MASHINIi

Ethan Allen Interiors Inc..

ETH.US | Manufacture of furniture

Ethan Allen Interiors Inc. is a manufacturer and retailer of home furnishings, including case goods (such as bedroom sets, dining room sets, and entertainment centers), upholstery (sofas, chairs, and loveseats), and home accents (lamps, rugs, and window treatments). The company operates through a ne...Show More

Ethical Profile

Mixed.

Ethan Allen Interiors Inc. presents a mixed ethical profile. A significant data breach involving medical records, allegedly due to an outdated web server and lack of data loss prevention, raised cybersecurity concerns. While the company has a privacy policy and uses the NIST Cybersecurity Framework, critics point to this potential HIPAA violation. In sustainability, Ethan Allen recycles wood chips/sawdust for energy and earned a "Most Improved" award for wood sourcing. Yet, its industrial waste recycling rate is 45%, with reports suggesting reliance on virgin materials and limited take-back programs. Employee welfare includes on-site medical clinics in Mexican/Honduran workshops and a furniture safety initiative to prevent tip-overs.

Value Scores

Better Health for All-10
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect0
-100100
Fair Trade & Ethical Sourcing20
-100100
Honest & Fair Business-40
-100100
Kind to Animals0
-100100
No War, No Weapons0
-100100
Planet-Friendly Business-20
-100100
Respect for Cultures & Communities-30
-100100
Safe & Smart Tech-30
-100100
Zero Waste & Sustainable Products-10
-100100

Better Health for All

-10

Ethan Allen demonstrates a commitment to health equity for its employees, with over 80% of approximately 1,200 associates in Silao, Mexico, receiving free care from on-site medical clinics, free pharmacies, and partnered physicians for families

1
. Annual health fairs in Choloma, Honduras, serve around 500 associates with free consultations, medical services, and dental procedures
2
. The company also emphasizes preventative health, providing employees with health information, education, and flu vaccine clinics, and implementing COVID-19 pandemic response measures like social distancing and masking
3
. For its products, Ethan Allen uses low-VOC and low-HAP finishes
4
, CertiPUR-US® certified foams
5
, and commits to PFAS-free materials
6
, reducing potential health harms. It also clearly outlines furniture tip-over risks and preventative measures
7
, demonstrating strong risk transparency and providing related health education
8
. Employee assistance programs are available for mental health support
9
. The company's core business of furniture manufacturing means several health-related KPIs are not applicable.

Fair Money & Economic Opportunity

0

The provided articles for Ethan Allen Interiors Inc. (ETH.US) focus on the company's financial performance as a manufacturer and retailer of home furnishings, including revenue, net income, EPS, capital expenditures, headcount, and production location. The ethical value 'Fair Money & Economic Opportunity' assesses activities related to lending, insuring, moving, or storing money, and financial inclusion. No information or specific data points are provided in the articles regarding the company's involvement in financial services, lending practices, customer financial data, financial literacy initiatives, or any programs related to economic opportunity for underserved populations. Consequently, there is no evidence to score any of the KPIs under this value.

Fair Pay & Worker Respect

0

No evidence available to assess Ethan Allen Interiors Inc. on Fair Pay & Worker Respect.

Fair Trade & Ethical Sourcing

20

Ethan Allen requires all sourcing facilities that manufacture its branded products to certify adherence to its Manufacturing Code of Conduct and International Labor Standards Manual.

1
These manuals include requirements for preventing child and involuntary labor.
2
Furthermore, these suppliers must authorize third-party auditing companies to engage in monitoring activities to confirm compliance.
3

Honest & Fair Business

-40

Ethan Allen has an FCPA International Anti-Bribery Policy that explicitly prohibits bribes by employees, representatives, vendors, and agents.

1
The company also maintains a Code of Conduct for all employees, officers, and directors.
2
However, there is no public information regarding the frequency or effectiveness metrics of anti-corruption training. Additionally, the company provides a confidential whistleblower hotline
3
and requires associates to report concerns regarding the FCPA to specific executives.
4
Despite the existence of these reporting channels, there is no evidence provided regarding independent investigation processes for whistleblower reports.

Kind to Animals

0

No specific, concrete data points were found in the provided articles to assess Ethan Allen Interiors Inc. against the 'Kind to Animals' ethical value. The articles primarily focus on sustainable wood sourcing and forest management

1
, which, while related to habitat, do not provide the measurable biodiversity impact, species recovery metrics, animal welfare certifications, animal testing policies, or animal-derived ingredient substitution percentages required by the rubric's KPIs. Therefore, all KPIs for this value have been omitted due to lack of relevant evidence.

No War, No Weapons

0

Ethan Allen Interiors Inc. is a manufacturer and retailer of home furnishings. The provided articles indicate no involvement in arms manufacturing, military contracts, or conflict facilitation.

1
Specifically, there is no evidence of revenue from arms or defense contracts, dual-use technology development, sales to embargoed regimes, or investment in peacebuilding initiatives.
2
The company's sales to the U.S. government General Services Administration (GSA) for fiscal 2025 represented 6% of consolidated net sales, but these are not identified as arms or defense contracts.
3
Consequently, most KPIs related to war and weapons are not applicable to the company's core business operations.

Planet-Friendly Business

-20

More than 65% of the wood sourced by Ethan Allen is comprised of certified reclaimed or recycled wood.

1
The company's Climate-Related Financial Risk Report incorporates all four pillars of the Task Force on Climate-Related Financial Disclosures (Governance, Strategy, Risk Management, and Metrics & Targets)
2
and includes a climate risk assessment for its California operations.
3

Respect for Cultures & Communities

-30

Ethan Allen Interiors Inc. lacks a formal cultural impact assessment protocol, despite operating in culturally sensitive areas, such as the Negôni Alnôbaakik Abenaki village and ceremonial site. Only one of its 11 manufacturing facilities and 143 retail design centers, specifically the Silao, Mexico facility, has received "Empresa Socialmente Responsable" recognition, indicating a very small percentage of its total operations with a documented social license.

1
The company has engaged in 7 formal partnerships with indigenous or local community groups, including Alnôbaiwi, Burlington Trolley Tours, Winooski Valley Park District, community organizations for Community Gardens, Habitat for Humanity, the Mexican Center for Corporate Philanthropy, and the Alliance for Corporate Social Responsibility.
2
No cultural appropriation incidents have been reported. The company actively protects cultural sites, exemplified by the Negôni Alnôbaakik Abenaki village, which is managed by Alnôbaiwi.
3

Safe & Smart Tech

-30

Authentication security for personal data records relies solely on unique passwords, with no mention of multi-factor authentication options.

1
While the company states it collects only necessary data, retention periods vary significantly, including permanent retention for some data categories and up to 7 years for others.
2
The company has no documented incidents of unauthorized data use, and its policy restricts third-party vendors to accessing only personal information necessary for their functions, prohibiting use or storage for other purposes.
3
Users are provided with comprehensive control over their personal data, including rights to know, access, delete, correct, opt-out, and limit use, with support for Global Privacy Control (GPC) signals, Universal Opt-Out Mechanisms (UOOM), and online forms for opting out of data selling and sharing.
4
The company states compliance with the federal Children’s Online Privacy Protection Act (COPPA), local, state, and federal laws, and where applicable, GDPR and CCPA.
5

Zero Waste & Sustainable Products

-10

Ethan Allen achieved a 73% waste recycling rate in 2023

1
and its packaging recycling rate stands at 82%.
2
The company incorporates 65% recycled materials into its products.
3
Ethan Allen implements numerous waste reduction initiatives, including the "Shrink Smart" program which cut plastic wrap usage by 132,238 yards,
4
and a Pomona recycling hub that diverted over 2.2 million pounds of material from landfills since 2015.
5
The company also burns wood waste for fuel
6
and has received multiple environmental awards.
7
For hazardous waste management, Ethan Allen has reduced generation, leading to the reclassification of two manufacturing facilities from large to small quantity generators and one to a very small quantity generator,
8
and has closed Superfund obligations.
9
The company has maintained a perfect compliance record with no major waste disposal violations, fines, or sanctions in 2018
10
or the last 10 years,
11
and is fully certified for waste disposal regulations compliance.
12
The company established environmental sustainability goals in 2010,
13
including a 10% carbon footprint reduction goal achieved early,
14
and sets individual location targets for 5-10% reductions.
15
Ethan Allen also has comprehensive supplier waste requirements through its "Sustainable by Design" program,
16
a Supplier Code of Conduct,
17
semi-annual surveys,
18
and support for suppliers in implementing sustainable manufacturing methods.
19

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.