Ethics stand scores top marks

Australian fashion businesses have overwhelmingly supported a proposal to develop a new ethical labelling system designed to enhance consumer choice and drive competitive advantage.

The recommendation - one of 15 made in Professor Roy Green's wholesale review of the textiles, clothing and footwear sector (TCF) - would see the federal government pump $8 million into developing a mark that defined ethical and labour standards.

If adopted it would cover such things as working conditions and animal welfare together with environmental sustainability in TCF production and supply chains in Australian fashion businesses.

The initiative, to be undertaken in consultation with key TCF stakeholders, would be developed with the assistance of Standards Australia and would ensure Australian fashion firms were less exposed to competitor disadvantage than organisations whose business processes were based on "undercutting or ignoring such standards", the report noted.

While Australian initiatives such as the Homeworkers Code of Practice, the No Sweat Shop Label and the corporate-led Green Leader labelling initiatives had helped facilitate consumer choice, other countries have gone even further with Germany introducing plans for a "trademark for good business behaviour".

Support for the concept was unanimous among submitters responding to the recommendations made in Green's report with many identifying it as a way to push Australian fashion to the fore.

RMIT fashion lecturer Sue Thomas said the mark was of "vital benefit" to the industry, to readdress missed opportunities and set new standards.

"Rather than tag behind the world, we can use this opportunity to innovate and lead. Our proximity to Asia provides a rare opportunity to pioneer ethical industry behaviours collaboratively in the geographic area and potentially provide models of best practice."

In offering their support both Asian Woman at Work (AWAW) and Target said the complexities of implementing an accreditation and monitoring system that was credible would require significant time and resources.

For this reason any short term development of a comprehensive Ethical Quality Mark would be undermined by reports of "less than satisfactory activity by 'accredited' companies in their overseas production", AWAW stated.

FairWear New South Wales coordinator Amity Lynch said while her organisation supported the idea of a new labelling system, it had serious concerns regarding its implementation with there being "no silver bullet" solution to managing social compliance.

"Any kind of mark or labelling of ethical production can only have meaning and credibility through extensive supply chain monitoring and auditing. The [existing] Homeworkers Code of Practice compliance work is a great step forward in monitoring supply chains within Australia but we are a long way from having the means or the mechanisms for compliance checking in international supply chains."

No date had been confirmed for the tabling of the final report at the time of press.