Interbrand IQ: The Best Asian Brands Issue

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brands under fire

H&M, Primark Sign Bangladesh Safety Agreement; Gap Says It's Next [Update]

Posted by Sheila Shayon on May 13, 2013 06:39 PM

The rescue efforts in Savar, Bangladesh have officially been turned over to recovery as the death toll surpasses 1,100 in what has become the worst accident in the history of the garment industry. But 20 days later, it seems that progress and change is beginning to emerge from the rubble of a decrepit industry. 

The Bangladeshi government has agreed to let garment workers form trade unions without the permission of factory owners—a breakthrough in workers' rights in a de-regulated country, where garment factories were shut down this week following worker unrest over wages and conditions.

The proposed  safety plan, backed by a coalition of labor groups, calls for independent inspections of factories and a legally binding fire and building safety plan requiring retailers to help pay for improvements to factory safety and is an amendment to the 2006 Labor Act lifting restrictions on forming trade unions in most industries.

The pact also calls for changes regarding severance payments, welfare fund payments, management practices and payment and banking standards. In what could be a game-changing announcement, Swedish retailer H&M announced Monday that it will sign the binding agreement.Continue reading...

brands under fire

As Death Toll Rises in Bangladesh Factory Collapse, Brands Face Scrutiny Over Ethics (Updated)

Posted by Sheila Shayon on April 26, 2013 05:33 PM

The death toll in the latest Bangladesh garment industry disaster has risen to more than 300 as rescue crews continue to pull survivors from the rubble of Rana Plaza and search for an estimated 500 workers still missing, with more than 2,500 already rescued.

In the aftermath of the garment factory collapse in Dhaka, Prime Minister Sheikh Hasina has called for those responsible to turn themselves in. It is believed that the building owner and factory owners are in hiding after ignoring warnings from police and industry officials to forbid workers to enter the building after cracks were discovered on Tuesday. The building collapsed on Wednesday. 

"Whoever might be the culprits, and if even they belong to our party, they won't go scot-free," the impoverished nation's Prime Minister warned. (Update: The factory owners were arrested on Friday night, when the death toll had risen to 336.)

The disaster shines a light, yet again, on global apparel companies that outsource manufacturing to Bangladesh, a practice that has ballooned into an $18 billion industry as clothing companies continue to adandon manufacturing in China, where inflation and rising wages are pushing up costs. The upshot: Bangladesh and its questionable garment industry is now the world's second-biggest garment manufacturing center.Continue reading...

corporate responsibility

Global Brands Come Under Fire as Another Factory Disaster Claims Nearly 100 in Bangladesh

Posted by Sheila Shayon on April 24, 2013 06:45 PM

The spotlight on global retailers sourcing product from Bangladesh just got brighter as another garment factory collapse in Bangladesh has killed 96 people and injured more than 1,000 in Savar, 20 miles outside of Dhaka. It’s the latest in a series of horrific accidents and fires plaguing Bangladesh's booming garment industry, including last November’s Tazreen factory blaze that killed 112 workers.

In Savar, factory owners reportedly ignored a warning about a crack in the building and an advisement to not allow workers into the five garment factories housed there, which employ mostly women. "There was some crack at the second floor, but my factory was on the fifth floor," said Muhammad Anisur Rahman, according to Reuters. "The owner of the building told our floor manager that it is not a problem and so you can open the factory." 

Rahman said his firm was sub-contracted to supply Walmart stores and Europe's C&A, but subsequently said he was referring to a past order rather than current work. Reuters reports that website New Wave, owner of two factories in the building, listed 27 majority buyers, with firms in Britain, Denmark, France, Germany, Spain, Ireland, Canada and the United States.Continue reading...

sustainability

Greenpeace Challenges Fashion Industry to Become Environmental Leaders

Posted by Sheila Shayon on February 7, 2013 06:46 PM

As many high-end brands show off their latest designs at New York Fashion Week, Greenpeace has a big message for the fashion world at large: It's time to clean up your act.

The latest from Greenpeace’s global Detox campaign is its “Fashion Duel,” with Italian actress Valeria Golino leading the charge for the industry to make environmental stewardship a priority in their operations.

The "duel" sets out to rate 15 Italian and French high-end luxury brands on three areas of the global supply chain — leather, pulp and paper and toxic water pollution — and highlights their differences in policy on toxic water pollution and deforestation.Continue reading...

sustainability

Uniqlo Signs Greenpeace Detox Pledge

Posted by Shirley Brady on January 9, 2013 12:09 PM

Greenpeace has added Uniqlo to its list of global fashion brands and retailers signing its Detox pledge, making "a public commitment to eliminate all releases of hazardous chemicals throughout its entire global supply chain and products by 2020."

The commitment covers all Fast Retailing-owned brands — Uniqlo, Comptoir des Cotonniers, Princesse TamTam, GU and Theory — which together operate more than 2,000 stores. "Uniqlo recognises clean water as a critical global issue, and is proud to join Greenpeace in its campaign to eliminate hazardous chemical use," stated Yukihiro Nitta, Fast Retailing's executive in charge of social responsibility. The company also vowed to disclose discharge data from at least 80% of its global suppliers (including all their facilities) by the end of this year.  

As the environmental group blogged, the Uniqlo deal "comes just a month after Zara, Mango, Esprit and Levi's announced similar individual commitments, responding to waves of pressure from activists and consumers around the world. Competitors in the fashion world including GAP, G-Star Raw and Calvin Klein are looking increasingly out of touch now that 12 of the world's top high street fashion brands have committed to Detox." Other Detox signatories include Adidas, C&A, H&M, Nike, Puma and M&S.

corporate responsibility

Bangladesh Factory Fire Highlights Brands' Supply Chain of Ethics

Posted by Sheila Shayon on December 7, 2012 03:21 PM

As countries like Bangladesh move up the food chain from aid to trade, the global eco-system fueling the fire, literally and figuratively, is largely the retail fashion industry, feeding the western world’s insatiable appetite for fashion. 

The November 24th factory blaze that killed 112 garment workers in an illegal factory in Bangladesh showed the world, as Reuters puts it, that “pressure from big Western brands to produce huge volumes of apparel fast and at rock-bottom prices, [is making] Bangladeshi suppliers routinely sub-contract their orders.”

As the victims — many of them young women and mothers, all of them poor — are mourned and the Clean Clothes Campaign organizes vigils at C&A and beyond as part of a bigger shame campaign for brands whose labels were found in the ashes, what’s really on trial, as the New York Times points out in a scathing article today, is ethical sourcing and a severely out-of-balance equation claiming the lives of impoverished workers with no options.Continue reading...

corporate responsibility

Greenpeace Claims Success as Zara Bows to Detox Campaign

Posted by Mark J. Miller on November 29, 2012 10:56 AM

Greenpeace is doing battle against the fashion world. In the past week, it organized more than 700 volunteers in more than 80 cities in 20 countries to dress up like mannequins and stage “walkouts” of Zara stores as a protest against the company for using any hazardous chemicals in its supply chain.

The “Detox Zara” campaign has spread to include all of fashion; the eco-campaigner's latest video, above, is a manga style trailer called "Detox Fashion" (tagline: "Toxic is so last season.")

The campaign has worked, according to Greenpeace's Tristan Tremschnig: "Zara — the world’s largest retailer — has now committed to clean up their supply chain and Detox following 9 days of intensive pressure from people around the world. This included over 320,000 people joining the campaign online, over 44,000 mentions of Zara and the Detox campaign on Twitter alone, and a reach of over 7.1 million people across Twitter and Weibo. Not forgetting our activities on Facebook, Pinterest and outside the brand’s stores."Continue reading...

corporate responsibility

Bangladesh Factory Fire Puts Ethical Sourcing, Factory Conditions in Spotlight

Posted by Sheila Shayon on November 26, 2012 04:04 PM

In a fiery furnace of déjà vu, a garment-factory fire in Bangladesh on Saturday killed 112 people trapped inside the building, or jumping to their deaths in buildings where safety is ignored in a retail rush for products to export.

It was just over a century ago — March 25, 1911 — when the now infamous fire in the Triangle Shirtwaist Factory on New York's Washington Square left 146 workers dead because the owner had blocked exits and stairwells to keep employees from leaving or taking a break. The tragedy led to reforms and unionization for U.S. garment workers, but here we are a century later, and it's happening again in Bangladesh.

About this latest firetrap, which has sparked mass protests in Bangladesh, AP writes: “The fire alarm: Waved off by managers. An exit door: Locked. The fire extinguishers: Not working and apparently 'meant just to impress' inspectors and customers. 'Had there been at least one emergency exit through outside the factory, the casualties would have been much lower,' said Maj. Mohammad Mahbub, fire department operations director.

The factory is owned by Tazreen Fashions Ltd., a subsidiary of the Tuba Group, and has produced garments for Walmart, Carrefour, C&A and IKEA, since opening in 2009 and employing about 1,700 people. Walmart's connection to the factory is still "unclear," as Salon notes. A 2011 Walmart ethical sourcing audit gave Tuba Group a yellow rating and requested that it address unacceptable conditions at its factories.

Update: Walmart stated on Monday that the factory in question was indeed producing pieces for the retailer — but without its knowledge, due to a subcontractor arrangement. "Today, we have terminated the relationship with that supplier," America's biggest retailer said in a statement. "The fact that this occurred is extremely troubling to us, and we will continue to work across the apparel industry to improve fire safety education and training in Bangladesh."Continue reading...

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