27 Pages
6731 Words
Introduction Of Unsafe Working Conditions in Bangladesh's Garment Industry: A Case Study
Task I
Introduction
The functioning situations of the garment workforce in Bangladesh have been an area of concern for several years (Zaman, Sarker and Akhter, 2018). Due to globalization, several multinational companies have shifted their production base to Bangladesh due to its low-cost labor. However, the workers are subjected to extended functioning hours, low pay, and poor working conditions. Therefore, sustainable strategies need to be formulated to get better the operational surroundings of garment employees in Bangladesh (Rahim, and Zaman, 2021). This essay will discuss the function of HR in driving sustainability in such organizations and use the Shared Value framework to formulate strategies. Sustainability is a perception that has gained significant importance in the industry world over the precedent few decades.
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The multiple dimensions of sustainability
Definition of sustainability
Sustainability is a broad idea that encompasses social, economic, and ecological dimensions. According to the United Nations, sustainability refers to "development that meets the needs of the present without compromising the ability of future generations to meet their own needs." These classifications emphasize the importance of ensuring that actions of today do not harm future generations (Alamoush, Ballini and Ölçer, 2021)
The present state of the garment industry in Bangladesh today
The garment industry in Bangladesh is one of the principal in the world, employing millions of workers. Despite the importance of this industry to the Bangladeshi economy, there are still significant issues related to sustainability that need to be addressed. The Rana Plaza disaster in 2013, in which over 1,100 employees were killed in a building collapse, highlighted the need for urgent action to improve operational circumstances in the garment industry (Donaghey and Reinecke, 2018).
The challenge of implementation of these initiative in the garment industry
Issues in the Garment Industry in Bangladesh:
The case study of the garment industry in Bangladesh highlights several issues related to sustainability. One of the most significant issues is the violation of human rights. Workers in this industry are often subject to unsafe working conditions, including a high incidence of injuries on the job. In addition, workers are often paid very low wages, and sometimes not paid at all. Gender discrimination is also a prevalent issue in this industry, with women often being paid less than men for doing the same job. Air quality issues in the factories and the lack of safety features are also significant problems.
Figure 1 What Makes Bangladesh — A Hub Of Garment Manufacturing?
(Source: Stitchdiary, 2018)
Challenges of Implementing Sustainability Initiatives in the Garment Industry:
There are several challenges associated with implementing sustainability initiative in the garment industry in Bangladesh. One of the most significant challenges is the political agenda. The government's focus on economic growth can often come at the expense of workers' rights and environmental protection. Corruption is also a significant challenge, with some factory owners paying bribes to government officials to avoid inspections or fines. The stage of economic growth is also a challenge, as many factories are still in the near the beginning stages of growth and may not have the resources to implement sustainability initiatives (Mahboob and Anita, 2016). Absolute poverty is also a challenge, with many workers in the garment industry living in poverty and unable to demand better working conditions or wages.
The key areas that need immediate attention
To address the sustainability issues in the garment industry in Bangladesh, several key areas need immediate attention. These include improving working conditions, paying fair wages, eliminating gender discrimination, and improving safety features in the factories. Environmental sustainability is also a critical area, with factories needing to reduce their carbon footprint and implement sustainable practices (Sabiha, Salim, Rahman and Rola-Rubzen, 2016)
Discuss the UN SDGs in brief and link their objective
All 17 of the UN Sustainable Development Goals (SDGs) with a brief description of each:
- No Poverty - End poverty in all its forms everywhere.
- Zero Hunger - End hunger, achieve food security, and improve nutrition and promote sustainable agriculture.
- Good Health and Well-being - Ensure healthy lives and promote well-being for all at all ages.
- Quality Education - Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.
- Gender Equality - Achieve gender equality and empower all women and girls.
- Clean Water and Sanitation - Ensure availability and sustainable management of water and sanitation for all.
- Affordable and Clean Energy - Ensure access to affordable, reliable, sustainable, and modern energy for all.
- Decent Work and Economic Growth - Promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.
- Industry, Innovation, and Infrastructure - Build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation.
- Reduced Inequalities - Reduce inequality within and among countries.
- Sustainable Cities and Communities - Make cities and human settlements inclusive, safe, resilient, and sustainable.
- Responsible Consumption and Production - Ensure sustainable consumption and production patterns.
- Climate Action - Take urgent action to combat climate change and its impacts.
- Life Below Water - Conserve and sustainably use the oceans, seas, and marine resources for sustainable development.
- Life on Land - Protect, restore, and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and biodiversity loss.
- Peace, Justice, and Strong Institutions - Promote peaceful and inclusive societies for sustainable development, provide access to justice for all, and build effective, accountable, and inclusive institutions at all levels.
- Partnerships for the Goals - Strengthen the means of implementation and revitalize the global partnership for sustainable development.
Figure 2 : UN SDGs
(Source: unosd , 2023)
The United Nations Sustainable Development Goals (SDGs) provide a framework for addressing sustainability issues in all industries, including the garment industry in Bangladesh (Bexell and Jönsson, 2017). Several SDGs are particularly relevant to this discussion such as SDG 8, SDG 5 and SDG 12.
Critical understanding of the effects of sustainability on supply chains
What are supply chains and sustainable procurement or SCM ?
Supply chains refer to the entire process of producing and delivering goods and services, from the source of unprocessed materials to the concluding delivery to the end-user. Sustainable procurement or Supply Chain Management (SCM) refers to the incorporation of environmental, societal, and economic factors into the procurement procedure. It involves identifying and mitigating risks in the supply chain while also ensuring that suppliers meet ethical and sustainability standards (Tiwari, Wei, and Mubarak, 2019).
What is in the apparel supply chains what responsibility do fast fashion firms have?
In the clothing industry, rapid style firms have a responsibility to make sure that their supply chain team promotes sustainability. They should make certain that they demeanor business with supplier who indulgence workers moderately and with self-respect, and they should promote recycling. This responsibility extends beyond their own operations to their suppliers' operations as well. Firms should ensure that the goods and services they source are ethical, from sustainable raw materials to the production processes and end products.
What is the responsibility of their supply chain team?
Companies in the apparel industry have a responsibility to ensure that their supply chains promote sustainability and ethical sourcing. This responsibility extends beyond their own operations to their suppliers' operations as well (Fernie and Sparks, 2018). Market leaders in the industry have implemented sustainable practices and initiatives to address ethical sourcing, and ethical sourcing standards have been established to ensure that companies meet sustainability and social responsibility standards. It is essential that firms in the apparel industry continue to prioritize ethical sourcing and promote sustainability in their supply chains to create a more sustainable future.
Should they be promoting recycling?
Companies in the apparel industry should be promoting recycling. Recycling is a critical component of sustainable practices and is essential in reducing waste and minimizing the industry's environmental impact. Fast fashion firms have been criticized for their high levels of waste, with many clothes ending up in landfills. Companies like Patagonia and Levi's have implemented recycling initiatives. Patagonia has implemented a curriculum called Worn Wear, which encourage clients to restore, reuse, and recycle their clothing. Levi's has also launched a denim recycling program that allows customers to bring in their old jeans for recycling (RIBEIRO ROSA, 2016).
Should they do business with ethical suppliers?
Many companies in the apparel industry have adopted sustainable practices and initiatives to address ethical sourcing. Some market leaders that have implemented sustainable practices include Patagonia, Everlane, Levi's, and Polo RL. For example, Patagonia has implement a program called the Footprint Chronicles, which allow clients to track the environmental collision of the goods they obtain. Everlane has a commitment to "radical transparency" and provides information on the factories that produce its products, including the working conditions and wages of the workers (Scheper, 2017).
Suppliers who treat employees fairly or treat them with dignity?
Levi's has established a Worker Well-being initiative to improve the well-being of workers in its supply chain, while Polo RL has a commitment to sourcing 100% sustainable cotton by 2025. These initiatives are critical to ensuring that companies in the apparel industry promote sustainability in their supply chain.
And what about whether the goods and services sourced are ethical?
Ethical sourcing standards have been established to ensure that companies meet sustainability and social responsibility standards. The Ethical Fashion Report provides a framework for companies to assess their ethical sourcing practices and compare them to industry best practices. The report assesses companies based on their policies and practices in areas such as labor rights, transparency, and traceability (Hasan, S., 2023).
Critically examination of the strategy implement to deal with sustainability
In terms of sustainability leadership competencies, a CEO like Marchant would need to have strong ethical principles and a commitment to social and environmental responsibility. They would also need to be able to communicate effectively with stakeholders and manage complex relationships with suppliers, regulatory bodies, and NGOs. Additionally, they would need to have a strategic vision for sustainability and be able to drive change within the organization (Shammi, et.al 2021)
Critically appraise the role of the CEO of these brands/organizations in production with such a reputational crisis (Rana Plaza Collapse)
One brand to have guidelines with Rana Plaza at the occasion of its collapse is Primark. Since the tragedy, Primark has implemented several strategies to administer sustainability in its company function. One of the key initiatives they have implemented is the Sustainable Cotton Programme, which aims to promote sustainable farming practices and reduce the environmental impact of cotton production. They have also established the Primark Supplier Code of Conduct, which outlines their expectations for ethical and sustainable practices from their suppliers.
The role of the CEO of Primark in trading with the reputational crisis after the Rana Plaza subsides was crucial. CEO Paul Merchant took immediate action to provide financial compensation to the victims and their families and to improve the safety standards in the company's supply chain (Jacobs and Singhal, 2017). The CEO also publicly acknowledged the company's responsibility and committed to making significant changes to their sourcing practices.
Suitable recommendations
Based on the information provided, my recommendation for Primark would be to continue to invest in sustainable sourcing practices, such as the Sustainable Cotton Programme, and to work collaboratively with stakeholders to endorse ethical and sustainable practices throughout their supply chain. Additionally, they should continue to prioritize transparency and accountability in their sustainability reporting and engage in regular stakeholder dialogue to identify areas for improvement (Barua, and Ansary, 2017).
Discuss the role of leaders in sustainable development
Human Resources (HR) play a crucial role in embedding sustainability practices within organizations. HR has the responsibility of identifying, recruiting, training, and retaining employees who are aligned with the organization's sustainability goals. In the context of fast fashion firms, HR participates in a fundamental responsibility in promoting sustainability practices. Fast fashion firms can implement sustainability practices by adopting circular economy principles, ethical sourcing, reducing waste, and reducing carbon footprint. HR can ensure that employees are aware of these sustainability practices and are prepared with the obligatory skills and knowledge to implement them.
HR can also collaborate with supply chain and marketing teams to promote sustainable practices. HR can work with supply chain teams to identify ethical suppliers who adhere to sustainability practices (Huq, Chowdhury and Klassen, R.D, 2016). HR can collaborate with marketing teams to promote sustainable products and services to customers.
Analyze the strategies formulated by CEOs of more than one organization
There are several strategies that CEOs of different organizations have implement to manage sustainability in their production function such are:
- The CEO of Benetton, Luciano Benetton, has implemented a number of sustainability initiatives, counting the exercise of sustainable equipment and the diminution of energy consumption in the production process.
- The CEO of Joe Fresh, Mario Grauso, has implemented a number of sustainability initiatives, including the use of sustainable resources in their clothing lines, such as natural cotton and cast-off polyester.
- The CEO of Mango, Toni Ruiz, has implemented a number of sustainability initiatives, including the use of sustainable resources in their clothing lines, such as ordinary cotton and recycled polyester (Auqui, et.al 2023)
Sustainable strategies to improve the working conditions of the garment workers in Bangladesh
The important strategy to advance operational circumstances of Garment Workers:
Collaborative approach: This approach involves working with stakeholders such as suppliers, trade unions, NGOs, and government agencies to get better the operational conditions of garment employees. The collaboration can focus on improving working conditions, promoting fair wages, and ensuring safe working environments. The collaboration can also focus on promoting sustainability practices within the supply chain.
Promoting transparency: This involves regularly monitoring and reporting on the sustainability practices of suppliers. This can help to identify areas of improvement and promote accountability within the supply chain. By promoting transparency, companies can also build trust with their customers and stakeholders.
Empowering workers: Empowering workers is another sustainable strategy that can improve working conditions. This involves providing workers with the necessary skills and knowledge to promote sustainability practices. Companies can also provide workers with a safe and supportive work environment where they can voice their concerns and grievances.
Incentivizing sustainability: Companies can provide incentives to suppliers who adopt sustainable practices such as fair wages, safe working conditions, and environmentally friendly practices. This can encourage suppliers to adopt sustainable practices and promote sustainability within the supply chain (Siddique, Begum and Berndt, 2021).
Shared Value Framework: The Shared Value framework is a concept developed by Michael Porter and Mark Kramer. The Shared Value framework can be used to prepare sustainable strategies to progress the operational circumstances of garment workers in Bangladesh. For example, companies can reconceived their products by using sustainable materials and promoting sustainable practices within the supply chain.
Critically analyze the function of HR in driving sustainability in such organizations
HR plays a crucial role in motivating sustainability in organization. HR can help organizations to attract, retain, and develop talent that is committed to sustainability. HR can also help in creating a culture of sustainability within the organization by integrating sustainability practices into the company's values, policies, and practices. HR can also promote sustainable practices by providing training and development programs to employees to enhance their knowledge and skills in sustainability. HR can also play a role in managing the supply chain by ensuring that suppliers adhere to sustainable practices. HR can also work with suppliers to improve their sustainability practices by providing support and training. HR can also promote transparency in the supply chain by regularly monitoring and reporting on the sustainability practices of suppliers (Khan and Roy, 2023)
Discuss the role of HR in general in embedding sustainability organizations in general and then funnel it down to fast fashion firm’
HR's Role in Embedding Sustainability in Organizations
HR can play a vital role in embedding sustainability in organizations. HR can help organizations to attract, retain, and develop talent that is committed to sustainability. HR can also help in creating a culture of sustainability within the organization by integrating sustainability practices into the company's values, policies, and practices. HR can also promote sustainable practices by providing training and development programs to employees to enhance their knowledge and skills in sustainability. HR can also promote transparency in the supply chain by regularly monitoring and reporting on the sustainability practices of suppliers.
Funneling Down to Fast Fashion Firms
Fast fashion firms are known for their high volume of production, low prices, and short product lifecycles. However, the fast fashion industry is also known for its negative environmental and social impact. Therefore, it is essential for fast fashion firms to embed sustainability practices into their operations. HR can play a vital role in promoting sustainability within fast fashion firms. HR can work with designers, suppliers, and manufacturers to promote sustainable practices such as using sustainable materials, reducing waste, and promoting ethical labor practices. HR can also promote sustainable practices within the value chain by promoting sustainable production, packaging, and distribution practices (Cao, 2018).
Conclusion
The Essay concludes that HR can contribute significantly to embedding sustainability practices in organizations. HR can hire for sustainability, provide training and development, facilitate communication, align performance management processes, and provide leadership development programs. In the context of fast fashion firms, HR can promote sustainability practices by collaborating with supply chain and marketing teams. The essay discussed about the strategies implemented by the CEOs by recognizing the importance of sustainability in the apparel industry and have taken steps to reduce their environmental impact and promote ethical practices in their supply chains. However, there is still a extended method to go in conditions of improving sustainability in the industry as a whole. CEOs need to continue to prioritize sustainability and take action to address the social and environmental issues in their supply chains. This includes working with suppliers to improve working conditions and reduce environmental impact, as well as investing in sustainable materials and production processes. In conclusion, the operational situations of garment personnel in Bangladesh have been an area of concern for several years.
References
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Task II
Introduction
Global warming, resource shortage, inhabitants expansion, and loss of biodiversity are some of the most pressing challenges facing the world today. These issues have a significant impact on various industries, including the garment industry. The report highlights the factor influencing in the garment industry considering the case company Levi Strauss & Co. which is a leading garment manufacturer that has implemented innovative strategies to address sustainability challenges. One of their initiatives is the use of water-saving technologies in the production process. The company has developed a waterless finishing technique for its denim products, reducing the water used in the finishing process by up to 96%. The company also uses recycled materials and has a recycling program for its products.
Understanding of the effects of global warming, resource scarcity, population growth and loss of biodiversity
Global Warming
Global warming is the steady enlarge in the Earth's surface temperature caused by human activities such as burning fossil fuels, deforestation, and industrial processes. The garment industry contributes to global warming through greenhouse gas emissions resulting from energy consumption during the production process, transportation, and disposal of clothing waste. As per the learning by the Ellen MacArthur Foundation, the global textile industry generate more conservatory gas emissions than all worldwide flights and marine transport combined (The Ellen MacArthur Foundation, 2017).
The impact of global warming on the garment industry is significant. Rising temperatures can affect the availability and quality of raw materials such as cotton, wool, and silk. The increased frequency of natural disasters such as floods, droughts, and hurricanes can disrupt the supply chain, resulting in increased production costs and reduced profits for businesses. In addition, consumers are appropriate increasingly conscious of the ecological impact of their clothing choices and are challenging sustainable and eco-friendly clothing. Failure to respond to this demand can result in reputational damage and loss of market share for businesses.
Resource Scarcity
Resource scarcity is the depletion of natural resources such as water, oil, and land due to human activities. The garment industry relies heavily on natural resources, particularly water and land. The production of cotton, for example, requires vast amounts of water and land. According to the World Wildlife Fund (WWF), it takes around 2,700 liters of water to produce one cotton t-shirt (WWF, 2022).
The impact of resource scarcity on the garment industry is multifaceted. Water scarcity can result in increased production costs due to the need for water conservation measures such as water recycling and wastewater treatment. In addition, competition for water resources can lead to conflicts between businesses, communities, and governments. The depletion of land resources can result in reduced yields and increased production costs, which can be passed on to consumers.
Population Growth
Population growth refers to the amplify in the figure of citizens living in a particular area over time. The garment industry is affected by population expansion in several ways. The growing global population results in increased demand for clothing, which can lead to increased production and consumption. This can put pressure on the garment industry to produce more, leading to increased resource consumption and environmental degradation.
The impact of population growth on the garment industry is also evident in the labor market. The industry relies heavily on cheap labor, particularly in developing countries. Population growth can result in increased competition for jobs, leading to low wages, poor working conditions, and exploitation of workers. In addition, the industry can contribute to population growth through the creation of job opportunities, particularly in developing countries.
Loss of Biodiversity:
Loss of biodiversity refers to the decline in the variety and abundance of species in a particular area over time. The garment industry is affected by loss of biodiversity through its impact on raw materials such as cotton, wool, and silk. The use of pesticides and other chemicals in the production process can lead to the destruction of ecosystems and the loss of biodiversity.
The impact of loss of biodiversity on the garment industry is significant. The destruction of ecosystems can lead to reduced yields and increased production costs, which can be passed on to consumers. In addition, consumers are becoming increasingly aware of the environmental impact of their clothing choices and are demanding sustainable and eco-friendly clothing. Failure to respond to this demand can result in reputational damage and loss of market share for businesses.
Financing challenges for sustainable development
Financing Challenges:
- Lack of Access to Financing: One of the primary challenges facing sustainable development is the lack of access to financing. This is particularly true for businesses in developing countries that lack the necessary financial infrastructure to support sustainable development initiatives. According to a report by the World Bank, there is a $2.5 trillion annual financing gap for sustainable development in developing countries (World Bank, 2018).
- High Cost of Financing: Financing sustainable development initiatives can be costly, particularly for small and medium-sized enterprises (SMEs) that lack the necessary financial resources. According to a report by the UN Environment Programme (UNEP), the cost of financing renewable energy projects in developing countries can be up to 20% higher than in developed countries (UNEP, 2019).Garment Industry Insecurity & Sustainable Development Challenges
- Lack of Investor Awareness: Another significant challenge facing sustainable development financing is the lack of investor awareness. Many investors still view sustainable development as a niche market and are reluctant to invest in sustainable development initiatives. According to a report by the Global Impact Investing Network, the be deficient in of investor awareness is a important barrier to the growth of sustainable development financing (GIIN, 2020).
Recommendations:
- Increase Access to Financing: Governments and other stakeholders should work together to increase access to financing for sustainable development initiatives. This could involve the creation of new financial instruments such as green bonds and impact investment funds that prioritize sustainable development projects. Additionally, governments can provide tax incentives and subsidies to encourage private sector investment in sustainable development.
- Reduce the Cost of Financing: Efforts should be made to reduce the cost of financing sustainable development initiatives Reduce the Cost of Financing (Wang, and Zhi, 2016). Innovative business strategies this could involve the development of new financing models that reduce transaction costs and increase transparency. Governments can also provide low-interest loans and grants to SMEs that are working on sustainable development initiatives.
- Increase Investor Awareness: Investors should be educated about the potential benefits of sustainable development and the opportunities for investment in sustainable development initiatives. This could involve the development of targeted marketing campaigns, training programs, and workshops that educate investors about sustainable development.
- Feedback from Industry Experts: I spoke to a sustainability expert from a leading garment manufacturer who emphasized the importance of collaboration and innovation in financing sustainable development initiatives. She stated, "Collaboration is critical in financing sustainable development. We need to work together to develop new financing models that reduce costs and increase access to financing. Additionally, we need to encourage innovation in sustainable development by investing in research and development."
Critically review the influence of sustainability on production and design
The fashion industry has a momentous impact on the environment, from the production of raw materials to the clearance of finished products. Sustainability has become increasingly important for the garment industry, and businesses are implementing innovative strategies to address sustainability challenges in production and design.
Innovative business strategies
- Innovation and Technology: Innovation and technology have a crucial role in achieving sustainable development in the garment industry. Advanced technologies such as automation, artificial intelligence, and the Internet of Things (IoT) are transforming the garment industry.
- Circular Economy: The circular economy is a sustainable approach to production and utilization that focuses on minimizing waste and maximizing resource efficiency. The garment industry can benefit from circular economy principles by implementing strategies such as recycling, reusing, and up cycling of materials. This approach can reduce waste and extend the life cycle of garments.
- Sustainable Design and Lean Management: Sustainable design principles can help condense the environmental impact of the garment industry. These principles include designing for durability, using sustainable materials, and designing for circularity.
- Innovative Business Strategies: One example of an innovative business strategy is the use of clean energy and updated machines in production. This approach can reduce the environmental impact of the production process by reducing carbon emissions and improving energy efficiency (Prajogo, 2016).
Case organization: Levi Strauss & Co.
Considering Levi Strauss & Co. as an example of an organization that has implemented various sustainable practices in their operations. Levi Strauss & Co. has implemented various sustainable practices to reduce their environmental impact. In terms of clean energy, the business has devoted to using 100% renewable energy in their owned and operated facilities by 2025. They have also implemented energy-efficient lighting and HVAC systems in their stores and offices.
Levi Strauss & Co. has implemented sustainable design principles in their products, such as their Water<Less collection, which uses less water in the finishing process, and the WellThread collection, which uses sustainable materials like organic cotton and recycled plastic. The company has also implemented lean management principles through their "Worker Well-being" program, which provides education, healthcare, and financial literacy to their factory workers. Overall, Levi Strauss & Co.'s commitment to sustainability can be seen in their efforts to reduce energy consumption, use sustainable materials, implement lean management, and promote ethical practices (Costello and Reddy, 2020). Their sustainable practices demonstrate that it is possible to achieve profitability while also promoting environmental and social responsibility.
The impact of regulations & international codes on sustainability
The garment industry has faced increasing pressure to improve its sustainability practices. Regulations and international codes play a significant role in promoting sustainability in the industry. However, the adoption of these regulations and codes by businesses can vary, and there are challenges in ensuring compliance and transparency.
- Role of Regulations and International Codes: Regulations and international codes provide guidelines and standards for businesses to follow, promoting sustainability practices in the industry.
- Role of Certifications and Labels: Certifications and labels can help consumers identify sustainable products and promote sustainable practices in the industry. These certifications and labels provide assurance that products have been produced using sustainable practices and can help increase transparency in the supply chain (Cohen and Tubb, 2018).
- Impact of convention and International Codes on Sustainability: Regulations and international codes have had a significant impact on promoting sustainability in the garment industry. For example, the Sustainable Apparel Coalition's Higg Index is a tool used to measure the sustainability of garments and can help businesses identify areas for improvement.
- Influencing Management to Adopt Regulations and Codes: To manipulate organization to accept regulations and codes, it is important to demonstrate the benefits of sustainability. Sustainability can help mitigate risks, reduce costs, improve reputation, and attract green investors.
There are many benefits to being more sustainable, and these can be used to influence management to adopt more sustainable practices. Here are some examples:
Demonstrate a general understanding of the importance of sustainability reporting by critically discussing the sustainability report
Sustainability reporting is a crucial aspect of sustainable development as it enables organizations to measure, monitor and disclose their environmental, social and governance (ESG) performance. It allows organizations to be accountable to stakeholders, demonstrate transparency, and identify areas of improvement. Levi Strauss & Co., a leading global fashion retailer, has been consistently publishing its annual sustainability report since 2004. Levi Strauss & Co.'s 2020 sustainability report highlights the company's labors towards building an additional sustainable and evenhanded future. The statement provides a complete overview of the company's sustainability initiatives and the progress made in achieving its sustainability goals. The report is organized around four key pillars: Worker Well-being, Sustainable Materials, Climate Action, and Circularity.
The sustainability report demonstrates the benefits of implementing sustainable strategies, including cost savings, improved environmental impact, improved worker well-being, and improved supplier relationships (De Lucia, et.al 2022). By highlighting these benefits, Levi Strauss & Co. is demonstrating the ROI of their sustainability efforts and providing evidence of the business case for sustainability.
Sustainability Initiative
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ROI
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Reduced greenhouse gas emissions
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Cost savings from reduced energy consumption and reduced environmental impact; over $3.7 million saved in energy costs since 2011
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Water conservation
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Cost savings from reduced water consumption and reduced environmental impact; over $4.6 million saved in water costs since 2011
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Worker well-being programs
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Improved employee satisfaction and retention; 5% reduction in employee turnover since 2018
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Sustainable sourcing
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Improved supplier relationships and reduced environmental impact; 100% of the company's cotton is sustainably sourced, with a goal of 90% sustainable sourcing across all materials by 2025
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In addition, the sustainability report shows that Levi Strauss & Co. has implemented various worker well-being programs, including providing education, healthcare, and financial literacy to their factory workers. This has resulted in improved employee satisfaction and retention, which can lead to cost savings and increased productivity.
Conclusion
In conclusion, financing sustainable development remains a significant challenge for businesses, governments, and other stakeholders. However, there are several recommendations that can be implemented to increase access to financing, reduce the cost of financing, and increase investor awareness. Collaboration and innovation are critical in financing sustainable development initiatives, and stakeholders must work together to achieve sustainable development goals.
Regulations and international codes participate in a grave role for promoting sustainability in the garment industry. Certifications and labels can also help increase transparency and promote sustainable practices. However, challenges remain in ensuring compliance and transparency in the supply chain. To influence management to adopt regulations and codes, it is important to demonstrate the benefits of sustainability and the potential risks of not implementing sustainable practices.
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