“China itself is getting in on the CSR act with the creation of its ultra-light code - CSC9000T. This is a sham code which could gravely harm the whole concept of CSR. Fortunately, it will never be credible!"
Giving some examples of the benefits of a strong CSR approach, Mr. Kearney said that at one factory in Vietnam which had improved working conditions, productivity, quality and profitability had all shot up.
In another factory in Sri Lanka eight months of acceptable working conditions had seen productivity increase by 35.5% and waste in production fall from 7 to 1 per cent. Meanwhile, factories in China's textile and clothing sector are experiencing labour turnover at the rate of 200 per cent a year.
“Cambodia has few comparative advantages in the production of textiles and clothing, but, it has maintained an impressive customer list. And two key brands, the Gap and Levi Strauss have joined with others to help stabilize and grow these industries. In addition, the Gap and Nike have both stated that the current approach to Codes of Conduct with its emphasis on social auditing is no longer sustainable in the longer term and needs to be replaced with a mature system of industrial relations where managers and representatives of workers do a constant review of working practices at the factory."
“All this points to the need for stronger government commitment to shaking up the way they legislate and enforce that legislation. It points also to the need for global norms to prevent comparative advantage becoming dependant on a race to the bottom where worker abuse and exploitation replace innovation, quality and marketing as hallmarks for success."
"The WTO working with the ILO are best placed to provide those norms. So, the real question this week will be whether the WTO can grasp this and begin the process of putting social responsibility issues back on the trade agenda”, concluded Mr. Kearney.
International Textile, Garment and Leather Workers Federation is an International Trade Secretariat bringing together 217 affiliated organisations in 110 countries.
International Textile, Garment and Leather Workers' Federation
marketing@alchempro.com
