From USA-ITA OFF THE CUFF for August 30, 2013

The word “compliance” is the industry’s favorite buzzword these days, so it’s no surprise that many of the discussions during SOURCING at MAGIC focused on it.  Unlike “rocker chic” or colored denim, however, “compliance” is not something you do just because it’s trendy. Throughout the four days of the trade show, experts hammered it into our heads: compliance is non-negotiable.

On Monday, August 19th, attendees got a “wake-up call” with experts in all aspects of compliance. Katherine Stein, Director of Softlines International Business Development for SGS, an Associate Member of USA-ITA, led a discussion with Avedis Seferian, CEO of Worldwide Responsible Accredited Production (WRAP), also an Associate Member; Jeanine Ballone, Senior Director at PVH and Founder of the Zero to Hero Foundation; and a representative from the Apparel Export Promotion Council of India, which was the featured country in the sourcing hall this year.

SOURCING at MAGIC August 2013

Katherine Stein of SGS (right) introduces the panel on compliance featuring WRAP and PVH at SOURCING at MAGIC in August 2013. (Credit: USA-ITA)

Seferian stressed the importance of social compliance being a non-negotiable part of your normal sourcing operations—not an “add on.” How do you do this? First, the commitment must come from the top of your organization. Second, after you have management’s support, put someone in charge of it. If social compliance is a “collective responsibility,” then ultimately, it’s nobody’s responsibility.

Ballone agreed, adding that it’s not enough to be socially compliant in the factory; your company must be a global citizen and help the community surrounding the factory. (Zero to Hero can help you!)

The speakers agreed that while compliance is important so you do the right thing for your workers and their communities, compliance also makes good business sense. You should not view compliance as an expense, but as an investment that will help you save money in the long term. If you have happy workers, you will more efficient workers—as well as workers who will stay at your factory in the long term, which means less time and money spent on training.

You know compliance is critical, but once you have the support from management and someone in charge, what happens next? The discussion continued on the show floor during an event hosted by WRAP for sourcing executives and manufacturers. Sustainability allows us to “do what we’re doing now without endangering the ability of future generations to do it,” said Seferian. “It’s the right thing to do and it’s good for business,” he added.

SOURCING at MAGIC August 2013

WRAP's Avedis Seferian talks about compliance on the SOURCING at MAGIC show floor in August 2013. (Credit: USA-ITA)

Seferian provided tips for both sourcing executives and manufacturers on how to achieve compliance. What should sourcing executives do?

  1. Go in with your eyes open. You must know where you’re placing orders, and what is happening there.
  2. Get management involved. You must have commitment from your company’s top management; as noted, compliance cannot be viewed as an expense, but a non-negotiable aspect of your sourcing. Likewise, look for management systems in the factory. If the factory has strong leadership and strong organization, chances are it has a stronger commitment to compliance, too.
  3. Finally, training is key. You must continually educate your employees about why you’re committed to compliance.

And what about the manufacturers? Factories need to engage in real dialogue and hands-on training with the experts. WRAP can provide “best in class” training, as this “sweatshop watchdog” has trained and certified 1,750 factories covering 1.5 million workers.

SOURCING at MAGIC August 2013

WRAP's Hong Mei talks about WRAP's training offerings on the SOURCING at MAGIC show floor in August 2013. (Credit: USA-ITA)

If these points sound familiar to you, your company is likely on the right path when it comes to compliance. But, if compliance is still just a buzzword to you, it’s time to make it part of your everyday rhetoric. 

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