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Department of Asian & International Studies
*Strategic CSR Investment*


                                 o   is a focused strategy
      o      is related to business‟ values & strategies
             o      uses a company‟s expertise to affect
                                change




City University of Hong Kong                 2010
City University of Hong Kong   2010
*Why should I care?*

                                  1.   It‟s the law!

                               Labour Contract Law

                                         2008




City University of Hong Kong              2010
Programs managed by the Institute of
                        Contemporary Observation

  o Migrant Worker
  Community College

          Courses include:
          Civil education
          Legal knowledge


  o  Migrant Workers
  Support Center

          Services include:
          Legal consultation
          Legal aid



City University of Hong Kong      2010
*Why should I care?*

              2.    A happy worker is a productive worker.
     “...they said „yes, it paid, you know, we invested
               for half a year, we invested for a year but it
                               paid off and it paid off quickly.‟”

                                                       Interview with Maggie




City University of Hong Kong                 2010
35% of annual salary


  “over-capacity booking at the last minute, actually
     has a negative impact on what we do and the
       quality of the product and also our ability to
      service our customers. So, we don‟t want to
                    be doing it anyway.”

                                                 Interview with Jenny


City University of Hong Kong           2010
*Why should I care?*

                                3.   Moral imperative




                               Photo uploaded to facebook by Jim Pandp

City University of Hong Kong                   2010
*What is driving exploitation?*


                                  Factory management

                                       Corporations




City University of Hong Kong               2010
*Factory management*


                               1.   Lack of management skills

           2.    Management attitudes toward workers




City University of Hong Kong                  2010
*Factory management*


    “they started with a rice paddy…put a factory
                   on it and they don‟t really know about
                               management practices.”
                                              Interview with Maggie




City University of Hong Kong           2010
*Factory management*


       “They are not the commander; they are just
                               partners with everybody.”
                                                 Interview with Jacky




City University of Hong Kong             2010
*Factory management*

                             High competition
                                    +
                           Small profit margins
                                    +
                      Operating paycheck to paycheck
                                    =
                           Palpable desperation

City University of Hong Kong           2010
*Corporations*


                      1.       Unrealistic buyer expectations

                               2.   Compliance expectations




City University of Hong Kong                 2010
*Corporations*


                                       Buyers:

              “you can always find cheaper, cheaper
                               products. There is no end.”
                                                  Interview with Jacky




City University of Hong Kong              2010
*Corporations*

                   Variety of compliance expectations

                               Compliance costs

   Factories hide violations to maintain business
                & remain competitive



City University of Hong Kong         2010
*What leads to positive change?*
                        Increased collaboration
                               Brands & Factories


                                                    Ying Xie factory




City University of Hong Kong          2010
*What leads to positive change?*
                        Increased collaboration
                               Brands & other Brands

     “…be more focused on getting the issue solved
               than wondering whether or not [brand A] is
                       going to say something to [brand B].”
                                                       Interview with Jenny




City University of Hong Kong           2010
*What leads to positive change?*
                             Self-examination




          Understanding brand-related root causes


City University of Hong Kong       2010
*What leads to positive change?*
                     Engage a variety of stakeholders

                     Local expectations match the law
                               Local capacity increases

                      Local solutions to local problems




City University of Hong Kong             2010
*Conclusions*

  1.     Focused strategy

  2.     Strategies are
         related to business
                                            Strategic CSR
         values & strategies
                                             Investment
  3.     Company expertise
         is used to affect
         change



City University of Hong Kong         2010
*Conclusions*

                                Strategic CSR Investment


            1.     Positive engagement for constructive
                                         solutions

                      2.       Financial & non-financial value



City University of Hong Kong                2010
*Thank you!*

                      Nadira Lamrad
                      PhD Candidate
                City University of Hong Kong
         Department of Asian & International Studies
             nlamrad2@student.cityu.edu.hk




City University of Hong Kong       2010
*References*
  Ma, M., 2009. The story of Ying Xie: Democratic workers‟ representation in China as a tool for better
                                                          business

                                     www.cipe.org/publications/papers/pdf/SAI.pdf

                               NIKE, Inc., 2009. Corporate Responsibility Report FY07-09.

                                               www.nikebiz.com/crreport/

                                      The Institute for Contemporary Observation

                                                     ico-china.org

                                                    People & Planet

                                                 peopleandplanet.org

                                                      Handshake

                                                 handshakelabour.org




City University of Hong Kong                             2010

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CSR Trends in China's Apparel Supply Chain

  • 1. Department of Asian & International Studies
  • 2. *Strategic CSR Investment* o is a focused strategy o is related to business‟ values & strategies o uses a company‟s expertise to affect change City University of Hong Kong 2010
  • 3. City University of Hong Kong 2010
  • 4. *Why should I care?* 1. It‟s the law! Labour Contract Law 2008 City University of Hong Kong 2010
  • 5. Programs managed by the Institute of Contemporary Observation o Migrant Worker Community College Courses include: Civil education Legal knowledge o Migrant Workers Support Center Services include: Legal consultation Legal aid City University of Hong Kong 2010
  • 6. *Why should I care?* 2. A happy worker is a productive worker. “...they said „yes, it paid, you know, we invested for half a year, we invested for a year but it paid off and it paid off quickly.‟” Interview with Maggie City University of Hong Kong 2010
  • 7. 35% of annual salary “over-capacity booking at the last minute, actually has a negative impact on what we do and the quality of the product and also our ability to service our customers. So, we don‟t want to be doing it anyway.” Interview with Jenny City University of Hong Kong 2010
  • 8. *Why should I care?* 3. Moral imperative Photo uploaded to facebook by Jim Pandp City University of Hong Kong 2010
  • 9. *What is driving exploitation?*  Factory management  Corporations City University of Hong Kong 2010
  • 10. *Factory management* 1. Lack of management skills 2. Management attitudes toward workers City University of Hong Kong 2010
  • 11. *Factory management* “they started with a rice paddy…put a factory on it and they don‟t really know about management practices.” Interview with Maggie City University of Hong Kong 2010
  • 12. *Factory management* “They are not the commander; they are just partners with everybody.” Interview with Jacky City University of Hong Kong 2010
  • 13. *Factory management* High competition + Small profit margins + Operating paycheck to paycheck = Palpable desperation City University of Hong Kong 2010
  • 14. *Corporations* 1. Unrealistic buyer expectations 2. Compliance expectations City University of Hong Kong 2010
  • 15. *Corporations* Buyers: “you can always find cheaper, cheaper products. There is no end.” Interview with Jacky City University of Hong Kong 2010
  • 16. *Corporations* Variety of compliance expectations Compliance costs Factories hide violations to maintain business & remain competitive City University of Hong Kong 2010
  • 17. *What leads to positive change?* Increased collaboration Brands & Factories Ying Xie factory City University of Hong Kong 2010
  • 18. *What leads to positive change?* Increased collaboration Brands & other Brands “…be more focused on getting the issue solved than wondering whether or not [brand A] is going to say something to [brand B].” Interview with Jenny City University of Hong Kong 2010
  • 19. *What leads to positive change?* Self-examination Understanding brand-related root causes City University of Hong Kong 2010
  • 20. *What leads to positive change?* Engage a variety of stakeholders Local expectations match the law Local capacity increases Local solutions to local problems City University of Hong Kong 2010
  • 21. *Conclusions* 1. Focused strategy 2. Strategies are related to business Strategic CSR values & strategies Investment 3. Company expertise is used to affect change City University of Hong Kong 2010
  • 22. *Conclusions* Strategic CSR Investment 1. Positive engagement for constructive solutions 2. Financial & non-financial value City University of Hong Kong 2010
  • 23. *Thank you!* Nadira Lamrad PhD Candidate City University of Hong Kong Department of Asian & International Studies nlamrad2@student.cityu.edu.hk City University of Hong Kong 2010
  • 24. *References* Ma, M., 2009. The story of Ying Xie: Democratic workers‟ representation in China as a tool for better business www.cipe.org/publications/papers/pdf/SAI.pdf NIKE, Inc., 2009. Corporate Responsibility Report FY07-09. www.nikebiz.com/crreport/ The Institute for Contemporary Observation ico-china.org People & Planet peopleandplanet.org Handshake handshakelabour.org City University of Hong Kong 2010