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    High Cost Chinese Textile Enterprises CSR Strategy Weighs Ahead

    2008/4/10 13:03:00 15

    High Cost Chinese Textile Enterprises CSR Strategy Weighs Ahead.

    At present, the increasingly difficult situation of Chinese textile enterprises facing the increasingly hot topic of corporate social responsibility (CSR) is even more embarrassing.



    Since last year's export tax rebate has been shrinking, the RMB's rapid appreciation, the main traditional export destinations, the European and American countries and other countries frequently adopted anti-dumping policies, as well as the domestic labor and raw material costs rising, the implementation of corporate social responsibility strategy will undoubtedly bring new cost challenges to enterprises.



    "If we operate strictly according to the requirements of CSC9000T, the cost of an enterprise for each employee will increase by more than 3000 yuan a year," he said.



    The company has more than 8000 employees, and this alone will increase the cost of the company by about 24000000 yuan.

    In 2007, the company's profit in textile business was very small.



    CSC9000T was officially launched by China Textile Industry Association in 2005.

    This system is the first and the only social responsibility management system launched by the national industry association.

    It is reported that the NDRC has asked the association to revise the 2005 edition of CSC9000T.

    The second edition of CSC9000T will likely become an industrial social responsibility standard system, not a management system.



    In April 7th, the second phase of corporate social responsibility trainer training course jointly organized by China Textile Industry Association and China EU project started in Shanghai.

    More than 40 persons from two textile industrial clusters in Jintan, Zhejiang and Pinghu participated in the training.



    Profit risk: spinning enterprises are hard to choose CSR



    Recently, another rumor has made textile enterprises panic.

    Industry rumors that textile and garment export tax rebate rate will be reduced from 11% to 7%.



    "The decline in the export tax rebate rate has reduced our profits by tens of millions."

    Teng Zhenhua, deputy general manager of Pinghu Mo Hua Industrial (Group) Co., Ltd., told reporters.

    And the rapid rise of the RMB exchange rate also let the export oriented enterprises feel the squeeze of profits.



    "If it is implemented in accordance with the requirements of the CSC9000T management system, it will increase the labor cost of 2% to 3%.

    As for the implementation of the management system in other aspects of the cost increase is inevitable, such as environmental protection, energy saving and so on.

    Tani Zheaki, deputy general manager of Beijing bronze cattle Limited by Share Ltd.



    In April 7th, in the training course, the more than 40 trainees, general manager of East Germany, the German general manager of hander Technical Supervision Service Co., Ltd., said: "when considering the working environment, you should think of your employees as your own children.

    In such a working environment, are you willing to let your children work?



    Like CSC9000T, many European and American buyers adopted corporate social responsibility standards for suppliers when they checked factories, such as WRAP, SA8000 and so on.



    "If fully implemented in accordance with the standards required by various systems, many textile enterprises that lack adequate hardware foundation will be challenged at cost."

    Xu Hui, chief consultant of Shanghai know business management consulting company, told reporters.



    However, in the view of Ye Wei, deputy general manager of Limited by Share Ltd in red bean industry, the current situation does not have much impact on red beans.

    "We have been doing factory inspection for 15 years.

    Over the years, the factory's requirements for improvement have made us feel under too much pressure.

    Because the cost of hardware facilities and management cost has been diluted, and now we have enjoyed the benefits of implementing CSR.

    She said.



    Teng Zhenhua said: "on this issue, there is" bad money drives out good money ".

    He pointed out that in international procurement, buyers and sellers in Europe and the United States eventually place their orders at the lowest price of processing fees.

    "If buyers can strictly control the CSR standard and consider the order price on the basis, everyone can do well.

    However, the present situation is that many enterprises can be certified by false means, and they do not really pay much for the improvement of social responsibility.

    This makes the enterprises who really invest in it suffer losses.

    He said.



    Walking backward is not long.



    Even though the days are hard, textile enterprises are still an unavoidable topic to fulfill CSR.

    "This is related to the survival of enterprises."

    Tani Zheaki said.



    Tani Zheaki said that the difficulty of recruitment in recent years has led enterprises to pay attention to the rights and interests of employees.

    "If the working environment is bad and the wages are not high, who will be willing to work in this enterprise?"

    He said that the staff rework rate of Beijing copper bull Limited by Share Ltd has reached about 93% this year, thanks to previous work in these areas.

    Ye Wei said that the red bean Limited by Share Ltd's staff rework rate reached 97.5% this year.

    Teng Zhenhua said that the local workers' rework rate reached 97% this year.



    The above companies are the first batch of 10 implementing enterprises of CSC9000T implemented by China Textile Industry Association.



    The concern of employees on the rights and interests of employees may solve the problem of rework rate to a large extent, and in another way, it may affect the problem of labor productivity.



    A senior executive of a large textile enterprise told reporters that the frequent movement of employees in labor-intensive enterprises will affect labor productivity to a large extent.

    He said, how to make employees, especially the employees in the field, have a sense of belonging to the enterprise, which is actually a level of corporate social responsibility.



    The general principles of the CSC9000T management system clearly indicate that the CSR management system of Chinese textile enterprises put forward the requirements for enterprises to undertake social responsibilities and establish corresponding management systems, so that enterprises can formulate and implement CSR management systems in accordance with Chinese laws, regulations and other international conventions that should be observed.



    If these enterprises fail to comply with corporate social responsibility, do they really abide by the laws and regulations?

    If they fail to abide by laws and regulations, can they survive?

    Of course.

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