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People - Policies / Sourcing Policies

Areas assessed

People - Policies / Sourcing Policies

The policies area serves as the foundational framework of a brand’s human rights performance.

Last updated on 29 May, 2026

Overview

The policies area serves as the foundational framework of a brand’s human rights performance. It represents the formalisation of intent, outlining the standards a brand sets for itself and its partners regarding human rights, labour conditions, and ethical operations.

A robust policy environment is important because it creates accountability. Without publicly documented policies, a brand’s individual sustainability initiatives, no matter how impactful, lack a systemic basis for long-term consistency. Good On You evaluates policies not as static documents, but as active commitments that should cover the entire value chain, from direct employees to the furthest reaches of the supply chain.

Industry verticals: Fashion, Beauty, Services, Retailer (labelled “Sourcing Policies”)

Applicable for: small and large brands

What is assessed?

Across all verticals, Good On You assesses the quality, scope, and transparency of a brand's formal commitments. While the specific focus shifts depending on whether the brand is product-based or service-based, the following core elements are present across the methodology:

Human rights and Codes of Conduct

This is the central pillar of the policies area. Good On You evaluates whether a brand has a formal Code of Conduct (CoC) or Statement of Expectations. The assessment focuses on:

  • Brands are rewarded for explicitly including all International Labour Organization (ILO) core principles: freedom of association and collective bargaining, elimination of forced and child labour, elimination of discrimination, and a safe/healthy working environment

  • Policies should ideally apply to all production stages (final, second, and primary) and include subcontractors

  • Brands are assessed on whether they publish translations of their CoC in the local languages of the countries where their products are made, ensuring workers can actually understand their rights

Modern slavery and human trafficking

This item assesses specific measures to prevent extreme labour exploitation. High-performing brands implement multi-faceted approaches, including:

  • Empowerment initiatives for vulnerable groups

  • Confidential complaints mechanisms for reporting suspected trafficking

  • Awareness training for suppliers

  • Prohibiting recruitment fees, which are a primary driver of debt bondage

Diversity, equity and inclusion

Assesses specific measures to prevent discrimination based on race, gender, and ability. It also evaluates efforts to empower non-executive workers through leadership programs. The questionnaire asks:

  • What marginalised groups are covered by the policy

  • How does the brand enact the policy with concrete actions to empower workers and prevent discrimination

  • What are the measurable outcomes from the actions implemented by the brand, eg gender pay gap report, increasing the number of marginalised workers in leadership positions 

Assessments in industry verticals

Fashion and Beauty

In these product-based verticals, we place heavy emphasis on the supply chain. Because the majority of impact occurs in facilities the brand may not own, the methodology focuses on how the brand uses its influence to mandate standards at the factory level and beyond.

  • Sandblasting (Fashion only): Specific to denim production. Brands are assessed on formal policies that prohibit sandblasting due to the health risk of silicosis. Credit is also given for providing free health screenings and educational materials to affected workers

  • Mica and commodities (Beauty only): Beauty brands face specific assessments regarding the ethical sourcing of high-risk materials like mica, which is frequently linked to child labour.

Services and Retailer 

The Services and Retailer methodologies shift the focus from the supply chain to direct operations.

  • Wellbeing (Retailer and Services): This section rewards brands for supporting non-executive workers through professional development, comprehensive health insurance, and benefits that exceed legal requirements, such as extended parental leave or flexible hours

  • Influence through sourcing (Retailers only): Retailers score well by requiring brands they stock to meet high labour standards, such as a Good On You people score of “Good” or “Great”, or by ensuring products are certified by standards like Fairtrade or Rainforest Alliance. Retailers must also manage risks linked to conflict minerals in electronics or forced labour in the Xinjiang Uyghur Autonomous Region (XUAR).

Conditional assessments: 

  • In the Services vertical, if a brand is owner-operated with no other employees, questions regarding employee benefits and wellbeing are automatically excluded as they are not material

  • In the fashion vertical, policies related to sandblasting are only applicable to brands selling distressed denim

  • Only if a brand publishes certain policies (diversity and inclusion, Code of Conduct, human rights, etc) are they further assessed on specifics of the policy, alignment with best practice standards, implementation mechanisms, supplier engagement, and tangible outcomes of the policy. These follow-up assessments award additional points for proactive application of the policy

Disclosure and data sources

Good On You primarily relies on a brand’s public website and formal sustainability, CSR, or ESG reports. In addition, for sourcing policies we reference: 

  • HR Resources 

  • Corporate policies

  • Regulatory disclosures

  • NGO or investigative reports where relevant

Relevance for different brands

The assessment of labour policies can vary significantly based on whether a brand is categorised as small or large.

Small brands

The assessment focuses more on the presence of practical actions to uphold human rights and responsible labour practices, rather than extensive reporting and formal disclosure. Small brands are not expected to publicly report on modern slavery practices or publish detailed DEI initiatives. Instead, they are assessed on clearly outlining their expectation of suppliers through a formal Code of Conduct and applying it across their value chain.

Large brands

Expected to have robust labour rights and human rights policies in place across their operations and supply chains. This includes publishing supplier Codes of Conduct in the languages of sourcing countries, developing robust DEI policies with clear implementation mechanisms, and having credible strategies to prevent modern slavery and other severe labour rights risks in their supply chains.

Other practices that contribute to the score

Some practices assessed in other sections of the methodology score points within this area. These reflect actions such as certifications or broader business practices that have sustainability implications beyond just this area. 

The exact practices that score in this area vary by industry vertical and are described in the articles linked below:

Best practice and common pitfalls

Best practice principles for large brands

  • Policies that explicitly align with the UN Guiding Principles on Business and Human Rights and the ILO fundamental standards achieve the highest scores

  • Have clear mechanisms to ensure that their policies are enforced. Examples include leadership programs in DEI policy that lead to an increased representation at the board level

  • Requiring documented evidence (not just a brand's promise) that products are not linked to modern slavery

Common pitfalls:

  • Vague statements claiming suppliers follow "ethical standards" are insufficient. Brands must clearly define what these standards cover (eg wages, hours, safety) or provide the document itself

  • Many brands fall short by mandating only legal requirements. Good On You does not award points for policies that are simply mandated by law, as these do not demonstrate a brand-led commitment to sustainability

  • A common error is assuming a Code of Conduct applies to the whole supply chain when the brand’s disclosure only refers to Tier 1 (final production)

  • Even if a brand has a robust internal policy, if it is not publicly disclosed, it cannot be verified by consumers and will result in a lower score

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