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Audit

Checking working conditions against a set of standards, at a particular workplace at one moment in time.

Business initiative

A business-led initiative to monitor working conditions in the factories producing for its members, without the involvement of other players such as trade unions and human rights organisations.

Business Social Compliance Initiative (BSCI)

The BSCI is  a business-led initiative that monitors working conditions in the supply chain of its member companies. It is criticized by the CCC because workers and their representatives  are not involved in the process and because the companies involved do not take responsibility for improvements but transfer that responsibility on to suppliers. See also: http://www.cleanclothes.org/ftp/bsci_check.pdf

Clean Clothes Campaign (CCC)

The Clean Clothes Campaign is an international NGO active in twelve European countries. Each national platform has members which include trade unions, consumer organisations, campaign groups and charities. Through links established with partners in producer countries, the CCC aims to supports garment workers all over the world in their efforts to improve working conditions. The CCC does this by educating consumers, lobbying companies and governments, raising public awareness and encouraging international solidarity.

Code of conduct

A statement, usually by a retailer or brand, of the way it expects suppliers to act, in particular regarding workers’ rights throughout its supply chain.

Corporate Social Responsibility (CSR)

Efforts voluntarily made by companies  to reduce their negative impact or generate a positive impact on society. The adoption of a code of conduct and its implementation are part of a CSR program.

Corrective Action Plan

When a brand or retailer conducts an audit at a factory which shows that the company’s code of conduct is not respected, a Corrective Action Plan should be drawn up stating how - and within what timeframe - the problems identified will be solved.

Ethical Trading Initiative (ETI)

A UK-based multi-stakeholder initiative. Company members include  Asda, Next and Gap. Company members are committed to working towards achieving the standards of the ETI base code and report annually  on what they have done to achieve that. Best practice is developed and shared through working groups and publications, for instance on issues such as Purchasing Practices . See also http://www.ethicaltrade.org

Fair Labor Association (FLA)

A US-based multi-stakeholder initiative. Member companies include  Nike, adidas and H&M. The FLA accredits other organisations which then serve as "independent external monitors", investigating whether company members respect the FLA code in their supply chains. This takes the form of factory inspections and the filing of reports, which are published on their website.

Fair Wear Foundation (FWF)

A Netherlands--based multi-stakeholder initiative now expanding across Europe. The FWF  has its own auditing teams and does not use commercial auditors. It focuses on involving workers, trade unions and human rights organisations in putting the code into practice . See also http://www.fairwear.nl

Global Reporting Initiative (GRI)

The Global Reporting Initiative (GRI) has developed a widely-used system for companies to report on their performance in terms of social and environmental sustainability. This framework sets out principles and indicators that organizations can use to measure and report progress. See also http://www.globalreporting.org

International Labour Organisation (ILO)

A United Nations agency that formulates internationally-recognised standards for working conditions and helps to put them into practice. It is governed through a “tripartite” structure in which governments, trade unions and business have equal representation.

ILO conventions

A set of internationally-recognised standards for decent working conditions, which countries that have joined the ILO are bound to implement through national legislation. Companies’ voluntary codes of conduct are often based on (some of) these ILO conventions.

Informal work

An increasing number of workers in the garment industry have informal work arrangements. This can mean that they work in non-registered workplaces or from their own home or it may mean that they work in a factory that keeps part of its workforce “off the books.”

Living wage

A living wage is a wage that is sufficient to meet the basic needs of workers and their dependents and to provide for some discretionary income. Living wages have been included as a code requirement because in many countries the legal minimum wage is not enough for a decent living.´

Monitoring (of compliance)

The internal process by which a company measures actual working conditions at its suppliers against its code of conduct. Monitoring can include audits, that are often performed by external (commercial) auditing firms.

Multi-stakeholder Initiative (MSI)

An organisation bringing together companies, NGOs and trades unions. Some, like the European Fair Wear Foundation, act as independent verifiers of working conditions; others, like the British Ethical Trading Initiative (ETI) function as a forum within which to develop and  exchange best practice.

Purchasing Practices

The phrase "purchasing practices" refers to the way in which brands and retailers trade with suppliers. Some of these practices, especially the prices offered and how long suppliers are given to deliver an order, can make it difficult to provide decent working conditions in the workplace.

SA8000

SA8000 is a certificate developed by Social Accountability International. Under this system, it is the factory owner who applies for SA8000 certification and who is  responsible for financing it.

Social Accountability International (SAI)

Social Accountability International (SAI) accredits (commercial) audit organisations to see whether a workplace meets its SA8000 standards.

Stakeholder

Those who have an interest of any kind in the production process of garments, i.e. brands and retailers, workers and the organisations that represent them, suppliers, NGOs and consumers.

Supply chain

All phases involved in the production of a garment, from the production of cotton to sewing the garment together to selling it in the shops. The CCC focuses on garment manufacture, including work done from home by homeworkers.

Verification

Verification is about checking the claims made by companies concerning actual working conditions  or the implementation of their codes of conduct. It must be performed by organizations or individuals that are independent of the company or organizations whose claims are being verified (for instance the claims of sourcing companies, suppliers, trade or industry associations).