BUSINESS OF WEARABLES [Wise, witty tales from the selling trenches]
Why Corporate Social Responsibility
Matters Now
CSR makes for a better planet, improved policies and happier customers
BY KIRWEI LO
Kirwei Lo is a marketing and
communications specialist for
Broder Bros. Co. ((asi/42090
0).
She can be reached at
kirweilo@broderbros.com
‘
None of your early investments made in CSR are
revenue-generating, and it will be difficult to see the
ROI in the end result. But the effort ultimately has an
impact.
’ in the promotional apparel industry came with the imple-
Biz of Wearables.indd 29
rom Whole Foods’ organic produce to the Toyota
F Prius to Levis, companies in almost every industry have
dipped their toes into some form of corporate social
responsibility (CSR). Good governance, ethical business
practices and supply chain transparency are more important
now than ever before. Not only are government regulations
mandating it, but consumers want to align themselves with
companies that are committed and compliant with global,
social and environmental guiding principles. This especially
applies in the promotional apparel industry, where over-
seas labor, dyes, paints and their effect on water quality are
everyday factors.
The priority for these corporations then becomes the
triple bottom line: “People, Planet and Profit.” For the
apparel industry, it involves everything from offering high-
quality working conditions for those employed overseas in
developing countries to making sure waste water is prop-
erly recycled and cleaned (while maintaining reasonable
profit margins in the process). The journey to corporate
social responsibility is one that is ongoing and ever evolv-
ing in response to new laws, guidelines, consumer expecta-
tions and industry initiatives.
A New Movement
Though apparel companies such as Levis have imple-
mented a strong CSR model for some time, the big push
mentation of the Consumer Product Safety Improvement
Act (CPSIA) in August 2008. Apparel suppliers like us,
BroderBros. Co. (asi/42090), were required to thoroughly
review their current CSR practices and restructure their
existing models.
We at Broder began by developing a forward-thinking
strategy and establishing our focus in five key segments:
social compliance, environmental stewardship, supply chain
safety, product quality and product safety.
Cost can be a large barrier to entry and the decision to
adhere to CSR standards comes with a long-term financial
commitment. Gildan, for example, made a conscious deci-
sion to dedicate sufficient resources to properly implement-
ing its CSR initiatives. These improvements include full-
time medical help at their overseas factories, a proprietary
bio-organic, sustainable wastewater treatment process and
the launch of a school in Honduras that trains people in
the apparel, textile and engineering fields. (One gradu-
ate even went on to launch her own label of high-fashion
apparel out of Honduras.
Much like Gildan, be aware that none of your early
investments made in CSR are revenue-generating, and it
will be difficult to see the ROI in the end result. But the
effort ultimately has an impact. For example, customers
are more inclined to spend their dollars on companies who
have holistic views and offer products that help the planet
and the people in it.
This is how Gary Bell, Gildan’s vice president of global
marketing explains it: “In the end, a large percentage of
all of the CSR initiatives we put into place are saving us
money and enhancing brand value by building both ours
and our customers’ belief in the company’s commitment to
stewardship.
Working Together
Throughout the process of establishing a comprehensive
CSR program, it’s important for suppliers and distributors
to work together and clearly communicate expectations.
Suppliers can and should reach out to all vendors to be
certain that they are partnered with companies that share
their commitment to CSR. Distributors, by finding the
right partners, make sure that all products they distribute
follow their corporate commitment to CSR.
Other important steps include continuously conducting
third-party audits for CSR focus areas, annually renewing
the company’s accountability statement, promoting supply
chain transparency, and frequently visiting production
facilities to ensure that the company is connected with
business partners that share their goals and ideas.
The CSR bottom line? A happier customer base, a
healthier environment and long-term corporate profit. ■
wearablesmag.com • WEARABLES JANUARY 2010 29
12/16/09 9:34:41 AM
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