Competitiveness and CSR in the Jordanian Apparel Industry
January 2008
In June 2006, the Government of Jordan, through the Ministry of Trade and Industry, asked IFC PEP-MENA to support the Government of Jordan’s initiative in implementing a comprehensive licensing and inspection reform program in Jordan. This report is the result of the program’s corporate social responsibility (CSR) component, developed by the World Bank Group’s Foreign Investment Advisory Services (FIAS).
The CSR component exclusively focused on the textile and apparel industry in the Qualified Industrial Zones (QIZs). Its main objective was to assist the Government of Jordan to develop policies and incentives to reduce inspection and private auditing burden on manufacturers, while promoting systemic improvements in labor practices and continued competitiveness. This was done by a three step approach:
1. Buyer surveys: Surveying major buyers regarding their perception of Jordan to establish the market driver for strengthened inspections and improved practices (see survey results in section III);
2. Monitoring and remediation system: Assisting the IFC and the ILO in designing a monitoring and remediation system to be implemented by Better Work Jordan, particularly engaging with buyers and manufacturers (see attached final project document in Annex 1);1
3. Data-collection research: Providing recommendations to government, manufacturers, buyers, and Better Work Jordan on how to reduce duplication and streamline data collection (auditing and inspections) and create incentives for self-assessment (see analysis and recommendations in section IV).
In-depth interviews took place with manufacturers, buyers, Government, civil society, and unions over the period from August 2006 to June 2007. A stakeholder meeting was also held in Amman in December 2006 to present the findings from the buyer surveys and discuss the initial project design of the IFC/ILO Better Work Program.
About FIAS
For almost 20 years, FIAS has advised more than 130 member country governments on how to improve their investment climate for both foreign and domestic investors and maximize its impact on poverty reduction. FIAS is a joint service of the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA) and the World Bank. We receive funding from these institutions and through contributions from donors and clients.
About BSR
Since 1992, Business for Social Responsibility (BSR) has been providing socially responsible business solutions to many of the world’s leading corporations. Headquartered in San Francisco and with offices in Europe, China and Hong Kong, BSR is a nonprofit business association that serves its 250 member companies and other Global 1000 enterprises. Through advisory services, convenings and research, BSR works with corporations and concerned stakeholders of all types to create a more just and sustainable global economy. For more information, visit www.bsr.org.
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