Editor’s Note
This article highlights ongoing ethical challenges in the global denim industry, as detailed in the 2024 State of the Denim Industry report by The Ethical Denim Council. It underscores the persistent issues of buyer accountability and unethical practices that continue to affect the sector.
A lack of buyer accountability and other unethical behavior persists in the global denim industry, according to the 2024 State of the Denim Industry report by The Ethical Denim Council (EDC).
The non-profit organization’s report builds on last year’s findings and expands its focus to include the perspectives and challenges of more than 1,500 factory workers in Pakistan and Bangladesh, 49 consumers and seven brand employees. All groups expressed strong support for ethical practices, but EDC found significant gaps in how these values are consistently applied to daily business operations.
The survey highlighted significant differences in awareness across the groups. Factory workers in Bangladesh demonstrated a high level of awareness, with 100 percent understanding of supplier requirements. In Pakistan, awareness was much lower, with nearly 58 percent of factory workers being unaware. Most workers in both countries believe brands should be held accountable for orders when the “go-ahead” has been given, but brand employees are split across the issue.
Cancellations are a cause of concern for factory workers. The survey found that 66 percent of workers in Bangladesh and 50.4 percent in Pakistan agreed that cancellations put workers at risk. Though these regional differences suggest that factors such as workplace conditions, economic pressures, or operational stability might shape how risks are perceived, EDC said supplier data suggests that these disruptions can lead to adverse outcomes for workers.
Factory workers would rally behind a universal rule to end unethical practices. The majority in Pakistan and Bangladesh believe the industry should unite to stop unfair buyer requests.
Brand employees view buyer requests differently. The survey found that most take pride in their company’s operations and expect a degree of flexibility from suppliers. The report states that 4 out of 6 brand employees believe their company expects suppliers to accept purchase order changes as part of normal business operations. EDC said the disparity between brand values and operational reality underscores the challenges in translating ethical ideals into concrete actions.
Consumers want to shop ethically. The survey found that 55.1 percent of consumers said it was extremely unlikely they would purchase from a fashion brand that uses unethical purchasing practices. However, the affordability of ethical and sustainable fashion continues to challenge consumers—even those who express a strong interest in ethical practices.
The report reveals gaps in information. The survey found that 71.4 percent of consumers are not aware of buying practices like cancellation policies, and 53.1 percent are not aware of brands and retailers’ rules of engagement with suppliers. However, 77.6 percent of consumers agreed that buyers should honor payment terms even for canceled orders.
EDC outlines how it plans to confront ethical challenges, beginning with gaining support for the Non-Cancellation Compliance Clause developed with the Responsible Contracting Project. The clause aims to protect suppliers from the financial instability caused by order cancellations and changes.
The council is also preparing for a conference for brands, suppliers, workers, advocates, and government officials to discuss actionable solutions and policies.