Apparel Online Bangladesh Magazine June Issue 2018 | Page 13

COVER STORY
Many brands are doing
a lot in terms of Ethical
Sourcing. However, two
names that stand out in
this list are:
Patagonia: The American outdoor
clothing company earned its
reputation in ethical sourcing when
it shifted to organically grown cotton
for all of its products since switching
over from pesticide-heavy cotton
crops in 1994.
The company reportedly altered
its entire supply chain to ensure
environmental-friendly, safe working
conditions. Furthermore, it also
provides excellent health insurance
and gives paid paternity and
maternity leave to all of its workers.
Patagonia has now built a very
strong reputation in terms of being
ethical, and also using ethical
sourcing. This positive reputation
not only strengthens its brand, but
also gives conscientious customers
more incentive to buy.
H&M: This Swedish multinational
clothing-retail company known for
its fast-fashion clothing for men,
women, teenagers and children is
reportedly committed in a deep way
to supply chain transparency.
The company publishes a list of
98.5 per cent of its suppliers’ names
and addresses on its website, and
updates this list on a quarterly basis.
This ensures that the organisation
can be held publicly accountable
for the conduct of its suppliers,
and that anyone can verify whether
its suppliers are living up to the
standards set by the company.
In addition to sharing its supply
chain information, H&M also has
a responsible sourcing goal of
using only 100 per cent recycled
or sustainably sourced materials by
the year 2030. This makes H&M a
trendsetter, and an ethical leader in
clothing retail.
planning and forecasting, design
and development, cost and cost
negotiation, sourcing and order
placement, payment and terms,
management of the purchasing
process, and CSR harmonisation.
The two critical challenges in ethical
sourcing going forward, Jamil feels,
are labour relations and buyers’
commitment! To ensure better labour
relations, ETI is launching its Social
Dialogue Programme (Phase III) as
it has evidenced that social dialogue
is a much powerful tool to bring
about the desired changes compared
to social auditing. The latter is aimed
only at finding the shortcomings
or flaws while the former is largely
inclusive in its approach as it
involves all the stakeholders to not
only identify the problem but also
to hammer out the most feasible
solution to the issue, through
discussion and deliberation.
Ho wever, buyers’ lack of loyalty and
commitment in many cases leaves
enough scope for scepticism though.
“A few days back, a prominent
manufacturer who produces for
many big brands asked how he
could implement the prescribed
practices of the buyer when he’s not
clear about the buyer’s tentative
sourcing volumes, sourcing tenure
and lack of a common and agreed
action plan, to which I had no
answer,” Jamil cited as an example
to drive home his point on the
magnitude of the challenge.
In a very upfront initiative by
Better Buying, supported by C&A
Foundation and Humanity United,
the first-ever independent global
index to rate the purchasing
practices of brands and retailers
was launched. The Better Buying
Purchasing Practices Index
(BBPPI) 2018 is designed to support
the industry’s efforts to improve
purchasing practices in supply
chains globally. The index ranked
65 brands and retailers and found
that over 60 per cent of suppliers do
have perceived incentives for being
compliant to buyer codes of conduct.
Significantly, the report shows that
Md. Jamil Ansar, Bangladesh Country Manager of Ethical Trading Initiative
Here the main
question is about
the price. If the
buyers fail to
provide longer
term business
commitments and
are constantly on
the lookout for
the next cheapest
destination, for
me, it is escaping
from one’s
responsibility…
- Md. Jamil Ansar
over 60 per cent of the suppliers are
not incentivised for being compliant
to buyer codes of conduct, while it
also indicates that incentives are
essential to improve purchasing
practices.
However, all the brands are not
same in their sourcing approach and
strategy! Take for example this UK-
based retail giant (which reportedly
became famous and hogged the
limelight by selling British-made
goods only once) that specialises
in the selling of clothing alongside
home products and luxury food
products.
The company is very cautious while
selecting the supplier factories
and does due diligence to what
its Bangladesh head calls ‘testing
the water’, to try and figure out if
its suppliers share the same ethos
and principles when it comes to
sustainability, workers’ welfare and
business practices. However once
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