Stakeholder engagement strategy for the textile sourcing from India
Student name: Ms Himani Bist
Guide: Dr Arabinda Mishra
Year of completion: 2007
Host Organisation: Ernst & Young Pvt. Ltd.
Supervisor (Host Organisation): Mr Arvind Sharma
Abstract: Globalization and liberalization have provided a great opportunity for corporations to expand their production-base and market share in India. However this has also posed a great challenge to the sustainability and viability of mega-businesses, which are generally perceived as moneymaking bodies with no interest in environmental or social concerns. However, with the growing focus on sustainable development, companies today are increasingly expected to perform according to a ‘triple bottom line’ concept of economic, social, and environmental performance. Therefore ensuring a socially responsible behavior has become an important part of their business strategy.
There has been a considerable shift in ensuring corporate responsibilities from an earlier emphasis on governmental regulation to increasingly sophisticated approaches of stakeholder engagement. Progressive businesses are increasingly becoming aware of the interconnections and complexity of environmental, social and economic issues and recognize that they cannot act alone to find solutions. Stakeholder engagement is rapidly emerging as a vital tool to develop an understanding of what sustainability means for companies and how it can add value and viability to their operations
The present study aims to explore the use of stakeholder engagement as a tool for retailers to ensure a sustainable textile sourcing from India, an industry which although showing large retail potential is facing extreme challenges in terms of compliance to environmental and social standards. The study looks at social issues/ concerns of the key stakeholders involved in the supply chain and suggests various approaches of stakeholder engagement, which can be used to shift from philanthropy to practice. Largely from a business perspective, the study is based on literature review and interactions with the stakeholders related to textile sourcing. Various matrices have been used to identify and prioritize stakeholders.
Such stakeholder analysis will not only lead to identification of risks and opportunities but would also help in brand value enhancement by demonstrating responsible employment and site management practices.
