Social accountability has become an increasingly important tool for the importing countries to motivate the suppliers to maintain a high level of social and environmental performance. The main aim of social accountability program is to ensure that business partners abide by regional laws as well as comply with the company's commitment to social responsibility. India is one of the important garment sourcing destinations in Asia.

In a world where people are becoming increasingly concerned about responsible production policies, ecology, and environment, there is a greater demand for greener textiles in the foreign markets. More and more companies in India are realizing the importance of the term corporate social responsibility (CSR) norms that have been laid down by the importers as a precondition for doing business with other countries.

The concept of CSR has moved far beyond the simple definition of ethical trading and has now grown in importance to become a system of managing a company in a way that balances interests or all stakeholders, customers, employees, investors, suppliers, society, government, and environment. With to workers on the parameters of human rights and dignity of work, retailers worldwide are under pressure to give 'sweatshop-free' clothing to the consumers.

International Standard, SA 8000, know as Social Accountability 8000 is the international standard for management systems, primarily dealing with the working conditions. The principles of SA 8000 are:

• No child labor
• No forced labor
• Health and safety of workmen to be ensured
• Freedom of association and right to collective bargaining to be respected
• No discrimination on the basis of sex, religion, caste, etc.
• No unjust disciplinary practices
• Working hours not more than eight hours
• Fair compensation (wages), and
• Management systems to be in place to monitor the implementation of the standard

Future challenges for the Garment Sector

Changes in international sourcing environment are posing many challenges for the Indian suppliers. These challenges are mainly concerned with such issues discussed above. First of all, competing sourcing destinations are now being assessed in the light of new developments related to enhanced concerns for workers and workplace.

Second, increasing awareness and acceptance of such standards will also ensure in the future that similar demands start coming from domestic market.

Third, for fulfilling the desired objectives, awareness, facilitation and support for producers and importers must be ensured.

In the recent business environment, all major international retailers, such as GAP, Nike, IKEA, Levi's, H&M, Sara Lee, Jockey International, and VF corporation have started participating in the improvement of working conditions in the garment factories from which they source, and many of such initiatives have resulted in improvements in the working conditions of the workers. As the issues of improving on the job working conditions are being addressed, companies are realizing the importance of going beyond the factory and participating in improving the quality of the life of workers.

In India, according to available estimates, there are 58 WRAP certifications, 111 SA 8000, and more than 125 AVE audits. Besides this, manufacturers are also keeping up with regular monitoring under code of conduct with specific buyers. GAP is working with over 100 factories, H&M with nearly 60, Kellwood about 40, and Tilburg with around 50 factories for ensuring compliance for their buyers. It is estimated that exporters with a turnover of more than Rs.50 cr are being monitored for compliance and such exporters account for more than 75 percent of exports from the country. Such certification will enhance the 'social image' of Indian suppliers worldwide, leading to a better market share and higher unit value realization. Also, the companies will be able to improve the relations between their management and work force and create a healthy work environment, resulting in higher labor productivity.