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The Business view of Better Work

Mirjam Cornelisse

Supervisor: dr L.W. Fransen Second reader: Prof. B.M. Burgoon June 2014

Master Thesis Political Science – International Relations

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Table of contents

Abbreviations 2 1. Introduction 3 2. Theoretical framework 5 2.1 Literature gap 5

2.2 Multiplicity of private transnational governance 5

2.3 Industrial-institutional environment 6

2.4 Social Pressure 7

2.5 Better Work: expectations 7

3. Method 8

3.1 Operationalization 8

3.2 Method 8

3.3 Sample and case selection 9

3.4 Validity and reliability concerns of chosen data and method 9

3.5 Theoretical and societal relevance 10

4. The Dutch industry under pressure 11

4.1 The Accord 11

4.2 Awareness and discussion 12

4.3 Effects on thesis 12

5. Transnational Governance in the Netherlands 13

5.1 Business Social Compliance Initiative 13

5.2 Fair Wear Foundation 14

5.3 Social Accountability International (SA8000) 14

5.4 Made-By 15

5.5 The supplier or buyer side 15

6. Results: Policy Changes 16

6.1 Change in CSR policy 16

6.2 Social Pressure 18

6.3 The Retail – Brand continuum 20

6.4 Large and leading firms 20

6.5 Conclusion 21

7. Results: Perceptions of Better Work 23

7.1 Large and leading firms 23

7.2 Impact and stringency 25

7.3 Buyer role 26

7.4 Importance of the ILO 26

7.5 Conclusion 28

8. Conclusion and Discussion 29

8.1 Conclusion 29

8.2 Implications and predictions 29

8.3 Limits 30

8.4 Relationship to theory 30

References 31

Annex I: List of Informants 35

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bbreviations

BFC Better Factories Cambodia

BSCI Business Social Compliance Initiative CCC Clean Clothes Campaign

CSR Corporate Social Responsibility

EU European Union

FWF Fair Wear Foundation

ICN India Committee Netherlands IFC International Finance Corporation ILO International Labor Organization IO International Organization MSI Multi Stakeholder Initiative NGO Non Governmental Organization

OECD Organization for Economic Cooperation and Development

SAI Social Accountability International TPPR Transnational Public Private Regimes

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1.

Introduction

Better Work is a partnership program between the International Labor Organization (ILO) and the International Finance Corporation (IFC). The first Better Work program was initiated in Cambodia in 2007 with the aim of improving both compliance with labor standards and competitiveness in global garment supply chains. In the course of seven years, Better Work has expanded its scope to nine countries worldwide, including Haiti, Jordan, Lesotho, Indonesia, Vietnam, Nicaragua and Bangladesh. Better Work focuses on monitoring compliance with ILO core labor standards and national labor laws, facilitates dialogue between factory managers and workers, and promotes stakeholder engagement. This stakeholder engagement includes the involvement of government, employers, unions, workers, and international buyers. Although there are other multi-stakeholder organizations within the garment industry that focus on such issues, the design of Better Work is quite unique. Through the tripartite structure of the ILO, Better Work has the opportunity to make agreements about labor standards on the national level of a country in which the program is active. Furthermore, while donor countries contribute funds to develop and implement programs, international garment buyers pay for factory audits and related activities. These buyers include big fashion corporations like GAP, Levi Strauss, and Adidas.

While various authors have focused on how Better Work and other forms of public-private transnational governance turn out ‘on the ground’ (Oka 2011, Wetterberg 2011, Robertson et al 2011), we do not know how industry players are responding to an increasing amount of countries signing up to these programs. This response is of importance not only to learn more about the possible scope of the program, it is also meaningful to understand the impact such a public-private program has on non-participating players. The objective of this research was therefore to obtain a better understanding of the relationship between large garment companies and the ILO Better Work program. The research question used in this dissertation was:

How do the CSR strategies of large textile- and garment companies change in light of the emergence of the ILO Better Work program?

To be able to answer the main research question the following sub-research questions have been used:

1. How have the CSR policies regarding labor standards in supply chains of large textile and garment companies evolved in the past decade?

2. How do textile and garment companies see themselves relate to the Better Work program? 3. How do non-business actors that are active in the field see the textile and garment companies

relate to the Better Work program?

The first question looks at how the CSR strategies of a selected group of large garment and textile companies has evolved over the past decade. In doing so, not only does this shed light on the garment and textile field, but it also uncovers the motives behind the CSR strategies of these companies. In answering the second research question this research has looked at the garment companies from an ‘emic’ point of view and examined how they view the Better Work program and see themselves relate to it. The third research question focuses on the opposite and looked at how others that are active in the field, working for example in private transnational governance organizations or in public functions, see the role of the textile and garment companies regarding Better Work.

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4 The next chapter describes the methods used for gathering empirical data, after which the proceeding two chapters provide a background picture of the Dutch garment industry and thereby illustrate the environment in which the research was done. Following this, two chapters present the results of the research. In the final chapter a conclusion is drawn and limits of the research and predictions for the future are discussed.

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2.

Theoretical framework

As there is a gap in the literature regarding business reactions to public-private transnational governance forms like Better Work, research for this thesis was done inductively. This allowed a constant conversation with the existing literature on relevant approaches, which were continually consulted and added. In this section I will discuss the central concepts used in the research. First, I shall discuss in more detail the gap in the literature regarding the business take on public-private transnational governance. Second, I shall discuss the theories that were then derived from a neighboring field of literature; the interaction between businesses and private transnational governance. Theories from this literature can be divided into three sections: social pressure, industrial environment and national-institutional environment. Finally, as the research made clear that companies did not know the program, the final section shall highlight the possible implications these theories have for the business view of Better Work.

2.1 Literature gap

In the past decade, a growing body of literature has focused on a broad variety of CSR related aspects. Literature has for example shown how governments react to CSR (Gjolberg 2010), and how a new form of transnational governance has emerged which replaces the reliance on traditional state-based mechanisms with an intricate global network of public, private and mixed institutions and norms. Sometimes, these are partially orchestrated by International Organizations (IOs) (Abbott & Snidal 2010). This implementation of non-legally-binding standards of behavior are applicable directly to private actors rather than to states, and are operating in settings that have traditionally called for mandatory regulation. Some name the emergence of these new forms of governance to improve social and environmental standards Transnational Public Private Regimes (TPPRs) (Fransen 2013). While the majority of research focuses on the effects of these partnerships or on the government-, IO-, and local stakeholder look on matters, what is lacking in the literature is the business point of view on these transnational public-private regimes.

2.2 Multiplicity of private transnational governance

In order to derive more understanding of the business view on public-private partnerships, insights can be drawn from the literature on the relationship between businesses and private transnational governance. Why do some businesses join transnational governance organizations, and others not? What explains the type of transnational governance these companies prefer? This set of questions is particularly important in the apparel industry. Where other industries have experienced a merge of standards, in the garments industry private governance standards have not converged. Rather, a fragmented and competitive policy field has emerged (Fransen 2011: 360). This multiplicity of private governance standards can have negative consequences for their effective functioning. It makes implementing policies more complicating and is a cause for confusion amongst consumers, governments and activist groups. Industry representatives have for example complained that this multiplicity creates ‘audit fatigue’, confusion about requirements, and higher costs for companies and their suppliers (Turcotte et al 2012).

Furthermore, there is a difference in choice of supply chain responsibility, or as Fransen and Burgoon phrase it: ‘the extent to which companies are responsible for improvements in their supply chain and to which buying or supplier companies have financial and managerial responsibility for implementation’ (Fransen and Burgoon 2013:5). In the garment sector, this choice of supply chain

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6 responsibility comes down to a division between lead firm programs or supplier firm ones. Lead firm programs like the Fair Labor Association (FLA) and the Fair Wear Foundation (FWF) entail more supply chain responsibility and are thus more engaged with improving working conditions. In this type of program, the lead firms have responsibility for the implementation of monitoring and audits, and for its costs. In contrast, in supplier programs like Social Accountability International (SAI) and Business Social Compliance Initiative (BSCI), companies do not monitor suppliers but leave this to audit firms. The cost for this lies with the suppliers themselves.

Overall, these differences in standards in the garment sector have led scholars to divide them into two categories: “Socialized” private regulation and “Privatized” private regulation (O’Rourke 2006, Fransen and Burgoon 2013). The first refers to a situation in which the relevant societal interest groups are institutionally involved in governance, while in the latter the advance of working conditions lies in the hands of for-profit parties. While BSCI is the largest player in the EU and includes most retail giants (Fransen & Burgoon 2013:7), FWF is the smallest and includes medium-sized corporations with limited international sales. While in practice a small majority of companies prefer privatized regulation, socialized private regulation embodies a promise of more effective governance (Fransen & Burgoon 2013, O’Rourke 2006). To explain the preference of businesses for certain types of private standards in such a fragmented field, the literature focuses on two categories; the industrial-institutional environment that businesses are in, and the social pressure that they are under.

2.3 Industrial-institutional environment

Literature reveals that the industrial institutional environment, the embedding of the firm within the apparel industry, is important. This section therefore describes the industrial elements that affect a companies’ choice for transnational governance organization; the retail-brand continuum, market segment, size, and ownership type.

Apparel is a value-driven buyer chain, meaning that garment companies generally design and/or market products but do not make the products they sell. As Gereffi and Memedovic put it: “they are ‘manufacturers without factories’, with the physical production of goods separated from the

design and marketing” (Gereffi and Memedovic 2004: 5). Within this buyer-driven chain, companies

can be placed on a continuum between two categories: brand-named corporations and multi-product retailers. The world market, including the Dutch market, is increasingly dominated by the latter. While retailers frequently also have private labels, they generally buy a variety of already designed and made garments from suppliers or trade agents and sell them in their stores. In general, retailers tend to find CSR less important, and can be less interested in multi-stakeholder governed programs than brand-named companies (Bartley 2009, Fransen and Burgoon 2013). In contrast, brands are often involved in the research, testing, quality control and production of their goods. Due to the more contact and the more frequent intervention in the production process, brands are more engaged in labor standard compliance.

Another factor influencing the position of a business in the supply chain is the market segment of its products. Companies producing low-cost products tend to find CSR less important than those producing high-street products, as its consumer base will be less preoccupied with working conditions in the factories where the products are made (Fransen and Burgoon 2013). Moreover, there is also a difference between businesses that are connected to the stock-market and those companies that are privately-owned. As brand reputation can be important to the share-prices of stock-listed companies, to avoid reputation damage they may be more active regarding CSR (Marx 2008). Finally, according to Bartley & Child (2007) larger corporations are more visible to consumers and therefore more often a

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7 target of negative media attention and activism by NGOs. The next section shall discuss the impact of this social pressure in more detail.

2.4 Social pressure

An important factor influencing the choice of private standards is a company’s sensitivity to social pressure (Fransen and Burgoon 2013, Bartley and Child 2007, Marx 2008). This pressure comes mostly from NGOs in the form of public campaigns and informal efforts to influence companies, but is also formed by pressure from consumers and negative media attention. Companies facing public campaigns on labor abuse in the supply chain for example are more likely to develop a preference for a multi-stakeholder governed programs (Marx, 2008).

The moment that companies are under this social pressure is important as corporate strategies are affected by their position in the historical development of the private transnational governance field (Fransen 2012: 105). There is variation between firms adopting a CSR policy early and those adopting later as the time affects whether there are more or less options to choose from, whether companies have more or less experience with activist campaigning, and whether there are more or less significant choices made by competitors or other strategically significant companies.

2.5 Better Work: expectations

When applying these theories to Better Work, a number of expectations can be established. On the one hand, since Better Work is governed through a multi-stakeholder setting, incorporating a broad variety of actors, it is thus perhaps less attractive for the majority of businesses. On the other hand, as the responsibility for monitoring the supply chain and for the cost of monitoring and auditing lie in the hands of the ILO and funding is partially done by national governments from OECD countries, textile and garment companies can reap these benefits without too much effort. In addition, since NGOs advocate multi-stakeholder governed programs that include trade union representatives, sourcing through a program by the ILO could prevent companies from being targeted by an activist group and adds to a company’s legitimacy. As the research for this thesis was done inductively, these expectations were kept in mind during the process and are reflected on in the course of the coming chapters.

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3.

Method

This chapter describes the methods used for gathering empirical data, as well as the sample and case selection process, and the Validity and reliability concerns of chosen data and method. Finally, it shall reflect on the theoretical and societal relevance of this research.

3.1 Operationalization

‘Methods-driven social science often ends up proving conclusively what we already knew before we started, or what we care little about.’ (Gerring 228)

In light of the above citation, to fulfil a good research project it is important to define and layout the method of research in such a way that it does not obstruct our sight from reality. This is also important in light of the research regarding CSR strategies, as Corporate Social Responsibility is a very wide concept which can be interpreted in many different ways. Not surprisingly, in the literature this concept has also been systematized in different ways. One such systematized approach is that of the European Commission, which calls it ‘a concept whereby companies integrate social and environmental

concerns in their business operations and in their interaction with their stakeholders on a voluntary basis’ (EU Commission 2001).

However, as some argue, the question at hand is not so much about how CSR is defined, but about how CSR is socially constructed in a specific context (Jackson and Apostelakou 2010: 373). Companies, organizations, and governments give different meanings to the concept and put this meaning into practice in different manners. As the research has focused on how the textile and garment companies themselves define corporate social responsibility, this systematized concept was not fixed. The back and fourth iterative nature of research, as described by Adcock and Collier (2001: 533), allowed this concept to be modified during the process.

3.2 Method

To understand the way companies see this program the research was done through inductive process-tracing. This was especially useful as existing literature was absent. Like George and Bennett explain:

`If scholars, experts and participants have not proposed any useable theories, or if such theories have already been shown to be inapplicable to the case in question, the investigator may engage in process induction, setting out with the inductive purpose of finding one or more potential causal paths which can then be rendered as more general hypotheses for testing against other cases (George and Bennett 1979).

Apart from the benefits of process-tracing in the absence of existing theories, this inductive method also leaves space for unexpected causalities and outcomes and is a particularly useful methodology in an environment were multiple interactions take place. Furthermore, process tracing is a particularly useful method as it allows inquiring empirically in a detailed manner, through combining interviews with content-analysis (George and Bennett 2005). During the research, each time a case had been selected, the companies’ CSR policies (i.e. as on their websites) was studied through content-analysis. Then, with the help of the ‘Way Back Machine’, a digital archive that enables users to see archived versions of web pages across time, the change in the policies of companies was examined.

Through interviews with CSR managers, a follow-up on the content-analysis was done. Triangulation was ensured by interviewing not only staff of textile and garment companies, but also by interviewing representatives of different TGOs and NGOs active in the field of labor standards in

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9 the garment industry, as well as a member of the Better Work advisory committee. Interviewing was chosen as method because CSR managers, government officials and NGO representatives were presumably more willing to participate in face-to-face interviews than via quantitative methods such as an impersonal questionnaire. However, in reality it appeared to be more difficult to get CSR Managers to participate with the research than thought in advance. While TGO representatives and other experts in the field were more than willing to speak with me, CSR managers either did not respond to emails or did not have time. Various times, CSR managers responded that they were happy to answer written questions but did not have the time to hold interviews with every one of the dozens of students that emailed them each month. Nevertheless, between April and June 2014 I managed to have contact with a total of twelve informants. As you can see in annex I, some of this contact was per email, some interviews were held in person, and most of the conversations were per Skype or telephone. As the interviews were all in Dutch, the citations from these conversations that are displayed in this thesis have been translated to English by the author.

3.3 Sample and case selection

The population for this research are large textile and garment companies from the Netherlands. While this is predominantly due to the limits of this Master thesis, the Netherlands also functions as a good population for research for a number of additional reasons. First, most firms operating in transnational governance organizations reside in OECD countries, making the Netherlands a good base. Choosing the Netherlands furthermore allowed focusing on companies that operate in a similar work environment, with customers from a similar culture, thus providing a context-specific domain of observation (Adcock and Collier 2001: 535). In addition, following theories about the influence of national environment and the embedding of the firm within its home country political context on the preference for transnational governance organizations (Fransen and Burgoon 2013, Jackson & Apostolakou 2010), choosing companies solely from the Netherlands meant that they are all in the same national institutional environment. The Netherlands also provides a good variety of consumers, with clothing preferences ranging from expensive high-end fashion to cheap garments, and with varying degrees of sustainability preferences, resulting in some large companies with extensive CSR policies and others with less extensive ones.

In order to maintain variety in the companies chosen for this research, and following the theories discussed in the previous chapter, a number of company characteristics were kept in mind during the selection of cases. As distinguished, differences in CSR strategies can be found depending on whether companies can be recognized as more retailer or more brand, their size, and the price-range and the market segment of the products they sell. The six eventual companies sampled for this research therefore vary greatly concerning these characteristics and in total incorporate all of the mentioned characteristics.

3.4 Validity and reliability concerns of chosen data and method

Concerning the validity of the data gathered and used in this research, policy document analysis was done in such a way that there was a clear distinction in the categories of documents and their purposes. Regarding interviews, open questions were asked, so as to allow interviewees to use their own words and show their own perspectives. However, with every interview there is always the bias of informants giving socially desirable answers. CSR Managers can have the tendency to give answers that make their CSR strategies overly positive and more significant than they really are. In addition, the NGO and government representatives could also give socially desirable answers, or opinions based on their

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10 organization’s view or role. Their answers could therefore not be taken directly at face value and were analyzed critically. Even though there is no solution that can completely solve this problem, the analytical and methodological framework of this research has tried to prevent false data. By looking at the CSR strategies from different viewpoints including those outside of the companies a cross-check was made and accounts were tried to be distinguished from legitimations.

3.5 Theoretical and societal relevance

The outcomes of this research are relevant in a variety of ways. Theoretically, they will lead to more insight into the business take on Transnational Public-Private Regimes in general, and Better Work in particular. It thereby makes a first attempt towards filling a literature gap regarding the business view of TPPRs. This is of importance not only to learn more about the possible scope of such a program, it is also meaningful to understand the impact it has on non-participating players. In addition, the research shall add to understandings on business interaction with International Organizations like the ILO. Furthermore, this knowledge of business engagement with Better Work is also relevant for those interested in a broad array of related phenomena such as CSR, private labor standards and the improvement of global labor conditions. Apart from providing theoretical insights, this work will also be of interest from a policy perspective. Patterns of business support for public-private regulatory approaches are relevant for the broader question of the potential of such public-private regulation as an effective tool for raising working conditions. Thus, if there is more understanding of business behavior and attitudes towards public-private programs such as Better Work, it could in the long run lead to more effective partnerships and thus more effective outcomes.

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4.

The Dutch industry under pressure

Recently, a number of deadly incidents in some of Bangladesh’s many garment and textile factories have caught the attention of international media, organizations and policy makers. Examples include the fire in Tazreen Fashion Factory in November of 2012, killing at least 112 workers, and the collapse of Rana Plaza in April of 2013, killing more than 1,100 workers and injuring 2,500, making it one of the worst industrial disasters recorded (ILO 2013a). Ever since these events, the worldwide garment industry has continuously been put in the spotlights by the media, NGOs, and governments. Now, with the marking of a year after the collapse of Rana Plaza, the fashion industry appears to still be a hot topic with various newspaper articles, TV-shows, campaigns, concerts and even exhibitions relating to the subject of working conditions in Bangladesh and garment factories in general. These developments and the attention towards the garment industry also have effects on the Dutch garment companies and the environment that this thesis examines. This chapter therefore aims to portray the tumultuous situation of the garment industry in the Netherlands. First, the events surrounding the Accord on Fire and Safety in Bangladesh shall be discussed, followed by the (media) attention that the garment industry has received and the various initiatives and campaigns that have come from it. It shall then discuss how these event affect this dissertation.

4.1 The Accord

One of the events that has especially marked the past year is the naming and shaming of certain Dutch fashion brands by Lilliane Ploumen, the Dutch minister of Development Cooperation and Foreign Trade. The past year she has taken a special interest in the clothing sector. Even though the Dutch garment industry only encompasses 1% of the world market (Vice Versa: 20), Ploumen argues that the Netherlands can play a pioneering role regarding CSR in this industry. She has therefore contributed a total of 9 million euro to projects that work towards a more sustainable industry, and has made efforts to promote various initiatives (Rijksoverheid 2014b).

One way in which she has done this is through promoting the Accord on Fire and Safety in Bangladesh. This is an Accord which companies sign ‘voluntarily’ but which makes them judicially tied to agreements on fire and safety of the buildings in which clothing is made. In 2013, Minister Ploumen expressed strong criticism about certain Dutch companies that did not want to sign the Accord and explicitly named them in newspapers and TV shows (AD 2013). In January of 2014, under threat of a lawsuit she withdrew her criticism. Nevertheless, because of her naming and shaming the companies had in the meantime already signed the Accord. One informant and CSR manager of such a company explained he was shocked to suddenly hear his company being named in the national TV-show Pauw en Witteman by Minister Ploumen. He explained that his company received the Accord on a Wednesday and were expected to sign by Friday, giving them hardly any time to revise what is a very extensive contract (I1). Still, many parties praise the accord. It is said to be the form of international cooperation of the future as it is very transparent, the first time that international companies work together with international unions, and the first time that companies openly exchange audit information. As one informant said:

“The interesting thing about what is happening with all the commotion and media attention

and the Accord in Bangladesh, is that all of a sudden there is a larger critical mass to really improve things. Where some companies for 10 years have been addressing factories on their own to improve certain things, it now hopefully has more impact as more companies are doing this at the same time and have signed an accord about it” (I11).

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12 4.2 Awareness and discussion

The past year has seen a surge in media attention towards working conditions in the garment industry. While a lot of attention focused on Bangladesh and the progress it has made, the disasters have clearly set a discussion going in the Netherlands. Examples of this attention are TV-show appearances by Ministers, Secretaries of State and other politicians regarding the matter. Furthermore, two Dutch magazines on international cooperation and development (One World and Vice Versa) both dedicated their April editions to the garment industry and paid considerable attention towards the fragmentation of the transnational governance field.

In addition, much attention in the Netherlands has been dedicated towards how a consumer can know whether a product is made under good working conditions, and how they can contribute to improve these conditions. One such example is the Fair Fashion Lab. In this exhibition six designers display their creative solutions and ideas to achieve a more sustainable fashion industry. In doings so, it aims to raise awareness and start a discussion about the fashion industry.

Furthermore, a number of campaigns against garment companies were initiated. The Clean Clothes Campaign for example initiated a campaign targeting the brands responsible for the disaster that had not yet contributed to the compensation fund for the victims of the collapse (Clean Clothes Campaign 2014). Activists organized a catwalk near the most important shopping street in Brussels to commemorate the Rana Plaza accident, lit candles for the victims and also visited a number of stores to hand in petitions and thank the stores that did pay up. Such a campaign targeting brands clearly puts pressure on them. One CSR Manager I interviewed for example informed me about the campaign a week before it was scheduled to happen (I1). Although he did not know which brands they were aiming to target, such a campaign is clearly noticed and talked about amongst companies in the sector. Finally, in June 2013 the branch organizations in the Dutch garment industry (VGT, Modint and Inretail) presented a plan towards a more sustainable Dutch garment and textile sector. They have received 125 000 euro to implement this and up till now have formed a number of working groups in which companies together with the government, trade unions, and NGOs discuss issues and form ‘best practices’. Informants frequently referred to the plan and the working groups they were participating in on behalf of their company.

4.3 Effects on thesis

In sum, the garment and textile industry has been put under a magnifying glass in the Netherlands. Not only have consumers been called to demand action, fashion brands have more than ever been targeted by action campaigns, the media and the government to improve working conditions in factories. As brands are under pressure, they increasingly feel the need to justify their actions and show what they are doing to improve the working conditions in the factories they buy from. In interviews, informants often referred to these developments and how their organization relates to them. These developments should thus be held in mind in the coming analyses.

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5.

Transnational Governance in the Netherlands

This chapter shall portray the transnational governance organizations that are active in the Dutch garment and textile industry in order to provide a brief background and look into the Dutch transnational governance field. The garment and textile industry in general is a fragmented field, with many different private standards organizations competing for business participation. As some informants pointed out, CSR Managers have a lot of organizations to choose from (see box 1). Private standards organizations are often similar in their setting of standards, but differ in their effort to

build systems to implement and enforce these standards (Fransen 2012: 41). This is especially visible in the potential for different types of actors, like businesses and societal groups, to control regulatory procedures. Furthermore, private standards organizations differ in their levels of stringency, i.e. the scope of labor standards, the degree of elaboration of available regulatory mechanisms, and the degree of control that can be exercised by any type of actor in establishing, governing, or managing these mechanisms (Ibid). The next sections discuss these elements for four organizations that play the largest role in the Dutch industry; BSCI, FWF, SAI, and Made-By. Each sections discusses important elements of the organization, as well as their critiques and accomplishments. Finally, the last section discusses the choice many companies make between improving working conditions through certification on the supply side or through the buying side.

5.1 Business Social Compliance Initiative (BSCI)

BSCI is a business-controlled organization that sees labor standards compliance as something that can be achieved without the assistance of unions or NGOs, thereby limiting unnecessary debates and speeding up the process (Fransen 2012: 61). BSCI has a large variety of Dutch partners, 48 in

total, ranging from retailers like V&D and HEMA, to brands like America Today, and Miss Etam. According to Norma Snell, BSCI representative in the Netherlands this is changing towards more brands: “it used to be quite divers [….] but now it seems to be more importers than retailers” (I12).

On of the assets of BSCI that businesses find useful is its database, a system in which retailers and entrepreneurs can monitor their supply chain. In this database the audits of all the members’ factories are saved. Entrepreneurs can only access the information of the factories they source from, which prevents sensitive information to end up in the hands of competitors (I12).

“The dynamics I see is that they join because the BSCI system is most suited to their daily practices. The fact that they can manage within the system is the starting point. They can make an assessment of the audits throughout their supply chain and see the situation of a factory. From this point they work on capacity building of the producers and the manufacturers” (I12).

Meanwhile, critics hold that business-controlled regulation is not credible as it is initiated and controlled by its own sector (I6, I1, I2). Informants, some of whom former BSCI members, argued that membership of BSCI did not entail much (see Box 2). Simply stating that a company will improve certain aspects in their supply chain is often enough. BSCI was therefore often named by informants, on the business side as well as the NGO/TGO side, as an example of a not stringent organization.

“BSCI is a mere formality, it is not about the

content of the program” (I1).

“You sign up and you become a member of

BSCI, and then all you have to do is source from BSCI approved manufacturers” (R2).

“There are infinitely many organizations.”(R2)

“If you’re not very familiar in this sector, you won’t see the wood for the trees” (R6) Box 1 Multiplicity of organizations according to informants

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14 5.2 Fair Wear Foundation

The Dutch organization Fair Wear Foundation (FWF) was initiated more than 10 years ago in Amsterdam. The organization currently has 36 Dutch members, including for example Expresso, Kuyichi, McGregor, and Suit Supply. In the course of the years it has grown into an international organization with people working in different countries. In the four focus countries (China, Bangladesh, India and Turkey), there are country representatives who manage contact with local stakeholders and coordinate activities. In every country where they are active there are local complaint handlers, trainers, auditors (Fair Wear Foundation 2014, I11).

FWF calls itself a verification initiative, which means that garment companies set up a monitoring system for their own supply chain to monitor and comply with social standards. FWF then provides legitimacy to the programs that companies have set up themselves, and verifies through various audits whether the companies really comply with standards (I11). Furthermore, FWF does a yearly performance check amongst its members to see whether their management system, buying system, and selection of factories really contributes or allows standards to be implemented. This year will be the first year in which scores will be given and that brands will see how they perform in relation to others.

Because they are a multi-stakeholder initiative, with both employers' organizations and workers' organizations and NGOs in their board and committee of experts, it provides them with a neutral position. One of the key elements of FWF is transparency, the year reports are published on companies’ websites as well as FWFs website. Moreover, a strong attribute of FWF are its thorough audits. FWF audit teams enter factories with three different auditors: one document inspector, one occupational health and safety inspector and one worker interviewer. The fact that information is cross-checked is according to Margreet Vrieling a fundamental difference with for example BSCI.

5.3 Social Accountability International (SA8000)

Social Accountability International is a multi-stakeholder organization that works to improve working conditions by developing and implementing social standards. In 1997, SAI launched SA8000 (Social Accountability 8000). This is a voluntary standard for workplaces, based on ILO and UN conventions (SAI 2014). SAI does not carry out auditing and certification itself, these are done independently of SAI by certification bodies.

Although FWF can be seen as having the most stringent labor standards, many in the industry see SA8000 as ‘best-practice’ (Fransen 2012: 157). A number of informants I interviewed agreed (See Box 4). SA8000 is attractive for retailers with large amounts of suppliers as it leaves responsibility, including implementation costs, with suppliers. Furthermore, through SAI companies can use the system for other products than clothing as well.

“[SA8000] is a good one. I believe they are very strict, they look at the whole process. You know that when you enter a SA8000 factory it is often a very neat factory.” (R)

“SA8000 is very clear on a number of levels, and feasible. It has seasoned auditors”. (R6) “If you send a notice two weeks in

advance saying when you’ll come to audit them, then everything is okay. Then you won’t see any child walking in the factory and then all the chemicals are tucked away. FWF does that better and does unexpected visits.” (Bert van Son) “Regarding working conditions, if you want a higher level [than SA8000], you go to FWF”. (R6) Box 3 Perceptions of FWF

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15 5.4 Made-By

Made-By was initiated in 2004 by Solidaridad, a Dutch Christian development organization which had the strategic idea of engaging with more mainstream buyers to achieve more than they had with Fair Trade products (Fransen 2012:156). The result became Made-By, a ‘shadow-label’ for fashion brands. The idea was that consumers first become interested in affiliated brands for their fashion and quality, after which they realize that it was made in accordance to sustainability standards. Made-By focuses on environmental standards for cotton production, as well as labor standards.

Made-By has received criticism regarding various aspects of their organization. First, concerning the choice and adoption of SAI standards and the undesirable effects of its business audits system (Fransen 2012: 156). Second, it was criticized for the blue button that fashion brands were allowed to sew on their products, symbolizing that the brand was working on making its products more sustainable. No other private standards organization uses labels to communicate sustainability as guarantees are difficult to make with such complex supply chains. Third, there is criticism that the organization is not open to new members who want to join, especially not smaller companies (I6).

Currently, Made-By focuses more on consultancy, offering a variety of consultancy packages ranging from the “Detox Package” which supports companies to address the issue of hazardous chemicals in their supply chains, to the “People package”, which helps brands improve the social conditions under which their clothes are produced (Made-By 2014). At present, a total of 9 Dutch Brands are member of Made-By, including Kuyichi, Claudia Sträter, Chasin’, and G-Star.

5.5 The supplier or buyer side

Companies (brands and retailers) have the choice between being certified themselves, or sourcing from a factory that is certified. Many Dutch companies choose to search for SA8000 certified manufacturers or BSCI approved factories to save costs (José Koopmans). Sometimes, companies search for good factories themselves and with the promise of a large amount of orders make it profitable for them to invest in certification.

Not only the results of the audits are important, for some companies keeping the names of their suppliers between company walls is even more important. “If you have a good producer, a good

factory, this is a huge asset which is tried to be kept very secret.” (I6).

Informants explained that sometimes these transparency issues affect the choice for joining a transnational governance organization. At FWF for example, companies often have to publish in their year report, next to their turnover and other such figures, also who their producer is. Many companies do not want this and therefore opt for a different organization (I6).

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16

6.

Results: Policy changes

This chapter discusses the first research question: Within their CSR policies, what are the policies

regarding labor standards in supply chains of large textile and garment companies and how has this evolved in the past decade?

The following sections discuss the CSR policies of the six companies that were put under a loop: Expresso, G-Star, Mud Jeans, The Sting, WE Fashion and Zeeman. For each company, a number of characteristics were examined partly based on the earlier discussed literature: company size, whether it is a brand or retail company, the market segment of its products, the countries of production, the stated base for a companies code of conduct, and the transnational governance organizations the company is member or participant of. Finally, a score by Europe’s largest brand-comparison site, Rank a Brand, is used to give a basic indication of a companies efforts regarding working conditions. Table 1 summarizes the key elements. In annex II, more detailed descriptions of the companies can be found.

In the sections that follow, the changes in companies CSR policies are examined, as well as the social pressure the companies have been in. Furthermore, some aspects that informants found especially important and that influences their choice for a particular TGO are discussed. Finally, a conclusion shall be given.

6.1 Change in CSR policy

Regarding the change in CSR policies of the selected companies, a number of aspects and developments can be distinguished. First, companies do not seem to have changed their countries of production. Apart from Expresso’s termination of sourcing in Lithuania, and Mud Jeans’ consideration of moving a part of its production to Bangladesh, not much seems to be happening.

However, regarding the affiliation with TGOs more change is going on. Most of the CSR managers I had contact with stressed that they were continually changing their CSR policy, and some explained that they were in the midst of finding a suitable MSI or organization to join. Some, like Mud Jeans and WE Fashion have already changed their affiliation with TGOs. Mud Jeans was connected to Made-By when owner Bert van Son bought the company in 2013. Since he found it very expensive and since Made By changed from being a certifying agency to having a more advisory role, he chose to not continue with them. Furthermore, Mud Jeans also used to be a member of BSCI but decided to end the membership because it was too expensive and not stringent enough. WE Fashion was previously SA8000 certified, but recently they stopped this as according to Marijke Willemsen: “the added value

of certifying our own process is small.” They are still in search of a Multi-Stakeholder Initiative (MSI)

that “works closely with stakeholders, including local trade unions, employees and governments” (WE 2013). In the search of such an MSI collaboration next to BSCI participation WE has talked with ETI and FWF, and hopes to announce who they will collaborate with soon (I10). Thus, WE Fashion and Mud Jeans provide examples of how companies are in a continuous search for the most suitable TGO.

Moreover, in general companies responded that the focus in the past years has been on enhancing their CSR policies. For some companies this meant creating a CSR policy in the first place, as they did not have any CSR policy yet. When entering G-Stars website on the Way Back Machine for example, it reveals that in 2006 there was nothing about CSR on its website. Between 2006 and 2010 the CSR section was added to the website. Then, in 2012, they adjusted their policy from solely having a focus on social aspects (like child labor, working hours, discrimination, wages etc.) to also include environmental aspects like use of water and chemicals, CO2 emissions and waste (I7).

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17 Table 1 Company Characteristics

R an k- a-Br an d Sc o re Wo rki n g C o n d iti o n s 6 o u t o f 9 7 o u t o f 9 8 o u t o f 9 0 o u t o f 9 6 o u t o f 9 4 o u t o f 9 TGO s Fair W ear F o u n d ati o n Mad e-By, p art ic ip an t i n Bet te r Wo rk V ie tn am Su p p lie rs are S A 8000 ap p ro ve d , ( in tal ks w ith Fair W ear F o u n d ati o n ) Su p p lie rs mu st b e B SCI ap p ro ve d . BS CI. S u p p lie rs mu st b e BS CI a p p ro ve d o r SA 8000 cer ti fi ed . ( MS I to b e an n o u n ce d s o o n ) N o n e. C o d e o f C o n d u ct b ase d o n F air W ear Fo u n d at io n UN Un ive rs al De cl arati o n o f H u man R ig h ts , IL O Co re Co n ve n ti o n s, ET I b as e co d e. N o Co d e o f Co n d u ct p u b lis h ed N o Co d e o f Co n d u ct p u b lis h ed BS CI ETI C o u n tr ie s of pr o d u ct io n G re ec e/B u lg ari a, T u rk ey, Ch in a, Italy, I n d ia, T u n is ia, Po lan d , Mac ed o n ia. Ba n gl ad e sh ( 36% ), Ch in a ( 31% ), In d ia ( 17% ), V ie tn am ( 8% ), O th er (8% ) Italy, P o lan d . I n th e n ear fu tu re p o ss ib ly B an gl ad es h Co u n tr ie s are n o t mad e p u b lic Li sts 22 manu fac tu ri n g co u n tr ie s. Mo st a u d it ed : Ch in a, Ba n gl ad e sh , T u rk ey an d In d ia. Ch in a ( 39% ), ( Eu ro p e 30.7% ), Tu rk ey ( 8.6% ), B an gl ad es h (8% ), In d ia ( 5.8% ), P aki stan (5.7% ). M ar ke t se gme n t H ig h H ig h H ig h Me d iu m Me d iu m Low Br an d /R e tai l Bran d >R etai l Bran d Bran d R etai l> Bran d Bran d >R etai l R etai l> Bran d Si ze ( N o . o f e mp lo ye e s an d /o r an n u al tu rn o ve r) Me d iu m ( 70 e m p lo ye es , 33 mil lio n e u ro tu rn o ve r) L arg e ( ±750 mil lio n – 1 b ill io n e u ro tu rn o ve r) Small ( 3 e mp lo ye e s) Larg e ( 2160 e mp lo ye es ) Larg e ( ±3000 e mp lo ye e s) Larg e ( ±7000 e mp lo ye e s, 527 mil lio n e u ro tu rn o ve r) C o mp an y Ex p re sso G -S tar M u d J e an s Th e S ti n g WE Zee man

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18 For other companies, their change in policy entailed becoming stricter in doing business. In a response to changes in WEs CSR policy, CSR Manager Marijke Willemsen explained:

“We have become stricter regarding the selection of factories, there are strong compliance requirements for all factories. We furthermore ask full transparency, from each order we want to know in which factories they have been made.” (I10)

Finally, many informants found transparency to be an important matter and often depicted the industry in general to be closed, but were themselves working hard to make it more transparent (see box 5). In relation to transparency, CSR Managers often indicated audit fatigue to be a big problem amongst their suppliers. While many transnational governance organizations were initiated with the intention to overcome this problem, some companies have their own way of overcoming this without becoming a member of such an organization. As you can see in table 1, The Sting sources from suppliers that are BSCI approved. Zeeman has its own way of preventing double audits without the use of TGOs, like Zeeman’s CSR manager explains:

I1: Look, if HEMA has recently done an audit in a factory where we also happen to source from, you may well use that HEMA audit form. You do not need to do the same audit a week later.

Author: Is there good contact with HEMA then?

I1: No that goes through the supplier. We ask the supplier, we want to cooperate with you but show us first which other brands have already done an audit here. Author: So the contact is not directly with the other companies but through the

supplier?

I1: That would be an ideal world that you sketch, in which such data is accessible for each other.

In sum, while the countries of production have not changed much, the CSR strategies of the selected companies have changed in various other ways. They have become more established and stringent, many have been subjected to change in TGO participation and often the attention to transparency has increased.

6.2 Social Pressure

Like described in the theoretical section, companies predominantly develop private regulatory policies as a response to external or social pressures (Fransen 2012: 104). Identifying this social pressure is therefore important. Measuring the amount of social pressure a company has been under is quite difficult. Therefore, to give an indication of social pressure, the amount of negative attention the company has received in the media, by consumers, and by activist networks like the Clean Clothes Campaign were reviewed and

Company Amount of social pressure

Expresso Low Mud Jeans Low

Zeeman Low - Medium The Sting Low-Medium

We Medium

G-Star Medium-High Mud Jeans: “the fashion industry is still under a thick layer of dust, with little openness”.

Zeeman: “there are not a lot of companies that deal with this [transparency] in the way that we do.”

G-Star: [Made-By] gives us the opportunity to communicate in a transparent and credible way”. Box 5 Perceptions of transparency

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19 estimated to value. As you can see in table 2, the six companies selected for this research have received social pressure to varying degrees.

The forerunners regarding CSR, Expresso and Mud Jeans, are in the category ‘low social pressure’. Expresso has not been under social pressure from consumers or NGOs regarding labor standards. Rather, it is seen as a forerunner of CSR in the garment sector (Pennings 2014) and is named as a good practice example by the Dutch knowledge and network platform ‘MVO Nederland’. Mud Jeans is also a forerunner, and calls itself “champion in the circle economy” (I2). The company has not been under any social pressure regarding labor standards compliance. On the contrary, Mud Jeans has been named by Minister Ploumen as an example of how companies can achieve a sustainable supply chain (Rijksoverheid 2014).

The retailers Zeeman and The Sting can be found in the category ‘low to medium pressure’. Both companies have not yet been under much social pressure regarding its labor standards, but have recently attracted a bit more attention. The Sting publishes nothing about the way it does business, and seems to not have been in the spotlights by activists or the media. However, recently the company was featured in an investigation by the Dutch television program “Jij bent Sterk”. Viewers were encouraged to ask their favorite stores and brands what they were doing regarding the working conditions of suppliers and the wages they earned (Jij bent Sterk 2013). The answers of the companies were published in a report, and commented on by Rank-a-Brand. Like Rank-a-Brand concludes: “From

the reaction of The Sting, consumers unfortunately do not become any wiser. Everything indicates that The Sting takes no responsibility to provide good working conditions nor living wages” (Rank-a-Brand 2013). Consumers are therefore discouraged to shop at The Sting.

Zeeman neither seems to have had much attention regarding its working conditions. Its CSR Manager admits that while the consumer has power to change the way businesses are behaving, they do not use it (see box 6). Yet the company did receive a blow when it was ‘named and shamed’ by Minister Ploumen for not signing the Accord on fire and safety in Bangladesh (as described in chapter 4). Still, after it had signed Zeeman was then often named as an example for others (NOS 2013).

WE Fashion is in the category medium social pressure. Although WE has received negative attention for the use of angora wool, regarding working conditions the company seems to not have been in the spotlights. Only recently were they named in a report by the Clean Clothes Campaign regarding living wages (McMullen 2014). They were scored in the category ‘Dragging Their Feet: doing next to nothing to ensure workers are paid enough to live on.

Of the six selected companies, the company with the highest amount of social pressure is G-Star. G-Star received heavy critique in 2007, when the company was under attack by the Clean Clothes Campaign (CCC) and the India Committee Netherlands (ICN). The two organizations blamed G-Star for sourcing from a specific supplier in India where working conditions were allegedly not up to standard (Lambooy 2009). The dispute escalated quickly and resulted in a complex legal sequence of events, including the suing and demanding of extradition by India of eight CCC/ICN employees for libel and racism. The conflict even affected diplomatic relations between India and the Netherlands, leading the “The consumer has a lot of power to steer retailers like

us, but they don’t use this power often. Of course, if we have the wrong collection hanging in the shop, with the wrong colors, at one point they’ll start to ignore Zeeman. (….) But regarding CSR there is a different line of thinking. The perception about CSR is not so prominent in consumers when they make choices. People look at whether it is a nice product and whether the price is cheap. These are the pillars. It is true that if I would ask in an interview with consumers whether they think if it's important that something is made sustainably, 60% would say they find it very important. But when they're at the register and they can buy a product for one euro or two euros, they choose the one euro option. So there is still a difference between what people say and their actual behavior.” (I1)

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20 Dutch government to facilitate a high-level mediation venture. Eventually, G-Star decided to not source from the supplier anymore and an additional number of measures were taken to support the factory workers suffering from the withdrawal.

Since 2007, the company seems to have reached calmer waters. Rank a Brand scores G-Star quite high, with 7 out of 9 points regarding working conditions (Rank a Brand 2014). However, in the same report by the Clean Clothes Campaign which also examined WE Fashions efforts towards living wages, G-star is scored in the category ‘Could do better: acknowledges the need for a living wage but doing little to make it a reality.’ (McMullen 2014). According to the report, although it is good that G-Star monitors its wages, it needs to make more effort towards a commitment towards a living wage. How this report affects the company is of course not yet known, but it adds to the fact that of the six companies that were reviewed, G-star has been under the most social pressure. The next sections discuss aspects that informants indicated they found important.

6.3 The Retail - Brand continuum

An aspect that was frequently pointed out as a factor for influencing CSR policies and that concurs with the literature was the difference between retailers and brands (Bartley 2009, Fransen and Burgoon 2013). As José Koopmans sums up:

“Retailers often have many different suppliers, while brands have a smaller team. A brand wants to make a statement. Retailers often deal with different types of products. HEMA for example buys shirts and bicycle tires etc. It is so divers, every product group is different. Furthermore, brands have more continuity regarding the employees who do the buying, so you can build a relationship with the producer. At retailers, product groups are frequently shifted between buyers. Brands also have higher margins.”(José Koopmans)

This different importance towards CSR of retailers was also noticed in the fact that it was difficult to arrange interviews with representatives of retail companies. An employee of the buying department at The Bijenkorf for example, as an explanation as to why they could not help me with questions regarding CSR, pointed out that in her department they only had a small section ‘own label’, while the majority of their time was spent on the selection of other labels. Her perception, and that of many retailers, of CSR as an activity for brands clearly is visible. In general, the brands G-Star and Mud Jeans and semi-brand Expresso clearly showed a greater effort towards sustainability in their supply chains than the retailers Zeeman and The Sting.

6.4 Large and leading firms.

Another aspect that informants frequently pointed out that influenced their way of doing business was the size of the company. In efforts to explain their CSR policies, CSR managers frequently pointed out that larger companies (than theirs) are often in a better position to ensure good working conditions in the supply chain. They found that the really big companies had the power to do more as they have larger margins to spend on sourcing. As Bert van Son notes:

“I was Disney licensee five years ago in France. Disney gives a very tough code of conduct if you draw a license, but more in the spirit of it should especially not be a Disney label on children pajamas sticking out somewhere under a collapsed factory. The result is the same. You will then be in a factory where employees are treated well, where they receive a good salary and where

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21

they work in good conditions. So that's the fun. If there is a strong brand behind it you will see that they are able to spend more on purchasing.” (I2).

It is interesting that this informant named Disney as an example, since Disney terminated sourcing from Bangladesh in late 2012 and considered allowing its licensees to produce in Bangladesh only if the country implemented the ILO’s Better Work program (Greenhouse 2013). According to van Son, the advantage of larger companies is that they can strike at a large scale if they want to. But at the same time, in a smaller company like Mud Jeans a decision can be made and implemented the next day. In larger companies like Nike and C&A this is impossible, they have to think and discuss in depth before implementing an idea.

All the Dutch companies I talked to found themselves to be small players. Furthermore, some did not envision themselves having a leader’s role. An explanatory case is Zeeman. Although Zeeman’s CSR Manager said they are a leading company regarding recycling, and one of the first to include a living wage in their code of conduct, they do not envision themselves as leading in other types of ways. Rather:

“Zeeman is not a company that always wants to lead. We want to be good in what we do, from

the integrity of our hearts. But it's not like we're very outward going, or want be the first to start with living wages for example. Ultimately, we as a Dutch company are just a small player, if you compare it to the world. […] We wait to see which way the wind blows, and see what comes out of it. If anything good comes out we'll catch on.” (I1)

In relationship to size, some informants mentioned the difference between a stock-listed and a family business. According to Zeeman’s CSR Manager, the fact that Zeeman is a family business reflects in the way they do CSR. He compares it to his colleagues at HEMA: “If they have a proposal then it has to go

through six layers before a decision is made. They focus a lot more on profit maximization as they are part of a private equity firm, and have an investor in England”. The fact that they are a family business

as opposed to a stock listed company has in his eyes impact on the importance and execution of CSR. They can work on a long term basis and have few layers of management to run ideas by. He therefore has more agency to execute his own ideas.

The size of the company also has implications on the choice for joining a transnational governance organization in the sense that a company will be more focused on the costs of doing this. As pointed out earlier, this was especially important for the small company Mud Jeans. “For me this

[membership cost of BSCI] is a large sum of money, but C&A doesn’t even notice it on its balance of payments.” (I2.) For larger companies, like Zeeman, the costs of joining an organization were found to

be a side matter (I1).

6.5 Conclusion

Regarding the change in CSR policies of the selected companies, a number of aspects and developments can be distinguished. While companies do not seem to have changed their countries of production in the past years, in general companies are enhancing their CSR policies. Many companies have made their policies more stringent, are focusing on transparency, and are in the midst of changing or finding a suitable MSI or TGO to join. Moreover, from the interviews with CSR Managers about their companies policies, a number of aspects can be distinguished that influence their policies. First, brands have more extensive policies than retailers. Second, CSR managers find that larger companies (than

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22 theirs) are often in a better position to ensure good working conditions in the supply chain as they have less worries about costs. Third, the difference between stock-listed companies and family business was pointed out, with the latter providing CSR Managers more agency to execute ideas.

Furthermore, it was established that the six companies selected for this research have received social pressure to varying degrees, with G-Star receiving the most attention towards working conditions in its supply chain. Interestingly, out of the selected cases G-Star is the only company that participates in Better Work, and as we shall see in the next chapter, let alone was familiar with it.

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23

7. Results: Perceptions of Better Work

This chapter describes the results of the empirical research regarding the second and third sub-questions:

- How do textile and garment companies see themselves relate to the Better Work program?

- How do other actors see the companies relate to the Better Work program?

As explained earlier, the majority of CSR managers I contacted had not heard of Better Work. This chapter has therefore been divided into two sections. The first section shall describe the unfamiliarity of the companies with the program, after which the next sections portray the results of the informants that did. As there was only one company that knows and participates in the program, G-Star, the informants have a wide range of backgrounds. Apart from G-Star’s supply chain coordinator, the informants are a former CCC representative, a sourcing consultant, a FWF representative, and a member of the Better Work advisory committee. In doing so, the chapter reveals some important insights into what people working in the sector think of the Better Work program.

7.1 Unfamiliarity

As you can see in table 3, a large majority of the companies I contacted had not heard of Better Work. Only one company, G-Star, affirmed that they worked with the Better Work program in Vietnam. For other companies, the name Better Work did not ring a bell. This is remarkable for a number of reasons.

First, as you can see in table 4, a number of these companies source from countries where Better Work is active. Yet contrary to what one would expect, the companies active in Better Work countries were no more aware of the program than the other companies. Second, this is remarkable

because the Dutch government has recently assured 9 million euro for Better Work (Rijksoverheid 2014b), a surprising amount seeing as other areas within the development cooperation sector have had budget cuts.

However, while companies are not familiar with Better Work, indirectly the program might be more known than it seems. During my research I discovered for example that there is contact between Better Work and Fair Wear Foundation concerning the countries that they are both operating in (I11). When I asked Bert van Son, CEO of Mud Jeans and not familiar with the program, whether he would consider joining Better Work in the future he replied he would consult Fair Wear Foundation about it. Indirectly, the interaction between other TGOs and Better Work can have influence on a companies’ familiarity and preference for the program.

7.2 Large and leading firms

As described in the previous chapter, CSR Managers often found that larger companies with a more leading role were in a better position to engage in programs like Better Work. The only company out of the six selected cases that did know Better Work and participated in the program was G-Star. As we have seen in table 1, G-Star is a large company, and can be scared amongst the companies that are making an effort to improve working conditions in their supply chains.

1 Correspondance was difficult, did not receive an answer to my questions.

2 Correspondance was difficult, did not receive an answer to the question about Better Work.

Company Familiar with Better Work

Zeeman No

Mud Jeans No Expresso -1

The Sting No

G-Star Yes, involved in Better Work Vietnam

WE -2

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