety, medical services, and infrastructure. In South Africa two farms implemented a policy on ethical treatment due to the ETI base code, but major improvements are still yet to be made in regards to child labour, trade unions, and communication between farms and organisations.
caption: Oxfam supports small-scale farmers by providing a variety of seeds, tools and equipment to help increase the amount and quality of crops they are able to grow
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