AMSTERDAM – A new report from the Transformers Foundation clams multi-stakeholder initiatives (MSIs) are falling short when it comes to including and valuing suppliers, especially those in the Global South. Despite claims of working together toward a sustainable future, these initiatives may not be offering all parties a fair seat at the table, the report argues.
MSIs like Cascale (formerly Sustainable Apparel Coalition), Textile Exchange, SLCP, and ZDHC ostensibly bring together brands, retailers, and suppliers to solve pressing issues in the industry. However, the report’s findings suggest suppliers often feel side-lined. Those interviewed claim they lack real influence, with decision-making power heavily tilted toward brands and retailers, while suppliers struggle to keep up with the demands and expectations of participation.
Suppliers describe a reality where participating in MSIs is time-consuming, expensive, and structured in ways that make it difficult for smaller or less-resourced suppliers to engage. With strict schedules, demanding processes, and tight budgets, most suppliers say they can’t commit the resources needed to have a meaningful say. This disparity gives larger brands a significant advantage, allowing them to guide the conversation while suppliers feel “exhausted” and “left out.”
The report also highlights how MSIs’ structures and practices often favour companies based in the Global North, creating additional barriers for suppliers from other regions. Meetings, typically scheduled for North American and European business hours, can be tough for Asian suppliers, for instance, who are left working outside their regular hours. Language barriers and cultural differences can add another layer of complexity, leaving suppliers feeling overlooked.
Some suppliers even shared troubling experiences of bias and frustration. In one example, a supplier reportedly felt dismissed by a brand representative during a public discussion on the colonial roots of fashion’s supply chain practices. For these suppliers, the industry’s stated commitment to inclusivity and collaboration often doesn’t match their day-to-day reality
In response to these challenges, the Transformers Foundation is calling on MSIs to embrace what’s known as “fair process” principles. Developed in organisational management, fair process emphasizes three core principles:
1. Bias-Free Decision-Making: Ensuring that all voices are heard and respected, without favoritism or implicit biases.
2. Real Supplier Representation: Providing suppliers with meaningful opportunities to shape decisions rather than simply participating as a formality.
3. Transparency: Clear, accessible communication around decisions, including who is making them and why.
By adopting fair process principles, the report argues that MSIs could be more effective in achieving their goals, while also creating a more inclusive and balanced platform for suppliers.
