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COVID-19 debunks the myth of socially sustainable supply chain: A case of the clothing industry in South Asian countries.

ABSTRACT: The recent outbreak of the coronavirus disease (COVID-19) has exposed the fragility of the clothing supply chain operating in South Asian countries. Millions of workers have become jobless and are staring at an uncertain future. The purpose of this research is to understand the reasons behind the lack of social sustainability in the clothing supply chain operating in South Asian countries and to suggest ways for an appropriate redressal. Interviews with experts have revealed that the dominant power of some brands in the clothing supply chain is the primary reason. Unauthorised subcontracting of clothing manufacturing and the use of contract labour are also responsible for violations in the 'code of conducts' of social compliance. Post COVID-19, a sustainable sourcing model that incorporates disruption risk sharing contracts between the brands and suppliers should be adopted. Unauthorised subcontracting of clothing manufacturing by the suppliers must be prohibited. Supplier selection and the order allocation policies of the brands should also be tuned to facilitate social security of workers. The participation of NGOs and labour unions should be encouraged so that community development initiatives reach the grassroots level.

SUBMITTER: Majumdar A

PROVIDER: S-EPMC10225298 | biostudies-literature | 2020 Oct

REPOSITORIES: biostudies-literature

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COVID-19 debunks the myth of socially sustainable supply chain: A case of the clothing industry in South Asian countries.

Majumdar Abhijit A Shaw Mahesh M Sinha Sanjib Kumar SK

Sustainable production and consumption 20200706

The recent outbreak of the coronavirus disease (COVID-19) has exposed the fragility of the clothing supply chain operating in South Asian countries. Millions of workers have become jobless and are staring at an uncertain future. The purpose of this research is to understand the reasons behind the lack of social sustainability in the clothing supply chain operating in South Asian countries and to suggest ways for an appropriate redressal. Interviews with experts have revealed that the dominant po ...[more]

PMID: 37273277

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Project description:IntroductionWe found no comprehensive studies on the location of transnational tobacco and leaf company (TTLC) subsidiaries (business entities they control) or the consequences of their presence on health policy.Aims and methodsHere we assess (1) the global reach of TTLCs by mapping their tobacco growing and manufacturing subsidiaries and (2) the relationship between in-country presence of the tobacco industry and their power and interference. Data on subsidiaries were collated through systematic searching for countries' supply chain activities in documents and web pages. Cross-sectional multiple regression analysis was used to assess the association between the number of agricultural and manufacturing TTLCs and the Tobacco Industry Interference score, and the degree to which these were mediated by tobacco control, good governance, and economic importance of tobacco.ResultsTTLC supply chain activity had global reach. As the number of TTLCs with tobacco growing and manufacturing activities rose, interference increased significantly. Interference was associated with poorer tobacco control. The association with more TTLCs undertaking final product manufacturing was related to higher-value tobacco exports but was not related to tobacco making a bigger contribution to the economy.ConclusionsTTLCs continue to control the global tobacco supply chain through their globe-spanning subsidiaries. The presence of TTLCs in a country is associated with political interference. Countries should consider their participation in the tobacco supply chain alongside the understanding that they are likely to cede political power to TTLCs, potentially undermining the health of their populations.ImplicationsTobacco control research has traditionally concentrated on the demand side of tobacco. Our results lend support to calls for more research on the supply of tobacco. Governments should require tobacco companies to provide detailed, up-to-date information in an easily accessible format on in-country supply chain activities. Policymakers should take the likelihood of political interference in health and environmental policy into account when making decisions about foreign direct investment offered by the tobacco industry.

Project description:PurposeThis paper explores the issue of fairness in global supply chains. Taking the Western European clothing supply chain as a case study, we demonstrate how applying a normative indicator in Social Life Cycle Assessment (SLCA) can contribute academic and practical insights into debates on fairness. To do so, we develop a new indicator that addresses some of the limitations of the living wage for SLCA.MethodsWe extend the standard form of living wage available for developing countries to include income tax and social security contributions. We call this extension 'living labour compensation'. Using publically available data, we estimate net living wages, gross living wages, and living labour compensation rates for Brazil, Russia, India, and China (BRIC) in 2005. We then integrate living labour compensation rates into an input-output framework, which we use to compare living labour compensation and actual labour compensation in the BRIC countries in the Western European clothing supply chain in 2005.Results and discussionWe find that in 2005, actual labour compensation in the Western European clothing supply chain was around half of the living labour compensation level, with the greatest difference being in the Agricultural sector. Therefore, we argue that BRIC pay in the Western European clothing supply chain was unfair. Furthermore, our living labour compensation estimates for BRIC in 2005 are ~ 35% higher than standard living wage estimates. Indeed, adding income taxes and employee social security contributions alone increases the living wage by ~ 10%. Consequently, we argue there is a risk that investigations based on living wages are not using a representative measure of fairness from the employee's perspective and are substantially underestimating the cost of living wages from an employer's perspective. Finally, we discuss implications for retailers and living wage advocacy groups.ConclusionsLiving labour compensation extends the living wage, maintaining its strengths and addressing key weaknesses. It can be estimated for multiple countries from publically available data and can be applied in an input-output framework. Therefore, it is able to provide a normative assessment of fairness in complex global supply chains. Applying it to the Western European clothing supply chain, we were able to show that pay for workers in Brazil, Russia, India, and China is unfair, and draw substantive conclusions for practice.

Dataset Information

COVID-19 debunks the myth of socially sustainable supply chain: A case of the clothing industry in South Asian countries.

Publications

COVID-19 debunks the myth of socially sustainable supply chain: A case of the clothing industry in South Asian countries.

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