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 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 to check if a company is 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 do you determine whether an organization is ethical or not? ›

An ethical business demonstrates respect for its employees by valuing opinions and treating each employee as an equal. The business shows respect for its customers by listening to feedback and assessing needs. An ethical business respects its vendors, paying on time and utilizing fair buying practices.

How to know if a brand is really sustainable? ›

Check Their Transparency

Sustainable brands don't hide behind a smokescreen. They're open about where they get their stuff, how they make it, and who's involved. If a brand is transparent about its supply chain and practices, that's a promising sign.

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 evaluate a company's sustainability? ›

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 to find out how ethical a brand is? ›

The biggest indicator of whether a clothing brand is truly ethical or not can be seen in how transparent the brand is. Have a look at their website and their social media channels - does the brand disclose where the clothes are being made? Are any factory names disclosed? Is all of this information readily available?

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 company is unethical? ›

There are four key things to look at when assessing if a company is unethical or not: Its commitment to the environment. How it treats workers and its human rights record. Its policies regarding animals.

How to research if a company is ethical? ›

You can look at news articles, reports, and reviews from various sources to get a comprehensive understanding of the company. Many companies have a code of ethics that outlines their values, policies, and standards of conduct.

What are the 7 principles of business ethics? ›

The seven business ethics principles are accountability, care and respect, honesty, healthy competition, loyalty and respect for commitment, information, respect for rule of law.

How to determine if a company is sustainable? ›

Sustainable companies are transparent and consistent with their mission and purpose. You can often read about their core values and ethical standing on their official website's “About Us” page. You can also look at the company's official social media accounts to see if they are consistent in their commitment.

What qualifies a brand as sustainable? ›

Defining sustainable brands encompasses a comprehensive commitment to environmental stewardship, fair trade practices, and a holistic approach that permeates every aspect of a brand's identity.

How do I make sure my business is sustainable? ›

5 tips on achieving business sustainability
  1. People make the difference. ...
  2. It's about more than just CO2 savings. ...
  3. Work with suppliers and customers for mutual benefit. ...
  4. Manage the risks of climate change – and grab the opportunities. ...
  5. Share success.

How do you know if something is ethically sourced? ›

A product is considered ethically made when its production process adheres to ethical standards, such as ensuring good working conditions, fair wages, environmental commitment, and cruelty-free practices.

Is there an app that tells you how ethical a brand is? ›

The Good On You app gives you the power to easily check the impact of your favourite fashion brands on the issues you care about. Use the app to discover better alternatives, learn more about ethical fashion shopping, and get exclusive offers from the best brands.

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