Nest Ethical Handcraft Digital Curriculum and Transparency Tools

Nest’s Ethical Handcraft Digital Curriculum and Transparency Tools is designed to increase the visibility of the global handworker economy, helping to protect their rights and ensure their safety and economic viability. The International Labor Organization estimates there are 300 million home-based workers globally. The second largest employer of women in developing economies, handcraft represents one of the largest informal sectors in the global economy, valued at $1,007.07 billion in 2023. The handmade sector is projected to reach $1 trillion in 2024. In her book “To Die for: Is Fashion Wearing Out the World?,” Lucy Siegle notes that around the world, 20-60% of this production is subcontracted outside of factories, being completed by artisans who work in informal settings like homes or workshops. WIEGO’s survey of three cities (Lahore, Pakistan; Ahmedabad, India: and Bangkok, Thailand) conducted from April 2012 to April 2013, found that 71% of home-based workers were subcontracted homeworkers.

In a report by two researchers in Bangladesh for the Solidarity Center, a workers’ rights group allied with the AFL-CIO union federation in the US, not one of the workers interviewed knew which factory had contracted them. Similarly, a 2019 survey of 130 international brands and manufacturers showed that more than 50% of them did not know how and where clothes are produced up to the first tier—their immediate supplier. 

As a result, these workers can be unrecognized by formal institutions, and the protection of their social and economic rights can be the exception rather than the norm. Contributing factors to this lack of visibility include:

• Deficient labor laws and enforcement mechanisms that trap handworkers within a exploitative workforce
• Lack of data that leads to the misperception that the handwork sector is localized and non-scalable
• Undervalued piece-rate wages that drive the average wage of a homeworker down to $1.80/day, 50% less than their factory worker counterparts, leading to a continued cycle of poverty
• Lack of financial inclusion, data collection, and monitoring systems, particularly related to payroll and supply chain information
• Despite sector challenges, workers often prefer homework because of the flexibility it affords individuals to remain in their community and care for children and other dependents

Currently, Nest’s compliance training and certifying process is done through cost and time-intensive site visits, which limits access to necessary resources for handworkers. Through our solution, Nest plays a critical role in increasing the visibility of these workers and ensuring they have a safe and equitable work environment - even as they work outside the traditional four-walled factory. Using a matrix of more than 100 metrics, this training-first program is tailored to address the wide degree of variation in decentralized supply chains, which may result from factors such as multiple layers of subcontracting, migrant labor forces, and broad geographic dispersal. 

Through our solution and its accompanying resources, Nest will help handworker businesses put their learning into practice. By establishing sustainable compliance systems, our Digital Curriculum and Transparency Tools will strengthen their visibility and transparency in their supply chains.

Nest’s Ethical Handcraft Digital Curriculum and Transparency Tools is a comprehensive, user-friendly e-learning program designed to provide handworkers worldwide with access to our compliance training resources and implementation tools. Measuring compliance across a matrix of more than 100 Standards, the training-first program will be launched online, allowing a pathway for more handworkers to earn a Seal of Ethical Handcraft, the first and only certifying mark that ensures handworkers have a safe and equitable work environment. Delivered through Nest Connect, our online learning library, participants will also be able to access free business development resources.

Our Ethical Handcraft Program was developed to support handcraft businesses to be ethical employers, responsible suppliers, and champions for the rights of handworkers within home-based supply chains worldwide. Through this program, handcraft businesses are certified against the Nest Standards of Ethical Compliance for Homes and Small Workshops, ensuring that artisans and hand workers have safe and equitable work environments. Products made by certified businesses carry the Nest Seal of Ethical Handcraft, the first and only certification mark to ensure products are Ethically Handcrafted.

This process is currently done through time and cost-intensive on-site training and custom remediation, but the proposed platform will extend the reach of the program’s impact by allowing makers access to training online. Nest’s Digital Compliance Curriculum, a self-guided process, will empower vendors and handcraft businesses to engage directly, starting at an accessible price, progressing at their own pace, and aligning with Nest Standards in policy and procedure development. The contents of this curriculum will be built using Articulate, a leading software provider specializing in interactive e-learning content creation. 

Additionally, to ensure financial inclusion, this initiative looks to integrate blockchain technology as a digital payments mobile app, a tool for businesses to collect important compliance-related data, like payroll and supply chain information, while also being able to monitor subcontractors more effectively. Our platform will also substantially expand learning and education outreach to impact thousands (versus dozens) of handworkers worldwide by utilizing Nest Connect. Our free, online library of business development tools, Nest Connect delivers easy-to-access virtual webinars, downloadable resource guides, mentorship sessions, and peer-to-peer networking to makers and entrepreneurs around the world. Powered by the learning platform Docebo, Nest Connect hosts five content hubs on essential business development and entrepreneurship topics including Marketing and Communications, Branding, Business Strategy, Sales & Merchandising, Product Design, and Development & Production. 

Nest Connect and our Digital Curriculum and Transparency Tools will serve as a transformative opportunity, empowering thousands of handworkers across 126 countries worldwide. With enhanced accessibility, this broadened scope significantly enhances Nest's ability to foster sustainable growth and prosperity within the global artisan community. It ensures that makers and artisans worldwide can benefit from Nest's resources and support networks.

Nest defines handworkers within the national and international informal economy as individuals working on creating products made by hand, like rug and basket weavers, jewelry makers, potters, tailors, and quilters. The Digital Curriculum and Transparency Tool aim to bring visibility to artisans and other informal workers working inside of homes and small workshops, helping to ensure the social protections they deserve. Our goal is to achieve fair compensation and prioritize safe, healthy working conditions for handworkers. To date, Ethical Handcraft has engaged 173 artisan businesses across 199 product lines, directly impacting 53,143 individuals across 34 countries. Of these handworkers, 71% are women.

The population served by this program works outside of factories and are often neglected institutional protections for their safety and economic well being. This program endeavors to continue to revolutionize the sector and create measurable impact across issues like worker rights, child advocacy, fair compensation, and environmental care. By making the resources of Ethical Handcraft more accessible, Nest will expand our reach to ensure that:

• Handworkers throughout the supply chain are paid at least a minimum wage (with aspiration toward a living wage) and work in safe conditions 
• Artisan and handworker SMEs that specialize in hand-crafted or informal production are included in - and can compete with - a global market
• Brand partners have fully visible and ethical supply chains and create equitable opportunities to include a growing number of artisan SME partners in their supply chain

Since 2006, Nest has been a leader in the handcraft economy by engaging stakeholders at every level, impacting income for makers and artisans, influencing corporate policy shifts, and uncovering unprecedented data on the sector. Through our programs and partnerships, we have developed work to support the well-being of artisans worldwide by elevating home-based work as a viable economic opportunity and a tool for cultural preservation. Annually, Nest supports more than 380,000 skilled artisans and handworkers across 126 countries, impacting the lives of 1.6 million individuals in communities around the world. 

Nest’s Ethical Handcraft Program was developed to support handcraft businesses to be ethical employers, responsible suppliers, and champions for the rights of handworkers within home-based supply chains. In 2017, after conducting a review of existing factory auditing standards (including SA 8000, FLA and Fair Trade USA), Nest introduced its Standards of Ethical Compliance for Homes and Small Workshops at the United Nations, making them the first widely adopted metrics for determining informal supply chain accountability and transparency. Products made by certified businesses carry the Nest Seal of Ethical Handcraft, the first and only certification mark to ensure products are Ethically Handcrafted. Through this program Nest has worked with 174 supply chains in 27 countries, positively impacting the lives of more than 53,000 handworkers. 

This program, and Nest's mission at large, is centered around the strengths, needs, and challenges of those we serve. This dedication is reflected across our leadership, employees, and decision-making structures. Nest's team of experts, many of whom have careers dedicated to gender equity and advancement, work alongside handwork businesses to design impactful programming. 

At Nest, building trust within the community and among small business owners is paramount. Our approach involves direct engagement with makers, understanding their challenges, and showing commitment to their success. Additionally, partnerships with regional organizations are complemented by dedicated local staff who prioritize cultural sensitivity and foster strong community connections. These key regional partners actively support recruitment efforts, leveraging their relationships with micro-entrepreneurs encouraging participation and facilitating meaningful connections within the handmaker community.

Our programs are relevant and impactful through close community engagement and active involvement in solution-building. Through Nest's continuous dedication and collaborative efforts, we aspire to make a positive and lasting impact on the lives of makers across the world, creating a more equitable and thriving creative economy for all.

Nest’s Ethical Handcraft Standards and corresponding program methodology were launched in 2017, after extensive development and field testing. To date, the program has been implemented in over 173 supply chains in 34 countries, with a reach to over 53,000 workers. Until now, Nest’s Ethical Handcraft program existed as an in-depth on-site program that, while effective, is costly and requires extensive bandwidth by our team of implementors. 

In 2023, Nest began developing an online digital curriculum based on the training and remediation methodology used in our on-site program. A pilot was conducted with 5 businesses that were given access to a sample portion of the digital curriculum content and asked to complete and provide critical feedback to inform the ongoing development of the curriculum. Through this pilot, Nest collected feedback on the businesses’ user experience, clarity of course content, course features, perceived value and willingness to pay, accessibility, and material retention. Two full modules of the curriculum have been developed since the initial pilot, and a more in-depth pilot is scheduled to begin at the end of April 2024.

For the digital payments mobile app, this software would build off of the remediation tools and resources Nest currently provides businesses to use when implementing their compliance systems, but instead, provide a way to document the same information digitally. Nest has identified a partner with well-established software developed specifically for complex supply chains like the ones that Nest supports. The software was designed with a very simplistic user interface and has minimal adoption times so that it can be rapidly integrated and used in business activities. Nest is in discussion with this partner to identify a supply chain to pilot the technology. 

Within informal supply chains, the current lack of technology and technological literacy means that record keeping is often completed on paper, includes numerous errors, and cannot be quickly or easily reviewed. This software would allow for the collection of digital transactional data and ability for real-time insights and monitoring of compliance practices. Businesses purchasing from these supply chains will also have the assurance of more reliable data for compliance audits and would be able to show verifiable impact for reporting. Beyond social compliance-related benefits, the software will help businesses trace materials through these complex supply chains and better manage production demand and capacity.

Applying for the Global Economic Prosperity Challenge presents a strategic opportunity to align with the program’s mission to foster peaceful and prosperous economies. As Nest scales our programs, we look for ways to better serve handworkers across the world, who are often at an economic disadvantage because their work happens outside of traditional venues.

The challenge of ensuring economic wellbeing for these workers can be immense given deficient labor laws can leave handworkers vulnerable to exploitation. Through Ethical Handcraft’s Self-Guided Compliance Training modules and access to our library of business development resources, we intend to build a more accessible pathway toward economic security. MIT's funding and valuable network of experienced partners will not only help implement this initiative but will ensure it achieves all its goals, impacting the lives of thousands of handworkers worldwide. 

Specifically, funding awarded through the challenge would provide vital resources necessary to deliver Nest’s Ethical Handcraft Digital Curriculum and Transparency Tools to more handworkers in need of greater personal and economic protections. Funding will not only allow us to extend the impact of Ethical Handcraft’s compliance training, it will also help to develop and make accessible our E-Commerce Learning Pathway, enhancing our impact through a more sustainable platform. 

We were also inspired to apply to this challenge because it would introduce Nest to a new network of partners. At the heart of this initiative, and our mission, is the importance of collaboration and community; sharing knowledge for the benefit of all. In this way, we believe that through a collaborative exchange of experience, Nest will gain additional insights into the technological facets of the solution to improve deliverability and effectiveness. 

The challenge encourages innovation, fostering new and creative ideas to develop effective support programs. Ultimately, applying for this award showcases Nest's commitment to positive change and with the support of the Global Economic Prosperity Challenge can make a lasting difference in the lives of more handworkers, advancing the mission and vision of the creative community.

To effectively address the need for protections for decentralized handworkers and to improve accessibility of our Ethical Handcraft Program, Nest looks to significantly scale the impact of our compliance training by introducing this resource to an online platform. 

Nest’s proven model for training handworker businesses is currently done in person, which can restrict accessibility due to costs and limit the impact of our Ethical Handcraft Program. Technology is the only way to radically scale access to these tools for all who need them. To that end, Nest’s Digital Curriculum and Transparency Toolsis tailored to provide a self-guided digital learning journey. This represents a significant step forward in Nest’s goal to increase the accessibility of the Ethical Handcraft Program and the critical resources needed to effectively implement them within the deepest levels of the supply chain. We're transforming how we deliver ethical training by leveraging Nest Connect, an exclusive digital hub that houses a growing library of business development courses and training prepared by top industry experts, ensuring equitable access and opportunity for all.

The Digital Curriculum and Transparency Tools goes beyond traditional e-learning platforms by providing industry recognized certifications and highly specialized training for an often overlooked population. The program guides handworker businesses through establishing policies and systems for preventing and reporting child labor, harassment, and abuse, educating workers on their rights, monitoring the supply chain, and creating systems to demonstrate adherence. In addition to training, certification, and access to our growing library of business development resources, the program will promote financial inclusion by integrating blockchain technology as a mobile-based tool for businesses to collect data necessary to their economic well being. 

At the heart of this program lies a commitment to center input from makers and stakeholders in crafting resources and programming, leading to unparalleled collaboration and engagement. The program is designed to be responsive to the unique audience and scalable, using data-driven research to prioritize the needs that arise from the handworker community.

Nest's Theory of Change seeks to transform the craft economy in the United States and around the world by addressing systemic barriers that prevent makers, especially those from marginalized communities, from scaling their businesses and thriving. Collaboration and human-centered design are crucial to our approach. Indeed, to ensure our work is data-driven, makers tell us about their unique goals and where they would like support, so they drive their experience as we equitably match resources to needs. 

Our initiatives aim to achieve several interconnected outcomes that benefit makers and their communities. We aim to provide resources and opportunities that increase economic stability and growth while safeguarding cultural traditions and heritage. Furthermore, we advocate for the recognition and respect of art and culture within society and the small business ecosystem, raising awareness and appreciation of craft to foster greater public understanding and support for makers and artisans.

As a nonprofit organization, Nest’s Theory of Change is rooted in four overarching aspirations and goals:

• Advancing Gender Equity
• Driving Diversity & Inclusion in the Makers Movement
• Expanding Economic Opportunity through Craft
• Shining Light on Unseen Workforces

This request enables us to achieve these aspirations by delivering training and data collection tools to guarantee inclusivity and accessibility for handworkers within informal supply chains that are often unprotected and underpaid. Through this initiative, we invest in technology, advance sustainable practices, and catalyze positive change in artisans' lives, promoting ethical standards across the handcraft industry.

Impact goals for Nest’s Ethical Handcraft Digital Curriculum and Transparency Tools are centered on providing accessible compliance and business development training for artisans working in informal settings to ensure they have safe and equitable work environments. Primary impact goals are:

1. Promote Decent Work and Economic Growth:

• Increase in number of supply chains that adopt Nest’s Standards into practice
• Increase in number of businesses that complete Nest’s training curriculum  
• Increase the number of businesses who are prepared for an evaluation or assessment following digital curriculum training and remediation

2. Ensure Quality Education:

• Significantly increase the number of handwork and informal supply chains that have access to critical training curriculum on ethical compliance practices and support for implementation 
• Increase the number of businesses that successfully complete ethical compliance training and adopt Nest’s Standards

3. No Poverty:

• Increase in the number of businesses successfully using digital record-keeping systems (vs written systems)
• Increase number of businesses who have improved systems for monitoring worker wage payments through use of digital payment tool
• Increase number of businesses that are able to establish digital supply chain mapping and ensuring all workers are included in compliance systems 

To measure progress towards these goals, Nest will track the following for each participating handworker business:

• Enrollment in digital curriculum program
• Engagement in curriculum
• Completion of the training curriculum; including time needed to complete training
• Scores in course quizzes
• Conversion from digital curriculum to evaluation (diagnostic, desk assessment, onsite assessment)

To ensure our programming benefits makers and their communities, Nest employs a data-driven framework to monitor and evaluate activities, assessing outputs and impact measures. This includes qualitative and quantitative metrics for worker well-being, artisan business capacity and sustainability. We also gather industry data from existing literature, landscape mapping, and analysis of internal and external factors affecting program success.

Nest uses diverse tools to capture, aggregate, and analyze stakeholder data, including needs assessments, surveys, onsite visits, and interviews. Data collection occurs digitally and through in-person interviews. We have systemized data collection processes for program monitoring and impact assessment, highlighting areas of strong program engagement. Our M & E system includes:

• Regular review of impact data
• Identifying areas of excellence or need for improvement
• Informing future program design

Through these goals and methods of measuring success, Nest aims to provide transformational opportunities for all makers within the handworker economy. 

Central to the success of Nest’s Digital Curriculum and Transparency Tools is a comprehensive suite of technologies designed to improve and increase access to our compliance and business development training. This carefully considered group of technologies will allow Nest to better support handwork businesses in their journey towards certification against the Nest Ethical Compliance Standards for Home and Small Workshops. 

The curriculum is being developed using Articulate, a cloud-based platform designed for creating interactive eLearning courses. To ensure greater accessibility, this resource will be hosted on Nest Connect, our interactive digital learning hub that leverages existing software and mobile applications, providing comprehensive support to maker entrepreneurs worldwide. A user-friendly platform with a vast array of on-demand online business education resources, Nest Connect is powered by Docebo, a cloud-based learning service that automates learning management and personalizes the learner experience to produce deeper outcomes. 

In addition to compliance training, Nest Connect will provide artisans access to essential business development courses like cash flow analysis, budgeting, business plan creation, and financial education. The platform allows makers to learn independently, pausing and resuming courses as needed to fit their busy schedules. This flexibility ensures that the resources are accessible to all, empowering them with the knowledge and skills needed for their economic wellbeing.

The digital payment and compliance data tracking system will use an application built with blockchain technology, developed for mobile devices. This software is based on the remediation tools Nest provides business when implementing compliance systems, but will allow them the ability to capture data digitally. To house and analyze data collected from program activities, Nest will use Aspire Systems in AWS, which will allow us to monitor outcomes and make impactful adjustments effectively.

Human-centered design is a core aspect of the Digital Curriculum and Transparency Tools. To further ensure accessibility, the software is being designed with a user-friendly interface with minimal adoption time so it can be rapidly integrated and used in business activities. Nest also uses the Google Suite of resources to allow enrolled businesses with convenient means of sharing documents, tools, resources, and communication. 

The technology that powers Nest’s Digital Curriculum and Transparency Tools is an integrated mix of resources that include blockchain, cloud infrastructure, web-based collaborative tools, user analytics, mobile optimization, and Learning Maintenance Systems. For Nest, this is a paradigm shift, not just because of the technology being employed but because the curriculum has the potential to positively transform the informal handworker economy and impact personal and economic wellbeing of thousands of artisans.

Full-time staff: 8

Nest’s Ethical Handcraft Standards and corresponding program methodology were launched in 2017. In 2023, Nest began developing the Nest Ethical Handcraft Digital Curriculum and Transparency Tools based on the training and remediation methodology used in our on-site program.

At the heart of Nest’s mission, values and program design is the belief that diversity, equity and inclusion are fundamental to be a stronger and more impactful organization.

We believe diversity takes into account all facets of one’s identity and are committed to a nondiscriminatory approach at Nest, providing equal opportunities for employment, leadership, and access to programs. To us, equity exists when individuals have equal opportunity to achieve success with support or services to overcome structural barriers impacting the individual. Inclusion ensures that all programs, organizational design, and leadership allow participants to equally voice their perspectives and experiences, giving all points of view equal consideration for problem-solving, implementing solutions, creating programs or advancing Nest’s work and impact.

Our commitment to this undertaking is threefold:

1. INTERNALLY - We work to recruit, retain, and develop a diverse team to foster an environment that is inclusive, listening-focused, and learning-forward. 

2. PROGRAMMATICALLY - We focus on human-centered design models and the co-creation of inclusive programs with makers and artisans.

3. STRUCTURALLY - We believe that systemic racism is deeply rooted within our global socio, political, economic, and cultural infrastructure and seek proactive ways that our programs, data, and learnings can inform NGOs, service providers, and government partners while also creating awareness among the general public to dismantle these systems. 

We have put these beliefs into action to ensure a more inclusive leadership team and organizational design, including: 

• Created a new hiring process: rather than relying on interviews that can inequitably favor individuals with access to specific educational and professional backgrounds, we have embraced models that showcase work style, process, and creative thinking. 
• Investment in DEI training for our staff and board of directors. 
• Nest continues to develop a lateral leadership model that leans into expertise rather than hierarchy.

Since our establishment in 2006, Nest has grown into a vast, global network of artisan and maker businesses alongside a growing list of dedicated brand and retail partners. Our diverse program offerings are designed to support artisan and handworking enterprises at every stage of their business lifecycle while remaining responsive to their distinct social and economic challenges.

A significant milestone for Nest has been the development of the Nest Standards for Homes and Small Workshops—an extensive matrix of 100+ standards certifying social compliance beyond traditional factory settings. We firmly believe in our responsibility to foster equitable work structures worldwide, and our commitment is evident through the provision of expertise, resources, and tools to support this mission. 

Our comprehensive programs have yielded remarkable success and tangible impact, positioning us as a prominent entity actively collecting data on this essential yet often overlooked sector. Collaborating with handwork businesses and brand partners, we drive enduring, sustainable change that benefits everyone within the supply chain, from corporate leaders to individual workers.

Nest’s business model mitigates risks to makers in our programming through tailored support, capacity-building, financial readiness workshops, access to resources, mentorship, data-driven evaluation, long-term support, and collaboration with partners. These strategies ensure makers receive personalized guidance, acquire essential financial skills, access resources, and sustain their businesses effectively. We aim to deliver a holistic solution that maximizes positive impact for the artisans and makers we serve.

Our dedication to empowering makers and artisans ensures their continuous growth and prosperity in the craft sector.

Nest is a 501(c)(3) nonprofit that combines philanthropic capital with earned revenue streams to ensure organizational sustainability. We have a proven track record of developing industry solutions through philanthropic seed capital, which are then implemented and sustained via fee-for-service consulting with brand and artisan partners. Some examples include:

• The development of the Nest Standards and piloting of the initial model was funded through Bloomberg Philanthropies and corporate foundation grants
• The wastewater project which was developed through support from the Patagonia Foundation and the Levi Strauss Foundation.

Nest's dual approach to revenue ensures diversification and nonprofit impartiality. Our fee-for-service model provides consulting services for brands and retailers, including our Ethical Handcraft program and support sourcing from our Makers United programs nationally. Earned revenue currently accounts for 23% of our operational budget.

In 2024 Nest will be joined by new and longtime philanthropic partners, including Target Foundation, National Endowment for the Arts, and Pinterest. We are also grateful for the sustained support of our current partners, such as Amazon, Etsy, Madewell, Target, Bloomberg Philanthropies, and the Oak Foundation. Grants and corporate philanthropy account for 61% of our operational budget.