Corporate Social Responsibility in Garment Sourcing Networks: Factory Management Perspectives on Ethical Trade in Sri Lanka

Abstract

With complex buyer-driven global production networks and a labour-intensive manufacturing process, the fashion industry has become a focal point for debates on the social responsibility of business. Utilising an interview methodology with influential actors from seven export garment manufacturers in Sri Lanka, we explore the situated knowledge at one nodal point of the production network. We conceptualise factory management perspectives on the implementation of corporate social responsibility (CSR) in terms of the strategic balancing of ethical considerations against the commercial pressures of cost and lead time. Factory managers framed CSR in terms of compliance, rather than going above and beyond regulatory requirements; seeing it as a strategic competitive imperative and less a developmental mechanism. Sri Lankan manufacturers maintain that they have benefitted from a unique combination of factors, including strict national labour laws, an educated workforce, the characteristics of the garments produced, industrial upgrading, and long-term non-adversarial buyer-supplier relationships, which they argue has supported the establishment and maintenance of CSR practices. The paper thus provides managerial implications that relate CSR activities to CSR outcomes which include both reputational and production benefits. Such insights will be of strategic relevance for lead retail buyers as well as apparel producers keen to invest in CSR to partly mitigate against increasing price-based competition.

Social Sustainable Supply Chain Management in the Textile and Apparel Industry—A Literature Review

“…Competition to get workers amongst the factories is forcing us to be compliant". Thus, improved working condition in factories may attract better workers, decreases labor turnover and increases productivity [101]. Other benefits to the operational performance include the time and money savings through the implementation of SA8000, as most of the code of conduct requirements from various buyers are covered [74].…”

“…In sum, ten papers are in accordance that a certified supplier can enhance its image, differentiate itself in the market, improve its own operational performance in order to strengthen its competitive situation, and win large orders by important apparel retailers. This can especially be an advantage for suppliers who are in huge price and quality competition with other local suppliers, and, of course, also with a large number of suppliers from countries like China, India, and Bangladesh [101]. Moreover, a supplier which is certified by a recognized stakeholder initiative [71] is also able to improve its bargaining power and can build up long-term relationships with buyers in order to increase orders or bargain higher prices [45].…”

Scripted Performances? Local Readings of ‘Global’ Health and Safety Standards in the Apparel Sector in Sri Lanka

“…Simply care without register. Moral tropes of caring factory employers are then freely used as a distinguishing marker of an ethically sourced destination (Perry et al 2013). Humphries (2010) notes how 'violence (is) less widespread in factories and workshops where other mechanisms of control were available' for an emergent industrial Britain (2010: 245).…”

Environmental and Social Impact Free Stance and Consequences on the Operational Performance

“…Earlier research has dealt with several environmental and social issues, including sustainable apparel product development [34], sustainable fashion SCs [35], reverse logistics [36], logistics social responsibility [37], carbon accounting [38], the case of fair trade products [23], positioning stakeholder theory within the debate on CSR [39], social and environmental reporting [40,41], sustainable purchasing and supply [42], environmental impacts of production and consumption in country specific contexts [2], governance of sustainable SCs in the fast fashion industry [43], CSR in garment sourcing networks [10], multi tier sustainable SCs [16], and sustainability integration into global fashion operations [44]. Nonetheless, there is a further need in research to address the specific relationship between companies' internal and external sustainability strategies, and the influence of capabilities developed for sustainability management on operational performance areas.…”

“…On the social axe of sustainability, there appears to be a conflict between growing commercial pressures and social responsibility [10]. Hidden subcontractors [11], occupational health and safety violation [12], issues surrounding workers' right [13], and child labour in fashion SCs [14] are only some of the most critical issues making the headlines.…”