Editor's note: Corporate social responsibility (CSR) is being increasingly seen as an important measure of company performance in China. The textile and apparel industry is no exception.
The China National Textile and Apparel Council (CNTAC) recently hosted the 2007 Annual Conference on Social Responsibility in the industry to highlight its efforts in promoting CSR practices.
The council published two CSR reports during the conference:
Growing awareness
CNTAC has been making tremendous efforts in building a responsible global supply chain for the industry. It established the Responsible Supply China Association in 2005 to promote CSR practices in the industry.
The council released the standard for China social compliance in the textile and apparel Industry (CSC9000T) in 2005, the first, and thus far the only, CSR guideline and framework in China. CSC9000T was drafted to meet laws, regulations, international conventions, standards and practices.
CNTAC selected 10 leading companies in the textile and apparel industry as pilot firms for CSC9000T implementation. Participating enterprises have reported sound performance in CSR. They serve as good examples for other companies to follow.
Large enterprises are taking a humane approach to their employees. Shandong Yida Group invested over 90 million yuan to build several apartment buildings and over 30 million yuan to build dining and recreation facilities, creating a comfortable working and living environment for its employees.
Jiangsu Menglan Group has made great effort to treat local and migrant workers fairly, providing endowment, medical, work injury and unemployment insurance for all its employees.
Textile and apparel enterprises also took practical measures to protect the environment. Nantong Datong Co Ltd saved energy and reduced emissions by optimizing its manufacturing processes and developing environmentally friendly products. The company built a water recycling project, reusing 5,100 tons of water every month.
Leading companies also participated in philanthropic events. Qingdao Xiyingmen (Group) Corp donated more than 10 million yuan to help poverty-stricken people and improve local public facilities.
In turn, participating companies benefited from CSC9000T implementation through lower costs, better product quality, motivated workers and an improved competitive position.
CNTAC initiated the CSC9000T "10+100+1000" program in May 2007, selecting 100 key companies from 10 textile clusters to establish the CSC9000T management system while providing CSR training to 1,000 small- and medium-sized companies.
The council vows to establish an independent, credible and transparent monitoring system for CSR implementation in enterprises.
This may engage more companies in fulfilling CSR and contribute to the establishment of a fair trade environment, and a harmonious society as well, the reports say.
To date more than 300 companies have joined the social compliance system for the Chinese textile and apparel industry.
Joint efforts
Government agencies, especially those located at industrial clusters, play a big role in promoting CSR practices among local enterprises.
Pinghu of Zhejiang province offers favorable policies to enterprises participating in fulfilling social responsibilities. The city has established a special team to monitor CSC9000T implementation. The apparel industry is the largest in the city, with over 1000 apparel enterprises employing more than 100,000 people.
International organizations have also taken part in promoting CSR practices in China. Many organizations, including the Foreign Trade Association (FTA) of Europe, the International Labor Office and CSR China, attended the 2007 CSR annual conference.
These organizations have been introducing their best solutions and practices into China's textile and apparel industry. They expect to integrate their specific initiatives with CSC9000T.
CNTAC and FTA inked a cooperation agreement on CSR issues in the supply chain in May 2007 and hosted training sessions on general awareness for 400 companies in Shenzhen and Shanghai.
They plan in-depth, expert-led training and workshops for 300 companies in the process of implementing CSC9000T and other initiatives in 2008.
The Worldwide Responsible Accredited Production (WRAP), a non-profit organization for the apparel and textile industry, has also collaborated with CNTAC in training and certifying internal and external auditors who will be needed for CSC9000T factory accreditation.
So far 311 factories in China have joined the WRAP program.
Cooperation and exchange between CNTAC and Chinese factories and international organizations can help improve CSR performance of Chinese textile and apparel enterprises and develop their core competitive edge in the global market.
These efforts paid off with broader recognition from international retailers, buyers and government agencies.
But there are problems with enterprises in management systems, labor contracts, and health and security issues that need to be solved.
Small- and medium-sized companies lag behind their large counterparts in fulfilling social responsibilities due to inadequate awareness and limited funds.
There is still a long way to go for China to promote CSR practices in the textile and apparel industry, and more efforts are needed to raise the awareness of Chinese companies on CSR issues.
