With the publication of its 2024 State of the Denim Industry study, the Ethical Denim Council (EDC) is pleased to highlight the ongoing moral dilemmas and the necessity of structural change in the denim supply chain. Building on the results of the previous year, this extensive report broadens its scope to encompass the viewpoints of consumers, brand employees, and factory workers. It emphasizes important themes like buyer accountability, worker impact, awareness of purchasing practices, and cooperation for a more equitable industry.
Significant differences in awareness of purchasing habits are highlighted in the paper. Bangladeshi factory workers show a thorough comprehension of supplier requirements, but Pakistani workers’ awareness is still noticeably lower. Customers’ and brand workers’ differing perspectives on important topics like order cancellations and supplier duties highlight the need for supply chain education and increased openness.
Buyer accountability is one of the report’s main themes. Consumers, brand employees, and factory workers all agree that companies have to pay for losses brought on by order cancellations, delays, or adjustments. Employees in Pakistan and Bangladesh firmly believe that suppliers should be protected by enforceable compliance riders, which reflects the need for structural change to guarantee equity.
The significant effects of order cancellations and revisions on employees’ livelihoods, such as employment insecurity and income volatility, are clearly clarified in the report. Compared to their Pakistani colleagues, Bangladeshi workers show noticeably greater anxiety, indicating regional differences in the way these difficulties are encountered.
One important strategy for resolving these systemic problems is collaboration. The majority of factory workers support collective action, and customers appear to be favoring ethical companies more and more. The analysis highlights that all parties involved in the denim supply chain must work together to achieve real industry reform.
The Ethical Denim Council lays forth a clear course for bringing about significant change. Gaining approval for the Non-Cancellation Compliance Clause, which was created in partnership with the Responsible Contracting Project and attempts to shield suppliers from the financial instability brought on by order cancellations and modifications, is essential to this. While promoting long-term solutions, the EDC will remain an essential resource for suppliers managing unethical practices in the interim.
In the future, the EDC plans to host a conference that will unite participants from all points of the denim supply chain. Workshops and conversations centered on practical methods to combat unethical behavior and create a more equitable industry will be part of this cooperative event.
In order to address the most important issues facing the business, the 2024 State of the Denim business Report reiterates the necessity of openness, responsibility, and cooperation. The Ethical Denim
The Council will never waver in its commitment to promoting structural changes that guarantee a more sustainable and just future for everybody.
Download the full report here.