As part of the global drive to reduce emissions, brands are putting a huge amount of effort into environmental practices by making products more sustainable and using environmentally friendly materials. However, as Carmel Giblin, CEO and President, Ethical Supply Chain Program explains, companies need to be taking a similar approach to their workforce and why worker wellbeing in manufacturing should be a top priority.
Consumers are becoming increasingly aware of the impact of their purchasing decisions. They want to know where and how items are being made and are more likely to trust a brand which is open about its environmental and ethical practices.
This change has also been driven by new legislation. In the EU, for example, the Ecodesign for Sustainable Products Regulation has set a framework of requirements to improve the circularity, performance and makeup of products. The Packaging and Packaging Waste Regulation also aims to make all product packaging reusable or recyclable by 2030.
However, brands’ responsibilities extend beyond product sustainability. They also need to take care of the people involved in making these products. Too often the wellbeing of workers is overlooked during ESG conversations that focus on the environment.
If they want to act more responsibly, brands need to ensure they are respecting the rights of workers by ensuring safe working conditions and fair labour practices in production facilities. Aside from the moral issue, creating safer and happier workplaces also strengthens a business’s appeal as an employer and boosts its ability to attract talent.
Manufacturers are facing recruitment and retention challenges worldwide and it’s harder than ever to persuade young people to come and work on a production line. As a result, companies need to work hard to ensure that they provide an attractive working environment in factories.
A satisfied and engaged workforce is crucial for driving innovation and maintaining competitiveness. Manufacturers who prioritise the needs and wellbeing of their workforce experience lower turnover rates, reduced absenteeism and increased productivity.
Such an approach also promotes a positive corporate reputation and enhances customer loyalty. But what does it mean to be an ethical manufacturer – and how does this apply to the UK manufacturing industry?
Worker wellbeing in manufacturing: ethical responsibilities
Being an ethical manufacturer means making a commitment to produce goods in a way that respects both people and the planet, as well as adhering to local and international labour regulations.
In a factory setting, ethical manufacturers will not exploit their workers, will pay them fair wages and ensure safe working conditions. They may also implement policies that promote a positive family-work balance, such as offering enhanced parental leave and flexible working arrangements.
The UK already has robust regulations in place to help safeguard workers and ensure they are being treated fairly. The Employment Rights Act provides clear laws that employers must follow, covering issues such as unfair dismissal, pay and redundancy rights. Meanwhile, the Modern Slavery Act requires businesses to publish an annual statement, outlining the steps they are taking to prevent slavery in their supply chain.
Despite these regulations, stories continue to emerge in the media, particularly from the apparel sector, about how some workers are being mistreated. In 2024 for example, the BBC uncovered that more than 1,200 garment workers in Leicester had been illegally underpaid.
Thinking beyond borders
Achieving true supply chain transparency is hard work – but manufacturers can start this process by being selective about their partners and working with those who share a belief in high ethical standards.
Most factories will already have some form of audit or assessment in place related to labour standards. However, it is important that companies think beyond this – and consider how they can use the information they’ve gathered from audits to help factories make lasting changes. There is no point in gathering audit data if you do not act on it and support your supplier to address issues found.
Manufacturers should be supporting their suppliers to fix issues and setting achievable deadlines to implement relevant new policies that promote worker wellbeing. They also need to encourage a culture of collaboration and accountability, so that suppliers feel comfortable admitting their failings and well supported.
Identifying these cases becomes even more challenging when goods are sourced from third parties in different countries. While it should be possible to quickly identify and fix issues in a UK factory, the most egregious practices often happen further down the supply chain and therefore are harder to spot.
To make this work in practice, particularly in overseas factories, manufacturers may need the help of a specialist partner – who can provide on the ground support to deal with issues efficiently and impartially. Employees will feel more confident in raising their concerns with a third party – and these can be fed back to management as they arise.
As a not-for-profit, the role of the Ethical Supply Chain Program is to facilitate communication, certification and cooperation between manufacturers, suppliers, licensors and retailers worldwide. Its aim is to build a network with transparency at its core and enhance the lives of workers within global supply chains. As such, the program has introduced a range of initiatives that have made a positive impact on workers’ lives.
Making a positive impact
Globally factory workers are the backbone of production – but they are often forced to choose between their jobs and their families due to rigid schedules, location and inadequate childcare support. In China, the world’s largest manufacturer, this has led to an estimated 66 million ‘left behind children’, whose parents have migrated for work and left them in the care of other relatives or caregivers.
This was a main driver behind the Ethical Supply Chain Program’s creation of the Family-Friendly Factory Program in 2016. This encourages factories to implement policies that improve the physical and mental well-being of workers, typically focusing on time, finances and services.
Each Family-Friendly Factory looks slightly different based on the requirements of workers and their employers, but a typical support package might include establishing employer-funded childcare spaces or creating policies which offer parents benefits – such as enhanced parental leave.
Since its introduction, the program has positively impacted the lives of more than 32,000 children – with 93% of employees citing Family-Friendly Spaces as a reason to continue working in the factory. It has already opened 78 of these childcare spaces and is aiming to reach 100 worldwide by the end of 2025.
Open communication channels
It is also important that factory workers feel confident to ask questions about their employment contract or air any concerns they might have about workplace safety or well-being.
While there is no current legal requirement to put in place formal worker helplines in many countries, including the UK, the expectation for employers to provide effective grievance mechanism is growing. This is being driven by legislations such as the German Supply Chain Due Diligence Act and the United States’ Uyghur Forced Labor Prevention Act as well as future regulations such as the Corporate Sustainability Due Diligence Directive (CSDDD) and the Corporate Sustainability Reporting Directive (CSRD).
Offering a confidential grievance mechanism, handled by a third party, means that employees can have open and honest conversations without the fear of retribution. It also allows factories to quickly address issues before they escalate.
We set up our Worker Helpline in 2010 and since then over ten million workers have had access to it, with more than 24,000 cases handled – including over 1,000 in Vietnam. There have been a number of issues raised by employees through the helpline, including withheld wages, child labour, concerns about unsafe working conditions and labour disputes.
If manufacturers want to demonstrate to their customers that they are doing business responsibly, they must think about how they are looking after their people, as well as the planet. For UK-based businesses, this doesn’t just mean keeping up high employment standards in their factories at home – they should also be supporting partners in the wider supply chain to create better workplaces, including those they may be working with overseas.
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