“The Low Price” of the textile discounter KiK – consequences for labour conditions in textile factories in Bangladesh: Difference between revisions

Stefan Heinig, the CEO of KiK, points out: “At KiK, the social, ecological and economic added value is very important. This is why today, we take advantage of our strength and size to campaign for the principles of sustainability and to promote continuous improvement. In 2006, we established a strict code of conduct to which all our suppliers are committed. We consequently work on the implementation of the entailed demands. Even though it needs a lot of effort, patience and the ability to take occasional setbacks, our measures in regards to social responsibility serve as role models in the discount domain and help to impose standards.”<ref name="C">CSR brochure of KIK. (2010, October). Retrieved February 26, 2011 from http://www.kik-textilien.com/uploads/media/CSR-Broschuere_eng.pdf</ref>  

The adherence of the code of conduct rules is controlled systematically by inspections that are carried out by independent audit organisations. These social audits do follow a schedule plan that is showed in figure 2.<br>  

This case study focuses on the globalisation issue in a concrete case. Globalisation leads to the opportunity to buy labour where ever you like for the cheapest price. Big discounter like the German garment discounter KiK use the new opportunities and let their garment products produced in Bangladesh. The Bangladeshi economy benefits from this but also falls in dependence because about 76% of their export-volume today is based on their textile industry. After the phase-out of the “Agreement on Textiles and Clothing” of the World Trade Organisation price-reductions take place to keep the client orders. The workers stand on the lowermost hierarchy level. They have to suffer directly from low prices and very short-term delivery promises.  

I do support the idea of installation code of conducts but in my opinion it isn’t enough to delegate such inspections once or twice a year to an audit-team that visits some factories. I think a huge company like KiK should have a special and direct interest in social responsibility. They can actively do something for the workers at their supplier factories if they do stress in their contracts that they are willing to pay a higher, “fair” price if the supplier is willing to pay more wage to his workers and strictly follow the rules of the code of conduct. The payment and working conditions need to be controlled permanently by a changing group of KiK management members who stays directly in the Bangladeshi factory. In such a control system it is in fact impossible to present a “show” for one day. The everyday control will lead to the rise of a new feeling of security around the workers. The problem of corruption is avoided by a steadily rotation of controllers. In addition the discounter should conclude a long-term contract with its supplier, so that the job safety can be guaranteed.<br> <br>It would be really good if such big discounters like KiK with their market power decide to follow my propositions but I indeed take a very gloomy view of that. The consequence out of that must be the installation of governmental rules for worldwide trade and production. The government or worldwide organisations like the WTO, the EU or the USA should agree on strict rules for labour conditions and invent an independent powerful audition system. If the biggest industrial nations agree upon these rules of labour conditions they can link their import on the adherence of these rules. In this case the developing countries and their clients would have a direct stimulus to achieve the required aims because otherwise they cannot export or import anything.  

<br>--[[User:Reibe|Reibe]] 17:50, 28 February 2011 (CET)<br>  

= <u></u>Literature review<br>  =