From Social Compliance, how Buyers/ Brands are benefited?

Introduction:

Social compliance, a part of Corporate Social Responsibility (CSR), is ahead increasing adhesive friction world-over, especially with global brands proactively sponsoring responsible sourcing, enforcing sustainability practices, and setting up programs to contribute to their communities. 

 

The threat for most reputed global brands:

Of course, there are organizations that adopt a reactive approach to social compliance. However, this is risky as Non-Governmental Organizations as well as the media and Internet are increasingly bringing to light unpleasant and unethical working conditions in some of the most reputed global brands.

 

Across the industry, there is a strong exchange to ensure that all products are made and sold in a socially compliant manner i.e. in a way that fulfills minimum social standards relating to working hours, wages, health and safety, child/ slave labor, environmental pollution, and other such issues.

The way how NGO helps to Brands:

Several NGOs such as the Fair Labor Association (FLA) and the Worldwide Responsible Accredited Production (WRAP) are focused on creating awareness about responsible practices by providing information, tools, and training to organizations and their suppliers across the world. Meanwhile, associations such as the Global Social Compliance Programme (GSCP) and AIM-PROGRESS have developed best practice processes and methodologies to share supplier audits and assessment results, and build better supplier capabilities.

Multiple compliance guidelines and programs have also been developed to ensure acceptable standards of working conditions. They include the Business Social Compliance Initiative (BSCI), Electronic Industry Code of Conduct (EICC), Ethical Trading Initiative (ETI), International Council of Toy Industries (ICTI) Care Process, Social Accountability International’s SA8000 standard, and Sedex Members Ethical Trade Audit (SMETA).

Summary:

Organizations that are committed to fulfilling these guidelines, and building well-thought out and well-implemented social compliance programs definitely have a competitive edge over others. Investors and stakeholders are confident in their credibility. Customers are drawn to their brands. Employees are more satisfied. In short, these organizations are seen as reliable and trustworthy institutions that are committed to their people and communities. The result that is enhanced brand reputation and loyalty, and stronger stock performance.

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