The Fabric of Social Responsibility

2004-10-14

When Linda Bowen was pregnant with her fifth son, she was given a set of organic cotton sheets as a gift.  The avowed organic consumer loved their softness and began to search for affordable "green" clothing for her growing family.

"I was blown away by the negative environmental and social impact of manufacturing conventional cotton," said Bowen.  "I thought, I've got a child I'm bringing into this world, along with my older sons, and I wanted to teach them to think about what they put on their backs and in their mouths.  I wanted to dress them in environmentally and socially responsible clothing."

Not finding what she wanted, Bowen decided to start her own business.  As President of Sage Creek Naturals of Sooke, BC, she now designs, manufactures and sells her own line of organic cotton clothing and exports 80 per cent of her goods to markets outside Canada.

Her search for a reputable organic cotton farm and manufacturing facility led her to India.  Through diligent research and her affiliation with an organic trade association based in Europe, Bowen found a cooperative that works for Oxfam and Greenpeace.

"From the beginning, my goal was to have everybody win," said Bowen.  "The consumer would get an affordable organic product and the people working on the farm and in the factory would be treated with respect, as would their land.  When I inspected the facility, I felt so good.  It was an organic full circle from the seed planted in the earth, to the whole manufacturing process, and finally to the garment worn by a newborn."

Bowen's commitment to socially responsible business practices is becoming more widespread in the apparel industry as companies are beginning to realize the impact of good corporate citizenship on their bottom line.

Though CSR may be a hot trend right now, its impact on how corporations do business will have a lasting effect that can only have positive ramifications for consumers, workers and the health of the planet.

Denise Taschereau, Social and Environmental Responsibility Manager for Mountain Equipment Co-Op (MEC) suggests that the 1999 World Trade Organization meeting in Seattle was a turning point for consumers. "They began to think about where their stuff was coming from, who was making it and how it was manufactured.  Some really important messages became ingrained in our collective psyche.  People want to feel good about what they're buying."

This kind of message was pervasive at a conference in Sweden held by the International Organization for Standardization (ISO) this past June.  A green light was given to develop a far-reaching voluntary CSR standard by 2007.  The standard will be written in plain language so that it is easy to understand and implement.  A working group that will report directly to the ISO's Technical Management Board will meet in the Fall of 2004 to start the painstaking process of defining terms of reference and operating processes.  The group will be co-chaired by a developed and developing country, a significant decision that underscores the importance of CSR standards for emerging nations, says Dr. Kernaghan Webb, Chief Research and Senior Legal Policy Advisor to the Canadian Office of Consumer Affairs, Industry Canada, and a member of ISO's Strategy Advisory tasked to look into CSR standards.

"Developing countries view ISO CSR standards as being a bridge for them to the world market," he said.  "They will help their companies demonstrate responsible corporate governance to not only their own citizens but to the whole world.  It's good for business."

Webb pointed out that a diverse set of stakeholders – from the International Chamber of Commerce to labour and environmental organizations -- all supported the ISO's decision, demonstrating an across-the-board agreement that an ISO CSR standard could make a useful contribution, especially as it wouldn't override existing guidelines and conventions set by the International Labour Organization (ILO), SA8000, the Global Reporting Initiative, the OECD's Multinational Enterprise Guidelines or the United Nation's Human Rights Declaration and Global Compact.  "The ISO advisory group made it very clear that any standard would enhance what has already been written," he said.  "We didn't want to overshoot the bounds of what ISO was capable of doing while acknowledging that it has a very important contribution to make."

MEC's Taschereau applauds ISO's move to develop a CSR standard, saying it will be a good starting point for companies looking to develop their own definitions of accountability.  "It'll be interesting to see what emerges," she said.  "If there's something in it that could add value to what we're doing now, we'd definitely embrace it."

Indeed, MEC is internationally known for its commitment to CSR and good stewardship, something that comes naturally to the Co-op and its staff says Taschereau.  "We're driven by our mission, mandate and values.  CSR is something that has affected us since our inception.  We have a strong commitment to our community.  CSR is ingrained in the way we work and how we view ourselves.  It's not a separate piece that somebody has thought up along the way."

MEC's commitment to CSR is far-ranging and includes funding for environmental causes such as protecting endangered Canadian rivers, recycling batteries, encouraging employees to walk or take public transit to work, and constructing "green" stores that tread lightly on their building sites.  It also has put in place a stringent code of conduct for both domestic and offshore suppliers.

"Our suppliers have to go through a rigorous and long process before we sign on," said MEC's Production Manager, Naomi Ozaki.  "After an initial visit by a MEC representative, they have to pass a social and environmental audit.  If there are issues out of that audit – and there almost always are – there are actions documented for the factory and they're sent back to them with a plan for remediation.  We'll then do a follow-up to see if they've complied.  In order to work with us, they must be open to unexpected visits by MEC staff and by our third party auditors.  If they can't meet our standards even after we've worked with them to try and improve things, we'll let them go."

The move toward good corporate governance is not only to placate an increasingly savvy consumer, it's also the right thing to do, according to George Heller, President and CEO of the Hudson's Bay Company.  "At the heart of these initiatives is the realization that we, as retailers, understand that through our order books, we can and must be a component in creative positive change," he said in a June 2003 speech to the UN Global Compact.  "The choices we make have the potential to improve the working conditions of hundreds and thousands of people around the world – a far greater return than simply establishing good business practices."

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This article first appeared in Volume 31 of CONSENSUS Magazine, 2004.  The information it contains was accurate at the time of publication but has not been updated or revised since, and may not reflect the latest updates on the topic.  If you have specific questions or concerns about the content, please contact the Standards Council of Canada.

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