1. Prospect of Ethical
Purchasing in Asia
Prasad Modak
Chairman, GPNI
Image source - https://www.zoobarcelona.cat/en/know-the-zoo/where-the-animals-live/asia/

2. What is Ethical Purchasing?
Ethical purchasing
promotes good labour
and environmental
standards in supply
chains
Image source - http://threadfair.wordpress.com/category/sweatshop-free/

3. ‘The assumption of responsibility of a company for the labour
and human rights practices in its supply chain’.
Source - http://www.ethicaltrade.org/

4. Ethical Trading Initiative Base Code
o Employment is freely
chosen
o Freedom of association
and the right to collective
bargaining are respected
o Working conditions are
safe and hygienic
o Child labour shall not be
used
Image source - http://theaidworker.com/?p=110
Image source - http://www.theguardian.com/society/2008/dec/08/nhs-
instruments-child-labour

5. Ethical Trading Initiative Base Code
o Regular employment is provided
o No harsh or inhumane treatment
is allowed
o Living wages are paid
o Working hours are not
excessive
o No discrimination is
practised
Source - http://rhodiesworld.com/5-ways-to-live-and-not-merely-exist/

6. FAIRTRADE Certification
o A product certification system that
allows people to identify products
that meet agreed environmental,
labour, and developmental
standards.
o Overseen by a standard-setting body,
Fairtrade International (FLO), and a
certification body, FLO-CERT.

7. FAIRTRADE Standards
Source - http://www.fairtrade.net/standards.html

8. Products Certified by FAIRTRADE
Source - http://www.fairtrade.net/products.html

10. Relevance of Ethical
Purchasing in Asia

11. Source: http://www.cbc.ca/news2/interactives/timeline-bangladesh/

12. Children employed in a
workshop manufacturing
surgical instruments
for export.
Sialkot, Pakistan.
© International Labour Organization/
Crozet M.

13. Worker and
Fire Safety
Low Wages
Child Labour

14. Prospects of Ethical
Purchasing in Asia

15. Members of Ethical
Trading Initiative
Brands purchased
in Asian Countries

16. Source - http://www.thebodyshop.in/

18. Vodafone Code of Ethical Purchasing
o Designed to promote safe and fair
working conditions and the
responsible management of
environmental and social issues in
Vodafone’s supply chain.
Image Source -
https://www.vodafone.com.mt/supplychain

19. Application of the Code
o Suppliers are asked to confirm (in writing) that
they are implementing the Code, or similar
purchasing standard such as:
– Electronics Industry Code of Conduct (EICC)
– Ethical Trading Initiative (ETI) Base Code
– Social Accountability International’s SA 8000
– Chartered Institute of Purchasing and Supply Ethical
Business Practices in Purchasing and Supply

20. Code of Ethical Purchasing
1. Child Labour
2. Forced Labour
3. Health & Safety
& Wellbeing
4. Freedom of Association 5. Discrimination
6. Disciplinary Practices
8. Payment
7. Working Hours
10. Environment
9. Individual Conduct

21. Arcadia Ethical Sourcing
o Arcadia group - UK's largest
fashion retailer
o Do not own or operate
factories and have a
network of international
suppliers
o Goods sourcing - top five
countries are China, Turkey,
Romania, Mauritius and
India
Source - https://www.arcadiagroup.co.uk/fashionfootprint/our-products/Ethical%20Trading

22. Arcadia Ethical Sourcing
o Ethical trading:
– Ethical Audit Programme
– Country Risk Assessments
– RAGS - the Responsible and Accountable Garment
Sector Project
– Joint Turkey Project
– Strategic Labour Priorities
– Code of Conduct Guidebook
– Management Systems
– Sumangali
– Prohibited Activities
Source - https://www.arcadiagroup.co.uk/fashionfootprint/our-products/Ethical%20Trading

23. Arcadia Ethical Sourcing
o Code of Conduct applies to the supplier,
manufacturer or any other person involved in
supplying goods to the companies
o Code based on International Labour Organisation
(ILO) conventions and recommendations
o Code of Conduct Guidebook extends practical
guidance to suppliers and factories on how to
improve labour standards based on their Code
Source - https://www.arcadiagroup.co.uk/fashionfootprint/our-products/Ethical%20Trading

24. Arcadia Code of Conduct
o Employment is freely chosen
o Freedom of association and the right to
collective bargaining are respected
o Working conditions are safe and hygienic
o Child labour shall not be used
o Living wages are paid
o Working hours are not excessive
o No discrimination is practiced
o Regular employment is provided
o No harsh or inhumane treatment is allowed
Source - https://www.arcadiagroup.co.uk/fashionfootprint/our-products/Ethical%20Trading

25. Deepa grows cotton on a Fairtrade certified
farm in Gujarat, India. Sourcing Fairtrade
cotton healthcare textiles is one way of
demonstrating sustainability and can improve
the lives of small-scale cotton farmers.
© Simon Rawles
India
Agrocel Pure & Fair Cotton
Growers’ Association formed in
2005 with the guidance of the Agri-
Service Division of Agrocel Industries
Ltd
Aims to improve the livelihoods of
small-scale and marginalised Indian
farmers by enabling them to
participate in organic and
Fairtrade production and by
marketing with added value
their production of cotton, rice, nuts
and other crops
Project in 5 States - Gujarat,
Tamil Nadu, Andhra Pradesh, Orissa,
and Karnataka

26. LI & FUNG LTD
Hong Kong-headquartered
multinational group
Source - http://www.lifung.com/eng/company/

27. Environment
Community Engagement
Human Rights
Source - http://www.lifung.com/eng/company/

28. The Ruia Group is one of the fastest growing
multinational industrial conglomerates headquartered
in India.
A member of Ethical Trading Initiative.
Source - http://www.ruiagroup.co.in/

29. Study conducted as part of the annual Ethical Shopping
Survey by MasterCard both online and offline in 25 countries
within Asia/Pacific, Middle East and Africa between 5
December 2011 and 6 February 2012

30. Asia/ Pacific region - interviews with 7,373 respondents
from 14 markets, with 500 consumers in Hong Kong, were
asked questions about their ethical shopping habits.
Consumers in Thailand, Philippines, Vietnam, Indonesia
and China have a greater willingness to pay more for items
that are environmentally friendly, observe fair trade
principles, or where a percentage of the item’s cost is
donated to a good cause, as compared to their
counterparts in New Zealand, Australia and Japan.

31. Hong Kong Consumers Continue to Embrace Ethical Shopping:
MasterCard Survey Hong Kong, 7 May 2012
Willingness to pay more for products that are:
o environmentally friendly (56%)
o observe fair trade principles (51%)
o where a percentage of the item is donated to a good cause (49%)
Women and those aged between 18 and 24 more likely to make
ethical purchases.
Respondents between ages 50 - 64 are more willing to buy
from merchants known for partnering with and donating to
charities.
Retail outlets preferred over online purchase – 60%

32. Concluding Remarks

33. Micro-Small-Medium Enterprises in most Asian nations
Unorganized sectors
Absence of enabling regulatory and governance framework
for environmental issues, health & safety of workers

34. There is a market and purchasing practice for environmental
friendly and fair trade practices goods.
Ethical Purchasing in Asia will go a long way in improving
environment and working conditions.
Large brands sourcing from Asia should extend their
international practices to these countries which will boost local
practices
“Fostering a socially and environmentally
sound approach to doing business also
makes good business sense, as our experience
is that driving improvements in these areas
enhances performance across the board”.

35. THANK YOU