Ethical Business with Ethik, a Social Enterprise Model That Works

Cultural preservation, sustainable environmental practice, and support for women and minorities — there are relatively few social enterprise businesses that check all of these boxes for real, measurable social impact.

But Ethik does. Recently honored as one of the 100 Companies Championing Women in Utah, in reality, they are doing so much more. It’s a 100% women-led business–a certified Women’s Business Enterprise–with ethical, handcrafted home goods that offer both utility and a unique story.

Meet the Founder: Melissa Sevy

Melissa Sevy began her nonprofit work in Uganda. Fresh out of grad school with a master’s degree in public health, she coordinated projects in Lugazi to address core areas of concern, including HIV/AIDS, sanitation education, and outreach to vulnerable and orphaned children. This was also her first step toward business and entrepreneurship, and is what sparked her interest in making a real, lasting impact in the communities where she worked.

“My group was there to help slow down communicable diseases by teaching sanitation; including the technique for proper hand washing. Then we realized that most of the people did not earn enough money to buy soap. It was one of those moments like, ‘What are we doing here?’” said Melissa. “We’ve come in with assumptions and not really understanding the deeper context–what people really need. They don’t need our classes right now. They need jobs.”

Ethik, which began as a not-profitable passion project, now supports 3,000 artisans across 19 countries. Collectively, the fair wages support over 14,000 family members.What Makes an Ethical Social Enterprise?

A truly conscious social enterprise isn’t single focused on the end product, nor is it fixated only on the source–they maintain a sustainable supply chain from start to finish.

A sentiment echoed by both the Harvard Business Review and the United Nations Global Compact, a deliberate and intentional social enterprise maintains fair labor, environmentalism, and both social and economic well-being standards throughout the entire supply chain.

Vetting the Social Enterprise Supply Chain

“We have a vetting process to ensure that our partnering groups are truly paying the artisans in their network fair wages,” said Melissa. “There is no child labor. They are using proper environmental practices — there are re-growth projects if their products use natural resources.”

When you apply to sell through Ethik, you get a glimpse of this vetting process in action. You’re immediately asked how many artisans you employ, the average number of dependents these artisans support, whether you produce handcrafted or “ethically harvested” goods, the materials used in those goods, and to describe your ethical practices.

And this is just the first step of the process. Following the series of initial intake questions, the artisan group completes a more in-depth self-reported questionnaire. The final step is an in-person visit by a hired 3rd party within their country to verify their answers.

While it may seem strenuous, it’s actually a great opportunity for groups in developing countries that lack Western certifications. Western certifications can be expensive, given that they typically require money for the registration fee, regular annual fees, an external auditor, and means to report to the certifying organization that you’re maintaining their standards.

“Many of our artisans don’t have certifications, so this is a way to remove a barrier [for those who] don’t have the resources to get a Western certification,” Melissa emphasized. “We have a good vetting process. These are clean products that have impact.”

When an international certification is imperative, Ethik covers the cost of these certifications. But with Ethik’s model for vetting artisan groups most of these products can be verified with minimal effort from the artisans themselves. One way Ethik does this is by tying the crafter’s story to the item itself. Each purchase comes with a picture of the artisans that made it and the story behind it. For example, you can see in the description of this beautiful cashmere blanket that it was woven on traditional looms by Nepalese women who are working to break societal stigmas and bring economic stability to their families.

Changing Lives With Social Enterprise

Ethik’s handmade goods are crafted by women around the world, in Uganda, Nepal, Vietnam, Kenya, and the United States, who are supporting themselves and their families with their businesses.

With each purchase, you can see how far your contribution goes: over 900,000 fair pay hours worked, over 550,000 handmade products delivered, and 17,000 individuals’ lives improved for the better. A consistent, living wage paid to these hard working women facilitates education for their children, nutritious foods on their plates, a stable roof over their heads, and the means to invest in a promising future. That’s the impact of Ethik.

Whether the makers are Afghan refugees in the U.S., Ugandan women weighed down by a traditionally patriarchial society, or Rwandan women weaving peace baskets after escaping genocide in their country–you can be confident in the cause you’re supporting with each purchase. This human element is part of what leaves an impression on the consumer and makes for an impactful brand.

“And what’s cool is that–rather than the traditional charity model, that’s like, these rich Westerners giving to these poor recipients or beneficiaries–we’re on the same level. We are partners,” said Melissa.

It ties back into Ethik’s core value of sustainability. Many of the goods sold through Ethik can be purchased in bulk, branded and distributed for corporate giving.

Many mass-produced items, like the ones many companies give at the holidays, usually find their way quickly into our landfills–in fact, 66% of them do.

But when these items are tied to a compelling human story, you feel a connection to the gift itself. You’re less likely to throw the item away. And because Ethik makes an express effort to sell high-quality home goods with both high value and high utility, these items will likely have years of useful life. Less consumption, less waste, and less negative environmental impact.

“It is a creator and buyer relationship. And we’re buying because these beautiful items are desirable to Western consumers. And that changes the whole relationship. I think it’s what gives our relationships true and lasting opportunity. And that’s what we care about.”

Make an Impact by Supporting Social Enterprise

The Social Enterprise Alliance offers social enterprises like Ethik the tools and the connections to build and achieve sustainability and maximum impact. By fostering a network of inspiring individuals and their organizations, SEA works to create a new equitable norm. We uplift impactful organizations that value the wellbeing of people and planet above all else.

Learn more about SEA’s network of changemaking organizations–and find the ones active in your area–by browsing our members.

~ Gabrielle Rose is a freelance writer based in the Washington, D.C. metro area