Next has been well known for many years among the high street clothes shops.
In this article, we shine a spotlight on its ethics.
Our research highlights several ethical issues with Next, including: accusations of poor workers’ rights practices during the coronavirus pandemic, sale of animal products, and possible use of tax havens.
Below we outline some of these issues. To see the full detailed stories, and Next’s overall ethical rating, please sign in or subscribe.
While Next has some policies in place for workers’ rights, our research shows clear room for improvement.
The company has a strong code of conduct outlining expectations of suppliers, including no discrimination and limiting working hours. It has published both its direct suppliers, and some further down in its supply chain. This transparency makes it more possible for it to be held to account for issues in its supply chain by workers, unions and civil society organisations.
However, in January 2023, the University of Aberdeen Business School & trade justice network Transform Trade published a study accusing major international fashion brands of exploiting Bangladesh garment workers during the coronavirus pandemic. Next was among those identified “as having the highest proportion of unfair practices, including cancellation of orders, price reductions, refusal to pay for goods dispatched/in production and/or delaying payment of invoices by more than three months".
In May 2022, Next was also named in an article by the Guardian about labour rights abuses in the Indian region of Tamil Nadu. The article stated: “The spinning mills of Tamil Nadu, which feed raw materials into India’s export garment sector, have long been associated with human rights abuses."
The article cited a new report by NGOs Somo and Arisa that had “found evidence across the region of multiple labour abuses including deception, intimidation and threats towards vulnerable female workers, abusive working and living conditions and excessive overtime”. According to the article, Next said that it believed six of the mills in the report to be linked to its supply chain. The company said it was investigating and taking action to try and stop abuses across the region.
Next scores 70 out of 100 in Ethical Consumer’s climate change rating – placing it higher than many other high street brands. The company reported on all its emissions in its 2023 sustainability report, including those for its supply chain. It also set targets to reduce supply chain emissions by 40% per £1 million sales by 2030, compared to a 2019/20 baseline – which was in line with vital international agreements to limit global heating.
However, it did not adequately explain how it had cut emissions or planned to in the future. For example, it did not discuss cutting emissions from its fabric use.
Next has a poor track record on financial ethics; the company provides excessive pay for its directors. In 2022/23, its CEO, Lord Wolfson, received £2,507,000.
Next also scores poorly for its approach to tax conduct. The company was found to own an insurance subsidiary in Guernsey, as well as other subsidiaries in Hong Kong and Sri Lanka – all considered to be tax havens. It had not provided an explanation for these subsidiaries or a clear tax statement confirming that it was this company’s policy not to engage in tax avoidance activity nor to use tax havens for tax avoidance purposes. It therefore scored 20/100 for tax conduct.
In November 2023, Ethical Consumer investigated Next’s approach to animal products. The company was found to sell leather, sheep wool, feathers, mohair, cashmere, alpaca, and silk.
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The above text was written in August 2024, and was based on research largely conducted in November and December 2023.
Ethical Consumer Best Buy: No
Boycotts: No
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