Bangladesh makes progress in CSR
Wednesday, 8 December 2010
Z M Saifuddin
WHILE consumerism is rapidly growing in different parts of the world, it is also evident that consumers in developed and developing countries are becoming increasingly concerned about the poor conditions in which products are produced. To focus on this concern, 'Clean Clothes Campaign', an NGO in Germany, demonstrated in front of shops with signs saying, "Made in Hell". Few years back, a leading British newspaper revealed that many famous British brands were produced at a factory in Cambodia, which had previously been judged as one of the worst amongst those inspected in Cambodia by the International Labour Organisation on a host of health and safety issues.
In today's world of globalisation, the 'People-Planet-Profit' philosophy is predominant. We are all quite aware that Corporate Social Responsibility (CSR) represents care for social and environmental issues with a profitable business perspective. Globalisation has created more awareness of circumstances in countries all over the world. CSR is a worldwide-accepted development on how companies can manage their business processes to produce an overall positive impact on society and environment. Many good CSR practices are not achieved by companies working alone, but with other enterprises, civil society organisations (e.g. NGO's) and government. An emphasis on multi-stakeholder partnerships in the region is therefore likely to promote good CSR practices in the future. Many NGOs are concerned with the situation in companies regarding working conditions, human rights and environmental degradation. Consumers, especially those from Western countries, are demanding more information about production.
A number of organisations are active in the field of garments and textiles, which are trying to obtain more information about the circumstances of the producing companies. An example, which I have already said, is the Clean Clothes Campaign by an international NGO with the aim to improve working conditions in the global garment industry. The international media is regularly giving attention to these campaigns and demonstrations.
The purchasing power of consumers is increasingly mobilised on the issue of working conditions by initiatives as the Clean Clothes Campaign or the Made-By initiative whose members use eco-cotton. Information on working conditions in the garment industry is distributed via newsletters, actions, the Internet, movies (like 'China Blue') and research publications. But also opinion leaders like pop stars, radio DJ's and TV celebrities have substantial impact on young and fashionable consumers. The famous U2 singer Bono for example launched his own fashion brand 'Edun' which is produced under sound labour and environmental conditions in African countries, like Lesotho and Tanzania.
Consumer studies in Europe and the USA show that a growing number of consumers are interested in the social and environmental conditions under which the garment and textiles were produced. Therefore, retailers and brand companies are more and more concerned about how consumers perceive their company.
Brand companies and retailers, especially multinational corporations, have become aware of the concerns of consumers and NGOs and aware that they can contribute to sustainable development as well. As a response to the international attention about CSR issues and consumer pressure, brands such as Nike, Adidas, Reebok, Mattel, Levi's, Gap and others developed codes of conduct designed to ensure that suppliers in which they had only a contractual relationship to produce goods complied with a basic standard of workplace practices.
Many textiles production companies in Asia, Latin America and East and South Europe experience this and feel themselves sandwiched between tight production orders and a diversity of different codes and standards on CSR to comply with.
As an answer to this proliferation of codes, standards and guidelines, a group of European retail companies, associated in the Foreign Trade Association (FTA), initiated the 'Business Social Compliance Initiative' (BSCI) which is a shared European approach to improve social performance in supplier countries through a uniform social standards monitoring solution for retail, industry and importers.
All these initiatives show that brand companies and garment retailers are increasingly recognising the responsibility for a social and environmentally sound production of their textile products. We also feel the wind of change blowing over the industrial sector in Bangladesh. I recently visited a specialised textiles factory. I was greatly impressed to see their company premises -- an environment which reflects 'Go for Green', ETP (Effluent Treatment Plant) where water is treated, purified and released through a biological treatment plant, WTP, wage scheme and overall working facilities and conditions. More importantly, the owner of the company said, "Our stakeholders' interest is paramount to us."
The writer, a communication analyst, is Director Financial Excellence Limited and
can be reached
at saif@paperhymebd.com
WHILE consumerism is rapidly growing in different parts of the world, it is also evident that consumers in developed and developing countries are becoming increasingly concerned about the poor conditions in which products are produced. To focus on this concern, 'Clean Clothes Campaign', an NGO in Germany, demonstrated in front of shops with signs saying, "Made in Hell". Few years back, a leading British newspaper revealed that many famous British brands were produced at a factory in Cambodia, which had previously been judged as one of the worst amongst those inspected in Cambodia by the International Labour Organisation on a host of health and safety issues.
In today's world of globalisation, the 'People-Planet-Profit' philosophy is predominant. We are all quite aware that Corporate Social Responsibility (CSR) represents care for social and environmental issues with a profitable business perspective. Globalisation has created more awareness of circumstances in countries all over the world. CSR is a worldwide-accepted development on how companies can manage their business processes to produce an overall positive impact on society and environment. Many good CSR practices are not achieved by companies working alone, but with other enterprises, civil society organisations (e.g. NGO's) and government. An emphasis on multi-stakeholder partnerships in the region is therefore likely to promote good CSR practices in the future. Many NGOs are concerned with the situation in companies regarding working conditions, human rights and environmental degradation. Consumers, especially those from Western countries, are demanding more information about production.
A number of organisations are active in the field of garments and textiles, which are trying to obtain more information about the circumstances of the producing companies. An example, which I have already said, is the Clean Clothes Campaign by an international NGO with the aim to improve working conditions in the global garment industry. The international media is regularly giving attention to these campaigns and demonstrations.
The purchasing power of consumers is increasingly mobilised on the issue of working conditions by initiatives as the Clean Clothes Campaign or the Made-By initiative whose members use eco-cotton. Information on working conditions in the garment industry is distributed via newsletters, actions, the Internet, movies (like 'China Blue') and research publications. But also opinion leaders like pop stars, radio DJ's and TV celebrities have substantial impact on young and fashionable consumers. The famous U2 singer Bono for example launched his own fashion brand 'Edun' which is produced under sound labour and environmental conditions in African countries, like Lesotho and Tanzania.
Consumer studies in Europe and the USA show that a growing number of consumers are interested in the social and environmental conditions under which the garment and textiles were produced. Therefore, retailers and brand companies are more and more concerned about how consumers perceive their company.
Brand companies and retailers, especially multinational corporations, have become aware of the concerns of consumers and NGOs and aware that they can contribute to sustainable development as well. As a response to the international attention about CSR issues and consumer pressure, brands such as Nike, Adidas, Reebok, Mattel, Levi's, Gap and others developed codes of conduct designed to ensure that suppliers in which they had only a contractual relationship to produce goods complied with a basic standard of workplace practices.
Many textiles production companies in Asia, Latin America and East and South Europe experience this and feel themselves sandwiched between tight production orders and a diversity of different codes and standards on CSR to comply with.
As an answer to this proliferation of codes, standards and guidelines, a group of European retail companies, associated in the Foreign Trade Association (FTA), initiated the 'Business Social Compliance Initiative' (BSCI) which is a shared European approach to improve social performance in supplier countries through a uniform social standards monitoring solution for retail, industry and importers.
All these initiatives show that brand companies and garment retailers are increasingly recognising the responsibility for a social and environmentally sound production of their textile products. We also feel the wind of change blowing over the industrial sector in Bangladesh. I recently visited a specialised textiles factory. I was greatly impressed to see their company premises -- an environment which reflects 'Go for Green', ETP (Effluent Treatment Plant) where water is treated, purified and released through a biological treatment plant, WTP, wage scheme and overall working facilities and conditions. More importantly, the owner of the company said, "Our stakeholders' interest is paramount to us."
The writer, a communication analyst, is Director Financial Excellence Limited and
can be reached
at saif@paperhymebd.com