PROPOSAL ON MINOR PROJECT

CORPORATE SOCIAL RESPONIBILITY TOWARDS APPAREL

SUBMITTED TO Ms.SASIREKHA (ASST PROFFESSOR)

SUBMITTED BY P.MRUDULA (MFM 1 SEM)

Corporate social responsibility

Introduction The concept of social responsibility is a fairly recent one in the business world. Awareness about the social responsibility of business organizations is rapidly on the rise and firms are also accepting this concept. The textile industry is no exception. Textile producing and trading firms are also realizing their responsibility towards the society and the environment. This article aims at analyzing the concept of social responsibility and the common ways in which textile firms try to fulfill it. Social responsibility is an organization s obligation to maximize its positive impact and minimize its negative impact on the society . In other words, it is the concept that businesses should be actively concerned with the welfare of the society at large .

Objective: Corporate social responsibility (CSR) has become an issue of increasing importance in regard to outsourcing by developed countries of low-tech, laborintensive production to developing countries. Thus, CSR implies the claim that such outsourcing should not only be profitable, but also ethically accountable.

Methodology: Secondary Data: Many leading apparel companies in Europe and the US are paving the way for other industries, by adopting solid corporate social responsibility policies and programs as part of their mission, rather than simply an afterthought or a reaction to critics. This is logical as the apparel industry is labor-intensive, highly competitive and under pressure with issues like sweatshops. Despite these facts it is still lagging behind; out of ten European companies, only two are considered to be socially motivated investors and the US seems to be further behind. The above content is taken from http://www.prlog.org/

A project, funded by the European Commission, aimed at encouraging constructive dialogue between government, industry and the trade unions, leading to increased cooperation in jointly working 'towards the building of the Bulgarian apparel industry as a leader in corporate social responsibility', was launched in early 2004. The partners in the project are: the Bulgarian government (through the Ministry of Labor and Social Policy and the General Labor Inspectorate); the relevant branch federations of the two nationally recognized trade union organizations - the Confederation of Independent Trade Unions of Bulgaria (CITUB) and the Confederation of Labor 'Podkrepa'; the owners of the Nike Inc, Adidas-Salomon AG, Levi Strauss & Co and H&M Hennes and Mauritz AB brands; seven suppliers for these brands; 10 Bulgarian factories with approximately 3,000 workers; and the Balkan Institute for Labor and Social Policya Bulgarian non-governmental organization.

This is the first time that a project of this type has been implemented in Bulgaria, and the participants are expected to gain important experience in building the clothing industry s capacity to deliver on corporate social responsibility (CSR) and in particular the improvement of employment conditions and industrial relations at the workplace - as a potential source of competitiveness within the global market. The project will go through four phases:
y

Training the trainers'- 50 representatives of management and 100

representatives of workers at the factories concerned will be trained on how to build capacity in this area;
y

Apply the learning'- the participants in the first phase will apply their

knowledge in the practical context of factory operations and share their knowledge with their colleagues;
y

Encouraging shared vision'- the issues arising from the practical application

of the scheme will be investigated; and

y

Evaluate our successes- the impact of the project will be assessed. The wider objective of the project is to enhance the prospects of

achieving competitive benefits by implementing measures in restructured business operations which balance increased labor costs and investments in safer and healthier workplaces with real productivity gains. This should increase the potential of the Bulgarian apparel industry to achieve a 'niche' market position that combines closeness to the market with excellence in CSR.

The above content is taken from http://www.eurofound.europa.eu/eiro/2004/04/inbrief/bg0404102n.htm

Thirty of the largest apparel manufacturers and retailers together comprising an estimated 60% of global apparel sales recently announced the formation of the Sustainable Apparel Coalition. This group, which also includes academics, non-profits and the Environmental Protection Agency, is creating the industry s first large-scale initiative to improve environmental and social performance through the establishment of standards and tools. The above content is taken from http://www.csrandthelaw.com/tags/sustainableapparel-coalition/

Environmental responsibility refers to the organization s responsibility towards environment protection. The concept of social responsibility holds that an organization should work in a manner in which the interests of the stakeholders are protected or, at the very least, they are not adversely affected. It holds that the organization should work in an ethical manner and work in the best interests of the various parties associated with it. The realm of social responsibility extends beyond the legal responsibilities of an organization. It is voluntarily fulfilled by the organization. Certain experts, who believe that it is a cynical and selfish idea, have criticized the concept of corporate social responsibility. They are of the opinion that corporate undertake projects for social welfare only because of the increase in reputation that they would get due to them.

Social responsibility in the textile industry Like the firms in other industries, textiles firms are also realizing their responsibility towards the various parties associated with them and the environment. However, the ways by which different organizations choose to fulfill their social responsibility might be different. The ways in which a textile firm can fulfill its responsibility towards government, employees, share holders, customers, investors, suppliers, competitors, society and environment will be addressed. The ways in which a few leading firms dispose of their social responsibility will be addressed.

What a Corporate leader should do?

Company s interactions and interdependencies with Society are many and complex. It is clear that approaching CSR as a feel good or quick fix exercise runs the risk of missing huge opportunities for both the business and society. Taking a step-by-step approach and following the principles outlined here offers leaders a way to identify and drive mutual value creation. But it will demand a shift in mindset. The smart partnering view is that CSR is about doing good business and creatively addressing significant issues that face business and society, not simply feeling good. Smart partnering obviously requires greater focus, work and long term commitment than do many standard CSR pet projects,

philanthropic activities and propaganda campaigns, but the rewards are potentially much greater for both sides.