Implementation of SA8000 in Indian garment manufacturing : a socio-economic assessment of the impacts on working conditions and business practices

Abstract: The garment industry has faced a constant chase for low prices, which has led to an outsourcing to developing countries where the production costs are comparatively low. In these countries, however, the workers' conditions are often forgotten. It is not unusual with low wages and extensive overtime work in an environment that is directly hazardous to the worker. In an attempt to improve the social conditions, many companies have adopted codes of conduct and social standards. Although the codes and standards may lead to improvements for the workers, they have led to additional costs for the supplier factories. In order to reach a sustainable business practice, factories need to develop both economically and socially. This study explores local-level experiences of SA8000 in Indian garment manufacturing by examining the impacts of implementation on the business practices and working conditions. The results of the study are based on case studies in Bangalore and Tirupur in South India. During the implementation, the major obstacles were effective communication of the standard at all levels in the factory and the costs involved in meeting the requirements of the standard. The major benefits are primarily expressed in social terms, while the suppliers would need a higher price or long-term contracts from the buyers to economically motivate the implementation. It is suggested that all concerned stakeholders are engaged in the process through a continuous mutual dialogue in order to promote both economic and social development in a sustainable manner.