| Audit | An assessment of a factory’s performance against the Code of Conduct including workers' rights and working conditions. |
| Backhauling | When empty delivery trucks are used to carry a load back to the distribution centre. |
| Business environment | The internal and external factors that influence a business. |
| Business model | The way in which a business operates to generate income and make a profit. |
| Economy | The goods and services that a given country or region produces, trades and consumes, and the value of these goods and services. |
| Ethical trade | Trade that respects the rights and safety of workers. |
| Globalisation | The way in which businesses now operate at a global scale across many different countries. |
| Industrial sector | Parts of an economy that produce different goods or services, e.g. agriculture, manufacturing, leisure. |
| Initiative | A project that aims to create change in a place or community, to address an issue or solve a problem. |
| Interdependence | How people and economies in different countries and regions are linked due to globalisation and international trade. |
| LEDC | A Less Economically Developed Country, e.g. Bangladesh |
| Margin | The difference between the cost price and selling price of product. |
| MEDC | A More Economically Developed Country, e.g. The UK. |
| Non-Governmental Organisation (NGO) | A private, often volunteer or charitable organisation. |
| Partner | An organsiation that works with another to achieve a goal. |
| Stakeholder | A person or group that has an interest in how a company does business or performs. |
| Standards | Written definitions of how things should be done or perform. |
| Supply chain | The ‘chain’ of companies that work together to provide raw materials, make goods, transport them and sell them to customers, including manufacturers, distributors and retailers. |
| The Ethical Trading Initiative (ETI) | The Ethical Trading Initiative is a leading alliance of companies, trade unions and NGOs that promotes respect for workers' rights around the globe. |
| Trade union | Trade unions are independent, membership-based organisations of workers that represent and negotiate on behalf of working people. |