Beyond Auditing: Hierarchy of Social Compliance Programs

I recently attended the 2016 Ethical Sourcing Forum (ESF) in NYC. Held annually for over a decade, the ESF focuses on issues, best practices, and trends in ethical global sourcing – mostly for the apparel/fashion industry although there were also representatives from the toy, electronics, and food/beverage industries. I was inspired by such a wonderful community of CSR professionals and I came away with renewed optimism about the effectiveness of social compliance programs – the strategies a company takes in addressing the health and safety of its employees and its accountability for meeting health and safety standards.

A company’s social compliance program typically includes strategies such as implementation of a code of conduct or standards of compliance and an auditing program. However, one of my key takeaways from the 2016 Ethical Sourcing Forum was the movement to go “beyond auditing” in social compliance programs. Speakers from The Gap, PVH, West Elm, and the American Apparel and Footwear Association talked about moving social compliance programs beyond codes of conduct and supplier/factory auditing towards the ideal situation of self-directed continuing improvement. In addition, Marsha Dickson (University of Delaware) and Doug Cahn (The Cahn Group, LLC) presented their work on The Better Buying Initiative – a platform for 360-degree feedback whereby suppliers/factories would rate buyers/brands just as buyers/brands rate factories.

Therefore, I offer the following Hierarchy of Social Compliance Programs (think Maslow’s Hierarchy of Needs) with four levels to use in evaluating current and future strategies for social compliance programs:

·         Code of Conduct and Supplier Auditing Checklist – at the basic level a buyer/brand has a code of conduct or standards of compliance and relies on 1st, 2nd, or 3rd party audits for risk management assessment associated with sourcing.

·         Building a Relationship with the Supplier/Factory Management – at this next level, relationships are built between the buyer/brand and supplier/factory management. This partnership between the brand/buyer and supplier/factory results in increased communications and capabilities for mutual problem-solving. At this level social compliance programs are considered to be more than a risk management assessment strategy for the buyer/brand.

·         Capacity Building – at this next level, workers are brought into the process through increased worker education and worker-management communications. The buyer/brand becomes involved with the community and strives to improve conditions outside the walls of the factory. The use of mobile technologies for worker feedback may be incorporated.

·         Self-Directed Continuing Improvement – at the highest level, suppliers/factories would engage in self-directed continuing improvement strategies to the point where audits would no longer be needed. In addition, 360-degree feedback processes would allow suppliers/factories to rate and provide feedback on buyers/brands just as buyers/brands to rate and provide feedback on suppliers/factories.

 Based on my analysis of social compliance programs, I am aware of programs at the first three levels with only a few that are moving towards the fourth level. In many cases, aspects of several levels are being implemented at once. Indeed, even at the highest level risk management may not want to eliminate audits all together. And so I ask -- at what level is your social compliance program? What would it take to move it to the next level?

Zero Waste Fashion Design

Ever since I read the chapter on “Zero Waste Fashion Design” by Timo Rissanen in the book, Sustainable Fashion: What’s Next?, 2nd Edition (NY: Fairchild Books, 2015), I’ve been intrigued by the idea of designing apparel patterns that utilize 100% of the fabric when cut. Imagine – cutting apparel patterns with no fabric waste! 

Reflecting on Timo’s description of the process of zero waste fashion design, I thought about my own experiences with creating patterns. As a young designer in college I loved the challenge of taking the patterns that I had made for a design (typically as a result of the flat pattern method of pattern making) and organizing them in a way that used the least amount of fabric as possible. I’ll admit that I undertook this process (which I later learned was called fabric utilization) because I was a poor college student and wanted to spend the least amount of money I could on the fabric I needed to create the design. That said, I was also reducing the amount of fabric waste in the pattern cutting process. During this process of organizing my patterns, I often found myself re-thinking the design in order to create a particular pattern piece that would allow for better fabric utilization. 

As applied to industry practices, I saw this same process happen while visiting the production center of a large sportswear company in China. Their pattern engineers had discovered that they could increase fabric utilization for jackets with hoods by separating the hood pattern into two pattern pieces that would later be sewn together. The cost of having a sewing operator sew the pieces together was less than the cost of the fabric saved in the process (which is an issue for another blog posting…). I can only imagine the conversations between the pattern engineers and designers about the need for a seam in the hood that had neither a functional nor an aesthetic purpose!

Zero waste fashion takes fabric utilization to the extreme – creating patterns for a design that create a marker that looks like a large jigsaw puzzle and results in 100% fabric utilization. Creating these types of patterns is very difficult to do – as the human body is both 3-dimensional and asymmetrical, front and back! However, designers such as Timo Rissanen and Tara St. James (for Study NY) have taken on this challenge -- creating unique and wearable apparel designs with zero fabric waste in the cutting process. In order to reduce fabric waste (or ultimately to have zero waste) designers and pattern makers must work together with marker making and pattern cutting as important to the design process as the design itself.

Tara St. James for Study NY

I won’t go into the details of how zero waste fashion design can be integrated into larger scale pattern making and production in this short blog. If you are interested, Timo provides an excellent overview in his chapter in Sustainable Fashion. I will, however, share Timo’s advice to designers wanting to reduce fabric waste (p. 201):

When you next design or make a garment, examine the fabric. Try to see how the garment you want to create could use all of it. What is the relationship between the width of the fabric and garment? If you have a pattern, see where the largest gaps or waste occur between the pieces. How can you adjust the design by incorporating these gaps into the garment? Remember, your creativity and openness to possibility are your greatest asset. Remember also that these can be your greatest limitations. Try to identify what learned rules guide your practice. One useful advantage of rules is that they can help us make sense of things. Once we have learned a rule, breaking it may take us forward. Be brave.

Take Timo's advice --be open to new possibilities! Be brave! And in the process, reduce fabric waste!

Project JUST

Those who believe in socially responsible fashion know that our true power comes in how we walk the talk – that is, by the fashion brands we purchase and wear. We probably all have favorite brands that we know are socially responsible based on our own experience or research – I know I do. But, I’m always happy to learn about new socially responsible fashion brands and to learn more about the initiatives and goals of brands. I also have my biases (based on past experiences) with regards to brands I will never purchase – but are these biases still valid? Wouldn’t it be wonderful if there was an online platform to share information around the multitude of issues surrounding responsible design, production, and distribution of fashion brands. Project JUST has come to the rescue! As they state on their website “Project JUST lets you learn, ask and share the stories behind your clothes.” Currently, they have researched over 60 brands (including Eileen Fisher, Adidas, Forever 21, and lululemon) around eight business strategies:
•    Size and business model – number of employees, annual revenue, type of business model, etc.
•    Transparency – openness of the brand in communicating their supply chain
•    Labor conditions – how the brand treats workers in their supply chain
•    Environment – how the brand treats the environment
•    Intention – brand’s goals and commitments to improve social and environmental impact
•    Community – social responsibility efforts among the brand community and multi-stakeholder initiatives
•    Management – brand’s leadership and any reported issues or scandals
•    Innovation – brand’s efforts to go above and beyond the status quo in their operations and supply chain
Each brand listed is independently researched by two individuals who cross-check findings; a third individual then verifies the compiled information before posting. Information is updated on a regular basis and they encourage comments, updates, and contributions from others.
In reviewing several brands including those I know are in pretty good shape and those I know have real issues – I was pleased to see that their comments – both pro and con – were right on track! In addition, have you ever wondered what was meant by bluesign, OEKO-TEX Standard 100, SAI, or SA8000? The website also includes a comprehensive “new slang” dictionary of certifications, accreditations, laws, and multi-stakeholder initiatives.
Sound impressive? It is! Check it out!

Two Films Every Fashionista Should See

Most people do not pay much attention to how or where their clothes are made. Instead, when making purchase decisions, consumers look at styling, fit, and price but rarely delve into the codes of conduct or factory auditing processes of their favorite fashion brands. However, if you are interested in understanding how and where your clothing is made, I would highly recommend watching two recent documentaries, Clothes to Die For and The True Cost.

Both of these films were inspired by the April 24, 2013 tragedy of the collapse of Rana Plaza building in Savar, Bangladesh (outside of Dhaka) which housed several apparel factories. Over 1,100 people were killed and over 2,400 injured in one of the worst industrial disasters of our time. Prior to its collapse, building owners had been informed of cracks in a structural pillar and in the ceiling of the building. In fact, the day before the collapse, an engineer deemed the building unsafe. Despite these warnings, the building owner, Sohel Rana, assured factory owners that the building was safe and factory employees were urged to return to work.  The tragedy brought the world’s attention to the unsafe factory conditions and corruption within Bangladesh government. Through dramatic media coverage during the days following the collapse, we watched in horror as the extent of the tragedy unfolded. Consumers were shocked to see their favorite brands identified as being made in one of the clothing factories housed in the building; brands including Inditex (Zara), Mango, The Children’s Place, Walmart, and JCPenney, just to name a few.

Clothes to Die For focuses on the causes and personal impact of the tragedy itself. Beginning with the history of Bangladesh garment industry as a means for economic development for the country, we see the tremendous growth in the garment industry as low wage production center primarily for budget priced merchandise. The industry provided income and hope for many, particularly women, who would not have had an income otherwise. It then follows the events leading up to the tragedy. The most powerful aspect of the film is the heart-wrenching interviews with workers who survived the ordeal – telling their stories of survival, faith, and gratitude towards the volunteers who saved them.

Taking a broader approach to social responsibility in the fashion industry, The True Cost explores the impact of consumers’ desire for every-changing styles, low prices and fast fashion; and the industry’s use of contract factories in low-wage production centers such as those in Bangladesh to meet consumers’ desire for low cost apparel. Andrew Morgan, Director of The True Cost, describes the film as “an eye opening journey around the world and into the lives of the many people and places behind our clothes.” And asks the question “who really pays the price for our clothing?”

After watching the films, some may ask – “has anything happened since the tragedy?” Although consumers’ desire for fast fashion has not waned, the tragedy was a dramatic wake-up call for many fashion brands wanting to avoid the risk of negative publicity by addressing working conditions in their factories.  Since the tragedy, two industry alliances have been formed: The Bangladesh Safety Accord  (The Accord) has been signed by over 70 companies in 15 countries including H&M, Inditex (Zara), PVH, Carrefour, and Tesco. The Accord is governed by companies and worker representatives with a focus on independent inspections and remediation plans. The Alliance for Bangladesh Worker Safety (The Alliance) has been signed by over 25 North American apparel companies and retailers including Children’s Place, Costco, Gap, JCPenney, Kohl’s, Macy’s, Nordstrom, Target, VF, and Wal-Mart. The Alliance conducts safety assessments of apparel factories as a means of improving conditions. These groups have had mixed results and challenges still exist – early on the morning of February 2, 2016 a large fire broke out in a sweater factory making merchandise for brands including H&M and JCPenney. Reports indicated 10-15 people were injured. Despite these challenges, imports from Bangladesh to the US of fashion apparel continue to grow. Bangladesh is now ranks as the 3rd largest exporter to the US for apparel behind China and Vietnam.

What can you do to help? The websites of both films offer excellent ways for you to be engaged in efforts to make a difference in cleaning up the apparel industry! And as I wrote about in my earlier blog -be an animateur and lead change through inspiring others! The cost of fashion should not include the health, well-being, and lives of the workers!