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1. With cost considerations so important in the global apparel market, will CSR issues adequately

raise demand to offset cost issues?

1. Yes, CSR issues will adequately raise demand to offset cost issues with cost considerationsso important in the global apparel market.Cost has always been an integral part of theapparel business but cutting cost may not every time serve the purpose for realizing better

profits. CSR has a potential of developing or generating demand that can help offset cost

issues.

As the concept of sustainable development have begun to hold ground in corporations and

corporate social responsibility is becoming an essential and inseparable part of the

business strategy if not short term then long term.

Some of the potential benefits of its CSR are as follows -

2. Human resources - It can be an aid to recruitment and retention, particularlywithin the competitive graduate student market. CSR can also help improve the

perception of a company among its staff.

3. Risk management - Reputations that take decades to build up can be ruined inhours through incidents such as corruption scandals or environmental accidents.

These can also draw unwanted attention from regulators, courts, governments and

media. Building a genuine culture of 'doing the right thing' within a corporation can

offset these risks.

4. Brand differentiation - In crowded marketplaces, companies strive for a uniqueselling proposition that can separate them from the competition in the minds ofconsumers. CSR can play a role in building customer loyalty based on distinctive

ethical values.

5. License to operate - Help to avoid interference in their business through taxationor regulations by persuading governments and the wider public that they are

taking issues such as health and safety, diversity, or the environment seriously as

good corporate citizens with respect to labour standards and impacts on the

environment.

In case ofYeim Tekstil (Turkey)following were can be easily observed.

Compliance Was SpeedyThere were no delays. The findings of certification audits and follow-up audits were

monitored by Yesims own management system and the expected benefits were

achieved.Factory proposed for certification at first audit (no major non conformances).

Company Awareness of Workplace Issues Was Raised2007 (end of September): Only one employee exceeded yearly limit

Grievance System Was ImprovedCommunication and training were initiated for a new grievance system.

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Feedback that its details were effectively conveyed and it is functioning.

New Programs Were Created for Environmental Health and Safety1. 37% decrease in total lost time due to incidents.

2. Lost days fell from 652 days to 414 days (238 days gained).

These facts shoe that Corporate Social Responsibility is cost effective.

2. Is enough being done to publicize certification among buyers?2. Yes, enough is being done to publicize certification among buyers and it has already

hit the world market with the name of fair trade. Certification guarantees compliance to

certainnorms by an organization. It provides a competitive edge over the competitors.

Some countries or group of countries seek some certifications that are necessary to do

trade with them, thus it becomes essential to get those certifications. These in turn

maintain the requirements of those countries are met properly.

Certification also shows the commitment of the company towards excellence. The

more the number of certifications the better it is. It has also become a form of

advertising. Still the cost of the certification have to be kept in mind and getting it

depends on many factors such as whether it is necessary, what is the chances of payback

of its cost, what are the benefits ? Etc.

Many companies now produce externally audited annual reports that cover Sustainable

Development and CSR issues ("Triple Bottom Line Reports"), but the reports vary widely

in format, style, and evaluation methodology (even within the same industry). Critics

dismiss these reports as lip service, citing examples such as Enron's yearly "CorporateResponsibility Annual Report" and tobacco corporations' social reports.

Fair trade is an organized social movement and market-based approach that aims to

help producers in developing countries make better trading conditions and promote

sustainability. The movement advocates the payment of a higher price to producers as

well as higher social and environmental standards. It focuses in particular on exports

from developing countries to developed countries.

Although no universally accepted definition of fair trade exists, fair trade labelling

organizations most commonly refer to a definition developed by FINE. An informal

association of four international fair trade networks (Fair-trade Labelling OrganizationsInternational, World Fair Trade Organization, Network of European World shops and

European Fair Trade Association) also exists.

In some nations, legal requirements for social accounting, auditing and reporting exist

(e.g. in the French bilan social), though international or national agreement on

meaningful measurements of social and environmental performance is difficult.

A number ofreporting guidelines or standards have been developed to serve as

frameworks for social accounting, auditing and reporting including:

http://en.wikipedia.org/wiki/Sustainable_Developmenthttp://en.wikipedia.org/wiki/Sustainable_Developmenthttp://en.wikipedia.org/wiki/Evaluationhttp://en.wikipedia.org/wiki/Methodologyhttp://en.wikipedia.org/wiki/Lip_servicehttp://en.wikipedia.org/wiki/Enronhttp://en.wikipedia.org/w/index.php?title=Bilan_social&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Bilan_social&action=edit&redlink=1http://en.wikipedia.org/wiki/Enronhttp://en.wikipedia.org/wiki/Lip_servicehttp://en.wikipedia.org/wiki/Methodologyhttp://en.wikipedia.org/wiki/Evaluationhttp://en.wikipedia.org/wiki/Sustainable_Developmenthttp://en.wikipedia.org/wiki/Sustainable_Development

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AccountAbility's AA1000 standard, based on John Elkington's triple bottomline (3BL) reporting

The Prince's Accounting for Sustainability Project's Connected ReportingFramework

The Fair Labor Associationconducts audits based on its Workplace Code ofConduct and posts audit results on the FLA website.

The Fair Wear Foundationtakes a unique approach to verifying labourconditions in companies' supply chains, using interdisciplinary auditing teams.

Global Reporting Initiative's Sustainability Reporting Guidelines GoodCorporation's Standarddeveloped in association with the Institute of

Business Ethics

Earthcheckwww.earthcheck.org Certification / Standard Social Accountability International'sSA8000 standard Standard Ethics Aeiguidelines TheISO 14000environmental management standard TheUnited Nations Global Compactpromotes companies reporting in the

format of aCommunication on Progress (COP). A COP report describes the

company's implementation of the Compact's ten universal principles.

The United Nations Intergovernmental Working Group of Experts onInternational Standards of Accounting and Reporting (ISAR) provides voluntary

technical guidance on eco-efficiency indicators, corporate responsibility reporting,

and corporate governance disclosure.

Verite's Monitoring GuidelinesThe FTSE Group publishes the FTSE4Good Index, an evaluation of CSR performance of

companies.

http://en.wikipedia.org/wiki/AccountAbility_(Institute_of_Social_and_Ethical_AccountAbility)http://en.wikipedia.org/wiki/AccountAbility_(Institute_of_Social_and_Ethical_AccountAbility)#AA1000_Series_of_Standardshttp://en.wikipedia.org/wiki/John_Elkingtonhttp://en.wikipedia.org/wiki/Triple_bottom_linehttp://en.wikipedia.org/wiki/Triple_bottom_linehttp://www.accountingforsustainability.org/home/http://www.accountingforsustainability.org/home/http://www.accountingforsustainability.org/output/page171.asphttp://www.accountingforsustainability.org/output/page171.asphttp://en.wikipedia.org/wiki/Fair_Labor_Associationhttp://en.wikipedia.org/wiki/Fair_Labor_Associationhttp://en.wikipedia.org/wiki/Fair_Wear_Foundationhttp://en.wikipedia.org/wiki/Fair_Wear_Foundationhttp://en.wikipedia.org/wiki/Global_Reporting_Initiativehttp://www.goodcorporation.com/http://www.goodcorporation.com/PDF/standard_2007.pdfhttp://www.goodcorporation.com/PDF/standard_2007.pdfhttp://en.wikipedia.org/wiki/Earthcheckhttp://en.wikipedia.org/wiki/Earthcheckhttp://en.wikipedia.org/wiki/Social_Accountability_Internationalhttp://en.wikipedia.org/wiki/SA8000http://en.wikipedia.org/wiki/SA8000http://en.wikipedia.org/wiki/Standard_Ethics_Aeihttp://en.wikipedia.org/wiki/Standard_Ethics_Aeihttp://en.wikipedia.org/wiki/ISO_14000http://en.wikipedia.org/wiki/ISO_14000http://en.wikipedia.org/wiki/ISO_14000http://en.wikipedia.org/wiki/United_Nations_Global_Compacthttp://en.wikipedia.org/wiki/United_Nations_Global_Compacthttp://en.wikipedia.org/wiki/United_Nations_Global_Compacthttp://www.unglobalcompact.org/COP/http://www.unglobalcompact.org/COP/http://en.wikipedia.org/wiki/United_Nationshttp://en.wikipedia.org/wiki/Intergovernmental_Working_Group_of_Experts_on_International_Standards_of_Accounting_and_Reporting_(ISAR)http://en.wikipedia.org/wiki/Intergovernmental_Working_Group_of_Experts_on_International_Standards_of_Accounting_and_Reporting_(ISAR)http://en.wikipedia.org/wiki/Intergovernmental_Working_Group_of_Experts_on_International_Standards_of_Accounting_and_Reporting_(ISAR)http://www.unctad.org/en/docs/iteipc20037_en.pdfhttp://www.unctad.org/en/docs/iteteb20076_en.pdfhttp://www.unctad.org/en/docs/iteteb20063_en.pdfhttp://en.wikipedia.org/wiki/Veritehttp://en.wikipedia.org/wiki/FTSE_Grouphttp://en.wikipedia.org/wiki/FTSE4Good_Indexhttp://en.wikipedia.org/wiki/FTSE4Good_Indexhttp://en.wikipedia.org/wiki/FTSE_Grouphttp://en.wikipedia.org/wiki/Veritehttp://www.unctad.org/en/docs/iteteb20063_en.pdfhttp://www.unctad.org/en/docs/iteteb20076_en.pdfhttp://www.unctad.org/en/docs/iteipc20037_en.pdfhttp://en.wikipedia.org/wiki/Intergovernmental_Working_Group_of_Experts_on_International_Standards_of_Accounting_and_Reporting_(ISAR)http://en.wikipedia.org/wiki/Intergovernmental_Working_Group_of_Experts_on_International_Standards_of_Accounting_and_Reporting_(ISAR)http://en.wikipedia.org/wiki/United_Nationshttp://www.unglobalcompact.org/COP/http://en.wikipedia.org/wiki/United_Nations_Global_Compacthttp://en.wikipedia.org/wiki/ISO_14000http://en.wikipedia.org/wiki/Standard_Ethics_Aeihttp://en.wikipedia.org/wiki/SA8000http://en.wikipedia.org/wiki/Social_Accountability_Internationalhttp://en.wikipedia.org/wiki/Earthcheckhttp://www.goodcorporation.com/PDF/standard_2007.pdfhttp://www.goodcorporation.com/http://en.wikipedia.org/wiki/Global_Reporting_Initiativehttp://en.wikipedia.org/wiki/Fair_Wear_Foundationhttp://en.wikipedia.org/wiki/Fair_Labor_Associationhttp://www.accountingforsustainability.org/output/page171.asphttp://www.accountingforsustainability.org/output/page171.asphttp://www.accountingforsustainability.org/home/http://en.wikipedia.org/wiki/Triple_bottom_linehttp://en.wikipedia.org/wiki/Triple_bottom_linehttp://en.wikipedia.org/wiki/John_Elkingtonhttp://en.wikipedia.org/wiki/AccountAbility_(Institute_of_Social_and_Ethical_AccountAbility)#AA1000_Series_of_Standardshttp://en.wikipedia.org/wiki/AccountAbility_(Institute_of_Social_and_Ethical_AccountAbility)