GoodWeave Annual Report
2017 Year In Review

Table of Contents

Dear friends,

2017 started with a bang.  Just a couple weeks into the year, I sat down for a press conference at the World Economic Forum entitled, “How Are Leading Social Enterprises Creating Impact at Scale.”

Scale is a word oft repeated in the non-profit and business worlds. It can sound like jargon, but for some organizations, it’s a make-or-break question. Does your service or system have the potential to accommodate growth?  From the outset, GoodWeave’s founders had imagined the day when it’s market-based model to tackle child labor would be applied to a variety of manufacturing sectors. Once it was clear that we had made serious headway in the carpet industry, we knew it was time.

Sitting at that table in Davos, with cameras rolling, I was proud to announce that GoodWeave was launching into new product categories. Friends, this is big. It’s the difference between niche and mainstream. More importantly, it’s the difference between reaching tens of thousands of at-risk children and reaching millions. Inside this Report are more details about GoodWeave’s next chapter, which we call Sourcing Freedom.

In addition, the growth in our core work of carpets has been significant. Increasingly, consumers are recognizing and demanding the GoodWeave label. You no longer need to wait or pay a lot for the ethical rug of your dreams, much like what bananas and coffee have done in Fair Trade. Getting this breadth of distribution has us coming upon the tipping point for our founding mission.

A lot is growing and scaling at GoodWeave, including our appreciation for those of you who make our work possible. The charitable donors and corporate partners who invested in the initial spark of GoodWeave and are by our side now as we stretch ourselves to reach even more children.

With gratitude,

Nina Smith

CEO

1

Supply Chains: More Than Meets the Eye

Products you purchase are made by a complex, and often invisible, supply chain – people, organizations, and processes linked to make and deliver products.

Behind the retailers and the factories we think we know, often there’s an informal chain of adults and children exploited for their labor.

GoodWeave brings visibility to all links of the supply chain and gives voice to marginalized workers and children.

The GoodWeave label is a consumer’s best assurance that products are made free of child labor.

2

The GoodWeave System

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Over two decades, GoodWeave has tested, fine-tuned and scaled a unique approach to ending child labor.  Market forces drive our work to clean up supply chains, rescue and educate children, and improve working conditions for adults.  Our system covers every step from when a product is made to when it is sold, from the student buying her first rug at a Target store in Minneapolis to the subcontracted homeworker in an artisan village in India.

“GoodWeave has developed the capacity, the understanding and the experience to address supply chains in their totality.”
– Siddharth Kara, Director of the Program on Human Trafficking and Modern Slavery, at the Harvard Kennedy School of Government

3

Harness Market Forces

Our system combines the power of consumers and businesses to ignite the engine of social change. In partnership with brands, we’re creating a market for goods made without child labor by preventing and rescuing children from lives of bondage, and by distinguishing select products with the GoodWeave label. This relationship with business provides the influence needed to permanently change behavior and practices, making “no child labor” a market requirement for their producers, along with design, price and other features.

In addition to the results listed below, GoodWeave launched a beautiful new website last June. More than a digital makeover, GoodWeave.org is where customers come to find ethical products, businesses learn how to become “licensees”, and donors get inspired to give and to act.

2017 Results:

150
total rug brands engaged as licensees
24
new licensed importers hailing from France to Argentina, ensuring the GoodWeave label is more accessible on more continents than ever before
18.17%
market share in rugs
85.7 million
consumers reached

STORY NEEDS TITLE

At the 2017 DOMOTEX tradeshow in Hannover Germany, GoodWeave convened UNICEF Nepal, global brands, producers, and trade officials to launch a campaign to reward businesses that produce child-labor-free carpets in Nepal. Throughout the campaign we have produced videos and hosted events to convey the business value of child-labor-free production.

4

Clean Up Supply Chains

Even the most well-intentioned brands find exploitation in their supply chains. And now, in this era of fast fashion – with hurried timelines for new styles to hit shelves – the labor rights situation is getting worse.

GoodWeave establishes clear and rigorous standards, and we verify compliance by regularly mapping and inspecting factories, worksites and facilities all the way down to cottage industry and individual homes. These inspections—which are random, unannounced, and frequent—lead us to exploited children and serve as a powerful deterrent to bad labor practices.

Scaling: GoodWeave’s direct work in embellished apparel

In 2016, GoodWeave broke ground on a two-year pilot in northern India to tackle child and forced labor in informal apparel supply chains, especially where readymade garments and fashion jewelry are produced.  By the close of 2017, 4,372 workers and 7,178 children were benefiting from the programs across five communities that serve as a hub for home-based work.

Scaling: Sharing the GoodWeave System

The second part of our expansion plan is capacity building with allies who will adopt GoodWeave’s System in their sectors of focus. We now operate a brick pilot in Nepal with partners Better Brick Nepal and Global Fairness Initiative and completed feasibility research in Assam, India, identifying potential impact on 500 children and 1,200 workers in the tea sector through the next year of our pilot program in partnership with Rainforest Alliance.

Sourcing Freedom Data Platform

In September 2017, we debuted a major technological innovation in the fight to end modern slavery. Our new data platform – created with support and partnership from The Skoll Foundation, USAID and Target – offers an unprecedented level of transparency at the “bottom” of the supply chain and supports companies to improve conditions for otherwise hidden workers. It offers near real-time access to supply chain map and inspection data, from the factory floor all the way to the outsourced homeworker. It will roll out more broadly in 2018.

“The GoodWeave model excites us because at this point there is nothing like it in the apparel sector. GoodWeave has been able to achieve complete transparency in the carpet supply chain and we want to test whether we can replicate that success in the apparel sector.”
– Anindit Roy Chowdhury, C&A Foundation Programme Manager for Gender Justice and Human Rights

2017 Results:

4,034
children rescued from exploitation to date
181
licensed exporters engaged
7,413
workers protected in 40 brick kilns participating in pilot

Ready for Readymade: A Profile of a GoodWeave Supply Chain Specialist

Originally from Ghaziabad, Uttar Pradesh in India, Vinti Singal, one of our Supply Chain Sustainability Specialists, has worked on human resources and social compliance teams for a decade.  While consulting with Coca Cola on workplace rights, she gained exposure to the brand side of the story. At the French retailer Gémo-Groupe Eram, Vinti managed factory audits for North India. With this broad perspective, she joined GoodWeave to help spearhead its pilot program into the readymade garment sector.

“When I joined GoodWeave, I knew it was different. Our work doesn’t end the moment we find an issue of child or forced labor. That’s where it starts. It isn’t audits and compiling results. It is about standards.”

Vinti values the process of unearthing hidden units beyond the borders of the factories. Because in doing so, she knows we can give an identity – and then rights and benefits – to informal workers.

When asked about her most memorable day on the job, Vinti recalls visiting a Child Friendly Community in Jaee village where GoodWeave started a literacy class for young women who never had a chance to study. Scanning the room, one woman stood out. She was holding a three-week-old baby. Later Vinti found out that her name is Musrekin, this was her eighth child, and she does handwork, beading fashion jewelry for export to big brands in Europe, UK and US.

“Despite the challenges and she just delivered a baby, here she is attending class. There is no incentive for work or money. I can’t calculate the financial value of her attending this class or tell what she learned, apart from that she feels empowered. Sometimes we talk about return on investment too much, and you can’t calculate the benefit on this person’s life.”

5

Create Educational Opportunities

GoodWeave’s social programs serve victims, address the root causes of child labor, or often both. In each country where we operate, GoodWeave tailors interventions to the context. Over the years, we have started early childhood education centers, coordinated home-schooling, provided school sponsorships, and made a second home for children who desperately needed one.

2017 Results:

684
children provided education in Nepal
16,667
children supported in schools across 58 villages in India, including five new artisan villages known for apparel, fashion jewelry and home textiles.
992
children in Afghanistan given academic support.
25,066
children educated cumulative all time

Hasnain’s story

Meet Hasnain, a 9-year-old boy from Muslimpur in Varanasi district, along the banks of the Ganges River. The oldest child of illiterate parents, Hasnain would spend his days taking care of his siblings and accompanying his father to a center where he did handloom work.  In late 2016, the GoodWeave team identified Hasnain working and immediately began a rehabilitation process in his home village, including enrolling him in 1st grade in a modern madrasa (Islamic cultural and language school). GoodWeave provided books, stationery, a backpack, clothes and tuition assistance on that very same day.  Soon, Hasnain matriculated to a formal government school.  The team has remained in regular touch with Hasnain and his family and learned that he is doing well in his studies, graduated to 2nd grade, and has expressed a dream to become a police inspector.

CHANGE IMAGE

6

Improve Conditions for All Workers

Addressing child labor effectively requires more than simply prohibiting the practice as a matter of law, policy or standard. One important part of the equation is ensuring that adult workers are better compensated and better treated within their workplaces.

2017 Results:

73,391
workers protected under the GoodWeave System
65,978
rug workers covered by the GoodWeave System to date
7,413
brick workers reached by pilot program
4,327
apparel and jewelry workers reached by pilot program

Gulafsa’s story:

In Tilbegumpur village in India’s Uttar Pradesh state, a 16-year-old seamstress named Gulafsa recently led her own quiet revolution. After calculating a shortfall in her paycheck, approximately three days’ worth of work, she asked her supervisor for the money. Unlike so many of her peers, she had the literacy and the job security to request her missing pay.

Gulafsa is a former child laborer. She shared her story while stitching decorative beads onto pillow covers destined for export. Gulafsa never finished the second grade. Now, she participates in daily classes – arranged by GoodWeave – in her employer’s embroidery shed, along with 20 other textile and garment workers.

Before beginning classes, Gulafsa and her coworkers were illiterate. They signed documents with thumbprints. Now they’ve mastered the basics. Their lives changed when GoodWeave launched a new program with the global retailer C&A and C&A Foundation across a region of India where women, children, and entire families stitch apparel and other textiles.

We asked Gulafsa what she would tell someone who may have a pillow or blouse that she embroidered. “I would tell them that I made it,” Gulafsa said with evident pride.

7

Financials

GoodWeave depends on a combination of earned income from license fees paid by partner companies and charitable investments to make our work possible. True to our mission, we are all about transparency and that also applies to our financial management. We strive to ensure that every dollar, pound or rupee paid or donated is spent to maximize benefits to the children, workers, and communities we serve.

 

2017 Financial Highlights

• XX% of total revenue was invested directly in programs working to end child labor.

• Companies that participate in GoodWeave’s carpet industry certification system pay license fees, which help to offset costs of the program. One-third of this program’s cash expenditures is covered by the fees. Total license revenue collected increased by X.X% from 2016.

• New programs in apparel, jewelry, home textiles and bricks continue to grow, representing XX% of GoodWeave’s programmatic cash budget in 2017.

• GoodWeave was named recipient of the UK Home Ministry’s first ever Modern Slavery Innovation Fund Award.

Statement of Activities

DOWNLOAD STATEMENT OF ACTIVITIES

GoodWeave was audited by Cocchiaro & Associates LLC, Certified Public Accountants of Alexandria, Virginia. Full audited financial statements are available upon request.

8

Importer Licensees and Industry Supporters

GoodWeave partners with rug designers, importers and retailers to create a market for products that have been made without child labor. The following companies are GoodWeave licensed, meaning they adhere to the GoodWeave Standard to assure clients that their high-quality design are accompanied by the best labor practices.

Licensed Importers

4Favorites

A&G Rugs

Afghanistan Rugs and Carpets Center

AIIO Limited

Akira Handelsgesellschaft

Alicia D. Keshishian Carpets

Amy Helfand

ANG Studios

Anji Mountain

Apeiron Design

Ariana Rugs

Asha Carpets

Bazaar Velvet

Bennett Bean Studio

Bespoke Tibet Carpets

Bev Hisey

BravinLee Programs

by Henzel

Cadrys Handwoven Rug

CalviRugs

Capitol Carpets of Chelsea

Change Space

Christian Liaigre

Classic Fever, LLC

Classic Rug Collection

Clive Christian Interiors

Cloak

Company C

Crosby Street Studios

Dadicos

Danielle David Art and Design

DBA Bramblecrest

Deirdre Dyson

Diane Paparo Studio

EcoFiber Rugs

Edition Bougainville

Eeuwes Studio Design

Elson & Company

Emma Gardner Design

Equator Production

Fab Habitat

Floor Story

Flora Decora 5 SL

Freedom

Fuigo

Gary Cruz Studio

Gran Living

Grund America LLC

Guildcraft Carpets

Heinrich Heine

High Country Rugs

 home republic

HWP Teppich

Icarpet

Indo Designer Rugs

Inigo Elizalde Rugs

Interior Resources

J. S. Hurd Design

Jacaranda Carpets

Joseph Carini Carpets

Julia Toncology Pfeiffer

Julie Dasher Rugs

Kaja Gam Design

Kaldhara

Katherine Richards Design

Khawachen/ Innerasia

Kim Parker Home

K-Mail Order

Knot Collective

Knots & Strokes

Kolatech

Kooches

Kristiina Lassus Design

Laguna Rugs

Land Rugs

Landry & Arcari

Lapchi

LiLu Interiors Inc.

Lindstrom Rugs

LIV by TM Interior

Liz Gamberg Studio

Liza Phillips Design

Lotus Collection

Lucy Tupu

Madeline Weinrib Atelier

Makeda Rugs

Malene B

Matteo Pala

Matthew Wailes

Merida

Merinos

Miller Davis Group

Modern Archive

ModernFever

Molana

Momtaz Contemporary Rug Art

MOSSROOM

MyFelt

Namaste UK

New Moon

NIBA Rug Collections

NOA Living

 Nodi Handmade Rugs Ltd.

Nordic Home

notNeutral

O’C Carpet Inc.

Odegard Carpets

Organic Weave

Otto

Paramount Rugs

Proper Design

PuRo Lifestyle

Raya Rugs

Restoration Hardware

Rimo

Robin Gray Design

Robyn Cosgrove

Rosemary Hallgarten

Rug Art

Rug Artisan

Rug Couture

Rug Star

Rugguy Galleriez

Rug-maker.com

Ruthie L. Designs

Sage Green Designs

Scott Group Studio

Serapi Oriental Rug Gallery

Sirecom Tappeti

So’mace Design

Sonya Winner Rugs

Squarefoot Commercio E Decoracao

Stephanie Odegard Co., Ltd.

Tailor-Made Textiles

Talis Vertriebs

Tania Johnson Design

Target Corporation

Tashi Murik

The Fine Rug Gallery at Macy’s

The Moorland Rug Company

The Rug Company

Tranquillo

TYSK Design

Vossberg Versand

Wafa Dar

Warp & Weft

Wecon Home

Wendy Morrison Design

Woven Edge, Ltd.

Woven Treasures Inc.

Zoe Luyendijk Studio

 
 

Lead Sponsors

Woven

Modern Rugs

The Rug Seller

Luxury Rugs

Kush

Interior Resources

 

Industry Supporters

GoodWeave partners with rug designers, importers and retailers to create a market for products that have been made without child labor. The following companies are GoodWeave licensed, meaning they adhere to the GoodWeave Standard to assure clients that their high-quality design are accompanied by the best labor practices.

Hagopian

Christiane Millinger

Fayette Showroom

Rugs By Zhaleh

 

9

Strategic Donors and Supporters

GoodWeave thanks the individuals and institutions that provide vital operating support to help us achieve results for children and workers. The following list acknowledges donors that have donated $5,000 or more to GoodWeave International or its local NGO affiliates in 2016:

Major Support Provided by:

Additional Support Provided by:

200,000 and Above

C&A Foundation

Humanity United

Janet Wright Ketcham Foundation

Seamont Foundation

The Skoll Foundation

The Walt Disney Company

UBS Optimus Foundation

UK Home Office, Modern Slavery Innovation Fund

UNICEF

U.S. Agency for International Development

U.S. Department of Labor, Bureau of International Labor Affairs

 50,000 to 199,000

Target

Textile Recycling for Aid and International Development

The Thanksgiving Fund

5,000 to 49,999

Anbinder Family Foundation

Anonymous via Fidelity Charitable Gift Fund

Anonymous via Impact Assets

Estelle Friedman Gervis Family Foundation

Jerome Dodson

L Brands Foundation

Naomi & Nehemiah Cohen Foundation

The International Foundation

The Khaled Hosseini Foundation

Kristi Nelson

Limited Brands Foundation

Macy’s Foundation

Naomi & Nehemiah Cohen Foundation

Patricia Hambrick

The International Foundation

The Khaled Hosseini Foundation

The Thanksgiving Fund

The West Foundation, Inc.

Textile Recycling for Aid and International Development

In-Kind Gifts  –  Legal Counsel 

Covington & Burling LLC

Mayer Brown LLC

Sunstein Kann Murphy & Timbers LLC

10

Staff and Governance

GoodWeave is grateful to have award-winning experts in child rights, social entrepreneurship, and certification serve in leadership and advisory roles in the organization.

International Board of Directors

Patricia Hambrick (Chair)

Kul Chandra Gautam (Co-Vice Chair)

Claude Fontheim (Co-Vice Chair)

Pat Zerega (Secretary)

Marc Triaureau (Treasurer)

Barbara Hawthorn

Dan Viederman

Amol Mehra

Edward Millar4Favorites

A&G Rugs

Afghanistan Rugs and Carpets Center

AIIO Limited

Akira Handelsgesellschaft

Alicia D. Keshishian Carpets

Amy Helfand

ANG Studios

Anji Mountain

Apeiron Design

Ariana Rugs

Asha Carpets

Bazaar Velvet

Bennett Bean Studio

Bespoke Tibet Carpets

Bev Hisey

BravinLee Programs

by Henzel

Cadrys Handwoven Rug

CalviRugs

Capitol Carpets of Chelsea

Change Space

Christian Liaigre

Classic Fever, LLC

Classic Rug Collection

Clive Christian Interiors

Cloak

Company C

Crosby Street Studios

Dadicos

Danielle David Art and Design

DBA Bramblecrest

Deirdre Dyson

Diane Paparo Studio

EcoFiber Rugs

Edition Bougainville

Eeuwes Studio Design

Elson & Company

Emma Gardner Design

Equator Production

Fab Habitat

Floor Story

Flora Decora 5 SL

Freedom

Fuigo

Gary Cruz Studio

Gran Living

Grund America LLC

Guildcraft Carpets

Heinrich Heine

High Country Rugs

home republic

HWP Teppich

Icarpet

Indo Designer Rugs

Inigo Elizalde Rugs

Interior Resources

J. S. Hurd Design

Jacaranda Carpets

Joseph Carini Carpets

Julia Toncology Pfeiffer

Julie Dasher Rugs

Kaja Gam Design

Kaldhara

Katherine Richards Design

Khawachen/ Innerasia

Kim Parker Home

K-Mail Order

Knot Collective

Knots & Strokes

Kolatech

Kooches

Kristiina Lassus Design

Laguna Rugs

Land Rugs

Landry & Arcari

Lapchi

LiLu Interiors Inc.

Lindstrom Rugs

LIV by TM Interior

Liz Gamberg Studio

Liza Phillips Design

Lotus Collection

Lucy Tupu

Madeline Weinrib Atelier

Makeda Rugs

Malene B

Matteo Pala

Matthew Wailes

Merida

Merinos

Miller Davis Group

Modern Archive

ModernFever

Molana

Momtaz Contemporary Rug Art

MOSSROOM

MyFelt

Namaste UK

New Moon

NIBA Rug Collections

NOA Living

Nodi Handmade Rugs Ltd.

Nordic Home

notNeutral

O’C Carpet Inc.

Odegard Carpets

Organic Weave

Otto

Paramount Rugs

Proper Design

PuRo Lifestyle

Raya Rugs

Restoration Hardware

Rimo

Robin Gray Design

Robyn Cosgrove

Rosemary Hallgarten

Rug Art

Rug Artisan

Rug Couture

Rug Star

Rugguy Galleriez

Rug-maker.com

Ruthie L. Designs

Sage Green Designs

Scott Group Studio

Serapi Oriental Rug Gallery

Sirecom Tappeti

So’mace Design

Sonya Winner Rugs

Squarefoot Commercio E Decoracao

Stephanie Odegard Co., Ltd.

Tailor-Made Textiles

Talis Vertriebs

Tania Johnson Design

Target Corporation

Tashi Murik

The Fine Rug Gallery at Macy’s

The Moorland Rug Company

The Rug Company

Tranquillo

TYSK Design

Vossberg Versand

Wafa Dar

Warp & Weft

Wecon Home

Wendy Morrison Design

Woven Edge, Ltd.

Woven Treasures Inc.

Zoe Luyendijk Studiod

Leslie Johnston

Nancy Wilson

Regatte Venkat Reddy

Emeritus Member:
Pharis Harvey

Standards Committee

Walter Chapin, President and Co-founder, Company C, Inc.

Aseem Grover, Partner, Grover International

Rev. Pharis Harvey

Caroline Kent, Operations Manager, The Rug Company

Lobsang Lama, Managing Director and Chairman, Gomang Carpets Manex

Ivanka Mamic, Senior Director for Responsible Sourcing, Target

Gerard Oonk, Director, India Committee of the Netherlands

Nitu Prasad , Senior Program Coordinator, GoodWeave India

Lee Swepston, Senior Advisor on Human Rights, International Labour Organization (ret.)

Indu Tuladhar, Independent Expert, (Child Labor)

Harish Vashistha, Executive Director, Credibility Alliance

Scott Welker, Director of Business Development, GoodWeave International

 

Child Protection Committee

Pashtoon Atif, Director, GoodWeave Afghanistan

Jonathan Blagbrough, Co-founder, Children Unite

Uddhav Raj Poudyal, Independent Expert

Nitu Prasad, Senior Program Coordinator, GoodWeave India

Regatte Venkat Reddy, National Convenor, MV Foundation

Kushum Sharma, Social Programme Manager, Nepal GoodWeave Foundation

 

Certification Committee

Narayan Bhattarai, National Project Coordinator, International Labour Organization

Mathew John, Certification Director, GoodWeave International

Shawn MacDonald, CEO, Verite

David Ould, Board Member, GoodWeave UK

Kalyani Rajaraman, Project Director, Consumers Association of India

 

Oversight Committee

Chhatra Amatya, Independent Expert

Viraf Mehta, Independent Expert

Edward Millard, Director of Africa and South Asia, Rainforest Alliance

 

International Management Team and Staff

Nina Smith, CEO

Cyndi Janetzko, Chief Financial Officer

Scott Welker, Director of Business Development

Todd Garth, Chief Program Officer

Pashtoon Atif, Afghanistan Country Director

Manoj Bhatt, India Country Director

Lubha Raj Neupane, Nepal Country Director

Mathew John, Director, Certification Division

Jean Johnson, Senior Business Development Manager, Europe

Biko Nagara, Senior Manager, Certification Systems

Anoop Agarwal, Senior Program Manager

Cara Hagan, Business Development Manager

Alina Ruzmetova, Online Communications and PR Associate

Jessica Tsang, Program Officer, Standards and Policy Unit

Kimberly Trauner, Strategic Initiatives Officer

GoodWeave’s vision is a world free of child labor.  We believe children have the right to laugh, learn, play.

Bring your passion, creativity, and support and join us in realizing this vision.