Readymade Garment (RMG) in Bangladesh : A study on Social Compliance with Special Focus on Ashulia Industrial Area

Abstract

Social compliance has become one of the most distinctive features of Readymade Garments (RMG) industry in Bangladesh during the last decade. Along with socioeconomic conditions of Bangladesh, different initiatives of the governments in different terms and international policy support together have helped this industry to achieve an enviable growth. The first generation entrepreneurs have earned the buyers’ satisfaction on price, quality and delivery but have repeatedly failed in “a set of standards” which marks social compliance of this business. The current research has focused on social compliance issues in RMG, focusing intensively on Ashulia industrial area to know the strategies of social compliance in RMG, and to address this issue with an in-depth analysis. The present study has applied mixed research methodology, i.e. using primary and secondary data for analysis, and other discretely devised methods for the research to find out the root causes of failure to meet those standards. The primary data was collected dividing the respondents in two different groups; one comprising the workers and the other comprising the decision makers of government, buyers and owners in this sector. Data were collected from Ashulia the main focus, while literatures from secondary sources were reviewed in details to give insights into relevant issues. The RMG sector of Bangladesh had an unplanned growth due to the diminishing jute industry which used to be the backbone of economy in the past. The push factor from that jute industry and the pull factor of the then emerging RMG sector could balance the unemployment of the workers. The major findings of the study according to the analytical framework drawn was, that among the three indicators of the social compliance business growth and customer satisfaction/ brand value was found but the most important factor worker’s satisfaction was very poor. It was found that multiple authorities govern this sector, while the social compliance issues are heavily buyer-driven. Although this sector employs millions of workers; fails to ensure workers satisfaction. This sector repeatedly fails to ensure good working environment because of a number of factors that include weak government regulations, profit-oriented mindset of the owners, and lack of proper implementation of Labour law. Implementation of Labour rights and acceptable working conditions will not be possible until and unless the country adopts specific policies with the host country’s socioeconomic perspective. For effective governance a common checklist against unified codes of conduct under a single authority is a must. The study also proposes an alternative model to postulate the effective implementation of social compliance within a legal policy framework. Till now the government has played only passive role and had an attitude of let the sector grow for profit maximization, overlooking the importance of compliance. The sector itself tried to comply with the buyers and international community in compliance issues. But day by day the situation in context of the country is becoming difficult to comply with the international rules, regulations as we have a different culture and different socio economic condition. It is not possible for the RMG sector without the help of the government authority to deal with these complexities. The government needs to take special care of this industry for a sustainable growth.