EFFECTIVENESS OF SUSTAINABLE BUSINESS PRACTICES: CASE OF READY-MADE GARMENT COMPANIES OF BANGLADESH

Abstract

Sustainable development is an important forefront of our current affairs. Ever since its inception at the United Nations Summit in Brazil in 1992, the concept has become a significant buzzword in every sphere of life. Branching from this notion emerged sustainability and further categorised sustainable development into economic, social and environmental aspects. Sustainability in the business arena has equally gained much ground and is nowadays considered a base for strategic decision making for firms. Hence, a paradigm shift in doing business over the last decade is also observed, i.e. profit maximisation is no longer the sole motive for doing business. Integrating sustainable practices such as employee welfare, community involvement, sustainable procurement and ethical trading have all become important segments in today’s globalised world for conducting responsible business. The textile and clothing industry of Bangladesh is no different as it provides an important source of economic growth in Bangladesh’s rapidly developing economy. According to the Bangladesh Garments Manufacturers and Exporters Association (BGMEA), the ready-made garments (RMG) industry employs roughly about 4 million people and is responsible for about 70% of the country’s total exports (BGMEA, 2013). The industry is also the second largest employment sector in Bangladesh after agriculture. As RMG factories are highly resource, water and manpower intensive, their focus towards both environment and social sustainability is paramount. Besides being branded as a ‘dirty’ industry due to environmental pollution, RMG manufacturers provide a significant contribution to national income through employment and export earning of many developing countries such as Bangladesh, Pakistan, India, Vietnam, China and Cambodia. For which, the industry holds serious potential for being a game changer by incorporating sustainable practices which can transform modern day business norms.