How global brands are (finally) investing in factory workers
Factory workers in Bangladesh and other low-income countries deal with undeniably miserable working conditions鈥� last year being the most public, devastating event in recent memory. But certain companies have been taking steps to improve workers鈥� lives in these emerging markets for years, and one project stands out for involving the biggest of the big brands.
Levi鈥檚, H&M, and Timberland have invested millions in training programs that teach factory workers life skills, like how to take care of their health and how to save money. It may sound basic, but the case for investing in these types of initiatives isn鈥檛 usually made to companies in a compelling way.
BSR has changed that. Business for Social Responsibility (BSR), a nonprofit that encourages social responsibility in business, has made the case that teaching these life skills to workers goes beyond a nice corporate social responsibility campaign: It actually improves a company鈥檚 bottom line. In 2007鈥攂ased on global health research led by USAID with a of nonprofit consultants, academic researchers, and business leaders鈥擝SR created HERproject, a life-skills training program for garment factory workers.
HERproject (HER stands for 鈥渉ealth enables returns鈥�) works because the health and finance modules are introduced on the factory floor of BSR member companies, and it鈥檚 taught by local NGOs that reach employees through peer mentoring. The health curriculum is focused on general and reproductive health knowledge and preventive care promotion, while the finance curriculum includes instruction about formal savings accounts and budgeting tactics.
When workers feel well, they do well. They miss fewer days of work, meet production goals, and are able to provide for their families. This is good for business, and it鈥檚 why retailers are through HERproject to realize their . To date, that鈥檚 more than 250,000 women reached at more than 200 factories through projects with 32 multinational companies and 20 local NGOs.
The nearly quarter of a million women in emerging markets who benefit from HERproject are often between the ages of 18 and 35鈥攖his is a huge demographic growing at an unprecedented rate, according to the global management consulting firm McKinsey. for the next 20 years than the rapid growth seen over the last 20 years. Hard to picture? Scaling-up HERproject鈥檚 impact could mean significant micro-level gains in the lives of low-income workers, as well as macro-level gains for the global economy.
Here鈥檚 how everyone wins with HERproject:
鈥� Building stronger economic futures: Many women are unaware of their basic human rights, so a lack of health and financial knowledge is conceivable.
鈥淓arlier, I wasn鈥檛 aware of any ways of saving money. After attending this training, I learned why I should save and how to save,鈥� , a woman from Hubli in Karnataka, India, who joined a training at the factory where she works. Savithri and her husband no longer keep money in their house. 鈥淸After] this training, I also opened a personal account and now I keep my monthly savings in it.鈥�
Savithri was selected by management at the factory where she works to be a peer educator and now serves as a mentor for her fellow factory workers.
鈥淚 have also spoken about this to my neighbors and friends so that they might also benefit from this knowledge,鈥� she says. Today, BSR member companies are applauding suppliers that embrace the life-skills training, and all along the supply chain.
鈥� Partnering with civil society: HERproject works on the ground with local NGOs, clinics, and governments to ensure experts with local knowledge of customs and language are customizing the training. By working through nonprofits like 鈥攚hich means 鈥渨ell-being鈥� in Sanskrit鈥擝SR can harness these organizations鈥� resources and expertise, and repeat Savithri鈥檚 story over and over.聽
鈥� Improving return on investment (ROI): Since the training started, J. Crew, Abercrombie & Fitch, and Columbia Sportswear are other examples of companies that have incorporated HERproject health education and financial literacy workshops into their training, and strengthened their global supply chains because of it.
Piloted in Bangladesh in 2007, HERproject has expanded into Cambodia, China, Egypt, Haiti, India, Indonesia, Kenya, Pakistan, and Vietnam with plans to launch in Brazil, Ethiopia, Mexico, and Myanmar this year. Why are brands choosing to make BSR鈥檚 HER project part of their factory trainings?
鈥淗ERproject shows great return on investment [ROI] numbers, but that鈥檚 not what鈥檚 inspiring about the project to me. What is inspiring is seeing the women excited about the knowledge they鈥檙e gaining and sharing, and the sense of empowerment that gives them,鈥� said Sandra Cho, . That鈥檚 exciting for consumers, too.
Even more exciting? This year鈥檚 will bring together many of these brands to discuss transparency and the concept of 鈥渢ransformation,鈥� November 2-4 in New York City. Stay tuned for more long-term, cross-sector collaborations that will make the clothes we buy worth wearing.
鈥� at , a blog published by .
