C S GARMENT,INC. - VOLUNTARY INITIATIVE TO PROMOTE CORPORATE CITIZENSHIP

Background to the casestudy

Initial situation

ISSUES : Unemployment, underemployment, poverty, increased crime rate, child-abuse and child labor cases, health risk, environmental issues etc., which are usually confirmed to have rooted from high population rate in every part of the country especially the rural and sub-urban areas. Lobbying to have good governance is a social issue also.

1.  Unemployment - To create more jobs and to prevent brain drain in the country, the Technical Education and Skills Development Authority (TESDA) a government entity, promotes  employment among graduates and non-graduates. 

TESDA in collaboration with various industries created Dual Training System and dualized  curriculum where out-of school youth undergo Skills Training.  TESDA conducted the theoretical aspect of training while the enterprise does the practical aspect. The principle is that the skills acquired by students should match the demand of various industries.

For professionals, the government in close coordination with private and public firms, offered them jobs and good benefit package so that they will not leave the country and look for jobs abroad.
 
Aside from providing free skills training to the youth, in collaboration with different companies TESDA, also educate the people on entrepreneurship program where they can have business of their own.
  
2.  Poverty - to eradicate poverty,  government partners with various sectors, labor, industry, GO's and NGO's in the promotion of  employment for the poor.  Livelihood programs are created for the family members for income-generating purposes. The Department of Social Welfare and Development ( DSWD ) does the monitoring of the projects  to ensure that people from poverty line benefits from the project.  Example, the training materials  used in Skills Training are being provided by companies like us.

3.   Health risk and environmental issues -  the environment management system and health and safety measures are initially done in the plant level  for easy understanding of all employees.  The trainings/ seminars and workshops tackles the importance of
protecting ones health and the environment not only to this generation but the future also. 

Educating the people resulted to the creation of a multiflier effect where the attendees will also disseminate what they have learned to their familymembers, neighbors and peers.  

4.  Child-labor, child-abuse issues, drug abuse, HIV/Aids etc. are crucial concerns  not only of the government and business sector but also of the community.

Educating the people and sharing information about the pros and cons of the social issues  played a pivotal role to prevent the problems from getting worst.

Relationship to core business

C S Garment, Inc. has a CODE of CONDUCT that is anchored on high respect for human rights, compliance to applicable laws including payment of fair wages, provision of safe working consitions, non-impairment of employees right to join trade unions of their choice and prohibition against the use of corporal punishment, forced labor, physical and mental coercion and child labor.

It also promotes equal employment opportunity to all.

CS Garment, Inc. belongs to SME but that does not stop us from having our own CSR initiatives. Employees are considered as Team members. Due to the company's high regard for  respect to human rights, we were able to  seek the cooperation we need from our whole employ.

The company's industrial peace and harmony is considered a key competitive advantage since the start up to present. Team cooperation enhances the power of the company as a whole.  Without the employees feeling of belongingness, they will not perform their best. Satisfied and happy employees are productive and quality-conscious. In our company, salary is not at all the reason for best company cooperation but human treatment and respect received by everybody.
  
Transparency is an equally important aspect in relationship  to Corporate Social Responsibility.  Employees are educated and informed about what is happening in the company. Computations of salaries and wages are posted at the bulletin board for them to be aware how much they earned. They are also recognized for a job well done.  Being open to employees pave the way for them to understand that they must not be part of the problem of the company but instead, part of the solution when problems arises. 

Intension of corporate citizenship

Description of the issue

1.) Family Welfare Program - initiated by management to uplift the quality of life of its employees. It entails various programs beneficial to the employees and their immediate families. Activities includes the promotion of family planning and responsible parenthood. The company is providing free contraceptives to the acceptors who wish to have it. Not only married employees but those of reproductive age, are also educated about the importance of responsible parenthood, spending quality time with their children, health care for the family members , breastfeeding etc. Free medical and dental services are given to family members for free. Hospitalization assistance were also extended to family members. With the program in place, employees specifically the mothers have healthy children and their values as family becomes stronger. Due to this initiative, CS Garment,Inc. has gotten recognition as "Child- friendly Firm" from the International Labor Organization (ILO) and Employers Confederation of the Phils. (ECOP) and Best in Family Welfare Program.

2. ) Dual Training Program / Skills Training /On-the Job Training for the out of-school youth forms part of the  community program or what we called corporate responsibility. This program is a one way to combat poverty and unemployment as it promises the graduates for stable job locally or abroad.

The company  provides skills training for the youth of today so that they will not be part of the problems faced by the society.  The training is also our company's way to help the community in the prevention of social cancer like drug addiction, juvenile delinquency, violence and others. The youth will engaged themselves to work and study so no time for negative forces.

3.) Livelihood Program- the company donated scrap fabrics to various training institutions so that it can be used as training materials of the sewers  for their livelihood projects.

4.) CS Garment Inc. also has also collaborated with GO's and NGO's regarding programs for the benefits of the people and children in the community.  We have donated various clothings, school bags etc for the children from indigent families. We donated medicine for medical missions etc.  We also donated cash for the victims of natural disaster in some areas in the Philippines in coordination with various GO's and NGO's.

5.) Another project being partnered with government agencies is the advocacy against child-labor. We have been in constant meeting with the Department of Labor and Employment, Employers Confederation of the Phils, International Labor Organization etc. and we have attended workshops so that we can help eliminate  child-labor, trafficking  and other abuses involving children in our society. 

6.) Company is conducting seminars on Drug-free workplace, Solo-parent Act, Sexual Harrassment and HIV/ Aids to educate our employees about these social issues.  This information sharing will result to a multiplier effect because those employees who have learned from these seminars/ workshops will then share what they have learned to their neigbors, family members and their peers. This way, the learnings will reach other people and the whole community as well.

7.) Environment-friendly projects - participation in Coastal cleaning, tree-planting,  and practicing proper disposal and treatment of  waste are only few of the projects we implemented. We have requested  the Office of the Occupationl Safety and Health Center (OSHC) to conduct Work Environment  Measurement (WEM) testing inside the factory  to verify  safety in terms of noise, illumination and dust. As a result, company complied  with the requirements set by OSHC.

Target group

Aside from CSGI employees and family members, currently, the company have been constantly in collaboration with the Technical Education and Skills Development Authority ( TESDA ),local government and NGO's for the skills training of the out-of -school youth to help them to become productive individuals as well as young entrepreneurs in future.

As for the Dual training program, the company has partnered with GO's and NGO's in sourcing out-of-school youth from indigent family who  can not afford to go to college. Trainees are subjected to series of test batteries as the program requires two venues of learning, the theoretical and the practical aspects where they can become multi-skilled  employees (like sewers, trainers, supervisors, merchandisers, samplemaker, pattern makers etc.. ) in future.

For the children in charitable institutions, the recipients of our donations are orphans and formerly street children, depending on the need of the institutions/ organization.

For the advocacy and awareness program, our Executives are always invited to present our company's CSR programs and other initiatives  in conferences attended by various sectors, this way we can share our best practices to the participants so that they can benchmark on us and do similar projects in their own workplaces. We share with them our materials so they can  start their own CSR projects.

Implementation

Strategy

Company believes in PUTTING POLICY INTO PRACTICE. Awareness to action!

First is the company's initiative to subject itself to a social audit conducted by an independent certifying body ( TUV Rheinland ). It audited the company's labor standards, code of conduct etc. to verify if it conforms to the standard of AVE Sector Model for Social Responsibility. The social audit is required to company's whose product is marketed to Germany and European countries.

For Dual Training Program and Skills training, we give priority to those whom we know has potential to become multi-skilled employee in future . If they are willing to apply in our company, we hire them after their graduation from training. Multi-skilled and quality conscious employee is a competitive advantage so any company will hire them.

To avoid wastage of materials like end-cuts etc., we segregated it and donated it to training centers for them to convert scrap materials into useful items/objects. This applies also to trainees in our Dual Training area.

For the Family Welfare Program, our employees are being taken cared of, their health are monitored, safety are provided in the workplace  so we have very low percentages of absences due to domestic stress and illness.  We have zero accident in the workplace and since the employees are with happy disposition, they are more productive and energetic at work.  Rejects are very minimal because the employees are attentive and with open mind work values are evident in the result of the quality of our products. Quality goods are producted by quality and happy people.

Relative to this, C S Garment, Inc. have strengthened its CSR via tripartite partnership. Thru partnership, the company is nurtured by innovative minds to learn more about global initiatives. The commitment and enthusiasm for advancing initiatives  for higher quality, productivity and valuing our people as partners help in enhancing our company's organizational performance and competitiveness.

In general, company tried to find a niche in the market thru the formation of CSR program, widening of networks and investment in technology and provision of incentives to deserving ones. We have strengthen our ties with the business and industry associations.

Another strategy - CSGI intensifies its human resource development thru continuous training and education not only of rank and file employees but also of the top talents particularly the Executives manning the business. It also ensure business flexibility as well as labor flexibility. It means the ability to organize workforce optimally so that the business mission of the company will be fulfilled and will not be compromised.

Resources

1.) Assigning an Executive to take charge in company's CSR program is costly. Executive networks with GO's and NGO's regarding projects that must be undertaken. Conferences, meetings, workshops, community outreach were all attended as the need arise.

2.) Maintaining Skills Training Program and Dual Training Program is one way of using up the company resources ( time/ expertise/ allowances of trainees, salaries and wages of Trainers/ training area/machine to be used/training materials all free of charge etc.).

3.)  Budget for medical and dental services, hospitalization assistance extended to family members are also costly (time/financial).

4.) Continuous Training of Pollution Officer and Safety Officer  for the company's Health and Safety Program and Environment Management program.  These consumes time/ money/ expertise .

5.) Budget for the cash and in kind donations provided to Charitable institutions/GO's and NGO projects.

6.) Time/Money/ Expertise of top management in  attending conferences just to present company CSR and share its best practices in the area of corporate social responsibility so that other firms or business enterprise can benchmark on us.

7.) Environment-friendly projects - employees/ time/ money/ materials etc. (Tree-planting/ CoastalCleaning etc.).

8.) Other company programs for local community - employees/ time/ finances etc.

Partners

Yes. For the previous Dual Training Program and other Skills Training Program, we have collaborated with TESDA- GTZ.

Other partners includes the Department of Labor and Employment for donations to children, women and young workers etc.

Employers Confederation of the Phils (ECOP) and International Labor Organization (ILO) for elimination of child-labor/ child-abuse, trafficking as well as eradication of provery etc.

Europeam Chamber of Commerce of the Phils (ECCP), German Embassy, German Club, GO's and NGO's  for various charitable activities.

Philippine Economic Zone Authority (PEZA) and Department of Environment and Natural Resources (DENR) for the environmental projects like International Coastal Cleaning and Tree-planting just held recently October 2008.

Philippine Red Cross for the blood-letting activities participated by several employees.
 

Challenges

Yes, risk of investment, like for example the skills training being conducted to out-of -school youth. Our company have invested on the training of the youth and then after their graduation, trainees go back to their far-flung provinces to work there near their family members. Or they applied in other company so the skills they have acquired in our company are being utilized by others.

Challenge in retaining talents. -  Same with the Dual Training graduates, after graduation as multi-skilled and competitive sewers, they are pirated by companies abroad like Taiwan, etc. (the technology acquired by trainees in C S Garment, Inc. is not ordinary, it is German technology where quality and productivity goes together. Graduates becomes asset in terms of skills acquired).

Business are experiencing economic crisis at present especially the garment industry so as much as the company would like to share more to others, there are projects which we can not continue to sustain in the same level of cooperation we did before.

Another challenge - no pricing power during the economic crises.  We are bombasted by China and other countries offering lower  prices to the customers.  C S Garment would like to continue its implementation of CSR but these are quite costly  as we may say so. Not all companies can afford to practice CSR in all honesty.  The bottomline is that, we can be more competitive in terms of prices if  we  have not much CSR projects. But as a commitment, the company still continue its advocacy.

Achievement

1.) Customer satisfaction for having dealt with our company whose product is socially acceptable. ( no sweatshops, no forced-labor etc… )

2.) Sharp productivity increase which resulted from employees commitment to high performance and quality level.

3.) Team work cooperation - production of quality products on time

4.) With industrial peace and harmony in the workplace - no labor issues filed within the year.

5.) No record of drug- abuse or drug dependency emong employees and family members.

6.) No employees or family members positive with HIV/ Aids.

7.) Company has received various awards and recognition from various government and non-government sectors including International Labor Organization as Child-friendly Firm and Kapatid sa Industriya Awardee.
GTZ has also cited our company as Elite Circle of Dual Training System Trailblazers in the Phils. We have garnered two Hall of Fame awards as Best in Community Project (by Philippine Economic Zone Authority) and Best Garment Manufacturing Co. (by Consumers Union of the Phils) to name a few.

8.) United Nations Global Compact has shortlisted C S Garment, Inc. as company with best practices in the area of Corporate Social Responsibility.

9.) The Philippine Economic Zone Authority (PEZA) made our company
a showcase (for TQM and CSR) for investors, diplomats, universities, GO's and NGO's visiting the ecozone.

Lessons learned

We all know that Businesses are more focused on profit but they must also learn how to show the human face of business, that is giving beyond the prescribed minimum requirements of law. It is giving more to your employees, their family members and the community as well. This will make the world a better place to live. With the small gesture of giving, it will surely make a difference in everyone's life.

In our society, people only needs a pat on their shoulder. Once you take care of them in any way and showed compassion to their family members, they will surely give you their loyalty and they will put value to their work. In implementing corporate social responsibility, you are not only feeding the mouth of your employees, the obligation of the company gets doubled or even tripled because they have to feed also the employes immediate family members.

Even if we give a very good benefit package to our employees, it will not quarantee that your best talent will stay with you forever and not to be pirated by other companies. In the Philippines, humane treatment, safety of family and equality landed first among the list on how to retain these talents.

We have trained thousands of out-of school youth under our Dual Training Program and Skills training, 90% are now employed and breadwinners. Some of them have gone abroad and receiving attractive salaries and wages. Should we not attend to their needs before or not pay attention in helping uplift the quality of their lives, these graduates can possibly be juvenile delinquents now and creating problems to their community and to the country as well.

Practicing code of conduct and complying to all applicable laws in the country will make it easier for any business to boom. Making profit maybe the top priority of any business enterprise but CSR is equally important to make that business stay in longer term.

That is why CSR is of great importance and played a crucial role in our present situation. It may be costly to some, but, it makes a good business sense!