How to transform the industry? ACT Leads the Accountability Debate since 2017

As accountability becomes a focal point in discussions across the global garments, textiles, and footwear industry, ACT (Action, Collaboration, Transformation) joins the debate with a call for meaningful, transformative change. 

Since 2017, ACT has pioneered industry advancements by conducting the most comprehensive surveys of the sector, championing Purchasing Practices Commitments, and establishing a robust Accountability and Monitoring Framework. 

With its proven track record as a frontrunner in the field, ACT emphasises the need for actionable solutions and systemic transformation. 

This ongoing debate must strive for the highest possible standard. Please read our statement on the public consultation on a draft Accountability Framework for Responsible Purchasing Practices (AFRPP) here:

ACT (Action, Collaboration, Transformation) was invited to a public consultation process by Ethical Trade Initiative, a member of the Common Framework for Responsible Purchasing Practices (CFRPP), to provide feedback on a draft Accountability Framework for Responsible Purchasing Practices (AFRPP). 

ACT welcomes the efforts by the CFRPP to find common ground on accountability. For ACT, accountability on purchasing practices is key to sustainable industry transformation and an important prerequisite for improved working conditions and wages for workers in the supply chain. Establishing trust through responsible purchasing practices and creating strong relationships with suppliers and manufacturers is crucial to the ACT approach. ACT offers its expertise in the area to further develop the AFRPP. The sections below provide a brief overview of what ACT believes are the key aspects of an effective accountability framework.

Summary: While the draft AFRPP brings together draft reporting standards and guidance on measuring progress on implementing responsible purchasing practices, it does not present a clear and coherent framework on accountability. Attempting to develop an accountability framework would require commitments instead of voluntary measures, systematic monitoring instead of self-monitoring, and enforceable accountability mechanisms based on stakeholder partnership. These key levers are currently missing in the draft AFRPP.

Implementation of responsible purchasing practices requires commitments, systematic monitoring and enforceable accountability mechanisms

Efforts to set a new industry standard on purchasing practices accountability need to go beyond industry alignment and a broad consensus on a lowest common denominator and should strive for the highest possible standard. ACT members have worked to establish a holistic and comprehensive accountability framework since 2017, on the recognition that this is critical to drive systematic improvements and deliver true accountability.

The ACT A&M Framework is based on the shared understanding that measuring and reporting on progress alone is insufficient to achieve meaningful progress and build trust. Achieving a trusted and credible accountability framework requires strong commitments, measurable indicators and an enforcement mechanism beyond self-monitoring. 

Since the ACT’s A&M Framework approval in 2019, ACT has systematically assessed members’ progress towards agreed targets based on firm commitments which brand members made to IndustriALL Global Union – a mechanism that holds brands accountable on their progress towards the implementation of their commitments. The framework is based on surveys on Purchasing Practices collecting on a structured self-assessment of brands’ teams involved in the purchasing process on the one hand and gathering supplier assessment of each brands’ purchasing practices – in the last iteration in 2023 reaching more than 1,400 suppliers. And crucially, brands and IndustriALL Global Union have agreed on a dispute resolution mechanism. Accountability is best achieved not through unilateral, one-sided programmes but broader structures which allow external partners to hold brands and retailers accountable, on the basis of credible information. 

Positive change requires more than stand-alone improvements in purchasing practicesResponsible purchasing practices can significantly contribute to improving the outcome of wage-setting mechanisms, compliance with national and international standards on working hours, promote sustainable supply chains, and are important within the context of international and local competition.

However, working on purchasing practices should not be a standalone effort because there are no shortcuts to meaningful industry transformation. ACT participants therefore firmly believe that collective bargaining, backed by responsible purchasing practices and the continuous respect of freedom of association, represents the most effective, sustainable and reliable approach to achieving improvements in wages and working conditions. Alongside supporting sound supply chain industrial relations, purchasing practices are key enablers for creating positive change.

Industry transformation requires continuous and significant improvements in accountability

Realising industry transformation requires continuous improvements and strengthened accountability, delivering the transformative potential of purchasing practices requires a move away from voluntary self-monitoring structures towards binding brand and union agreements, which can impose accountability.

ACT members are working at a global and country level on a shift towards Memorandum of Understandings and binding agreements tailored to meet the priorities of the national social partners. Setting a new standard in supply chain industrial relations, these agreements foster sustainable structural transformation and support for sound industrial relations. This approach adopts a win-win strategy,  fostering in-country outcomes, aiming to meet investor and human rights due diligence expectations and addressing brand obligations on meaningful stakeholder engagement. The ACT interventions at country level are negotiated by trade union, employer and brand working groups. 

The legally binding agreements negotiated in the context of Cambodia are an example of how accountability on purchasing practices can be further strengthened through enforceable protocols on independent assurance and external verification. This ensures monitoring of purchasing practices commitments on purchasing practices by IndustriALL based on independent, technical third party data, next to binding arbitration.

ACT members believe that many systemic challenges in garment supply chains require substantial advances in accountability. To realise the transformative potential of meaningful purchasing practices reforms, a new standard on purchasing practices and accountability needs to rise to the standard provided through binding agreements. 

The industry transformation aimed for by ACT members requires wide participation. ACT invites all stakeholders to join us in our mission to systematically transform the garment, textile, and footwear industry. Together, we can set industry-wide standards for real accountability, collaborate on moving towards binding agreements and create meaningful change for workers.