Ethical Trading

The term ethical trading refers broadly to a company taking responsibility for its social, environmental and financial impact on its supply chain. These sustainability impacts are likely to include business ethics, health and safety, sustainable production methods, animal welfare, biodiversity, human rights and labour conditions. For some, the term has a narrower definition, referring to the promotion of labour rights and decent working conditions within the supply chain.

Many companies create a set of ethical trading requirements or Codes of Conduct that apply not only to the company but also to its suppliers and subcontractors. Monitoring of adherence to Codes of Conduct is usually undertaken by internal mechanisms, as well as by third parties conducting independent audits.

In some instances, products attaining and maintaining ethical trading standards can achieve certification, such as Fair trade and Marine and Forest Stewardship Council labels, that help consumers to identify the more sustainable brands.