More than Charity-An Alternative approach to CSR for Apparel Companies By Vivo Leung
Introduction When we talk about Corporate Social Responsibilities, we may have to understand about its concept and definition. Without simply comply a responsibility, it is an issue much more than a charity work. Here is a recent news shared on facebook about cotton farmers: ‘India is experiencing its biggest wave of suicides among cotton farmers. Some observers have linked the deaths to the introduction of costly genetically modified seeds, fertilizers and insecticides. Many farmers turn to loan-sharks to pay for these items, however unfavourable weather conditions, or even a mere dip in the global price of cotton, can spell disaster for growers.’ (Source: the guardian)
Challenges for Apparel Company With the increasing demand and supply, the apparel industry is dispersed and developed globally. With its manufacturing, distribution and retail operations, their factories or stakeholders across different regions and countries. The companies have to work hard to ensure their global corporate standards for safety, labour, sustainability, quality of product and supply chain management. It is become a daily and big challenge for the industry.
The Pyramid of Corporate Social Responsibility, Carroll 1991
The pyramid of CSR indicates that business should satisfying expectations of shareholders and delivering profits, obey the law, being ethical and engaging in philanthropic responsibilities in order to create positive value for the society. Basic Concern of doing business From traditional view of economics, business have its only concern on ‘How to use resources and engage in activities designed to increase its profits for shareholder. Maximizing profits and achieving economic prosperity is a fundamental responsibility of any business. Which is concern the survival and success of organizations. Therefore, in a highly competitive business environment, apparel companies have to search for a less costly method for manufacture and logistics to achieve the maximum profits.
Such as Li Fung Group, they do not own any factories but sources their products from all over the world, especially in Asia and 3rd world countries. Here is the conflict of interest on cost of responsibility outside business. Additionally, the apparel companies have to deal with stakeholders all over the world with different languages, norms, and culture. The apparel production take place in less developed countries where legal requirements such as human rights, child labour, working time, minimum wages, health and safety condition are often inadequate, outdated and inefficiently enforced by the local government. However, suppliers and employees are often not convinced to CSR. Since its activities usually consume extra time, extra cost and extra effort for everyone to participate in the process. So, those apparel companies have to overcome the difficulties on persuading suppliers and employees to implement CSR policies. Dialogue within stakeholders For the challenge of implementing CSR policies to an apparel company, dialogue and relationship building is extremely important during the process. However, besides providing training to employees and suppliers, dialogue within stakeholders is necessary. When dialogue became possible and visible, the unclear concept, misunderstanding and different perspective could be heard and seen. It would be transformed into positive and integrative spirit within the organization.
An alternative perspective to CSR ‘Work is dignity,” says Simone Cipriani. “People want employment, not charity.”-“It empowers people to live with human dignity and basic rights.” However, is the employment really empowers or exploit employee's dignity? There are lots of space to discuss.
