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

Abstract: Corporate Social Responsibility (CSR) issues have been received much attention in business and management practises globally. Jensen & Yeh (2009, 3) state that “The agenda of Corporate 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 clear understanding of the rationale behind it”. China’s textile and apparel industry, a manufacturing-based economy with its products bounding up with the consumers worldwide, has been facing enormous pressure to take CSR initiatives, particularly in relation to environmental issues and labor standards. The launch and implementation of CSC9000T, based on a consumer-oriented and scientific sustainable development philosophy is a milestone to the development of the industry. This study aims to understand the conditions for implementation of corporate responsibility standard, CSC9000T in China’s textile and apparel industry. The theoretical framework is designed closely embracing the aim in an exploratory research design. Multiple cases based in China are conducted in order to identify the motives, perceived benefits as well as challenges associated with implementation of CSR and CSC9000T in Chinese textile and apparel enterprises. Findings suggest that the Chinese textile and apparel enterprises have begun to realize the importance of implementing CSC9000T management standard. The companies are politically supported and benefit from participating in CSR engagement. However, the current situation in China’s textile and apparel industry also presents lots of challenges to a widespread adoption of CSC9000T social standard. The current context for CSR development in China can be described as low level of CSR awareness and concerns, lack of training and education programs, highly implementation costs, as well as the ineffective enforcement of laws and regulations, all of which are threatening the CSR and CSC9000T progress. The motives for implementing CSR and CSC9000T in Chinese corporations have initially been driven by international pressure groups and consumer expectations. In recent years, the Chinese governmental authorities have taken a role of encouraging CSR activities. Changes in the international trade environment and increased awareness of needs for “a low carbon economy” have also promoted this process. The conditions, both internal and external, for Chinese enterprises to embrace CSR initiatives are associated with challenges. If CSR is seen as a process of awareness, enterprises should first focus their efforts internally, to educate employees and formulate company policies. The role of the Chinese government and relevant authorities is to strengthen and legitimize the corporate efforts made. Investments and certification processes that at first may be associated with challenges and costs may become grounds for differentiation and competitive advantage on a global market.