Nepal GoodWeave Foundation was established in December 1995 as a result of joint collaboration among carpet entrepreneurs; child-right NGOs; and international development organizations, viz. UNICEF, the German Agency for Technical Co-operation (GTZ), and the Asian American Free Labour Institute (AAFLI).

GoodWeave is a global non-profit initiative working to end illegal child labour in carpet industry and offering viable alternative opportunities to the removed carpet children through education and vocational training. GoodWeave is a unique business -NGO cooperation working independently in various carpet producing and consuming countries. Through workplace inspection, monitoring and consumer labeeling, GoodWeave label provides the best possible assurance that no child labour was used in the manufacture of a carpet of rug. Broadly speaking, GoodWeave works for socially and environmentally responsible business practices.

International GoodWeave network Presently operates in Nepal, India, Germany, the United States of America and United Kingdom. GoodWeave International e.V., the governing international body is registered in Germany, owns the GoodWeave trademark.