The Ethical Denim Council (EDC) found a buyer guilty of breaching several of its Eight Ethical Principles, a code of conduct regarding B2B purchasing practices for all members of the jeans and denim supply chain.
It was the volunteer watchdog group’s first hearing.
An independent council deliberated on the dispute between an anonymous denim mill, referenced as “John Denim Mill,” and the buyer, who sourced denim fabric from the supplier. John Denim Mill alleged that the buyer engaged in a series of unethical demands that ultimately led to the cancellation of orders, with 100,000 meters of fabric left unclaimed.
Despite initial agreements and concessions made by the supplier, EDC said the buyer continued to press for lower prices and delayed shipments, ultimately ceasing communication and leaving John Denim Mill with unsold stock.
A diverse panel of experts from NGOs, business consulting, communications and the legal field oversaw the hearing. “The council’s unanimous decision highlighted a significant breach in honesty, transparency, and fairness, rejecting the buyer’s justification that market changes necessitated renegotiations,” the council stated.
Council hearings are only held if issues cannot be resolved through arbitration. The EDC will release a report on the hearing in June.
The EDC was established in 2022 by Andrew Olah, CEO of Olah Inc. and founder of Kingpins Show and Transformers Foundation, as a platform to address and correct the imbalance of power within the denim supply chain. industry.
By holding parties accountable and promoting ethical purchasing practices, the EDC aims to promote more equitable relationships between brands and suppliers. The EDC’s eight ethical principles include honesty and transparency, empathy, trustworthiness, loyalty, fairness, reputation and morale, accountability and respect.
