The concept of sustainable development is becoming increasingly relevant in modern society. Brinkmann and Garren (2018) define sustainability as “meeting needs of the present without compromising the ability of future generations to meet their needs,” (p. 54). It is based on three pillars of the environment, people, and profitability of an organization. An organization cannot achieve success if any of the three pillars is ignored. The case study The Garment Industry in Bangladesh: A Human Rights Challenge identifies sustainability issues that the garment industry in Bangladesh faces. It presents a case where one of the main pillars of sustainability (people) has been ignored by players in the industry.
Human rights violation is rampant in this industry as employees are subjected to long hours of work without paying them for overtime. The case study shows that many workers in this industry have lost their lives while others have sustained varying degrees of injury because of the deliberate refusal of these companies to implement occupational safety requirements. Gender inequality is also emerging as a major issue in the industry. Men tend to earn higher salaries than women. The case also shows that the minimum wage given to these workers is barely able to meet their basic needs. Working conditions in these organization are pathetic as it emerges that the industry is not keen on protecting lives of workers.
The Occupational Safety and Health Convention of 2006 was enacted to ensure that workers all over the world are protected in their respective places of work (Jensen, 2020). However, the government of Bangladesh has only ratified sections of this policy, which makes it easy for large corporations to ignore the need to protect employees. Today, the garment industry in Bangladesh is thriving, but there is a complete disregard to the safety of workers. The international community, including large retailers who rely on this industry, have made an effort to ensure that workers in the industry are protected and that they are remunerated appropriately. The problem is that most of these agreements are non-binding, which means that parties can easily ignore them without any consequences.
These challenges are caused by many factors in the country, top of which is absolute poverty. Stanwick and Stanwick (2015) explain that the level of poverty in this country and limited employment opportunities leaves these employees with no option but to withstand the abuse. The stage of economic growth in this country makes it impossible to implement some of the policies commonly practiced in western economies. Corruption is another problem as those who are trusted to protect workers accept bribes and ignore most of these violations. Political agenda is another issue, especially when politicians have to rely on these companies to fund their campaigns.
The UN Sustainable Development Goals of Reduced Inequality
The United Nations Sustainable Development Goals were adopted by UN member states as a way of encouraging the global society to take action that would end poverty, promote peace and prosperity, and protect the planet (Wright, 2019). Its main objectives include elimination of poverty and hunger, promoting good health and education for all, promoting gender inequality, provision of clean water, making available clean energy, creating decent workplace environment, and responsible consumption and production. Others include climate action, peace and justice, and partnerships. These goals were based on the principle that the society can achieve its goals without subjecting others to pain and sufferings. They are set to target inequality issues in the society and to support smart production and consumption.
The case about the garment industry in Bangladesh demonstrates a clear violation of most of the objectives of the UN Sustainable Development Goals. The industry has made sure that most of its employees remain poor and unable to meet their basic needs. The issue of inequality is grossly ignored by these players despite the effort by the global society to address this issue. In these companies, women are assigned tasks which consume a lot of time, but are less paying. They prefer women who are less educated, unmarried, and young because of the belief that they can easily be manipulated. There is a need to address these issues and ensure that there is equal rights for women. They need to be given equal opportunities as men and their remuneration should reflect their work and the current economic status of the country.
The United Nations has been successful in applying some of the above policies in the garment industry to help address the exploitation of women’s rights in other parts of developing economies, especially in Africa. According to Brinkmann and Garren (2018), the garment industry in East African countries have evolved over the years, and women are given equal opportunities as men. Working conditions, wages, and quality of life of these employees have improved significantly because of the effort put in place by the international community. The same can apply in the local economy of local stakeholders, especially the government and union leaders, are committed to addressing these concerns.
The concept of responsible production should be promoted in this industry. Business entities must understand the role they play to ensure that they make products available in the market without violation of human rights. Responsible consumption is also gaining rapid relevance in the global society (Lo and Ha-Brookshire, 2018). Using both the social and mass media, awareness can be created among consumers to ensure that they get to value the process that it takes to make specific products available to them.
Effects of Sustainability on Supply Chains in the Apparel Industry
Having an effective supply chain management system is a part of achieving sustainability in a business. Nakano (2019) defines supply chain as the entire process of managing the follow of products from the raw material stage, work-in-progress inventory, storage, and delivery of completed products to final consumers. The concept of sustainable development, which refers to the process of acquiring their needed materials in a way that offer them maximum value for money and also benefits other stakeholders by minimizing waste, is also gaining popularity (Meadowcroft et al., 2019). In the apparel supply chain, large corporations such as Zara have major responsibilities they have to play to promote sustainable procurement. Understanding these roles and responsibilities may help the management understand how they can promote ethical workplace environment where rights of workers are respected at all times.
One of the main responsibilities of Zara is to ensure that the process of sourcing for its products does not involve violation of human rights. For instance, these companies have a responsibility to fight inequality and abuse of women working in the garment industry in Bangladesh. Their supply chain team have to demand that their suppliers meet UN SDG and other occupational health and safety requirements. They can insist on doing business only with ethical suppliers. They have to prove that they are treating their employees with respect and dignity. They may also require these suppliers to prove that their products are sourced in an ethical manner and in a way that does not threaten the environment. They can also promote recycling as a way of protecting the environment.
When major players in the apparel industry insist on ethical sourcing, it can have a major positive impact on the garment industry. Human rights abuse in Bangladeshi garment industry is primarily sustained by a team of large retailers who do not care about the process that it takes to make their products available. They are only concerned with their margins, which means that as long as they are assured of getting their goods at the lowest prices possible, they do not care about the process. The manufacturers may be forced to redefine their approach of production when they realize that their major customers are concerned about the process it takes to manufacture these goods (Stanwick and Stanwick, 2015). Some of these leading apparent retailers like H&M have become increasingly concerned about ethical sourcing and are putting pressure on their suppliers to ensure that they follow international best practices on human resource management.
Global Best Practices in Ethical Sourcing Implemented By Organizations in the Apparel Industry
The apparel industry is evolving as the concept of corporate social responsibility become entrenched in their best practices. Companies in this industry are getting sensitive about sourcing practices as some of the frustrations of workers become increasingly publicized both in social and mass media. Manufacturers in this industry have realized that they can no longer ignore the pain and suffering of employees. Sanders et al. (2019) explain that ethical sourcing has gone beyond minimizing waste and protecting the environment. It is also focuses on the need to protect human rights at all times. The attention that the pain and suffering of garment industry workers has received in the global media has tainted the image of most of these manufacturers. They have realized that they have to redefine their production strategies as a way of enhancing their sustainability.
Global best practices are emerging as companies struggle to ensure that their operations remain ethical. According to Stanwick and Stanwick (2015), some of the leading firms in the apparel industry have already developed new strategies of operation that focus on protecting human rights, promoting equality, and ensuring that the workplace environment is safe for everyone. One such brand in the garment industry that has embraced ethical sourcing is Adidas. The company has been keen on monitoring the entire supply chain system to ensure that all its partners, especially the suppliers, do not engage in practices that oppress employees. Patagonia, H&M, and Marks & Spencer are the other major brands in this industry that have embraced these best practices in line with the demands of their customers. Everlene, Polo RL, and Levi’s are the other major brands which are also embracing these practices. These companies have taken steps towards a more sustainable fashion sourcing. They believe that they can promote ethical practices in sourcing and still remain profitable in their operations.
The fashion industry is becoming increasingly concerned about ethical sourcing because of the changing perception of their clients about forced labor. These companies have realized that some of their clients may switch their loyalty to other companies when they realize that that some of the practices that company embraces are unethical. The ethical fashion report focuses on the truth behind the barcode (Sanders et al., 2019). Players in this industry are developing standards that players have to observe when sourcing for materials and products. These sourcing standards are meant to address most of the issues that have been raised in the case study about the garment industry in Bangladesh.
Sustainable Strategies to Find a Solution to Permanently Improve the Working Conditions of the Garment Workers in Bangladesh
Garment workers in Bangladesh are going through various challenges that affect their social and economies lives. It is necessary to find lasting solution to the challenges that these people go through in their effort to produce clothes sold in different parts of the world. According to Thorbeck (2015), one of the best ways of addressing stakeholders’ concerns within an industry is to create shared value. This approach is meant to ensure that interests of everyone is protected as a company seeks to offer value to its customers. The shared value framework, shown in figure 1 below, can help in explaining how this goal can be achieved. One of the first components of this model is environmental commitment. An organization should remain committed to protecting the environment in its operations. Education of its staff is another principle in this model. The case study indicated that the majority of employees in this industry lack college education. Such issues should be addressed as a way of enhancing their productivity. Besides formal education, the management can enhance their workforce skills through on-job-training programs.
Health of all stakeholders is another principle in this framework that the management has to take seriously. In Bangladeshi garment industry, it emerged that many companies do not give any importance to the health of their employees. Such issues should be addressed by all the players in the industry. The framework also emphasizes worker safety, an issue that has been ignored in this industry based on the case study provided. Affordable housing may help improve the economic status of the workers, enabling them to lead a better life. The framework identifies community economic development as another pillar that companies should not ignore. When engaging in corporate social responsibilities, firms should strive at empowering the local community. Water use and energy efficiency are the other two aspects of this framework that companies should not underestimate. Water should be used responsible and recycled when possible, and the use of renewable energy sources encouraged.
When addressing challenges that employees in Bangladeshi garment industry face, it is necessary to get a commitment from the relevant government authorities. The industry or individual companies may opt to embrace best practices of other firms in other parts of the world. However, Kramer and Pfitzer (2016) argue that having brilliant policies in pieces of paper is not enough. It is necessary to find ways in which they can be implemented for the benefit of the targeted group. The government should make regular inspection of these companies to ensure that interests of all employees are protected, and that they offer remuneration in line with the set policies.
Strategies They Have Implemented To Manage Sustainability in Their Business Functions
Cato Fashions, also known as Cato Corporation, is a leading American retailer of women clothes and accessories. The company was a regular client of Rona Plaza at the time of its collapse. When the building collapsed, killing over 1,100 people in the process, most of the clients of Rona Plaza were criticized for lack of ethical sourcing when purchasing products from the company (Stanwick and Stanwick, 2015). Many viewed the company as one that is only interested in protecting its profits instead of caring for those involved in the manufacturing of these products. When the court awarded families of those who lost their lives damages, Cato Fashions was one of the companies enjoined in the case and had to contribute a significant amount of money towards the compensation of these families. The case further reaffirmed the laxity of Catco in ensuring that all its suppliers maintained ethical practices. It affected the perception that customers have towards the brand and its general reputation. However, its sales were not significantly affected.
The company has since taken specific steps to avoid a similar problem in future and to ensure that it embraces ethical sourcing. One of the strategies that the company has embraced is to get actively involved in assessing the condition in which employees of its suppliers work. The human resource department employees of Cato have been making random visits at the company to assess the condition at the workplace. The company has an agreement with these suppliers that the business engagement will only continue if the company observes occupational safety policies set by the international community. It has been inspecting these facilities to ensure that a similar incidence do not occur and that the safety of its workers is maintained. The marketing department has also made a spirited effort to defend the image of the company in the market and to explain steps that the company is taking to address the issue.
It is important to note that some of the steps that the company has taken are genuine efforts to address the problem. The finance department has spent resources to help respond to this crisis. The supply chain department has also been keen on selecting its suppliers as a way of avoiding conducting business with unethical companies that do not respect human rights. However, it is worrying that some of the agreements with the suppliers are non-binding, which means that if one party fails to meet the agreement, they cannot be subject to any form of punishment.
The Role of HR in Driving Sustainability in These Fast Fashion Organizations
The human resource department has an important role to play in driving sustainability in the fast fashion organizations. The case study presented shows that some of the problems faced in this industry are caused by lack of ethical sourcing and practices by leading fashion retailers. The HR team can help in addressing these challenges and enhancing sustainability. One of the roles that they can play is to help define a company’s social purpose. Besides making profits, it should be clear what the company also seeks to achieve from a social angle.
Reviewing the workplace practices is another major responsibility of the HR unit. The case study shows that in most of these organizations in Bangladeshi garment industry, the human resource is rarely concerned about the workplace environment. These practices should be in line with OSHA policies and other safety regulations set within the country. Mansdorf (2019) explains that it is important for the HR department to ensure that sustainability is vital aspect of the recruitment process. Employees should understand the role that they are supposed to play in enhancing sustainability. When hiring, focus should not be on selecting those who can accept low salaries. Instead, it should focus on the core competence of each employee and how they can improve the productivity of the company without increasing the overall cost.
Training of employees is one of the most important roles of HR that can enhance sustainability. The only way of ensuring that workers have skills to deal with emerging trends and practices is to take them through regular training programs which will ensure that they acquire skills that will enhance the overall productivity of the company. Brinkmann and Garren (2018) also emphasize the need for the HR to focus on small gains as a way of achieving the vision of the firm.
Incentivizing employees can help in enhancing their performance in their respective workplaces. It reminds them that they are valued and that their effort in the firm shall be rewarded. The HR can use financial incentives, promotions, or other benefits to reward those who register impressive performance in the company. Jensen (2020) notes that sometimes it may be necessary to nurture ownership among workers. The management should make employees feel that they are part of the company instead of just being mere employees. Provision of volunteering opportunities may be one of the best strategies of identifying upcoming talents. It allows the company to nurture talent before they are even hired. The HR should also create an environment where employees can share their ideas on how to undertake specific tasks and responsibilities within the firm.
Role of the CEO of the Apparel Organizations in Dealing with Such a Reputational Crisis
The collapse of Rana Plaza caused reputational crisis to companies that relied on the company for their products. The chief executive officers of the affected companies involved in the crisis have a major role to play in dealing with the scandal. Arezes et al. (2019) identify various roles of leaders in sustainable development. One such role is effective representation of a company to the external community. When the building collapsed, firms such as Benetton, Mango, and Joe Fresh had to respond to the crisis by addressing their involvement with the affected company. In such cases, the CEO has the sole responsibility, as the senior-most manager of the company, of explaining events that happened and the relationship that the company has had with the affected supplier. Nakano (2019) notes that it is always easy to push the blame to others in such cases. However, it is always not the best strategy when a firm seeks to achieve sustainability. Instead, it should accept liabilities and oversights and explain to the public steps that it is going to take to address the problem.
The top managers of these organizations have the responsibility of enacting policies meant to promote ethical sourcing in the firm. They can issue directives to all departments to ensure that specific guidelines are followed when sourcing for specific items. According to Nakano (2019), CEOs are in the best position to fight any form of inequality and abuse of employees within their organization. They can champion policies that can ensure that employees are always respected, protected, and adequately provided for within the firm. Creating channels where employees can channel their grievances is one of the ways of protecting workers from oppressive supervisors. They can also demand their suppliers to observe specific regulations as a way of fostering a lasting relationship based on respect for human dignity and concern for the environment.
These top managers need to formulate strategies with the knowledge that they are the heads of sustainability in their organizations. CEOs of Joe Fresh and Benetton formulated new strategies that defined their engagement with garment suppliers from Bangladesh. One such strategy was a new regulation that required all suppliers to observe OSHA regulations before developing business relationships. Some opted to source for these garments from China and other countries where human rights abuses are not as rampant as it is in Bangladesh. A critical analysis of these strategies demonstrates that these top managers were keen on avoiding scandals. Actions that they took were meant to protect the image of their brand instead of addressing the actual problem. It is recommended that these managers should focus on long term solutions to achieve objectives of their organizations.
Reference List
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