Social Standards in the Indian Textile Export Industry and Corporate Social Responsibility

Abstract

In the recent past, especially after the Rana Plaza incident in Bangladesh, more attention has been given to the working and living conditions of the workforce in the global South, who play such a pivotal role in the creation of the products designed for the American and the European markets in the global North. The responsibility of taking care of the well-being of the labour force can be given to the international institutions like the ILO or to the OECD. It could also be given to the national governments who are ultimately responsible for making and implementing a workforce-friendly policy for their country. The trade unions could be entrusted with the task of negotiating good deals and the NGOs on the field too for taking care of workers on the field. But the most critical stakeholder in the sustainability debate are the companies. How can it be ensured that the social standards in the textile industry in India will be respected? Are the companies the central actors and can they take over the regulation themselves, or is there a need for national regulations, as has already happened in some European countries? Do these legal regulations then have implementation potential or are they toothless tigers? Are we shifting the balance of power in global governance by expecting companies to be active in the social area?