A Presentation on

THE IMPORTANCE OF CSR MANAGEMENT IN RMG

INDUSTRY IN BANGLADESH
 Submitted By

Md. Naimul Alam

ID: 181-068-4222
Batch: 181
Section:E2
MBA in Apparel Merchandising
Department of Business Administration
 INTRODUCTION

Readymade garments (RMG) sector plays the auspicious

role in our economic development. Nowadays this RMG
sector faces several remarkable tragedies which indicate the
need of CSR in this area. Corporate Social Responsibility
(CSR) is a relatively new and rapidly developing
phenomenon. After the tragic incident Rana Plaza and
Tazreen Fashions, the image of our garments industry is
entirely damaged. But the scenario is changing day by day.
Many good practices are implemented by the factory owner
which is outstandingThe primary objective of this paper
shows the present scenario of CSR practices and importance
of CSR practices in RMG sector.
 INTRODUCTION

Readymade garments make up 80 percent of the country's $24 billion in annual exports and
15 percent share of GDP. Consultancy firm McKinsey and Company has said Bangladesh could
double its garments exports in the next 10years.
Bangladesh is the world's second biggest exporter of clothing after China.
Although Bangladesh is not developed in industry, it has been enriched in Garment industries
in the recent past years. In the field of Industrialization garment industry is a promising step.
The sector now dominates the modern economy in export earnings, secondary impact and
employment generated. It has given the opportunity of employment to millions of
unemployed, especially innumerable uneducated women of the country. In less than a
decade it increased its exports, foreign exchange earnings, and contribution to the GDP by
4.39 %. RMG exports reached a steadfast figure of USD 17.91 billion in the fiscal year 2010-
2011; accounting more than 78% of national export earnings, which was about 4%-5% of the
global total of such exports.
 INTRODUCTION

It further contributes 10% to the country's GDP. Bangladesh's garment

industry employs about than 3.6 million workers which 2.8 million are
women. Bangladesh’s garment industry employs about than3.6 million
workers which 2.8 million are women.

Corporate social responsibility has emerged as a major issue in the

Bangladesh RMG sector. Despite the additional costs these compliance
demands a place in the area, there are sound economic reasons why the
Bangladesh garment industry should implement CSR. If the RMG
Industry fails to implement CSR, it may lose its global markets. Lack
of enough practicing CSR could harm Bangladesh's competitiveness as
a supplier of ready-made garments. This could have dire results: the
closure of most of the garment industry with millions of employees
losing their jobs; the decline of economic growth
 Objective of the study:

The primary objective of this study is to find out

• How our RMG sector plays a crucial role in our

economic development and
• The concept of CSR and
• Importance of CSR in our RMG sector
• Scenario of CSR practices in our RMG sector
 Methodology:

This Presentation mainly based on literature review and

some factory visit.
 The concept of CSR:

The most common definition of CSR is by the World Business Council for Sustainable
Development: “The continuing commitment by business to behave ethically and
contribute to economic development, while improving the quality of life of the workforce
and their families as well as of the local community and society at large."

Corporate Social Responsibility assumes that the companies are socially conscious to
discharge their social obligation for the well- being of the society.
 Why RMG need CSR:

According to the IMF, Bangladesh’s economy is the second fastest growing major
economy of 2016 (Dec), with 7.11 percent Gross Domestic Product (GDP)
growth rate where the growth rate was 6.12 percent in 2015. Contribution of
industry to the GDP was 28.1%, where RMG sector donate the biggest part. Since
2004, Bangladesh averaged a GDP growth of 6.5%, which has been importantly
driven by its exports of readymade garments . Recent incidents like fire in the
Tazreen Fashions factory 2012 that killed more than 110 and the collapse of the
Rana Plaza garment factory building in April 2013 that killed over 1,100 people
and more than 2,500 were injured in the disaster. It may be the second biggest
industrial accident in recent history. The image of the garment’s industry has
been threatened by these accidents, showing the presence of severe structural
challenges but also the lack of corporate responsibility in addressing issues
related to labor practices, safety and security, environmental impacts, among
others. There are many problems exist in this garments industry.
 Scenario of CSR practices in RMG
sector:

The discussions on CSR practices in Bangladesh in its modern global terms, is relatively new. In
general, it is true that in Bangladesh, the status of labor rights practices, environmental management
and transparency in corporate governance is not satisfactory, largely due to poor enforcement of
existing laws and inadequate pressure from civil society and interest groups like Consumer Forums.
Globally, as CSR practices are gradually being integrated into international business practices and
hence is becoming one of the determining factors for market accesses, it is becoming equally
instrumental for local acceptability. A focus on CSR in Bangladesh would be useful, not only for
improving corporate governance, labor rights, work place safety, fair treatment of workers, community
development and environment management, but also for industrialization and ensuring global market
access. By now, many CSR dimensions are practiced in Bangladesh
Scenario of CSR practices in RMG
sector:
Scenario of CSR practices in RMG
sector:
Scenario of CSR practices in RMG
sector:
Scenario of CSR practices in RMG
sector:
Scenario of CSR practices in RMG
sector:
Scenario of CSR practices in RMG
sector:
TURNOVER POINTS:
TURNOVER POINTS:
Scenario of CSR practices in RMG
sector:
 Better initiatives are taken by factories which
are promising sign for Bangladesh:

After the incident of Tazrin and Rana plaza, there was a misconception about the
garments industries in Bangladesh. The working environment of knitwear and garment
industries of Bangladesh faced stern criticism worldwide after Rana Plaza building
collapse tragedy but the scenario is totally changed. The conditions will improve day by
day. Many positive things are happening in nowadays. One of example is Denim Expert
limited. The company has certifications WRAP, SEDEX, BSCI and has been accredited
ISO 9001:2008 (Quality and Management System) and ISO 14001:2004 (Environmental
Management System), with an in-house compliance management team. They think the
employee is an important part of their company and without them they are nothing. That's
why they provide many facilities to their employees and workers. They practice many
CSR activities which really amazing.
 Recommendations for improvement of the
overall situation CSR in BD:

Ideally, well-managed CSR creates social and environmental value, while supporting a
company’s business objectives and reducing operating costs, and enhancing relationships
with key stakeholders and customers. It is therefore imperative that corporations establish
a CSR unit whose primary responsibility is coordinating and integrating initiatives in all
three theatres in which a company is engaged in, even if responsibility for the various
initiatives remains dispersed throughout the company. This CSR unit, however, needs to be
headed by a person who has senior management rank and holds the position as his/her
primary responsibility. It is not uncommon for CSR offices to be headed by managers who
split their time between CSR and other corporate responsibilities, such as head of Human
Resources or Operations. For example, the 2011 survey of CSR managers and executives
revealed that in all three CSR domains, dedicated CSR executives spent an average of only
about 35 percent of their time on managing and administering CSR programs, with some
professionals devoting less than that percentage of their time to CSR responsibilities.
 Recommendations for improvement of the
overall situation CSR in BD:

Following recommendations for businesses in order to engage in CSR activities with an

increased level of efficiency:

a) Achieving increased level of cooperation between the various departments of the

business in terms of achieving CSR related aims and objectives;
b) Engagement in strategic use of social investment budget;
c) Introducing CSR aspects of the business at the initial stages of the project and integrating
it with long-term aims and objectives;
d) Specifying the activities of stakeholder identification and engagement as a continuous
process;
e) Ensuring the existence of CSR skills in all employees within the organization;
f) Implementing an effective audit/review system in terms of improving the quality of CSR.
 Conclusion:

RMG sector is the significant area which creates lots of opportunity for the job. Many
female workers get the chance to earn money. Women empowerment created through this
area. Our living standard will improve day by this sector. This area can sustain long term in
a competitive market by practicing CSR. So government should pay attention to implement
CSR, and all stakeholders should act responsibly for ensuring sustainable development in
this sector. There is an old and very common assumption that companies implementing
CSR often underperform but this statement is nothing but furthest from the truth.
Numerous researches conducted of late by various firms suggest that organizations
adopting CSR enjoy higher returns on investment as well as corporate growth and
responsibility and that too in comparatively shorter span of time as compared to non- CSR
organizations. As Niall Fitzgerald Former CEO, Unilever once said; “Corporate social
responsibility is a hard-edged business decision. Not because it is a nice thing to do or
because people are forcing us to do it… because it is good for our business.”
Thank you!