Global Standard Glossary

Entity trading with (=buying and selling) GOTS Goods in the supply chain between the producer of the fibre and the retail merchant of the final product regardless of whether the goods are physically received or not (e.g. an import, export or wholesale trading entity).
Agents who do not become proprietors of the goods and retailers only selling to the end consumer are not considered Traders.

A document issued by a GOTS-approved Certification Body for GOTS-certified products, verifying their compliance with the Standard. It provides traceability by listing product details, shipment information and confirming integrity through volume reconciliation process.

The time period between the publication of a new version of the Standard and its effective date.

A B2C entity that sells GOTS-certified products to the end consumer, not engaged in repacking/relabelling/printing/cutting/any other processing, and that is is exempted from the certification.

A a type of remote audit that is conducted entirely online, using virtual tools and platforms to assess compliance with the relevant Standard criteria.

Calculation process by which it is ascertained that output volumes of a product’s certified materials are compatible with their corresponding input volumes. Input volume and output volume of the certified material used for a product are compatible if their ratio falls within a given percentage range, which reflects estimated production losses specific to the production process of the particular product, and if the input volume can be demonstrated to have been available on stock.

The difference between the actual wages paid to workers and the wages required to meet their basic needs and provide some discretionary income, a Living Wage. The Wage Gap is a measure of the extent to which workers' current compensation falls short of a Living Wage benchmark.

A subsidiary company is considered wholly owned when all of the common stock is owned by another company, the parent company. With a wholly owned subsidiary, the company's stock is not traded publicly. It remains an independent legal body, a corporation with its own organized framework and administration. Its day-to-day operations are likely directed entirely by the parent company, however.

Any individual engaged in work who is not a senior manager or owner.

A "Young Worker" is a worker who is older than minimum age, but younger than 18 years of age.