ARTICLE
15 April 2019

How to do ethical fashion - What to include in your manufacturing contract

Include a list of ethical requirements in your contract and ensure that your manufacturers sign it to make it binding.
Australia Corporate/Commercial Law
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We've been talking about it for years, but finally it is becoming a thing: ethical fashion.  The State of Fashion Report 2019 states 'radical transparency' is one of the major consumer shifts affecting the industry.  To not address this issue will definitely hurt your brand. 

But where to start?  A good place is your manufacturing.  Here are our tips to ensure your manufacturers are part of the solution, not the problem:

  • Code of conduct:  Develop a list of requirements regarding the treatment of workers (living wage, no child labour, reasonable working hours, safe conditions, etc), animals (fur?), and the environment (think limiting water usage, chemicals and pollution, fabric wastage).  Then get your manufacturers to sign it and make it binding: a breach should give you a right to terminate.
     
  • Right to audit:  You should have the right to drop into their facilities without notice to ensure compliance with the contract.
     
  • Subcontracting:  Make sure there is no ability to subcontract without your consent.  It's one of the major transparency issues in supply chains.
     
  • Brand damage:  Give yourself a right to terminate if the manufacturer does anything which may cause damage to your brand.  Keep this broad – it's hard to predict where bad PR may come from.
     
  • Product substitution:  Like with subcontracting, ensure no product substitution is allowed... at all.  It will ensure the quality and the integrity of the finished product.
     
  • Don't allow the employment of slaves:   Bleedingly obvious, and there are even laws against it now.  See our update here.
     
  • Consider certifications:  Whilst there isn't a universally acknowledged certification system for ethical fashion just yet, you can look to certifications provided by organisations such as BCorp, Ethical Clothing Australia (if you manufacture in Oz), and Fairtrade to give you some cred.

Do the right thing and get this sorted. Get in touch if you need a hand.

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ARTICLE
15 April 2019

How to do ethical fashion - What to include in your manufacturing contract

Australia Corporate/Commercial Law

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