In his famous book "On the Origin of Species," Charles Darwin stated that the species that is most adaptable to change survives, not the strongest or most intelligent. This aspect of Darwinism may be reflected in Bangladesh's readymade garments industry, which has undergone extraordinary transformation over the last four decades of its eventful journey.
The clothing industry is ruled by consumer mindset, which changes rapidly. However, the RMG sector needed to adapt not only to keep up with ever-changing fashion and technology trends, but also to comply with international business standards and labor policy, as well as to meet the expectations of more ethical, environmentally conscious brands and consumers.
Because of its adaptability, Bangladesh's RMG industry has evolved into a cutting-edge, safe, secure, and environmentally friendly hub of sustainable and ethical manufacturing. The tremendous change that occurred in the RMG industry propelled Bangladesh to become the world's second largest garment exporter, defying all odds and proving naysayers wrong who were busy writing the sector's epitaph.
The relentless pursuit of staying competitive in the global supply chain by industry insiders has helped the industry make great strides in safety and sustainability, attracting worldwide attention.
According to a recent survey report released by Hong Kong-based supply chain compliance solutions provider, QIMA, Bangladesh ranked second in "Ethical Manufacturing" with a score of 7.7, trailing only Taiwan, which scored 8.0. Thailand, Pakistan, Turkey, China, India, and Brazil finished third, fourth, and fifth, respectively. The ethical auditing report covered a wide range of compliance and ethical manufacturing issues, including hygiene, health and safety, waste management, child and young labor, labor practices (including forced labor), worker representation, disciplinary practices and discrimination, working hours and wages, and so on.
QIMA discovered that Bangladesh stood out for the good practices of its local suppliers in the international supply chain when comparing the ethical auditing practices of major manufacturing countries. Bangladesh is filled with pride, prestige, and joy as a result of this recognition from a globally renowned organization.
The practice of ethical manufacturing has exploded in Bangladeshi factories as a result of consumer and brand interest. Ethical manufacturing is all about ensuring workplace safety, fairly paying workers, and manufacturing that is energy efficient and environmentally friendly.
It grew in popularity as a result of a type of consumer activism known as ethical consumerism, which advocates boycotting products whose manufacturing processes harm the environment or exploit workers. According to the most recent QIMA report, Bangladesh has made a name for itself in sustainable and ethical manufacturing.
It did not, however, happen overnight. Behind this achievement is a resounding success story, which we can understand by looking back at the industry's roller-coaster ride. Beginning in an unplanned manner in the early 1980s, the apparel sector began to undergo transformation in the early 1990s. The issue of compliance with global trading and supply chain rules and regulations has emerged early in the transformation process. After the first decade, an increasing number of factories began to transition from unplanned facilities to safe facilities with sound structural design, allowing them to significantly increase their market share.
The RMG industry then addressed the issue of child labor in the mid-1990s. Prior to the passage of The Child Labor Deterrent Act of 1993, introduced in the United States Senate by Senator Tom Harkin, the issue of child labor received little attention. To address this issue, the leaders of Bangladesh's apparel industry extended full cooperation to the ILO, the Bangladesh government, and various NGOs such as BRAC and Gono Sahajjo Sangstha in the mid-1990s. Under the "earn and learn" scheme, child laborers from factories were enrolled in NGO-run schools. Through rehabilitation, child labor was eradicated from factories during this process. Following that, the entire industry was strictly monitored to ensure that no factories employed child laborers.
After successfully eliminating child labor, factory owners began to focus more on issues of social compliance. This includes adhering to the buyers' code of conduct as well as the country's labor law, as well as establishing and fully implementing a minimum wage at regular intervals. Following the Rana Plaza disaster, the sector has increased its efforts to ensure workers' safety, dignity, and empowerment. The tragedy served as a major wake-up call, and the industry's response to remediate factories and make workplaces safer is remarkable.
Recognizing the importance of structural and electrical safety in addition to fire safety in factories, a National Tripartite Plan of Action was formed, which was supported by the ILO. To supplement the initiative, buyers formed two private initiatives - Accord and Alliance - and nearly 4000 factories were audited and remediated transparently with the assistance of national and international experts. All factory inspection reports are available on the Accord and Alliance websites. This is how obvious it is. Multiple authorities are now closely monitoring the industry to ensure social compliance. In addition to regular inspections by the government-run DIFE, the Social Compliance Forum under the Ministry of Commerce monitors compliance issues on a regular basis.
These issues are also monitored by industry associations and third-party auditors appointed by buyers. As a result, the industry is very open and transparent about compliance issues. ILO Better Works also monitors a large number of factories. Furthermore, to carry forward the safety upgrade achieved through Accord and Alliance, the RMG Sustainability Council (RSC) has been formed, with equal representation from industry bodies, brands, and unions. Through all of these efforts, the industry has reached an unprecedented level of safety and transparency, as evidenced by the QIMA report.
According to a recent McKinsey report, Bangladesh's RMG sector is also "a frontrunner in transparency regarding factory safety and value-chain responsibility, owing to initiatives launched in the aftermath of the disasters." Mckinsey also emphasized that more than 1,500 Bangladeshi companies are certified by the Global Organic Textile Standard, the second highest number in the world. The factories of today are not only safer, but also more dynamic, modern, energy-efficient, and environmentally friendly. Bangladesh has by far the most environmentally friendly garment factories in the world. The US Green Building Council (USGBC) has certified 143 Bangladeshi factories as LEED (Leadership in Energy and Environmental Design), with 40 platinum-rated and 89 gold-rated units.
Furthermore, 500 more factories are in the process of being certified. It is also worth noting that Bangladesh is home to 39 of the world's top 100 LEED factories. Furthermore, as the apex trade body of Bangladesh's RMG industry, BGMEA has signed on to the UN Fashion Industry Charter on Climate Action of the UNFCCC (United Nations Framework Convention on Climate Change).
BGMEA has also pledged to the German government-led global initiative named "Green Button". Furthermore, BGMEA has collaborated with Global Fashion Agenda (GFA) and Reverse Resources to establish the Circular Fashion Partnership (CFP) in order to launch a circular business model in the industry. All of these initiatives demonstrate the industry's strategic vision and dedication to environmental sustainability. In a nutshell, Bangladesh's readymade garment industry has come a long way. However, the industry is not succumbing to complacency and inertia because stakeholders are well aware that the only constant in business is change. The industry is now concentrating on developing its own capacity to monitor workplace safety via a national safety regime. The formation of RSC is part of that effort.
Now that Bangladesh's RMG industry is maturing and showing signs of being well-positioned to take the lead in apparel export, achieving its own capacity to lead the industry towards safety and sustainability is critical at this stage of its long journey.
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