Business Partnerships for Global Goals COVID-19 Vulnerable Supply Chain Facility Business Partnerships as a Force for Good Learning Series
Building Back Better in the Garment Industry Case Study
C g OV Ph arm ID ot en -19 o ts a cr pr wa ed oj re it: ec ne M t in ss ag B s ni an es fie gl sio r C ad n re esh at f ac at to iv ry es
su
pp
or
te
d
by
th
e
ET
I
November 2021
Contents Message from the Project Director, Business Partnerships for Global Goals
i
1. Executive Summary 1 2. Introduction 2 3. Context 3 4. VSCF Garment Projects Portfolio 3 5. Strategies for impactful change 5 Partnering with supplier factories to improve working conditions and protect workers
5
Tackling Gender-Based Violence (GBV) and harassment through proven tools 6 Reviewing and including all supplier tiers to address transparency issues for decent work 7 Encouraging implementation of responsible policies standards and ESG initiatives through communication across all tiers of the supply chain 8 6. Building Back Better 8 For business 9 For governments 9 For NGOs
9
For all
9
7. Conclusion
10
Message from the Project Director, Business Partnerships for Global Goals Readymade garments (RMG) contribute heavily to the economies of Bangladesh and Myanmar. The sector is highly feminised. The lives and livelihoods of a large population in these countries depend on this sector. COVID-19 was not only a health shock but also a major disruption to the global trade and economy. The RMG sector was hit hard. The measures adopted globally to curb the pandemic led to demand reduction, impacting trade, pushing millions of RMG workers out of job. In order to test and scale responsible and inclusive business initiatives in partnership with the private sector with a focus on improving lives, incomes and access to jobs as well as markets for the poorest and most marginalised people, Business Partnerships for Global Goals programme, funded by the UK’s Foreign, Commonwealth and Development Office (FCDO) set up the Vulnerable Supply Chains Facility which implemented 8 partnerships projects in 7 countries across Asia and Africa. Four of these partnerships projects co-financed by FCDO and private sector were implemented in Bangladesh and Myanmar in RMG sector. We worked with businesses and industry players who are leading the pathway for responsible sourcing, traceability and environmental, social and governance (ESG) concerns. After 12 months, these four projects helped 1.2 million garments workers, their families and communities improve practices and ability to cope with the pandemic. I am delighted to share the experiences of these projects in this case study which is published as part of our Business Partnerships as a Force for Good Learning Series. This Case Study collates and documents the projects activities, the results and impact, stakeholder inputs as well as recommendations for wider adoption of successful strategies by the governments, businesses and multistakeholder initiatives for deeper and wider sustainable development impact. I would like to thank all our delivery partners including Laura Hawkesford (CARE), Peter McAlister (Ethical Trading Initiative), Nina Smith (GoodWeave International), Rosey Hurst (Impactt) and our brand partners including Danny Hobson (Arco), Julie Taylor (Mi Hub), Fiona Sadler (Marks and Spencer), Sophie Preisig (Monsoon), Sue Fairly, Alessa Rigal (both New Look), Lindsay Block (Primark), Arindam Majumder, Tracey Kilminster (both Sainsbury’s), Sophia Cochrane, Johanna Wilson (both Tesco), Bradford van Voorhees (VF Corp) and wider teams of Awaj Foundation and Women Win for their continued commitment to the project. I also thank Raania Rizvi, Kate Cooper, Solene Bryson, Liz Patterson, Radana Crhova, Ian Felton, Helen King, Priti Prajapati, Afsana Islam from FCDO as well as Derek Griffiths and Khalid Gaffar from the Department for International Trade, Bangladesh for their steer and support. Special thanks to Jakesh Mahey (Team Leader, Modern Day Slavery team in FCDO) and his team for their interest in the programme. Lessons learned from these projects as well as the successful strategies and business models we used can pave the way for shifting the dial toward business acting as a force for good, inclusive and responsible business practices and building trust across the supply chains. These lessons are also useful for the producing as well as sourcing country governments leading to trade led growth in garments and other sectors across Asia and Africa. Our Case Study is a humble contribution to this end.
i
1. Executive Summary When the COVID-19 pandemic struck, global supply chains in the garment sector were hit hard. Throughout 2020 and into 2021, lockdowns in the UK resulted in lower demand for clothing. Lockdowns across Asia also meant factories had to close for long periods in 2020 and 2021. For garment workers in countries like Bangladesh and Myanmar, where textiles represent 91%¹ and 24%² of the exports respectively, the impact has been devastating from both a livelihoods and health perspective. In April 2020, a million garment workers had lost their jobs in Bangladesh of which 60% were women. Those who continued to work faced the risk of contracting COVID-19 in factories where implementing social distancing was difficult and health and safety measures inadequate. The pandemic also put a strain on other aspects of workers’ health, with reports of increased physical abuse, increased mental pressure, and reduction of maternal health care services. In early 2020, the UK’s Foreign Commonwealth and Development Office (FCDO) established the Vulnerable Supply Chains Facility (VSCF) under the auspices of its Busines Partnerships for Global Goals (BP4GG) programme to tackle the immediate effects of the COVID-19 crisis whilst also testing and scaling shared value initiatives that support the achievement of the Global Goals (GG). The VSCF partnered with 20 UK and international retailers and brands and five not-for-profit organisations, supporting 296 suppliers in Africa and Asia. Four of these partnerships were formed in the garment sector in Asia, delivering support to the most vulnerable workers within garment supply chains. The VSCF implemented several studies through which the FCDO and implementing partners could learn from the experiences gained through projects. This case study sets out lessons learned from the VSCF projects in the garment projects portfolio. It identifies strategies that have been effective in the context of an immediate response to COVID-19 but which also have potential for the garment sector’s achievement of its goals for improved environmental, social and governance (ESG) practices in the future. The lessons have been generated through reflections on information from a range of sources, including learning documents produced by VSCF partners, impact data collected through telephone surveys, and interviews with staff involved at both private and not-for-profit partner organisations. The case study identifies four strategies that have been particularly effective in delivering impactful change: • • • •
Partner with supplier factories to improve working conditions and protect workers Tackle Gender-Based Violence (GBV) and harassment through proven tools Review and include all supplier tiers to address transparency issues for decent work Encourage implementation of responsible policies, standards and Environmental, Social and Governance (ESG) initiatives through communication across all tiers of the supply chain
This study ends with a concise set of recommendations for businesses, governments, and NGOs relating to positive aspects of the garment sector which VSCF projects leveraged, and which contributed towards their success. Continuing sector level reform will be essential if VSCF interventions are to be as effective at scale.
¹https://oec.world/en/profile/country/bgd/ ²https://oec.world/en/profile/country/mmr/
1
2. Introduction The Business Partnerships for Global Goals (BP4GG) programme funded by the Foreign, Commonwealth and Development Office (FCDO) managed by Mott MacDonald, invested in partnerships with businesses to test and scale shared value initiatives that support reaching the Global Goals. The VSCF was designed as a rapid COVID-19 response, partnering with 20 UK and international retailers and brands, and 5 not-for-profit organisations, and supporting 296 suppliers in Africa and Asia. Within one year, the programme reached 1.4 million people including workers, families and communities with economic, social and environmental initiatives, 63% of whom live under $5.50 a day, contributing to 8 out of 17 Global Goals. Four of these interventions were implemented in the garment sector in Asia. This case study describes strategies that were used by VSCF partners in the garment industry to respond to an immediate crisis in the sector and which may also strengthen supply chains making them more resilient to future shocks. Reflecting on lessons learned through these interventions, this case study sets out some recommendations about how stakeholders in the garment sector might continue these efforts to build back better. “Sustainability is about growing together. For the industry to show real improvements, it needs all stakeholders to agree on common objectives and empathy across the supply chains partners for deeper and more respectful relationships. We need rules, regulations, and enforcement of good governance in the supply chain by establishing transparency and equality.” Mostafiz Uddin, Founder and CEO of Bangladesh Apparel Exchange, www.theindustrywewant.com
3. Context When the COVID-19 pandemic struck, global supply chains in the garment sector were hit hard. Throughout 2020 and into 2021, lockdowns in the UK resulted in lower demand for clothing. Lockdowns across Asia also meant factories had to close for long periods in 2020 and 2021. For garment workers in countries like Bangladesh and Myanmar, where textiles represent a high proportion of exports, the impact has been devastating from both a livelihoods and health perspective. In April 2020, a million garment workers had lost their jobs in Bangladesh, of which 60% were women³. Many others were faced with late, reduced and in some instances no pay⁴. With limited or no wage protection schemes, government safety nets or household savings, many workers had little or no means to support themselves or their families. Those who continued to work faced the risk of contracting COVID-19 in factories where implementing social distancing was difficult and health and safety measures inadequate⁵. The pandemic also put a strain on other aspects of workers’ health, with reports of increased physical abuse, increased mental pressure, and reduction of maternal health care services⁶. Ready-made garment (RMG) factory workers are predominately female. Female workers were not only faced with the health and livelihood impact of the pandemic. They already encountered “wage gaps and unevenly shared unpaid care and family obligations”7 and have been disproportionality impacted by the effects of COVID-19. Increasing pressure on the garment sector during the pandemic coupled with broader business reflection on responsible business has provided a ‘moment of introspection’. Businesses are faced with growing demand from consumers for a sustainable, ethical fashion industry that sources products made in factories with demonstrable decent labour and environmental practices. In addition to pressure from consumers, businesses are also being pressured from an increasing number of investors as the financial community has embraced ESG data to enhance investment decisions. This has resulted in “increased investor focus on ESG metrics driving a race to the top as companies look to raise their ESG profiles”⁸. “67% customers also believe that companies will ‘build back better’ by investing in longer-term, sustainable and fair solutions. Consumers have high expectations of medium to large businesses, looking to them to solve many of the world’s major issues. It’s an imperative for consumers that these businesses care for their employees and customers—and they will judge them if they don’t.” Accenture COVID-19 Consumer Pulse Research, August 2020.
³New Dynamics of Bangladesh’s Apparel Enterprises: Perspectives of Upgradation, Restructuring, and Compliance Assurance. Center for Policy Dialogue. May 2019. ⁴Gendered impacts of COVID-19 on the garment sector (ilo.org) ⁵What is the impact of COVID-19 on the global garment industry? | CARE (careinternational.org.uk) ⁶CARE’s rapid gender assessment conducted for BP4GG VSCF project design ⁷ILO - Gendered impacts of COVID-19 on the garment sector, November 2020 ⁸https://privatebank.jpmorgan.com/gl/en/insights/investing/think-esg-may-become-a-bubble-we-dont
2
This combined impact is leading to a move across industries as some businesses shift from focus on shareholder value to stakeholder value. This shift is beginning to be felt within the garment industry. With brands such as Primark committing to pursuing a living wage for workers in its global supply chain by 20309 and the emergence of smaller companies placing Environmental Social Governance (ESG) at the heart of their brand e.g. ‘Yes Friends’, ‘We are Tala’ and ‘Unfolded’. “Affordable Sustainable Fashion that changes lives. We remove waste from clothes production and fund kids in education with the savings, all whilst paying workers better” This is Unfolded.com
However, with a workforce of over 65 million in the Asia and Pacific region alone10 more needs to be done to increase the pace of change and ensure all ready-made garment workers, including the most marginalised, are supported. The VSCF trajectory can demonstrate that projects with retail brands, donors and NGOs have produced results and learning on impactful change that can be replicated across broader global supply chains. Retail organisations that implement shared value initiatives will not only improve the lives of workers and see operating efficiencies through more resilient supply chains but are also likely to raise long-term valuation of their businesses11. “We now know factually and demonstrably that sustainability, when integrated within all business functions, can unlock new opportunities for growth. It is also what consumers, employees and investors have come to expect from businesses.” ‘Seize the Moment – the age of responsible retail’ Accenture report, 2020
4. VSCF Garment Projects Portfolio The VSCF garment projects responded to the immediate challenges posed by COVID-19 within the garment sector resulting in the creation of four projects which brought together ten retail brands, four not-for-profit organisations and over 200 suppliers to provide immediate COVID-19 relief and resilience to the garment workers and communities. The retail brands and not-for-profit organisations shared a common concern for compliance with Bangladesh’s national legislation and for achieving ESG criteria. By partnering with the FCDO and co-funding the VSCF projects through match contributions, brands were also able to de-risk their investments testing new approaches to improving conditions in this sector. Through these projects garment workers and members of their community have received access to interventions, including hygiene facilities, food aid, COVID-19 awareness and safety equipment, women’s health services, gender-based violence awareness training, vaccination awareness and support, promoting transparency of “hidden supply chains” and providing rights awareness to informal workers. A supplier survey conducted by the VSCF across the garment projects portfolio found that 100% of the suppliers surveyed felt the support provided during VSCF was important, 98% reported that they had improved the way they run their factories as a result of the project interventions and 82% highlighted relationships with brands had improved. 100% of the suppliers surveyed also indicated that they were likely to continue implementing the initiatives and changes beyond the life of the project.
⁹ https://www.theguardian.com/business/2021/sep/15/primark-clothes-sustainable-retailer-carbon-emissions-plastics 10 https://www.ilo.org/wcmsp5/groups/public/---asia/---robangkok/documents/briefingnote/wcms_758626.pdf 11 Resilient management in the age of responsible retail, Accenture Report
3
ETI Garments: Supporting the garments sector through the COVID-19 Crisis Lead: ETI; Partners: Arco, Mi Hub, Marks &Spencer, New Look, Primark, Sainsbury, Tesco Objectives: • Build a strong and resilient garment sector that is confident, connected, and better prepared for future crises such as COVID-19 • Provide technical support for increased protective measures in factories including COVID-19 occupation health and safety training and awareness raising activities, and knowledge sharing on best practices • Wider learning shared through a digital platform and industry Expert Support Network
A screenshot from the tablet-based training, highlighting women in leadership roles Photo credit: Ethical Trading Initiative
Hidden Supply Chains (Bangladesh) Lead: GoodWeave International; Partners: Awaj Foundation; Monsoon Accessorize; VF Corporation; Humanity United Objectives: • Build workers’ livelihoods and address the hidden nature of informal work through modern day slavery identification and remediation • Map the full extent of garment supply chains – leveraging support from four local factories – and identify examples of child, forced and bonded labour; provide remediation/referral services to these individuals • Share COVID-19 prevention and legal rights information; provide immediate food and other aid to informal workers; and share best practices with brands
A garment factory worker wearing a mask as part of COVID-19 awareness Photo caption: GoodWeave International/Magnifier Creatives
Preventing a Garment Sector Health and Supply Chain crisis in Bangladesh Lead: CARE International UK; Partners: CARE Bangladesh, Marks & Spencer and Primark Objectives: • Strengthen community and garment factory health and Gender Based Violence (GBV) systems in response to the COVID-19 crisis in Bangladesh • Provide COVID-19 and GBV awareness for factory workers and community people, training for health champions and committees • Ensure the functioning of satellite clinics and set up of digital wellbeing centres, behavioural change, and capacity building
Participants at a Gender Based Violence training session Photo credit: CARE International
Impactt: Bridging the Gap (Myanmar) Lead: Impactt; Partners: Primark, Women Win Objectives: • Test a pilot to provide conditional cash transfers to factory workers and offer factory-level training and support to community organizations to address gender issues affecting working women in Myanmar as part of an effort to implement the commitments of the ILO-ITUC Call to Action • Improve financial stability of factory workers (90% women) and management systems for securing gender equality within 3 factories
The project worked with mobile money provider WAVE Money to send cash transfers direct to factory workers Photo credit: The Myanmar Times
4
5. Strategies for impactful change This case study draws on a range of sources of data, research produced by VSCF partners, impact data collected about beneficiaries by the VSCF through telephone surveys, and case study interviews carried out with VSCF colleagues at both private and not-for-profit partner organisations. Through this analysis four strategies were found to be particularly effective in delivering impactful change: a. b. c. d.
Partnering with supplier factories to improve working conditions and protect workers, Tackling gender-based violence and harassment through proven tools, Including all supplier tiers to address transparency issues for decent work, Encouraging implementation of responsible policies, standards and ESG initiatives through communication across all tiers of the supply chain.
a. Partnering with supplier factories to improve working conditions and protect workers. The VSCF funded several initiatives supporting businesses to deliver swift and effective COVID-19 safety management to ensure workers were protected in safe factory environments. This support included provision of Personal Protective Equipment (PPE), handwashing and sanitiser and access to vaccinations for workers as well as training on COVID-19 good practices to encourage sustained behaviour change. Features such as integrating COVID-19 safety responses into management and business and targeting training to specific audiences have been noted as contributing to their effectiveness, in terms of pace of change and scale. The ‘Supporting the garments sector through the COVID-19 Crisis’ project led by Ethical Trading Initiative (ETI) in partnership with seven international brands; Arco, Mi Hub, Marks & Spencer, New Look, Primark, Sainsbury’s and Tesco provided capacity strengthening interventions in a package of targeted trainings on how to manage the COVID-19 response to workers, supervisors, managers, and safety committee members in 20 factories. ETI provided a range of learning resources to inform and educate more than 25,000 workers and was particularly effective in reaching women who represent 57% of the workers. To increase sustainability, the project together with the suppliers selected factory employees who were trained as Master Trainers and equipped them with teaching materials to continue with training and sensitization activities within factories once the VSCF intervention had concluded. Factories and training participants were provided with learning resources (QR app-based training, participant handbook, flipcharts) all of which remain accessible once the project ended. Additionally, PPE kits were distributed to close to 48,000 factory employees who also received health messages through various communication channels. The team supported 20 factories to internationally accepted Occupational Health and Safety (OHS) guidelines and to make factory employees feel safer at work. Following the intervention, 93% of the workers stated having an increased sense of security and safety at work. Factories who received dedicated support have reported maintaining / attaining OHS international guidelines recommended by the project. CARE International, Marks & Spencer and Primark in partnership delivered the ‘Preventing a Garment Sector Health and Supply Chain crisis in Bangladesh’ project. The project helped garment workers directly in factories and within their local communities, during and after the peaks of the pandemic, to mitigate COVID-19 healthrelated challenges. The project’s activities with factory workers and management staff on COVID-19 health and hygiene awareness, vaccination and nutrition information included training, video shows, audio clips played on Public Announcement (PA) systems and shared Behaviour Change Communication (BCC) materials. The project facilitated COVID-19 vaccination procedures in the factories through awareness-raising sessions, orientation on the registration app, direct support for registrations and facilitating the capacity building of the factory medical staff. The project team also developed a pool of Master trainers and Health Champions as well as facilitating factory management participation in determining training needs to ensure sustainability. Following this work there was a 34% increase in the practice of health and hygiene measures, such as mask wearing, frequent handwashing and maintaining safe distances in the factories. 96% of workers felt there was an improvement in the working environment in their factories. Whilst the provision of facilities and infrastructure is vital in protecting workers during the pandemic, focusing on behaviour change is critical to enact and embed change. The VSCF projects therefore focussed on behaviour change training focusing on the “why” alongside the provision of facilities and infrastructure. The tab based animated role play training for workers in small groups followed by a quiz and discussion helped to reiterate the health and safety messaging. Using QR codes for refresher trainings helped increase the reach and ensure behaviour change within and outside the factory premises. Leveraging multiple channels such as videos, posters, stickers, handouts and physical sessions helped reinforce the messaging. Finally training provided to managers, health champions and safety committee members helped provide additional channels for longer term sustained support around health and safety to the workers to truly enable behaviour change. This behavioural change element needs to be considered beyond the life span of the project to ensure sustained impact. We found that 5
by embedding elements such as master trainers in factories, platforms for sharing lessons and providing online access to learning materials, the VSCF projects have worked to ensure not only the effectiveness but also the sustainability of their interventions. Future OHS initiatives designed and delivered therefore need to ensure they are considering both physical and behavioural elements to ensure workers are protected and also consider how behavioural change will be sustained once the project has closed. b. Tackling Gender-Based Violence (GBV) and harassment through proven tools With extensive previous experience of working on Gender-Based Violence (GBV) in Bangladesh, CARE International had proven approaches and tools that could be quickly adapted within a pandemic context. Significantly, they brought to their VSCF project an understanding of the importance of addressing GBV across multiple social contexts. As part of the ‘Preventing a Garment Sector Health and Supply Chain crisis in Bangladesh’ project, CARE International provided work-place based GBV capacity building to sexual harassment committees and gender equity training for management, whilst workers were provided with a mobile based feedback app to report and share GBV related experiences. The project also targeted community groups and ward councillors so that female workers were supported within their communities. Within the home, the project organised couples counselling sessions providing mental and psychosocial support. In the meeting, with a couple’s counsellor Murshida and her husband talked through her fears for his behaviour towards her. “My husband apologised to me after coming from the meeting. He said he won’t repeat those things and would also quit drinking” Tales of Triumph Report, CARE Bangladesh, June 2021.
CARE conducted orientation on GBV for workers in 25 Marks & Spencer factories reaching 73,530 workers. Across the factories, almost 100% of female workers recorded in the endline survey, stated that they had increased knowledge on available GBV support in the factory which is an increase from 70% recorded in the baseline. Additionally, there was a 25% increase in the reliability of the factories' anti-sexual harassment committee for any support regarding GBV thus creating a sustainable mechanism for support. As part of the ‘Bridging the Gap’ VSCF project led by Impactt in partnership with Primark in Myanmar, factories were incentivised to engage on gender inequity issues such as GBV and sexual harassment through an innovative application of conditional cash transfers. If factories opted to participate in the COVID-19 and sexual harassment trainings through the programme, their workers would receive unconditional cash transfers on top of wages. Through a resilience fund, grants were provided to support cross-sector initiatives between women’s right organisations and factories to address more structural and societal issues that restrict gender equality and women's empowerment. Unfortunately, the programme had to close early due to the coup in Myanmar. Even so, this was a new and innovative concept which offers a valuable model for brands to replicate. The Impactt and ETI teams also incorporated research and analysis of factory-based sexual harassment and gender-based violence with a view to inform future project design. Impactt found 38% of workers surveyed were not sure if non-physical forms of abuse qualify as sexual harassment and 28% of the workers were unaware of the law or factory polices against sexual harassment. ETI initiated a rapid assessment in 40 RMG factories to review access to information among workers from a gender perspective. A key driver of the research has been to understand the main barriers to access information on topics such as GBV among female RMG workers with a specific attention to usage of (smart) mobile phones and internet. The survey highlighted that most women workers surveyed have less access to smartphones, internet and communication apps, and do not use social media as an information source to the same extent as their male counterparts. This data will help both organisations implement effective awareness raising and communication campaigns in the future, and both men and women equally. By bringing together UK brands, supplier factories and local NGOs within a single project, VSCF was able to apply complementary expertise and incentivise partners to deliver interventions tackling a sensitive and difficult subject matter such as GBV. Strong partnerships were built with brands and suppliers focused on GBV through ensuring a clarity of purpose, flexibility to work in a changing environment and building trust. Long standing on-going relationships amongst partners and a focus on outcomes helped ensure a swift response in a rapidly changing environment. Continued use of such tools supported by management systems, linked to referral services and training would help free workplaces from violence and harassment.
6
c. Reviewing and including all supplier tiers to address transparency issues for decent work Garment supply chains are complex and multi-tiered, making it difficult to follow ‘the thread to the finished product12” as many factories source from different sub-suppliers who then go on to supply different clothing companies. In Bangladesh, in some instances in the RMG industry, primary suppliers subcontract orders to informal factories where there is little visibility from government or brands. VSCF worked in partnerships with brands to improve transparency of their supply chains and to support their suppliers to improve their implementation of agreed, responsible policies. GoodWeave International, a not-for -profit organisation working to stop child labour in global supply chains, collaborated with Monsoon Accessorize and VF Corporation in the VSCF “Hidden Supply Chains” project. The project addressed the hidden nature of informal work through deep supply chain mapping and monitoring. “Recognising we can only address problems we can see, VF continues expanding our traceability and transparency efforts to dig deeper into our extended supply chain. The information gathered in this program will help VF enhance its policies and processes to advance the systemic change needed to address issues hidden deep within the apparel industry’s global supply chains.” Peter Higgins, Vice President of Global Responsible Sourcing, VF Corporation.
The project conducted supply chain assessments with eight suppliers – both Tier One and sub-contractors – against the core Certification Principles of the GoodWeave International Standard, through both announced and unannounced inspections. The assessments looked at what policies and processes were in place to ensure no child or forced labour is used, and supported suppliers to improve their systems where required. To encourage suppliers’ disclosure, GoodWeave took the initiative to foster open conversations between brands and suppliers to help them better understand the objectives of project and of the assessments, which led to increased sharing of information, and access to subcontractors necessary for deep supply chain mapping. Suppliers expressed positive feedback on the recommendations that GoodWeave offered as a result of the assessments. An end-of-project survey found that suppliers are willing to continue to work with GoodWeave as they could see the benefits of joining the GoodWeave deep supply chain due diligence program in order to attract more buyers. The project also conducted research with informal workers to examine links between undisclosed outsourcing and global supply chains. Working with a local partner, Awaj Foundation, the project collected data through communitybased interviews with RMG workers using questionnaires, focus group discussions and informant interviews in several districts with a high prevalence of informal garment work. The findings can inform future supply chain transparency programming. To this end, GoodWeave International has shared lessons learned and prepared a feasibility plan for continued programming in Bangladesh. COVID-19 increased the risk of modern slavery and child labour if laid off workers were forced to turn to exploitative work or place their children in work to cope with the loss of earnings. Travel restrictions also made it more difficult for companies to conduct inspections and ensure that ethical work practices are being adopted13. By involving local service providers within partnerships, VSCF projects were able (when COVID-19 outbreaks permitted) to conduct vital in-person announced- and unannounced- visits to factories. During visits VSCF partners worked collaboratively with suppliers to update policies and procedures for supply chain transparency, eliminating child and forced labour, and adopting an improvement led approach to policy implementation. Engagement in local context is critical to understand local industry dynamics and laws. Proximity to worker communities also enables frequent monitoring, outreach and support (e.g. during COVID-19) and on-the-ground insight into supply chains. Encouraging brands and suppliers to work together to increase transparency of their full supply chains can help improve working conditions and address risks of human rights abuses. VSCF interventions have demonstrated that local service providers are critical; they provide local context, presence, and act as partners for remediation in instances of discovering indicators of risk. The use of local service providers also builds local capacity and provides means for scale and sustainability. Scaling initiatives such as this takes time. By having a local partner acting as an enabler, facilitator and creating the expertise within the local ecosystem will facilitate scaling such initiatives.
12
Making garment industry supply chains measure up | Reuters Events | Sustainable Business
7
d. Encouraging implementation of responsible policies standards and ESG initiatives through communication across all tiers of the supply chain Opportunities for factories to collaborate and share good practices are limited in the garment sector in Bangladesh. By facilitating new partnerships to implement grant-funded projects, the VSCF created a space for new ways of working and building consensus on industry-wide standards. As part of their VSCF project, ETI created the Bangladesh Expert Support Network (ESN), an innovative platform to provide space for the exchange of information and best practices on factory related OHS initiatives specific to COVID-19 prevention. The platform brought together staff from 67 factories to learn from each other and share good practice and overcome competitive rivalry for the greater good of worker wellbeing. The ESN now provides an excellent opportunity to ensure OHS compliance achieved through the project is sustained and improved upon. “Now this space has been created. The floor is more open. Colleagues are listening to each other. The ESN has created more openness, and hopefully trust, among the participants. At the last ESN meeting, participants voted to include other stakeholders in the ESN indicating they are willing to talk about issues across stakeholders”. Taposh Barua, Programme Coordinator, Ethical Trade Initiative.
To support improving working conditions across the garment supply chain, GoodWeave and Awaj Foundation also organised community-based rights awareness sessions for 560 informal workers in Bangladesh. Results from short pre- and post- assessments conducted during the workers’ rights awareness sessions showed a marked improvement in participants’ awareness of their entitlements. For example, only 20% of session participants knew how many hours were permitted per working day before attending the session. By the end, 70% knew that one regular working day should be no more than 8 hours. VSCF projects created multiple channels of communication within supply chains to encourage embedding of responsible policies, standards, and initiatives across all tiers of the supply chain. The projects demonstrated how retail businesses can encourage communication with, and amongst, all their suppliers to address supply chain issues. This can be effective in reaching subcontracted worksites and workers who may otherwise remain ‘hidden’ within supply chains.
6. Building Back Better The Covid-19 pandemic has transformed how we think about society and led to an understanding that a return to business as usual must be avoided. The term Build Back Better is widely used to refer to the pursuit of a greener, more inclusive and resilient recovery from COVID-19. Through BP4GG we have tested some of the elements required to ensure the most vulnerable in garment supply chains are included in the recovery. However, as a rapid response facility, the focus of the projects funded was on some of the more immediate needs of health and livelihoods. There remains a larger opportunity to rebuild the garment sector to be one which is not only financially viable for businesses, but one that supports countries in achieving the Sustainable Development Goals. To enable that to happen, the RMG sector in conjunction with donors, governments and NGOs also needs to focus on greener elements of the recovery such as the circular economy, water consumption and carbon emissions and additional social elements such as worker social protection and living wages alongside the elements tackled through the BP4GG programme. Continuing impactful interventions such as the VSCF initiatives and aiming for scale across more brands, factories and workers within the garment sector will require ongoing and expanded action at multiple levels. It will require effective partnerships, collaboration and the power of conveners, through which sector-wide change can be leveraged to drive sustainability and better development outcomes across the supply chain. As we look to the future of the garment industry, experiences of our VSCF partners highlight the importance of the following eight tenants to help the industry ‘build back better’. This study ends with a concise set of recommendations for businesses, governments and NGOs relating to positive aspects of the garment sector which VSCF projects leveraged, and which contributed towards their success. Continuing sector level reform will be essential if VSCF interventions are to be as effective at scale.
13
https://www.aljazeera.com/economy/2020/9/4/extreme-risk-coronavirus-is-worsening-modern-slavery-in-asia
8
For business • Effectively engage with global consumers: in collaboration with other sectors and stakeholders (NGOs, ILO, certification and membership bodies), business can build even stronger market demand through increasing supply chain transparency, reporting on such initiatives and connecting the consumer to the worker at the end of the supply chain. • Collaborate and share with industry peers: engage and discuss with their industry peers, develop and share evidence of the business case for responsible business and benefits of improving working conditions within the garment sector. • Build and maintain long term and open relationships with suppliers: to build trust and have difficult conversation in a healthy and constructive way, being willing to engage in open conversations and sustain these over the longer term. “The tripartite relationship between ETI, our partner brands and their suppliers has enabled a mutual understanding of each other’s challenges and together we have been able to bring about activities and results that none of the stakeholders could have achieved on their own. The accomplishments made possible through the partnership demonstrate that we are stronger together and that dialogue is the most conducive tool to reach solutions and detect opportunities. This is at the core of our business case.” - Peter McAlister, ETI.
For governments • Strong legislation and strong incentives to comply: Legislation to require increased transparency and details on ESG impacts can create powerful incentives to foster sustainable and resilient recovery and inclusive growth. “Any kind of UK government requirement makes my bosses take notice and gives the issue priority in the business” Julie Taylor, Ethical Compliance Officer, Mi Hub
• Strong enforcement of standards: Enforcements of factory safety standards and worker conditions provide the environment in which brands can be held accountable for violations of industry agreements such as the extension of the Bangladesh Accord. “If there is no accord, there is no safety. There is no accountability, no responsibility”. Nazma Akter, Executive Director, Awaj Foundation.
For NGOs • Continue to hold the industry to account: Create awareness of key supply chain challenges and provide mechanisms for accountability. Working in partnerships, NGOs can offer new opportunities for reform and new approaches to accountability. “One company can’t do it all. We need a collective vision and mission to bring full traceability to supply chains and protection for children and adult workers. This could be a powerful force to end child and forced labor.” Nina Smith, GoodWeave International
For all • Collaborate effectively across sectors: brands, governments, suppliers and NGOs can strengthen collaboration and create shared accountability in pre-competitive spaces by working together in multi-stakeholder forums and platforms with structure to align on purpose and focus. • Co-investment: To continue to evolve the standards around responsible business, the sectors must be willing to co-invest in innovation and have sufficient risk appetite to test out different approaches to achieve a more ethical and responsible garment sector.
9
7. Conclusion The BP4GG programmes has proven the power of partnerships between brands and NGOs to not only protect and support some of the most vulnerable from the impacts of a health pandemic but also to address social issues faced by RMG workers in Bangladesh. By sharing the impact and insights from these projects the hope is others will replicate and build on them to not only sustain the impact but also bring benefits to RMG workers in other countries. As we look ahead and the continued recovery of COVID-19 it will be important for governments, business and NGOs to reflect on the impact of this programmes and others like it to ensure learnings are embedded and any gaps in current focus are addressed. Only by doing so can we ensure RMG supply chains really are built back better and the structural inequalities faced by workers who support them are addressed.
10
VSCF Vision “To enable vulnerable people and supply chains to recover from and remain resilient to the economic and social impacts of COVID-19, by leveraging the reach and influence of responsible businesses through partnerships.”
VSCF Mission “To enable recovery and resilience from the COVID-19 pandemic by forming strategic partnerships with global businesses. Working within supply chains in Africa and Asia, we will test and scale approaches to provide additional health and safety support, increase incomes, safeguard jobs, and ensure continuing access to markets. We will support vulnerable people within supply chains to recover from COVID-19, and support responsible businesses to build on these experiences to become more sustainable.”
Business Partnerships for Global Goals is a UKAid funded programme implemented by Mott MacDonald, with support from Accenture Development Partnerships and IIED. We partner with UK and international retail brands, not-for-profit organisations, farms, and factories to provide economic, social, and health benefits to around 1 million vulnerable women and men impacted by COVID-19 in Africa and Asia. Mott MacDonald Limited. Registered in England and Wales no. 1243967.
