Ethik - 2022 Impact Report

Ethik| IMPACTREPORT 2022

Around the world, millions of handcrafters work in homes and small, community workshops stringing beads, weaving tapestry, and sculpting clay.

OUR MISSION

Ethik enables makers around the world to leadvibrantanddignifiedlivesthroughthe creationofethical,handmadegifts.

Despitehandcraft beingthesecond largestindustrywithin thedevelopingworld, themajorityofthese producerslivein extremepoverty.

asing ethical gifts from makers around the world, companies can embed impact into their everyday business practices.

es have the power to change this.

HOW IT STARTED Ethik's Founding Story

Ethik’s founder, Melissa, never set out to start a business but was concerned with the economic challenges women face globally.

As she spent time living in emerging economies across Africa and Asia, she came to understand the vast reach and opportunity within the handcraft sector.

Ethik was created as a viable solution for global crafters to access the international market with the driving philosophy that when people have access to fair pay and consistent work, they thrive.

Melissa,CEO

Rachael,Directorof Operations

Devin,COO

Alana,CFO

Annie,CreativeDirector

Allie,MarketingManager

Courtney,Impact Manager

Jenna,HeadofImpact

Kat,OfficeManager

"AtEthik,ourfirstpriorityistohirefolkswhoare alignedwiththemissionofthecompanyandhave a rich understanding and deep curiosity for our artisan partners, their craft, and their culture. This opens us up to hire from a broad array of backgrounds.AtEthik,ourhiringstrategyhasled toadiversityofopinions,views,andmanagement stylesthathavecombinedtomakeusastronger andmoredynamicorganization."

Devin Mattson, Ethik's COO

The foundation of any successful company is an efficient team.

Alana has a deep passion for economic development and empowerment in historically underrepresentedcommunities.AsEthik's Chief Financial Officer, Alana focuses on creating strategic partnerships, as well as developing pricingandbusinessstrategies.

TEAM SPOTLIGHT

Alana Williams

"Since graduating from Texas McCombs, I’ve held out hope to find a role where I can provide a tangible impact at the intersection of finance, strategy, and sustainability. I focus on growth opportunities, strategic finance, and corporate partnerships to sustain Ethik’s place as a conduit for our artisan partners and contribute to emergingeconomiesworldwide."

WHERE WE

In 2022, w with 748 arti 14 different c

On average, 77% of artisans had multiple contracts through Ethik in 2022.

One of Ethik's core tenets is to provide our handcraft partners with meaningful and consistent work. When producers do not have to worry about where their next paycheck is coming from, they can plan for the future with greater confidence. This enables our partners to live what we call a "vibrant and dignified life."

"I have learned that our tradition, culture,andcrafthaveauniquevalue and if we appreciate and preserve them, they will provide a means of livelihood."

457ARTISANS

2,936DEPENDENTS

91,218FAIR WORK HOURS A C L O S E R L O O K

Of the 168 designs brought to life in 2022, 113 were new and 103 were customized.

THE Et

"I want my children to have a better life than I did by giving them an opportunity to go to school. These orders make it possible for me to pay for their education."

Jane Nambalirwa

OUR LARGEST ORDER

In 2022, the Young Living Foundation ordered19,200BeeswaxCandleKitsfrom our artisan partner, Beeutiful Creations. This purchase employed artisans and created fairpayworkhours. 40

3,800

"It’s amazing what these women can do withtheirhands.WhenIseethemgetpaid, and there’s a big smile on their face, it makes me joyful to know that they are happy."

lie, Beeutiful Creations' Manager

MEET BEEUTIFUL CREATIONS

Beeutiful Creations is committed to supporting Rwandan beekeepers and their bees by purchasing bee products and working with artisans to create highquality, handmade goods. By partnering closelywiththeentiresupplychain,people are paid a living wage, families are supported, and communities are transformed.

The best predictor of a nation’s stab is how women are treated. When wo are economically empowered, families, communities, and coun thrive.

This year, Ethik orders emplo 480 women around the world.

In 2022, Ethik was awarded three certifications that ensure not only our transparency, but our commitment to creating social change in an ethical andsustainableway-proof we are creating positive benefits for people and the planet!

USA Certified Social Enterprise

This accreditation is the only independent guarantee in the US that proves a social enterprise reinvests at least 51% of its profits towards maximizing positive impacts.

Social Enterprise World Forum (SEWF)

A global platform that elevates nationally accredited social enterprises. One receives international recognition through SEWF through an accumulation of international social enterprise standards.

Buy Social USA

The United States does not have a legal classification for social procurement. Items purchased through a Buy Social partner now have a standardized guarantee that it creates positive impact, helping customers "buy better."

"Ethikisanadvocateforwomenand deservestoberecognized."

This year, Ethik was awarded one of the 100 Companies Championing Women in Utah because of our commitment to women employees.Thisrecognitionspeakstoourefforts toprovidefamily-friendlypoliciesandpractices, aswellaswomen-specificinitiativesthatimpact the recruiting, hiring, retaining, and advancing ofwomenemployeesandleaders.

A W A R D S

In September, team members Allie andMelissaparticipatedintheUtah Business Startup Summit Pitch Competition. Ethik was honored to receive the grand prize of the "Editor's Choice Award" from Utah Business Magazine, where our company will be featured in their printed magazine and online newsletterinJanuary2023,reaching an audience of over 30,000 subscribers!

By purchasing handmade, you can strategically embed impact into your business in order to transform your brand’simageandreach.

WIN'S Inaugural Venture Summit

During their inaugural venture summit. the Wasatch Innovation Network (WIN) sourced cork keychains for attendee gifts from Free Women, an artisan group based in Salt Lake City, Utah that employs 26 Afghan refugee women.

Matthew G.

WIN Venture Summit Attendee

"I attended the 2022 WIN Venture Summit and got a very thoughtful gift.

Beforeopeningthebox,Iexpectedtoget a pen or a chocolate. I was delightfully surprised to get a handmade keychain madebyarefugeefromAfghanistan.The gift included their story and some info about their background. It was a special and unique gift and made me want to be morethoughtfulinanycorporategifting thatIdo.”

MEET HANIFA JAVADI

Free Women was started by Hanifa Javadi, a refugee from Afghanistan. Through her sewing business, Hanifa employs 26 refugee women including widows, minority groups, those with disabled children, and women in abusive situations to become “free women

through employment and skill development.

BEHINDTHESCENES

Our Ethical Storytelling Process

Across sectors, storytelling is a powerful tool that is used to call people to action, connect with others, and market an organization’s services. In 2022, Ethik developed a system of consent where artisans are made aware of how their information is going to be used prior to theirstoriesbeingshared.

Ethik's Head of Impact

"Itisincrediblyrewardingtoknowthatour artisan partners approve of the stories we shareofthembecauseprotectingtheirrights is at the very heart of our business. Our stories are a part of us and each of us deservestherighttodecideifandhowthey aretold.”

Jenna Rakuita

ENSURINGETHICAL STANDARDS

The artisan sector is largely unregulated, leaving many people vulnerable to exploitation. In 2022, Ethik worked alongside Professor ScottSanderstocreatethefirstpart of our vetting tool: the reporting process. During this stage, we work with artisan group representatives to ensure a commitment to upholdingethicalstandards.

OURNEWEST ARTISANGROUP

Nunayù, meaning “Freedom” in the Mexicanlanguage,Mixteco,provides human trafficking survivors in Mexico City the support needed in order to gain liberation and build a future by providing vocational training and employment through theartofhandcraftedjewelry.

S P O T L I G H T

MEET TEO CACAO

Cacao cultivation throughout the world remains a largely unethical trade that relies heavily on human exploitation, such as trafficking and child labor. Teo Cacao, however, is committed to reforming the practice by providing fair compensation and healthy working conditions to their farming partners. People are at the heart of their craft - both those who make the product, as wellasthosewhoreceiveit.

GRAND OPENING

The Ashraf Ability Center

This year, Ethik worked alongside artisan partners, Mabira Collective, to open the Ashraf Ability Center in Lugazi, Uganda. This center provides support to children withdisabilitiesandtheirfamiliesthrough education, physiotherapy, nursing, and homevisits.

"We built the Ability Center to serve the community as a whole, and the opening ceremony was fantastic! Opening this center, with support from our friends and partners,wasadreamcometrue."

Tina, Mabira Collective Manager

Since Ethik was founded in 2019, we have worked with artisans through the creationof

With the inability to travel during the globalshutdownsoverthepast2years, ourUSstafflearnedjusthowmuchwe can lean on and trust our handcraft partners around the world. This experience helped us to establish systems and tools to more rapidly onboard artisan cooperatives to our platform while also maintaining the higheststandardsofqualityandethics.

As we grow the number of artisan partners on our platform, we are dedicated to expanding our customer base at a similar rate to enable handcrafters to have consistent work with us. We have big plans in 2023 that we cannot wait to share with you that will enable more companies and individuals to access these beautiful handmade items, and as a result, give dignified work to thousandsoftalentedcraftersaroundtheworld.

Thank you for being part of this exciting andimportantwork.Aswemoveforward with the quality craftsmanship of our partners, combined with your continued support, we are confident that this upcoming year will be one of unprecedentedexpansionandgrowth.

The Ethik Team