FatFace and its owner Next are both well recognised high street clothing brands. But how do their ethics stack up?
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Learn more about our company profiles →Our research highlights several ethical issues with FatFace and its owner Next Plc, including a lack of animal welfare policies, likely use of tax avoidance strategies, and allegations that their approach to suppliers has exacerbated workers’ rights issues.
Below we outline some of these issues. To see the full detailed stories, and FatFace’s overall ethical rating, please sign in or subscribe.
Owner of FatFace, Next Plc, has a mixed record when it comes to workers’ rights.
The company has a strong supplier code of conduct, outlining the most basic workers’ rights expectations, such as no forced labour and freedom to join a union or organisation. It has also published details of many of its suppliers, including those weaving and dyeing fabric for its products. This kind of transparency is vital in allowing human rights and workers’ organisations to hold the company to account.
However, Next has also faced allegations that its buying practices are undermining workers’ rights. Clothing brands are known for cancelling orders, suddenly reducing prices paid to factories, refusing to pay for goods, or delaying payments by more than three months. These kinds of practices make factories less stable and reduce their profit margins – in turn eroding working conditions.
In January 2023, the University of Aberdeen Business School and campaign group Transform Trade published a study on buying practices imposed on Bangladeshi suppliers during Covid-19. Next was said to be among the global brands mentioned by suppliers for having the “highest proportion of unfair practices,” the study said.
Compared to other high street brands, Next Plc (FatFace’s owner) performs reasonably well when it comes to the climate.
The company reports on its emissions, including those from its supply chain – the largest portion. It has also set targets for cutting emissions, which have been approved by the Science Based Targets Initiative – the leading certification body for corporate climate goals.
The financial ethics of Next plc also raise concerns.
Next owns subsidiaries in multiple tax havens, including Guernsey, Hong Kong and Sri Lanka – one of which is particularly high risk for tax avoidance purposes. None of the companies appear to be serving local populations, and Next has not published an explanation for them, nor a clear policy prohibiting tax avoidance.
Next Plc also lost marks for excessive director’s pay. In 2022/23, its CEO Lord Wolfson received £2,507,000.
Next sells products that contain leather, sheep wool, feathers, mohair, cashmere, alpaca, and silk.
Animal welfare issues should be addressed by policies and regulations.
The text above was written in November 2024, and most research was conducted in November 2023.
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