What barriers might hinder the success of your project and how do you plan to overcome them?
To achieve its tipping point to end child labor, GoodWeave must penetrate the world's consumer market. More certified rugs sold means more jobs for adult weavers. This will require extensive resources to popularize GoodWeave with consumers, the media and companies.
GoodWeave will reach 73 million consumers and increase the One in a Million campaign's exposure through targeted media outlets such as Elle Décor and O magazine; secure high-profile media placements, such as its recent CNN profile; and promote GoodWeave through a network of 1000+ stores. Consumer demand drives companies to join GoodWeave and leads to increased visibility and impact throughout our work.
Another challenge is finding funders to support its unique, complex approach and invest in future financially sustainable growth. The finances section below explains that as our market share grows, licensee revenue generates long-term funds to sustain GoodWeave’s work. In the near term, GoodWeave will launch a new online philanthropic strategy to reinforce One in a Million.
GoodWeave now faces getting other large, influential companies to sign on as members. Over time, GoodWeave has evolved from industry outlier to business necessity as evidenced by its new 2011 Macy’s partnership. GoodWeave will invest heavily in Macy’s promotion to influence other major chains to follow suit.
As resources allow, GoodWeave wants to ramp up new and existing operations. Its model is more than a pilot, having proved replicable and scalable in the early commercial rollout stages. This will further lend stability of the GoodWeave program in its geographic and resource diversification.
Tell us about your partnerships
GoodWeave has strong partnership with its 80 rug licensees who are crucial to opening access to looms, producing certified rugs, and promoting & selling certified rugs in the offices and showrooms of importers, retailers, and interior design and architecture partners. These companies also support us by hosting awareness-raising events and building GoodWeave’s brand recognition in their collateral materials.
GoodWeave’s print magazine partners, such as Dwell and Interior Design, leverage hundreds of thousands of dollars in pro-bono advertising for our interior design and consumer target audience.
Allies in the human rights, anti-poverty and fair trade communities mobilize individuals to purchase GoodWeave certified rugs and pressure companies to sell them. Specifically, labor rights organizations that expose corporate missteps strengthen the case for risk-mitigation and industry’s need for ethical supply-chain practices.
Partners from the investment community, including Calvert Fund and Walden Asset Management, have lobbied corporate retailers on our behalf, encouraging them to eliminate child labor from their manufacturing.
GoodWeave is also the only certification program that offers community-based services alongside its monitoring work. To implement these social programs, GoodWeave is proud to partner with the Global Fund for Children, the Asia Foundation, UNICEF, and the Human Welfare Association, among others. As we expand to Afghanistan, we have already had partnership discussions with the Afghan Institute of Learning and others.
Explain your selections
GoodWeave’s financial model is part of what makes the organization so innovative. To support educational programs in carpet producing countries, GoodWeave returns the majority of industry license fees to Nepal & India, with $837,995 funded to date, and $86,924 in 2010 alone.
GoodWeave strongly believes that the rug industry should pay for its own regulation and bases its licensee fees on a percentage of each company’s certified imports. These fees subsequently help support GoodWeave’s consumer campaign and the associated rescue, rehabilitation & education of children.
Charitable giving comprises over 60% of our total budget, including previous grants from the Skoll Foundation, eBay Foundation, anonymous contributors, and donations from many generous individuals. in 2011 GoodWeave anticipates generating 16% of its budget from the carpet industry. Finally, pro-bono services, such as advertising space in many interior design magazines, accounts for 21% of the overall 2011 budget.
GoodWeave’s new strategic plan calls for some changes in the financial model: increasing industry revenue; seeking more charitable contributions in producer countries, and a consumer campaign in India to establish retail sales that generate revenue for social programs.
This plan will result in GoodWeave’s long-term financial sustainability, cumulating in $4.3 million generated and spent in producing countries in 2018 alone to end child labor, ensuring education for children and families in weaving communities & building a more sustainable industry the employs adults.
How do you plan to strengthen your project in the next three years?
The carpet industry is an important business in the US, with 2010 retail sales estimated at $819 million. In 2010 sales of GoodWeave certified carpets were $31.3 million or 4% of the total market share.
To reach its goal of achieving 18% global market share by 2018, thereby ensuring sustainable jobs for adults on an industry-wide basis, GoodWeave will strengthen its work in the following ways:
• Attain interim growth benchmarks by scaling marketing and business development operations in existing and new consumer markets and launching and strengthening certification and social service programs in existing and new producer markets.
• Assess and expand into new product categories by December 2013.
• Achieve full member status in the ISEAL Alliance to ensure maximum transparency, accountability and market acceptance.
• Enhance stakeholder participation and streamline decision-making and operations by revising the governance structure by January 2012 with a more independent board of directors and to a range of stakeholder committees.
• Revise its financial model in 2012 to ensure core certification costs are covered by earned income.
• Raise $1.6 million over three years to finance the three-year growth plan.
In addition, GoodWeave is considering creation of formal training centers for adults in producer countries. When adults graduate as skilled artisans, the carpet industry will demand their work. These graduates will insist on fair wages and working conditions, and will create high industry demand for their products.