What is the Ethical Trading Initiative (ETI)?

Updated

The Ethical Trading Initiative (ETI) is a tripartite alliance of global businesses, international trade unions and specialist NGOs working to advance human rights in global supply chains. It is relevant to you if your company sources internationally, if you are a trade union or NGO focused on labour rights, or if you need practical human rights due diligence (HRDD) support rather than a one-off audit.

What ETI is and how it is structured

ETI describes itself as "the leading alliance of businesses, NGOs and trade unions working together to advance human rights in global supply chains." Its distinguishing feature is the tripartite model: business influence is combined with worker and civil society expertise, rather than being a business-only membership body or a pure standards certifier.

Its stated purpose is "For human rights, for better business" — the proposition being that responsible practice and commercial resilience reinforce each other.

What ETI actually offers members

ETI lists six practical benefits of membership:

Benefit What it means in practice
Practical HRDD guidance Help embedding human rights due diligence across supply chains
Access to expertise Input from businesses, NGOs and trade unions worldwide
Collaboration Working with peers, NGOs and unions on shared business and human rights challenges
Crisis support Rapid expert guidance during urgent supply chain crises
Programmes Participation in targeted supply chain programmes on key issues
Safe-space advice Confidential, expert advice in a trusted environment

Two further elements matter for how ETI works:

  • The Base Code. ETI refers to its "globally recognised Base Code and practical tools" as the framework members apply, positioned as going "beyond compliance and consultancy fees."
  • The Corporate Transparency Framework. ETI company members are required to publish their Tier 1 suppliers, and ETI now also publishes members' performance against the full framework. This is a concrete accountability mechanism, not just a pledge.

Why companies join, according to ETI

ETI frames the case for membership around five points: credibility with investors, regulators and civil society; proven frameworks rather than paperwork; continuous improvement at your own pace with guidance, training and peer learning; collective influence on legislation; and resilience in the face of crises such as conflict or climate disruption.

The "at your own pace" framing is worth noting — ETI presents clear pathways backed by support, rather than a pass/fail certification.

Training and impact reporting

ETI runs training courses, including "Human rights essentials," aimed at building internal capability. It also publishes an impact account; for 2024–25 it reports work on human rights impacts across three areas: facilitating an enabling environment, driving progression and accountability, and collaborating for impact.

How to decide whether ETI is relevant to you

  • If you are a company with global suppliers and need a recognised framework, HRDD guidance, peer collaboration and crisis support, ETI's membership model is designed for that. The transparency requirement — publishing Tier 1 suppliers and performance against the framework — is a commitment to weigh before joining.
  • If you are a trade union or specialist NGO, ETI's value lies in the tripartite structure, which gives worker and civil society expertise a formal seat alongside business.
  • If you mainly need a certification label or a simple supplier audit, note that ETI positions itself against "paperwork" and compliance-only approaches; its model is continuous improvement through frameworks and support.

For current membership criteria, fees, the full Base Code and training schedules, check ethicaltrade.org directly, since these details sit behind ETI's own membership and programme pages.