Social sustainability in the garment industry - A comparison of the institutional environments in Bangladesh and Ethiopia

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Social sustainability

in the garment industry -

A comparison of the institutional

environments

in Bangladesh and Ethiopia

Master Thesis

MSc International Business and Management

Ana Jarén Navarro

S3289796

University of Groningen

Faculty of Economics and Business

Supervisor: Dr. M.M. Wilhelm

Co-assesor: Dr. V. Iurkov

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Abstract

In a global market increasingly requiring adherence to international labour and ethical business standards, institutions such as formal politics or informal public and cultural expectations, exert pressures on organizations to behave in certain ways in order to survive. Moreover, they exert pressures on organizations to adopt institutionally prescribed practices and structures that affect social sustainability. A comparison of the institutional environments of two emerging markets, Bangladesh and Ethiopia will be made in this case study. An analysis of their formal and informal institutions would lead us to know how these institutions affect and impact social sustainability, and in which country institutions have a higher positive impact through a sustainable and economic approach. The results show that the quality of institutions in Bangladesh would make it easier for this country to implement sustainable practices. Through an economic perspective, the quality of Bangladesh’s formal and informal institutions would also make this country more attractive and les risk taking for MNS investing decision.

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Many multinational firms in developed economies have outsourced and offshored products, components, and functions over the last few decades, compelled by substantial labour cost advantages (Ehrgott et al., 2013). But enforcement of safety and worker training are often lacking in emerging markets (EM). EM have similar regulators than developed markets but lack enforcement, therefore, a regulatory gap exists in the clothing industry. Multinational Western buyers in EM are forced to play the role of regulators in developed economies, filling this regulatory gap. Therefore, the role of training and education of EM suppliers by multinational buyers in order to achieve social performance objectives is of great importance (Huq et al., 2016). In the clothing industry, intense examination regarding this issue has arisen due to recent tragedies, which have spurred non-governmental organizations and customers to examine the degree to which suppliers in emerging markets follow socially sustainable practices (Huq et al., 2016). Social conditions in the labour intensive clothing sector have been the subject of public scrutiny due to deadly incidents as the Spectrum factory collapse in 2005, the Hameem factory fire in 2010, the Tazreen factory fire in 2012 and the Rana Plaza building collapse in 2013. The Rana Plaza is considered the deadliest disaster in the history of the garment industry worldwide (Institute for Global Labour and Human Rights, 2013). Around 2.000 Bangladeshi clothing workers have died in industrials incidents since 2005 (CNN, 2013).

In light of outsourcing1_{, publicity surrounding social unsustainable practices has}

caused significant damage to the image of international brands (Clean Clothes Campaign, 2013). Stakeholder’s attention has focused on some industries and pressure has increased on multinational clothing firms to identify and implement higher social sustainability (SS) standards. It has to be said that after the Rana plaza, due to pressure and scrutiny caused by non-formal institutions, the whole concept of worker safety, welfare and well-being have changed in the industry, compliance issues are being strictly enforced and suppliers that will not meet this criteria will not be able to survive (Huq, et al., 2016). Existing empirical studies have explored how institutional

1_{When a company hires another company (third-party) or an individual to perform tasks, handle}

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differences in MNEs influence CSR strategies and MNEs performance and their subsidiaries (El Ghoul et al, 2017; McDonnel and King, 2013; Doh and Guay, 2006), most of them emphasizing the formal pillar of institutions. Some studies have analysed social management capabilities of multinationals and their suppliers in the clothing industry (Huq et al, 2016) or the role of institutions in buyer-supplier collaboration for SS (Castaldi et al., 2016). Others have made a country comparison, focusing on the innovation capability (Weusthuis et. al., 2017) or analysed the CSR in developing countries through an institutional lens (Jamali, 2014). However, none have made a comparison of the institutional environment regarding SS, by analysing formal and informal institutions from Bangladesh and Ethiopia, two promising emerging markets in the clothing sector. To fill this research gap a case study will be made comparing the institutional environments of both countries.

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2. Theoretical background

Social sustainability in global supply chains

Nowadays, emerging markets face increasing scrutiny on the sustainability of their suppliers for economic, social and environmental performance, what is referred as the “triple bottom line” (TBL) (Huq et al., 2016). This concept was introduced in 1994 by John Elkington and seeks to broaden the focus on the economic bottom line by including social and environmental responsibilities of businesses. The TBL consists on the three Ps: profit, people and planet, which are three inter-linked goals; the traditional measure of corporate profit (bottom line of profit and loss account), the bottom line of “people account”, which measures how socially responsible an organization has been throughout its operations. The third is the “planet account”, measuring how environmentally responsible the company has been (The Economist, 2009). The key challenge with this TBL, according to Elkington, is the difficulty of measuring the social and environmental bottom lines, due to the need of three separate accounts evaluated on their own merits (Elkington, 1997). Therefore, a triple bottom line measures a company’s economic value, the environmental impact as well as its degree of social responsibility to measure the total cost of doing business.

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innovation. By treating sustainability as a goal, early movers will develop competencies that rivals will be hard-pressed to match. Sustainability is an integral part of development that has started to transform the competitive landscape, changing the way we think about products, technologies and business models (Nidumolu, 2009).

Social sustainability considers the health and well-being of people in the supply chain and their impact on society (Marshall et al., 2014; Huq et al., 2014). According to the Western Australia Council of Social Services (WACOSS), social sustainability occurs when the formal and informal processes; systems; structures; and relationships actively support the capacity of current and future generations to create healthy and liveable communities. It can be characterized in two ways; avoiding social failures with negative impact, like child labour or loss of life, and improving employee and community health and welfare (Huq et al., 2016). Social failures in the clothing industry have been in the public eye for decades. In the context of international supply chains, social sustainability emphasizes human rights (freedom of association and elimination of child labour) health and safety (training and working conditions) and emerging market communities (initiatives for education). In this study I focus on the social dimension of sustainability, defined as the care for workers’ health and safety (labour conditions), as well as with their well-being on the global supply chain (Zorzini et al., 2015; Huq et al., 2016).

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The role of formal and informal institutions for sustainability

The institutional theory offers an explanation why organizations comply with sustainability practices without an obvious economic return (Castaldi et al., 2016). Institutions define what is appropriate or legitimate in a society and affect how organizations make decisions (Scott, 2008). Institutions in the environment where firms operate, such as formal politics or informal public and cultural expectations, exert pressures on organizations to behave in certain ways in order to survive (Meyer and Rowan, 1977; DiMaggio and Powel, 1983). Firms face intense pressure to respond to the interests of all key stakeholders (Freeman and McVea, 2001) and institutional constellations exert serious pressure on sustainability in developing countries. National institutional environments such as weak governments, gaps in public governance and transparency, arbitrary enforcement of rules, regulations, and policies, and low levels of safety and labour standards affect how SS is conceived and practiced in developing countries (Jamali, 2014). Countries with appropriate policies and institutions enhance the effects of textiles and clothing industries economically and socially (Keane et al, 2008). Moreover, without appropriate policies and institutions, developing counties often do not have the skills to enter into higher value added activities (design and marketing) and hence, will not be able to command a similar wage as in headquarter firms in developed countries (Keane et al, 2008).

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protection legislation). The common perception in some developing countries, such as Bangladesh, is that state institutions and agencies, including the legal system and law enforcers, are biased towards protecting rights of capital rather than the rights of labour (Mahmud, 2009).

Formal institutions in this study will be defined as governmental laws, state regulations and macroeconomic factors that exert coercive pressure on sustainable practices. On the other hand, informal institutions are the cultural expectations of the society, enforced through non-state stakeholder organizations such as media, NGOs and professional networks (Campbell, 2007). Apart from the pressure exerted by these informal institutions, buyers’ stakeholders also exert substantial pressure on buyers to manage their global supply chains in a socially and environmentally responsible manner (Meixell and Luoma, 2015). In other words, informal institutions will be defined as societal values and cultural expectations that exert normative and mimetic pressures on the organizations to comply with sustainability practices. Moreover, whether they are formal or informal, institutional variables include cultural and religious systems, the nature of socioeconomic systems, as well as institutional pressures exerted by other institutional actors, such as trade unions, business associations, and civil society organizations (Jamali, 2014).

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Methodology

The study draws from the synthesis of prior literature to explore critical formal and informal institutions that influence social sustainability in emerging markets such as Bangladesh and Ethiopia. The intended outcome of this research is to provide the reader with a better understanding of how these institutions matter and affect social sustainability. If institutions facilitate the implementation of sustainability in the country, then it will be said that they have a positive effect. Analysing only formal institutions would be effective and relevant but incomplete; informal institutions exert normative and mimetic pressures on organizations to behave, exerting strong impact on sustainability that cannot be understood by looking at formal institutions alone. Therefore, informal institutions are necessary for understanding the current situation and the recent implementation of sustainable practices. The countries analysed, with weak institutional environments, were chosen because of their relevance in the clothing sector globally; Bangladesh is well known for its production practices but little is known about Ethiopia. The first one can be seen as a learning example for other emerging countries, like Ethiopia

The case study method has been chosen because it allows for the throughout examination of complex real life issues and provide a greater depth of insights, enabling researchers to build inductive theory (Eisenhardt and Graebner, 2007). Moreover, case study research is well suited to examine complex phenomena from different angles (Eisenhardt, 1989; Yin, 2014) and it is ideal for exploring causal relationships in-depth, considering not only the “what,” but also the “how,” “why,” and, to some extent, the “when” (Whetten, 1989).

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3. Industry introduction and implications

The clothing or garment industry is an important one throughout the world, accounting for a significant share of world economic output and a highly globalized international industry (Steele et al, 2016). The global apparel market is valued at 3 trillion dollars, and accounts for 2% of the world's Gross Domestic Product (GDP). The Textiles & Clothing (T&C) sector has given employment to 57.8 million of people in 2014 (Fashion United, 2018). Moreover, textiles and clothing account for about 9.1 per cent of world manufactured goods exports or of 6.5 per cent of all merchandise exports (World Trade Organization, 2018). Some observers distinguish between the fashion industry, which makes “high fashion”, and the apparel industry, which makes ordinary clothes or “mass fashion”, but since the 1970s the boundaries between them had blurred. The fashion industry encompasses the design, manufacturing, distribution, marketing, retailing, advertising, and promotion of all types of apparel from the most rarefied and expensive high sewing to ordinary everyday clothing (Steele et al, 2016).

International textiles and clothing trade sector has been going through fundamental change since 1995, a 10 year transitional programme was set out in the World Trade Organization’s Agreement on Textiles and Clothing (ATC) (World Trade Organization, 2018). Bangladesh’s economy is profoundly dependent on the garment industry for jobs and foreign exchange earnings and had an “export-quota system” in trading garment products until 2004. This system played a significant role in the success of the industry; Even if quotas limited imports, they have done so mainly for the countries that make the most clothes, such as China and India, thus the limits imposed by quotas have created space of demand for other countries, such as Bangladesh or Nepal. Therefore, the quotas helped sustain factories and employment in these smaller developing world economies. After the abolishment of the quota system, the competitiveness issue from Bangladesh needed to be addressed, paying special attention to the long-term sustainability of the industry (Tanvir et al, 2014). The ATC agreement was set with the purpose of removing the quotas and to integrate the sector fully into the

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Organization, 2018). The (ATC) agreement has its origins in the Multifibre Arrangement that governed the world textile trade since 1974 until 1994. This agreement imposed quotas on the amount that developing countries could export to developed ones and posed quantitative restraints when surges in imports caused, or threatened to cause, market disruption. It was a major departure from the basic GATT rules, and particularly the principle of non-discrimination. This arrangement was replaced by the WTO's ATC and the 10-year liberalization programme (World Trade Organization, 2018).

The garment sector is a clear example of a type of value chain governance where the power of buyers is clearly evident (Gereffi, 1999, Kaplan and Kaplinski, 1998, Dolan and Humpfrey, 2000). Gereffi classifies the Textiles and clothing industry as a buyer-driven GVC which contains three types of lead firms: retailers, marketer and branded manufacturers (Keane et al, 2008). These buyer-driven chains are typically linked to labour intensive industries. In this non-durable consumer goods industry, buyers are located close to final markets and the critical governing role is played by a buyer at the apex of the chain. These chains are more adjusted to the networked and outward-oriented production systems of the 21st century (Kaplinsky & Morris, 2001). These lead firms play central roles in setting up decentralized production networks in a variety of exporting countries (mostly in the third world). Production is normally carried out by multi-tiered networks of third world contractors that make finished goods for foreign buyers (Gereffi, 1999b) and producers can move up the T&C value chain and integrate vertically, or diversify moving horizontally into other sectors (Keane et al, 2008).

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54.5 billion $ and annual sales of 30.9 billion dollars in 2015 (Fashion United, 2018).T&C industries are important in economic and social terms. In the short-run, this industry provides incomes, jobs, and foreign currency receipts, in the long-run it provides countries the opportunity for sustained economic development if they have established appropriate policies and institutions that can enhance the effects of T&C.

In the economic field, T&C industries are important in terms of trade, GDP and employment. It also provides opportunities for export diversification and expansion of manufactured exports for low- income countries that have the potential to exploit their labour cost advantages and fill emerging niches to meet buyer demands. There are several ways in which T&C industries can affect economic development: T&C are a major contributor to incomes (GDP) for selected countries. T&C are the dominant source of exports and foreign exchange in several countries. Low income developing countries like Bangladesh, Pakistan and Cambodia depend on these kind of exports for more than 50% of the total manufacturing exports (Bangladesh T&C exports represent 83.5% of the total ones). Employment is also a significant effect for least developed countries with low income, the employment in T&C production as a share of total employment in manufacturing ranges from 75% in Bangladesh and 35% in low income countries.

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Regarding T&C employment, there are two different views; in some countries the T&C employment lies at the core of giving more emphasis on export diversification while other countries give more emphasis on pursuing a development strategy through T&C employment. Even though, poverty strategies appreciate the importance of textiles and clothing (in these low income countries) in achieving development goals (Keane et al, 2008). In the following section, Bangladesh and Ethiopia’s formal and informal institutions will be analysed and compared in order to see their effect and impact on SS.

4.1 The role of formal institutions

According to our previous definition, formal institutions are the regulatory pillar, factors that are regulated by governmental rules and regulations. Formal institutions in this case study include both, economic and socio-cultural (labour and governmental) indicators, while informal ones include socio-cultural indicators. These indicators will be explained and after that their effects on social sustainability will be analysed.

Formal macroeconomic indicators

Factors such as GDP, unemployment, inflation, trade agreements and taxes will be analysed here in order to understand how the whole economy of each country functions. When analysing a country is really important to look at macroeconomic conditions, because these indicators present a clear framework of the health of the economic situation in a country. Therefore, a macroeconomic approach is necessary for understanding how both countries deal with performance, structure, behaviour and decision-making of an economy as a whole. This will be done by focusing of how these factors affect sustainability in each country.

GDP

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per capita and the GDP growth rate throughout three consecutive years from both countries can be seen in the tables below.

Table 1. GDP Bangladesh and Ethiopia

Table 2. GDP per capita Bangladesh and Ethiopia

Table 3. GDP growth rate Bangladesh and Ethiopia Sources: The World Bank Data, 2018.

Bangladesh shows a much higher GDP than Ethiopia. There is a constant increase of GDP in both countries, however, the rise of GDP started later in Ethiopia while Bangladesh shows a more steady development.

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All in all, GDP is much higher in Bangladesh, even considering that it holds a much larger population. GDP growth rates are really similar, and they will most likely even out.

Unemployment

The unemployment rate is another important factor to consider when analysing the economy of a country. These rates give information about the current labour market situation and the national economy. Unemployment is often seen as a sign of economic downturn, and not desirable for investors (Beugelsdijk et al, 2013).

Average wages are also a good indicator; investors would be more interested on investing in countries with lower average wages. There is an incentive to enhance profitability by pursuing activity on countries with a lower average wage (Beugelsdijk et al, 2013).

Table 4. Unemployment rate Bangladesh and Ethiopia

Table 5. Average wages Bangladesh and Ethiopia.

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The unemployment rate is lower in Bangladesh than in Ethiopia. Bangladesh’s unemployment rate has been decreasing in the last years (since 2010), while in Ethiopia it has been slightly increasing since 2015. However, Ethiopia has a cheaper labour force than Bangladesh, with an average wage of $204 per month. This is a great advantage for Ethiopia in the textile sector, where the reduction of labour costs is of a great importance for western multinational companies that want to invest.

Inflation rates

The inflation rate is also an important indicator because it reflects changes in price level of goods and services. If the general level of prices for goods and services is rising, then the purchasing power of currency is falling. Most economists prefer low inflation rates, because they reduce the effect that future recessions might have on the country’s economy (Hummel & Rogers, 2007). In the table below (table 6) you can see the inflation rate in % from both countries.

Table 6. Inflation rates Bangladesh and Ethiopia. Source: Knoema, 2018. Trading economics, 2018.

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Trade agreements and partners

Trade agreements, not only benefit imports and exports, but can create a bigger potential market by easing the flow of goods between different countries. In order to start a business in a country it is important to know which countries are trade partners and what are the amounts of trade flows with them.

Bangladesh is, since 1995 a World Trade Organization (WTO) member and, as a least developed country (LDC), benefits from the EU's "Everything but Arms"(EBA) arrangement, which grants duty free, quota free access for all exports, except arms and ammunition (European Comission, 2018). The European Union is the main trading partner from Bangladesh, accounting for 24% of Bangladesh’s total trade in the year 2015. The same year, Bangladesh was the EU’s 35th largest trading partner in goods. The EU works closely with Bangladesh in the framework of the EU-Bangladesh Co-operation Agreement from 2001. The imports from Bangladesh are dominated by clothing, which accounts for over 90% of the EU’s total imports from this country (European Comission, 2018). After the Rana Plaza Collapse in 2013, Bangladesh is included in an initiative from the EU the “Sustainability Compact for Bangladesh”, with the aim of improving labour rights and factory safety in the garment industry. This initiative brings together the Government of Bangladesh, USA and Canada, the EU (main markets for Bangladeshi garment production) and the International Labour Organisation (ILO) (European Comission, 2018).

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Commission, 2018). It has signed a Treaty Establishing the Common Market for Eastern and Southern Africa (COMESA) in 1993, a free trade area with 20 member stretching from Libya to Swaziland. An Agreement Establishing Intergovernmental Authority on Development (IGAD) in 1996. Also the African, Caribbean, and Pacific Group States (ACP)-European Union (EU) Economic Partnership Agreement in 2000 (Export.gov, 2017). Right now, although Ethiopia has no bilateral trade or investment agreement with the United States, it is eligible for preferential access to the U.S. market under the African Growth and Opportunity Act (AGOA). Ethiopia originally signed a Treaty of Amity and Economic Relations with the United States in 1951, updated in 1994. Regarding the WTO, Ethiopia is trying to belong to this organisation since 2003, since this date its accession has been underway. It has submitted its goods offer in early 2012 and is still working on its services offer (Export.gov, 2017).

Both Bangladesh and Ethiopia have several trade agreements within their geographical context. The main important difference is that Bangladesh, being part of the WTO, is more engaged and has a closer relationship with EU countries, being the largest trading partner in goods, Bangladesh is more involved in trading a huge amount of products with European Countries (Germany and UK). Whereas Ethiopia has important trade agreements in within the African country (COMESA, AGOA) and has a good relationship (Treaty of Amity and Economic Relations) with United States. In spite of their geographical location, both have some common partners, as China, India and the United States. If we have a closer look at the trade indicator, Bangladesh has more trade flows which might be very relevant for the commercialization and distribution of products in the clothing industry.

Taxes

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Table 7. Taxes in percentage of GDP Bangladesh and Ethiopia Source: International Monetary Fund 2016 Country Reports.

It can be seen that taxes in Bangladesh are much lower than in Ethiopia with an 8.8% of its GDP. Moreover, new factories established in Bangladeshis EPZs enjoy tax holidays for 5 years, which is a great incentive for multinational buyers to invest in there. In addition, tax revenue in Ethiopia is more volatile than Bangladesh, while Bangladesh tax system is more stable through the years. Taxes in Ethiopia are much higher, representing 13.5% of the total GDP in 2016. Taxes have rapidly increased in the last years. Despite setbacks in meeting export targets, Ethiopia's domestic revenues are increasing year by year. Tax revenue target is part of the East African nation's drive to become fully self-reliant on its annual budget. Therefore, when it comes to taxes, it would be more favourable to locate a company on Bangladeshi ground.

Effects of macroeconomic indicators on social sustainability

The main formal macroeconomic factors have been analysed in order to explain their effect on sustainability of each country and its importance. These factors have a final effect on labour conditions and rights of workers.

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Since Ethiopia has a cheaper labour force than Bangladesh, it will be easier to implement sustainability by offering higher wages in Bangladesh. Regarding trade, since Bangladesh is more involved in trading a huge amount of products with European Countries, it can be assumed that the country would have more pressure coming from European countries, which might demand a higher level of sustainability in their production processes. Ethiopia is more involved in agreements within the African continent and has less pressure from these buyers to implement sustainable practices. Regarding taxes, higher taxes would mean a decrease of the consumer demand and therefore of the total production of the country (affecting employment) it would also mean higher costs for multinational companies that come from abroad. Higher taxes would hinder the implementation of these companies in a country.

But basing recommendations only on the macro economy is not reliable; therefore, it will be necessary to look further in depth in other aspects such as socio-cultural aspects of the countries.

Formal socio-cultural indicators

Within the formal sphere, it will be necessary to analyse the socio-cultural factors in order to understand the context of each country’s economic activity. Socio-cultural conditions can be of a great importance on supporting a country’s economy, or it can be a disadvantage for the economic activity. Since this research is focused on social sustainability, the educational level, infrastructure and logistics, legislation and working associations and political conditions that influence the level of social sustainability within the garment industry will be explained focusing on the labour conditions and rights of workers.

Educational level

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has more skilled workers we have looked at the ranking of the Global Competitiveness Report and the World Bank data.

In Bangladesh poverty is still widespread and deep, but the country has reduced population growth and improved health and education in recent years (BBC, 2018). Bangladesh has made considerable gains over the past two decades by ensuring access to education; the net enrolment rate at the primary school level increased to 98% in 2015, and secondary school to 54% (The World Bank, 2016). However, most of their workers, which come from poorer households and the poorer districts of Bangladesh, have low levels of education (BBC, 2018). Bangladesh’s workforce is largely undereducated; only 4% of workers have higher than secondary education. Moreover, examination systems at all levels focus more on rote learning than on competencies, critical thinking, and analytical skills (The World Bank, 2016). The Government spending on education (as share of the gross domestic product) is only 2%, the second lowest in South Asia and lower than in other countries that has similar levels of development (The World Bank, 2016).

Ethiopia has a low level of education as well. However, the primary education enrolment rate have doubled to 90% the last decade, and the Ethiopian Government is working harder to improve the overall quality of education and increase access to educations in underserved areas (The World Bank, 2015). In addition, the national Government launched a New Education and Training Policy in 1994 which, by the early 2000s, had already produced remarkable results (World Bank, 2005). The gross enrolment rate of Ethiopia in primary education is 87% and 38% in lower secondary, with a student transition rate to secondary school of 93%. Although, 22% of youth have no formal education and the country has yet to achieve universal primary education. Only a 5% of population reaches post-secondary education. The literacy rate is 55% among the youth population; which is lower than the average youth literacy rate in other low income countries (Education Policy Data Center, 2014).

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important to mention that inadequately educated workforce in Bangladesh is the 4th

most problematic factor for doing business in the country (Schwab, 2018).

It can be seen that both countries have low levels of educated workforce. When compared, despite the numerous challenges in both countries to improve education, Bangladesh has a higher number of skilled workforce. Moreover, when taking population size into account Bangladesh also has a higher absolute number of skilled workers. On the other hand, Ethiopia’s development is improving education and counts with a higher involvement of the government on this matter.

Infrastructure and transportation

Bangladesh’s infrastructure is one major issue that stands in the way of further progress (de Silva, 2017) and according to World Bank economist Zahid Hussain, “building infrastructure in Bangladesh is the costliest in the world since the absence of competition in the bidding process for these works amount to corruption”. There have been several plans for building bridges and roads in the country but the cost of each kilometre is really high (Hussain, 2017). Infrastructure includes physical and organizational structures, such as access to efficient water sanitation and transportation systems, which greatly contribute to reducing poverty and improving the economy. There are several organizations contributing to the growth of infrastructure, but the government should implement concrete goals and achieve tangible results (de Silva, 2017). The World Bank has long been funding Bangladesh’s infrastructure (Hussain, 2017) and the Asian Development Bank (ADB) has projects set up in Bangladesh; the Urban Governance and Infrastructure Improvement Project is one of them. Moreover, in 2017, $2 billion of Bangladesh’s foreign reserves were destined to an infrastructure fund. All these has been an improvement, but it is not enough to create a completely effective infrastructure system, there must be an increased commitment from the government, in addition to foreign investments that will ensure that large-scale projects will be funded continuously and in a transparent manner (de Silva, 2017).

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repair roads over the next ten years under the Road Sector Development Program (RSDP) and it has invested on upgrade and builds new airports to facilitate transports of goods and encourage investment. Moreover, there has been a huge improvement on telecommunications, Ethiopian Telecommunications Authority (ETC) have launched an Accelerated Development Programme (ADP) that aims to increase the telephone density rate by increasing the number of telephone lines and extending the service into rural areas, where most of the population lives (Ethiopian Government Portal, 2018).

Special economic zones (SEZs) are an effective instrument to promote industrialization and structural transformation, they are also termed as free economic zones, export processing zones, trade zones, industrial parks in different countries’ contexts (Hailu, 2017).

Bangladesh counts on export processing zones (EPZ), defined as territorial or economic enclave in which goods may be imported, manufactured and reshipped with a reduction in duties or minimal intervention by custom officials (World Bank 1999). As other many developing nations, Bangladesh has been trying to transform their economy by integrating itself into the global supply chain, by moving away from an import-centric economy to an economy based on exports (Murray, 2016). Bangladesh maintains a system that for any FDI, the investors have to register themselves with the Bangladesh Export Processing Zone Authority (BEPZA) or by the Board of Investment (BOI). By these, the investors get help from the governments to overcome any problems to deal with any public industry (Chawdhury 2016). Therefore, in order to attract foreign direct investment to Bangladesh and stimulate rapid economic growth, the government has adopted an “Open Door Policy”, and the BEZPA is the official organ of the government to promote, attract and facilitate foreign investment in the EPZs (BEPZA, 2017).

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building, fire and electrical safety standards, focusing on sustainability. These parks appear to be timely as the country is becoming a major foreign direct investment destination in Africa and has overcome Kenya, as east Africa’s largest economy (Hailu, 2017). The latest 3 new industrial parks are expected to generate 100.000 direct jobs, and the garment sector alone is estimated to create 350.000 jobs over the next few years (Hailu, 2017). Foreign investors from Asia Pacific (like Bangladesh or China) are particularly interested on relocating production to these industrial parks, which will facilitate sustainable production and at the same time, can be used by foreign investors to take advantage of Ethiopia’s low cost labour in order to reduce production prices (Solidaridad, 2018). In addition, domestic industrialists can easily benefit from the opportunity to seamlessly integrate into the global supply chain (Hailu, 2017). Ethiopia is the only African country which is heavily involved in textiles; most of the local factories produce for the local market while only a few are involved in exporting activities. Therefore, only a few buying firms are currently sourcing from Ethiopia (H&M, Lidl,Tchibo). Manufacturing plants of foreign investors are more developed and hence, often located in industrial parks, which assure the latest sustainability standards (Solidaridad, 2018).

When compared, Bangladesh’s infrastructure is a major obstacle for development and progress, and a higher commitment from the government will be needed to overcome this obstacle, while in Ethiopia the commitment from the government to improve infrastructure development is higher. Ethiopia counts with several programs for further improvements on its way (roads, bridges). In addition, while Bangladesh uses their EPZs to gain advantage over other countries in export activities, Ethiopia counts on their new industrial parks, which facilitate sustainable production and allow investors to take advantage of the low labour costs.

Legal systems and worker associations

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In Bangladesh, the national legislation and labour laws set the framework in which workers are allowed to perform working activities. The national government is responsible of implementing labour legislation and regulation, as well as establishing effective monitoring mechanisms (Mahmud, 2009). The labour law of Bangladesh, stated in the Labour Act of 2006, clearly describes all things related to labour and workforce including wages and salary, termination, work environment, female worker, recruitment, unionization and child labour (Labour Act, 2006). All employers are expected to carry out the government's labour laws, which specify employment conditions, working hours, wage levels, leave policies, health and sanitary conditions, as well as compensation for injured workers. Freedom of association and the right to join unions is included in the Bangladesh Constitution as well and the right to form a union subject to government approval (Law Teacher, 2013).

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2016) and it is still needed to include amending the Labour Act and laws governing Export Processing Zones to bring them in line with international standards (World Report, 2017).

Ethiopia’s Constitution contains a chapter on fundamental rights and freedoms. The present law, the Labour Proclamation No. 377/2003, designed with the purpose of protecting employees, came into existence as a result of the modern industrial development (International Labour Organization, 2004). This Labour Proclamation, effective since 2004, is the main source of labour law in Ethiopia and an important tool for unions and employers to participate in all labour matters. The constitution provides for principles such as the right of the security of the person, prohibition against inhuman treatment and the abolishment of slavery and forced and compulsory labour. General Freedom of Association is also in the Constitution, stating the right to form associations for the purpose of improving economic and employment conditions, a limitation of working hours, paid leave and healthy and safe working environment conditions, the prohibition of children to do exploitative labour practices, as well as a minimum age. However, a big difference with the Bangladesh law is that the Ethiopian law does not prescribe minimum wages through statute. Usually wages are fixed by the employer, collective agreements, or by the employee's contract of employment (International Labour Organization, 2004). Some government institutions and public enterprises set their own minimum wages e.g. the public sector employees are the largest group of wage earners. Ethiopia’s biggest challenge to raise sustainability in local factories is the incomprehension of the “European Sustainability norm”.

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300,000 workers organized in 431 basic unions and 9 federations (included the Industrial Federation of Ethiopian Textiles and Garment and Shoe Workers). Apart from unions under the umbrella of CETU, there are different organisations that are not recognised as unions under the Labour Proclamation. In addition, the Labour Advisory Board, is an organ that was created to study and examine matters concerning employment service, working conditions, the safety and health of workers (International Labour Organization, 2004).

When compared, working conditions are clearly established in the respective legislations of both countries and both face a lack of implementation due to similar reasons. However, the law in Bangladesh has a higher impact on society and establishes minimum salaries, while in Ethiopian’s law, even if most working conditions are established in their Labour Proclamation, there is no national minimum wage. Regarding working associations, in both countries unions are limited by legislation procedures, but in Bangladesh the number and impact of unions on society is stronger than in Ethiopia, which is less developed on this aspect.

Political conditions

The predictability of the political scenario plays a critical role in boosting business and sustaining growth (Khatun, 2015). Political instability can directly hurt a country’s economy by affecting the investment decisions of firms, especially by the manufacturing firms. In instable political environments it is very difficult to determine the net present value of an investment as there are many uncertainties regarding social conditions. This can be detrimental to the speed of economic development as well, since lasting inactivity can be barrier to international or domestic trade (Chawdhury 2016).

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remained weak because of its historical top-to-bottom hierarchical structure (Jahangir, 2015). The main drivers for instability in Bangladesh, as the media, legitimacy problem, nepotism and power concentration, remain a main obstacle for the country’s growth. Regarding media, yellow journalism has caused a lot of damage to Bangladesh. Every political party has established disinformation cells conveying distorted facts and the governments have allocated official broadcast portraying the viewpoint of the ruling elite and avoiding others to give the real information. In addition, the present regime suffers from the problem of legitimacy; the violence and continuous disruption of normal life has made people cynical about the elections and democracy and nepotism is present in the society. Another cause of instability is the centralization of power; power concentration is at the central, and thereby not shared at the local level (Jahangir, 2015). In its entire history Bangladesh has hardly seen or experienced any stability in its political matters. The method most frequently used by the opposition party is known as ‘hartal’ or strike. These hartals are part of the political culture of South Asia and generally not peaceful in nature; law enforcement authorities are not able to provide the level of protection necessary, so citizens remain indoors (Chawdhury 2016). During the present democratic system, the number of hartals per year has been more than three times higher. It is considered as a legitimate democratic tool of protest in Bangladesh however, it is also the most influential and devastating tool of political instability. Even if firms re-optimize in response to political strikes, there is a substantial productivity loss by firms, imposing a large cost on the whole economy. Due to these strikes, large garments companies have to keep their business open to deal with their international customers during hartals. High prices create inflation in the economy and the value of taka shrunk, reducing the purchasing powers of people of Bangladesh (Chawdhury 2016). To overcome the obstacle of political instability and continue its growth, Bangladesh should implement good fiscal policies, improve infrastructure and invest in human capital, but the confidence of investors has to be improved as well (Khatun, 2015). According to the World Bank, the political stability index2 (-2.5 weak; 2.5

2_{The index measures perceptions of the likelihood that the government will be destabilized or overthrown}

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strong) from Bangladesh has an average value of -1.24 points in the period between 1996 and 2016 (The Global Economy, 2018).

Ethiopia faces a difficult situation as well. The country has been experiencing recurrent mass protests, riots and ethnic conflicts over the past two years. These events have led members of the ruling Ethiopian People's Revolutionary Democratic Front (EPRDF) to conclude that the very survival of the state is at stake (Gebreluel et al, 2018). Ethiopia faces a long term cycle of political conflict and economic stagnation crippling state and society. A lack of transparency and corruption scandals has led to believe that Ethiopia's wealth is not fairly distributed or properly managed at the federal level. This country’s appeal to global investors lies in the high political commitment to economic growth, however, political instability risks deteriorate the economic gains it has registered over the past decade. The current crisis has been attributed by analysts and the international community to Ethiopia's ethnonational federal system and the huge reduction of political space since the parliamentary elections of 2005 (Gebreluel et al, 2018).

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forces brutally cracked-down on large scale protests celebrated in some regions on 2015 and 2016. The main reasons for such protests were the unequal distribution of power and economic benefits in favour of those aligned to the government. Sustainable economic development and a functioning democratic and federal governance arrangement will be difficult to achieve in the current ethnicised framework of political competition. The government's response to the problem has been inadequate, attributing this to corruption and a stalled democratic process. Moreover, questioning the government’s development policies is deemed particularly sensitive and activists face charges for doing so (World Report, 2017). The current political crisis requires going beyond democratic reform and thinking about the political economy and institutions that shape competition along ethnic lines (Gebreluel et al, 2018). According to the World Bank, the political stability index (-2.5 weak; 2.5 strong) from Ethiopia has an average value of -1.43 points in the period between 1996 and 2016.

It can be seen the situation in both countries is characterized by high instability of the political system, affecting the whole society. However, regarding the political stability index provided by the World Bank, Ethiopia’s environment is more unstable and the situation is critical.

Effects of formal socio-economic indicators on social sustainability

When the level of education is high, there will be a lower possibility to exploit skilled workers, while if the level of education is low, it will be easier for companies to exploit workers that are less experienced and educated. Moreover, if workers have higher levels of education and they have no good working conditions, they might consider to migrate to other countries, which would mean a loss of skilled workforce for Bangladesh. When compared, since Bangladesh has a higher number of skilled and educated workers, it will be more necessary to stablish sustainable conditions for workers in this country.

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4.2 The role of informal institutions

Informal institutions, defined as societal values and cultural expectations that exert normative and mimetic pressures on the organizations to comply with sustainability practices are important in the context of social sustainability as well. Due to the influence of NGO’s and their reaction to the recent disasters in Bangladesh, a lot of changes have been done under the social pressure that has been created. In the next section the history and cultural and religious systems as well as pressures that NGOs exert on buyers and their respective suppliers in each country will be examined.

History

Bangladesh

The history of both countries and its relation with the clothing sector will be analysed in order to have a clear overview of the background that have led to the current situation.

Bangladesh is a country in South Asia, located to the East of India. Previously known as the East Pakistan, it became Bangladesh in 1971 in the Bangladesh Liberation War, when the two parts of Pakistan split after a bitter war which drew in India. The causes for the separation from West Pakistan were political exclusion, linguistic and ethic discrimination and economic neglect by the western political wing. Bangladesh spent 15 years under military rule and, even though democracy was restored in 1990, the political scene remains volatile and the Islamic extremism has been rising in the last years in this generally tolerant country (BBC, 2018). However, since 1991 the country has been following a relative calm and rapid economic progress. Since its independence, Bangladesh has been successful in reducing the poverty as it was once thought to be one of the poorest countries (Chawdhury 2016).

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exports (Keane et al, 2008). In 2004 foreign investors were instrumental in expanding clothing exports, attracted by the Exporting Processing Zones (EPZs)3_{, which were}

responsible for 10-12% of total exports, although over time the role of FDI has decreased due to government restrictions (Yang et al. 2004).

In order to diversify and upgrade through vertical or horizontal integration, producers and countries need to develop certain local linkages and supplier capabilities, without these linkages, inadequate labour training, out-dated equipment, poor infrastructure in Bangladesh give exporters few incentives for product upgrading (Keane et al, 2008). Due to the restriction of the role of FDI in the broader T&C industries, Bangladesh suffered from a loss of managerial skills and superior technology. However, the country is still able to tap into global value chains, which are channels for export sales. The clothing industry has made a significant contribution, not only to economic growth and export earnings in the Bangladesh, but also to poverty reduction (Kabeer and Mahmud, 2004).

Over the last two decades Bangladesh’s export growth has been supported by abundant low labour cost, increased female participation and productivity gains from a shift away from agriculture to manufacturing. Due to all this, the per capita income has risen steadily, the country has emerged from low income status and social indicators have improved as well (International Monetary Fund, 2017).

Ethiopia

The Federal Democratic Republic of Ethiopia was founded as a distinct and original nation in 1855 (Worldatlas, 2015). It is located on the Horn of Africa and it is the largest and most populated country in the Horn. It is also one of the world’s oldest countries. The liberation from the fascist Italy during World War II by the Allied powers set the stage for this country to play a more prominent role in world affairs. Ethiopia was one of the first independent nations to sign the Charter of the United Nations, giving support to the decolonization of Africa (Crummey et al, 2018). However, it has a history of instability and conflicts with close countries. Its

3_{Territorial or economic enclave, in which goods may be imported, manufactured and reshipped with a}

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relationship with the neighbour Eritrea (that became independent from Ethiopia in 1993) is highly conflictive since 1999. The main conflict was that Eritrea and Ethiopia had disagreed about the exact demarcation of their borders (BBC, 2018). Prime Minister Zenawi, in power since 1995 and a dictatorial and repressive Minister, was responsible for lifting the country out of famine to the point that Ethiopia began exporting food, reducing poverty, increasing economic growth, and improving infrastructure. Moreover, the relationship with the US and Ethiopia improved under its power. Since 2013, Mulatu Teshome Wirtu is the fourth president of Ethiopia, and was elected by Parliament (Infoplease, 2018).

The clothing industry is a strategic investment area for Ethiopia, as part of an ongoing industrialization effort that tries to boost export, create job opportunities and increase forex earnings. Ethiopia is now emerging as a textile and apparel manufacturing hub. In 2016, the country attracted more foreign direct investment (FDI) inflows in than ever, and according to the 2017 World Investment Report, the country had become the largest FDI destination after Vietnam (UNCTAD, 2017). Sustainability is increasingly becoming an important issue for fashion buyers and Ethiopia offers a great advantage on this matter due to their industrial parks.

Cultural and religious systems

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in their culture. Some festivals are based on social and political significances, some are religious. It is even called the Land of Festivals. (National Tourism Organization, 2018)

Since Ethiopia is a country with more than 80 different ethnic groups, it has a diverse mix of ethnic and linguistic backgrounds. Ethiopian culture reflects diversity in culture and respect for traditional customs (Ethiopian Parliament, 2018). The extended family remains the focus of the social system and family needs are put before all other obligations, including business. The feast of the Epiphany ("Timkat") is the largest festival of the year (Commisceo Global, 2018b). Religion is a major influence in Ethiopian life. More than 50% of the population is orthodox and the rest Islamic. The Ethiopia’s orthodox religion is one of the oldest religions in the Christian world and it has a prevalent role in the culture, social and politics of the country. Ethiopia embraced Christianity before Europe and Christianism is prevalent in the north of the country, while the Islamic religion is the most important one in the eastern zone. The country is perceived as an island of Christianity in a land of Islamism (Commisceo Global, 2018b).

Pressures from NGOs

NGO’s are stakeholders beyond the traditional supply chain members (buyers, suppliers and consumers), that play a significant role in the economic development and society of developing countries. NGOs have become an important sanction force in the final consumer goods sector; through boycotts and publicity campaigns they have forced certain leading firms to change the way they produce and to delist particular suppliers (Kaplinsky & Morris, 2001). Moreover, some NGOs participate in the evaluation of multinational buyer’s supply chain sustainability (Gualandris et al., 2015). NGOs can organize public demonstrations, run media campaigns to generate attention, and shame management into correcting social failures (Mamic, 2005; Tsoi, 2010).

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and Human Rights, 2013), a lot of pressure has been exerted from the media, customers and NGOs in the country. This pressure on buyers has been the cause of several changes; NGOs, buyers, regulators and unions began joint initiatives to improve the industry’s social standards (Huq et al, 2016). E.g. The Accord on Fire and Building

Safety signed in 2013 that encompasses over 1.600 factories and signed by over 200

global fashion brands and retailers (The Guardian, 2016). In this accord buyers work with global and local trade unions supported by NGOs (Huq et al, 2016). There are 2.610 NGOs registered in Bangladesh until today (259 foreign and 2.351 national) engaged in the broad socio-economic uplift of the poor in rural and urban areas. From these, according to the former secretary of the labour ministry, Mikhail Shippersector, “there are at least 10 NGOs working in Bangladesh in the name of welfare of workers in the garments sector”. The Anti-Sweatshop Advocacy Group, Labour Behind the Label and Clean Clothes Campaign are examples of global alliances that bring trade unions and NGOs together. Dedicated to improving working conditions and empowering workers in the global garment and sportswear industries. Moreover, Nari Uddug Kendra (NUK) is another NGO that has initiated a garment factories support programme to improve working conditions and protect workers' rights on the Garment Export Industry. Bangladesh Rural Advancement Committee (BRAC) is the largest non-governmental development organization in the world (Smith, 2017). In addition, the Solidarity Center (US NGO) is an international worker rights organization that has recently become prominent in advising existing and emerging new unions in the country (Marriott, 2014).

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were 310 NGOs registered with the government in 2000, of which 120 are international entities. However, there is no reliable data that can accurately show the geographic and programmatic spread of NGOs in Ethiopia. The information is seldom complete, usually kept in differing databases by local government authorities and does not differentiate between national and international NGOs (Clark, 2000).

Achieving financial stability to implement quality projects and activities to serve for the interest of NGOs members is the major challenge facing NGOs in Ethiopia. There is no significant domestic support for NGOs and the viability and sustainability of the NGO sector is fragile due to the scarcity of resources and the struggling for operating funds. The reason why the number of NGOs is reduced is the little societal tradition of giving funds to NGOs; the private sector is struggling to stay afloat itself, so NGOs solely depend on international donors. The government is not doing much to overcome these obstacles. In 2009 the parliament established the Charities and Societies Proclamation (No.621/2009) (CSP). By this law, only Ethiopian Charities may work on human rights issues, international NGOs are prohibited from working on them. It also prohibits Charities and Societies from receiving more than 10% of their funding from foreign resources and prohibits anonymous donations as well (Charities and Societies Proclamation, 2012). This proclamation severely reduce the ability of independent NGOs (World Report, 2017), which find themselves blocked continuously from the charities and their actions to protect working rights are limited.

Effects of informal socio-economic indicators on social sustainability

Religions and cultural customs by themselves carry a greater adaptation to the Eastern or the Western world. An orthodox religion that comes from Christianism, prevalent in Western countries, would be able to adapt more to the technological development of society. In addition, this kind of cultural and religious system promote more protection and defence of children and women’s rights, reducing the possibilities of labour exploitation. While the Islamic culture is based on more traditional ways of acting and focused on other criteria that is less protective of the rights of people.

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4. Major findings and recommendations

When focusing on sustainability, it can be seen that regarding the quality of institutions in both countries, Bangladeshi’s formal institutions would better facilitate the implementation of sustainability regarding social issues. With a higher GDP, higher employment, lower inflation rates and taxes that will increase the employment possibilities and labour conditions of workers. Moreover, Bangladesh counts with a labour force with higher wages than Ethiopia and its trading relationships are usually with European countries, which are more familiarized and used to implement sustainability. Due to this, there will be more pressure from EU countries on Bangladesh to implement sustainability.

In regard to formal socio-cultural factors, even if both countries have low educated workforce, the higher number of skilled workers in Bangladesh reduces the risk of worker exploitation and migration of the workforce. However, the commitment of the local government to improve infrastructure and transport facilities is higher in Ethiopia, which might affect labour conditions and daily work of employees in a positive way. In addition, the eco-industrial parks in Ethiopia are great innovations that allow sustainable production practices. Legislation and working associations have stronger presence in Bangladesh, the legislation from Bangladesh, unlike Ethiopia, stablishes minimum wages and has recently strengthen labour law implementation. As with the political situation, since it is less critical in Bangladesh, there will be more resources available to improve labour conditions.

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of sustainability in the social scenario; with a higher number of NGOs and social scrutiny, Bangladesh faces much higher pressure for the implementation of sustainability.

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5. Discussion and conclusion

As mentioned before, the main purpose of this study is to determinate how institutions affect social sustainability in Bangladesh and Ethiopia. In order to do this, a comparison of both countries has been made to see in which country institutions have a higher positive impact on sustainability. An overview of what has been found so far is presented in table 8 below.

Formal Institutions Results Positive impact on sustainability

GDP Higher Bangladesh Higher impact in Bangladesh

Unemployment Lower Bangladesh Higher impact in Bangladesh

Labour force Cheaper Ethiopia Higher impact in Bangladesh

Inflation Lower Bangladesh Higher impact in Bangladesh

Trade agreements EU with Bangladesh Higher impact in Bangladesh

Taxes Lower Bangladesh Higher impact in Bangladesh

Educational level Higher Bangladesh Higher impact in Bangladesh

Infrastructure and transportation More commitment

Ethiopia Higher impact in Ethiopia

Legal systems and worker associations

Higher presence

Bangladesh Higher impact in Bangladesh

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Informal Institutions Results Positive impact on sustainability

Pressures from NGOs Higher in Bangladesh Higher impact in Bangladesh

Cultural and religious systems Higher adaptation Ethiopia Higher impact in Ethiopia

Table 8. Formal and in formal institution’s effect on sustainability and main results. The main focus of this study is on sustainability, but the decision of multinationals of investing in a country based on economic incentives is crucial; it has an ultimate impact on workers. Therefore, an economic upgrading analysis will be made. Countries should have proper institutions that make attractive for foreigners to invest. Investment decisions entail both, social and economic rationales. A decision of investment must be made between a stable and current most capable of opportunity seeking country; in this case Bangladesh, and a very promising but more unstable one, like Ethiopia.

Regarding an economic perspective, even if they belong to two different continents and do not share any history, both countries are similar on a few formal indicators, such as GDP growth rates, both of them deal with low educated workforce, political instability and there are similarities in legislation of working rights. Overall, Bangladesh is more attractive in terms of macroeconomic conditions. Bangladesh has a higher GDP, a lower unemployment rate, a more stable exchange rate and a much lower inflation rate, all of this would make investment in Bangladesh more attractive. However, Ethiopia has a cheaper labour force than Bangladesh, which is a great advantage and an important factor to consider when clothing multinationals choose where to relocate its production practices. Bangladesh is more involved in trading products with European Countries, it is the 55th_{largest export economy in the world and}

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Regarding socio cultural factors, Bangladesh counts on a higher absolute number of skilled workers, making it attractive and interesting in terms of output for potential investors. However, Ethiopian manufacturing sector’s competitive advantage is driven by the availability of abundant and cheap workforce (i.e. no minimum wages), its preferential access to key global markets and the government’s strong investment commitment and sense of direction and its strategic location (Ethiopia is the only country involved in clothing industry in the continent, facing less competition). All these, is allowing Ethiopia to improve really fast in a short period of time and have future potential. Moreover, their eco-industrial parks are a great mechanisms to reduce production costs.

Concerning informal institutions, Bangladesh’s historical perspective influences the desirability to do business in this country. The cultural influence and location is important; Bangladesh is located in a more developed continent and is a country with a higher potential and dependence on textile exports. However, Western multinational companies would decide to invest somewhere where there is less pressure from NGOs and there are more facilities for MNEs to act freely, like Ethiopia.

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6. Managerial implications and future research

This study holds practical implications for managers and in MNEs who seek to improve the sustainability performance in emerging markets. It might serve companies to know how institutions ease the implementation of sustainable practices. In countries with strong and favourable formal and informal institutions MNEs assume strong coercive pressures on sustainability. Companies should tailor their support to social sustainability to local conditions and priorities that are embedded in their formal and informal institutions. Rather than imposing Western standards of social behaviour from countries located in less favourable institutions, companies should try to understand and reflect upon institutional differences (Campbell, 2007). Moreover, companies should focus on achieving a balance between economic and sustainable rationales. The development and quality of Bangladeshis institutions gained through the years, due to its previous experience and multiple disasters, should serve as an example for Ethiopia. Even if Ethiopia is less developed and its institutions are weaker than Bangladesh to implement sustainability right now, companies can take Bangladeshi’s experience as an example in order not to make the same mistakes. If they manage to do so, Ethiopia would be a potential country to invest in while carrying out sustainable practices.

Social sustainability in the garment industry - A comparison of the institutional environments in Bangladesh and Ethiopia