Identified opportunities and challenges inCSR certification : the case of CSC9000T in China’s textile industry

Abstract: Corporate Social Responsibility (CSR) issues have been received much attention in businessand management practises globally. Jensen & Yeh (2009, 3) state that “The agenda ofCorporate Social Responsibility (CSR) has emerged as a factor in the process of globalization,and Chinese companies may sometimes feel pushed into this agenda without a clearunderstanding of the rationale behind it”. China’s textile and apparel industry, amanufacturing-based economy with its products bounding up with the consumers worldwide,has been facing enormous pressure to take CSR initiatives, particularly in relation toenvironmental issues and labor standards. The launch and implementation of CSC9000T,based on a consumer-oriented and scientific sustainable development philosophy is amilestone to the development of the industry.This study aims to understand the conditions for implementation of corporate responsibilitystandard, CSC9000T in China’s textile and apparel industry. The theoretical framework isdesigned closely embracing the aim in an exploratory research design. Multiple cases based inChina are conducted in order to identify the motives, perceived benefits as well as challengesassociated with implementation of CSR and CSC9000T in Chinese textile and apparelenterprises.Findings suggest that the Chinese textile and apparel enterprises have begun to realize theimportance of implementing CSC9000T management standard. The companies are politicallysupported and benefit from participating in CSR engagement. However, the current situationin China’s textile and apparel industry also presents lots of challenges to a widespreadadoption of CSC9000T social standard. The current context for CSR development in Chinacan be described as low level of CSR awareness and concerns, lack of training and educationprograms, highly implementation costs, as well as the ineffective enforcement of laws andregulations, all of which are threatening the CSR and CSC9000T progress.The motives for implementing CSR and CSC9000T in Chinese corporations have initiallybeen driven by international pressure groups and consumer expectations. In recent years, theChinese governmental authorities have taken a role of encouraging CSR activities. Changes inthe international trade environment and increased awareness of needs for “a low carboneconomy” have also promoted this process. The conditions, both internal and external, forChinese enterprises to embrace CSR initiatives are associated with challenges. If CSR is seenas a process of awareness, enterprises should first focus their efforts internally, to educateemployees and formulate company policies. The role of the Chinese government and relevantauthorities is to strengthen and legitimize the corporate efforts made. Investments andcertification processes that at first may be associated with challenges and costs may becomegrounds for differentiation and competitive advantage on a global market.