ETI defines ethical trade as good practice in implementing codes of conduct on labour standards, especially in supply chain. It includes independent monitoring and verification.

ETI is neither a certification body nor does it carry out external auditing. Its intention is to share experiences and assist in learning about implementing labour standards in international supply chains. ETI's goal is to assure that working conditions of workers producing for the British market meet or exceed international standards.

The corporate members of ETI commit themselves to adopt the ETI Base Code entirely or integrate its requirements into their own code of conduct. The Base Code was defined by an agreement of trade unions, companies and founding NGOs, and builds on international conventions of ILO - International Labour Organization.

Companies that sign the Base Code are expected to fulfil national or other applicable laws. Furthermore, they should require their suppliers to also adopt the Base Code within a reasonable time period.

The nine requirements of the ETI Base Code are:

1. Work is chosen freely
2. Freedom of association and the right of collective bargaining are respected
3. Working conditions are safe and hygienic
4. Child labour shall not be used
5. Living wages are paid
6. Working hours are not excessive
7. No discrimination is practised
8. Regular employment is provided
9. No harsh or inhumane treatment is allowed