Cladwell | 4 Ways To Know If A Company Is Ethical & Sustainable (2024)

Now that you’re creating your capsule wardrobe we know you want to fill it with clothes that won’t hurt the environment or the people who made them. We are totally with you on this one. But sometimes it’s hard to know if a company is really trying to make the world a better place or if they’re just really good at making it seem that way. Or perhaps you just want to know if you’re favorite brand is still ok to buy. Either way we have 4 tips to help you figure it out.

1. Fairtrade

One way to know that the clothes you are buying were made ethically is by Fairtrade certification. In addition to recognizing and upholding ILO standards (International Labor Organization) Fairtrade certified companies also have to comply with these factory standard requirements:

• “Fair Trade Premiums. Workers decide democratically how to allocate additional funds, whether to distribute a cash bonus or invest in a community need.”

• “Worker Voice. Workers receive training on their rights and have confidential channels to report grievances or complaints, both within and outside the facility.”

• “Women’s Rights. Standard has specific provisions to protect women’s rights, prevent sexual harassment, and promote equal pay.”

You should find the certification label on the product, or you can look up the producer/retailer/brand in their public database by typing in their name into the “free text” section. The database provides details such as the categories of GOTS certified clothing from that company, their fiber content and the link to their website. How helpful!

3. Self-Enforced Codes or Inspections on Trade & Environmental Issues

Most companies have a Code of Conduct or Code of Ethics available for their customers to read on their website. Again this is usually placed at the bottom of their home page next to or under their “About Us,” “Help” or other links. With some companies this information can be harder to find. So take some time to poke around. These codes of conduct typically explain the company’s standards on sustainability and human rights and what they are implementing in their company to meet these standards. Often times this involves inspections both internally and through third party audits.

When you are looking to see if a company is adhering to any codes or allowing inspections make sure that they are self-enforced. For example the California Transparency in Supply Chains Act is something many companies are forced to adhere to. However, the information provided about the steps companies are taking to put this act into practice is almost always vague and extremely non-descript.

A more convincing code to follow is something like The Bangladesh Accord on Fire and Building Safety. All the factories that signed the accord “are subject to independent inspections on fire, electrical and structural safety.”The accord’s website also has the plans for “corrective action” and reports of all the factory inspections. These companies voluntarily signed up to be inspected and held accountable for what happens in their factories,which is really cool of them.

The important thing to remember here is that the more detail of the ways a company is implementing the standards stated in their code or information on the reports from their inspections the better.

4. Transparency

One of the most important factors to know if a company is ethical and sustainable is their amount of transparency. Do they make it hard for their customers to find information about where they source their materials and who makes their clothes? Or are they proud of the way that they run their company? Do they encourage their customers to ask questions? Or are they vague about what they are doing behind the scenes.

Cladwell | 4 Ways To Know If A Company Is Ethical & Sustainable (2024)

FAQs

Cladwell | 4 Ways To Know If A Company Is Ethical & Sustainable? ›

Green certifications are the easiest way to identify sustainable brands. Measuring a company's eco-consciousness depends on many factors, including the ethical treatment of workers, waste management practices and responsible sourcing.

How to know if a company is sustainable or not? ›

Green certifications are the easiest way to identify sustainable brands. Measuring a company's eco-consciousness depends on many factors, including the ethical treatment of workers, waste management practices and responsible sourcing.

How to check if a company is ethical? ›

Criteria for ethical rating of companies
  1. Unfair working conditions, child labor, and slavery.
  2. Exploitation of the planet's resources; deforestation; pollution.
  3. Excessive greenhouse gas emissions and water usage.
  4. Use of harmful ingredients and materials.

How do you identify if a brand is sustainable? ›

How to really tell if a brand is sustainable
  1. Brand transparency.
  2. Brand accreditations and certifications.
  3. Research the company outside of their website.
  4. Avoid claims of perfection.
  5. Going beyond the business.

How do you know if a company is using environmentally friendly and ethical practices? ›

Certifications can help you tell if a brand is sustainable and ethical. These certifications measure a business' eco-consciousness against many factors, such as waste management, responsible sourcing, and ethical treatment of laborers.

How do you check a company's sustainability? ›

Many companies have a dedicated section that outlines their sustainability vision, strategy, policies, initiatives, and achievements. Additionally, check for annual reports, sustainability reports, or CSR reports, which offer more comprehensive details on sustainability performance.

What three criteria are most important when determining whether or not a company is sustainable? ›

Sustainability is an essential part of facing current and future global challenges, not only those related to the environment.

How do you evaluate if a company is ethical? ›

4 Ways To Know If A Company Is Ethical & Sustainable
  1. Fairtrade. One way to know that the clothes you are buying were made ethically is by Fairtrade certification. ...
  2. Global Organic Textile Standard. ...
  3. Self-Enforced Codes or Inspections on Trade & Environmental Issues. ...
  4. Transparency.
Jan 25, 2016

How do you ensure a company is ethical? ›

Here are our Top Tips for raising the bar and creating a more ethical workplace:
  1. Create a code. ...
  2. Engage with your employees and customers. ...
  3. Reinforce the benefits of the code. ...
  4. Be a good role model. ...
  5. Train your employees. ...
  6. Promote your ethical behaviour. ...
  7. Reward ethical behaviour. ...
  8. Learn from your mistakes.

How do you know if an organization is ethical? ›

How do we know when an organization is behaving ethically? Most lists of ethical organizational activities include the following criteria: Treating employees, customers, investors, and the public fairly. Holding every member personally accountable for his or her action.

How do you prove a company is sustainable? ›

How to Know If a Company Is Sustainable in Six Ways
  1. Driven By Purpose and Mission. The first step to knowing if a company is sustainable is looking at its mission and vision. ...
  2. Corporate Sustainability Initiatives. ...
  3. Sustainable or Ethical Certifications. ...
  4. Transparency. ...
  5. Use of Ethical Sources. ...
  6. Packaging.

How do you measure if a business is sustainable? ›

How to Measure Your Business's Sustainability
  1. Audit & Measure Your Business's Waste Streams.
  2. Audit & Measure Your Business's Energy Usage & Efficiency.
  3. Calculate Your Business's Carbon Footprint.
  4. Audit & Measure Your Business's Water Usage.
  5. Identify Inventory Waste.

How do you know if something is sustainable? ›

A product is usually considered sustainable if it: Doesn't deplete natural, nonrenewable resources: A sustainable product is made from renewable resources; in other words, resources that can't be fully depleted.

How to tell if a brand is ethical? ›

How do you know a clothing brand is ethical?
  1. Being an ethical clothing brand.
  2. How transparent is the brand?
  3. Are the clothes priced fairly and is the brand paying living wages?
  4. Does the brand show you who made their clothes?
  5. Is the brand using organic materials?
  6. Is the brand certified by a trusted third party?

How to tell if your business model is truly sustainable? ›

The business model does not sacrifice returns below what is competitive in the name of creat- ing environmental/societal benefits—nor does it seek returns to the detriment of stakeholders. This positions the company for better long-run risk-adjusted returns.

How do you check if a product is eco friendly? ›

Look for evidence to back up green claims. If a brand promises that it's using timber that's sustainably sourced from responsibly managed forests, check if it's been independently verified by a third party. Look for the logo of a reliable certification scheme, such as the FSC (Forestry Stewardship Council).

How can you say that a company is sustainable? ›

Sustainability in business refers to a company's strategy and actions to reduce adverse environmental and social impacts resulting from business operations in a particular market. An organization's sustainability practices are typically analyzed against environmental, social and governance (ESG) metrics.

How do you know if a product is sustainable or not? ›

How to recognize a sustainable product easily?
  1. Raw materials recycled and reused in products. ...
  2. Recyclability of materials used in products. ...
  3. Renewable materials in products. ...
  4. Tóxic free products. ...
  5. Use of non-petroleum based plastics in products.

How do you know if a business model is sustainable? ›

What makes a sustainable business model work?
  1. A sustainable business model is commercially profitable. ...
  2. A sustainable business model can succeed far into the future. ...
  3. A sustainable business model uses resources it can utilize for the long term. ...
  4. A sustainable business model gives back.

Top Articles
Latest Posts
Article information

Author: Duane Harber

Last Updated:

Views: 6153

Rating: 4 / 5 (71 voted)

Reviews: 94% of readers found this page helpful

Author information

Name: Duane Harber

Birthday: 1999-10-17

Address: Apt. 404 9899 Magnolia Roads, Port Royceville, ID 78186

Phone: +186911129794335

Job: Human Hospitality Planner

Hobby: Listening to music, Orienteering, Knapping, Dance, Mountain biking, Fishing, Pottery

Introduction: My name is Duane Harber, I am a modern, clever, handsome, fair, agreeable, inexpensive, beautiful person who loves writing and wants to share my knowledge and understanding with you.