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Introduction

With boosting globalization and tremendous growth in International Business we have reached a time
where sustainability has become a major concern for the safe keeping of the world. International business
comprises all commercial transactions including private and governmental, sales, investments, logistics,
and transportation which take place between two or more regions, countries and nations beyond their
political boundaries and geographical territories. Sustainability refers to the ability to be sustained,
supported, upheld, or confirmed to Environmental Science, the quality of not being harmful to the
environment or depleting natural resources, and thereby supporting long-term ecological balance and
safekeeping resources for the next generation.

By development we immediately refer to the economic growth of a nation and no nation can boost its
GDP without being involved in international business. Technology is playing a vital role in keeping the
world and nations connected. With the advancement in technology and in the industrialization and post-
industrialization era we the mankind have left severe adverse effect to the environment and reasoned
adverse climate change. Hence, today we are left with no options but integrate sustainable development in
our business model. Sustainability in international
business is more than simply embracing sustainable
practicesit has the potential to help companies
attain competitive advantage. It focuses on the
meaning of sustainable development for profit-
making global corporations, the effect of
sustainability on global corporate development
strategies, and how corporations and industries
interact with nations to develop relationships and
partnerships that support sustainable economic
development. This also include corporate social and
environmental responsibility, risk management,
government, investor, and stakeholder expectations,
the social and environmental footprint throughout the business value chain, and impacts and opportunities
for multinationals in the age of climate change. Which means we have to aim for development that meets
the needs of the present without compromising the ability of future generations to meet their own needs.

In the last era the technical-fix approach to economic development has made the most progress. Of course
with much development there were intense drawbacks too. But with time the great human minds came up
with certain green adaptation and mitigation to fight these adverse effects and draw the line of
sustainability. For example if we consider the textile/ fashion industry there is much pollution in the
process to production and to limit the pollution this industry has adapted several sustainable approaches,
ETP (Effluent Treatment Plant) is one of the most worthy mention. We have discussed on the broad
perspective of sustainable and environmental management and integration in our textile business within
the core report.
Aspects of Sustainability
Every second day we hear someone talking about sustainability. We have already defined sustainability
and when it comes to unfolding sustainability in broader perspective, we need to be concerned about three
main parts of influence. There are three interconnected spheres of sustainability that describe the
relationships between the environmental, economic, and social aspects of our world. These domains are a
related set of notions when taken together, can form a solid ground from which major decisions and
actions can be made. Examples of such decisions could include land use planning, surface water
management, building design and construction, and even law making.

When the concepts enclosed in the three spheres of sustainability are practiced to real world situations,
everybody wins. Natural resources are preserved, the environment is protected, the economy isn't harmed,
and the quality of life for our people is improved or maintained. We also advance in securing a good
world for our successors. Below is a diagram showing the three spheres and how they are interconnected
to each other -

Fig: Aspects of Sustainability

The Three main component of sustainable management are:

Environmental Sustainability
Social Sustainability
Economic Sustainability
Basically the 3 major key-part of sustainability has nearly everything we do or plan to do that has an
effect on the sustainability of the human kind. The three main pillars of sustainability can be broadly
discussed as:

Environmental Sustainability

In a very sustainable environment, an ecosystem would uphold its populations, biodiversity, and overall
functionalism over a comprehensive time laps. Choices that are made should promote balance within our
natural systems and raise positive growth. Troubles to the environment should be avoided whenever
possible and if there is a trouble, it should be mitigated to the maximum attainable degree. During making
decisions or enforcing law and policy, one part of the discussion should always cover the environmental
impacts of the proposed outcome or result. Several matters are directly related to environmental
sustainability. One of the concepts that is of the utmost importance is the proper management of our
natural resources. Depending on the policies we have and that we are elaborating on the fashion industry
this would have direct relation with water, soil and air pollution. The toxic elements released may directly
pollute the environment around and result environment degradation. Hence, permit and license to the
companies is to be driven out carefully and only to those meeting the environmental compliances.

Economic Sustainability

Similar to environmental sustainability, economic sustainability involves creating economic value out of
the project or decision that are being undertaken. Economic sustainability means that decisions are made
in the most reasonable and economically sound way possible while considering the other aspects of
sustainability. In most cases, projects and decisions must be made with the long term benefits, keeping in
mind that when only the economic aspects of something are considered, it may not promote true
sustainability. For many people in the business world, economic sustainability or profit making is their
main focal point. But on the large scale, this narrow-minded approach to management of a business may
not lead to desirable results. When good business practices are combined with the social and
environmental aspects of sustainability, you can still have a positive result that is for the greater good.
During any decision making process it is very essential to have risk management in order to maximize
profit and ensure high end return to all the shareholders keeping the environment safe.

Social Sustainability

Social sustainability is built on the concept that a decision or project promotes the betterment of society.
Future generations should have the same or greater quality of life benefits as the current generation do.
This concept also encompasses many things such as human rights, environmental law, and public
involvement & participation, social equality and equity. Inadequate focus on the social part of decision or
action may result in the slow failure of the spheres of sustainability and the existing society.

The 3 major spheres of sustainability merges together there derives the following sub sectors

o Socio-Environmental Sustainability
o Eco-Economic Sustainability
o Socio-Economic Sustainability
When Social and Environmental sustainability merge in together a new by product is formed taking in
concern health and safety, legislation and regulation, climate change and crisis management called Socio-
Environmental Sustainability.

When Environmental and Economic sustainability merge in together another sector concerning resource
efficiency, energy efficiency and global energy issues is created known as Eco-Economic Sustainability.

When Social and Economic sustainability merge in together they deal with the employment concept,
training and development, different economic enterprises, sponsorship and the society and existing
community and is referred as Socio-Economic Sustainability.

Without the proper operation and lack of cooperation this model of sustainability will not function. If any
of these pillars fall out of shape the economy and society will be highly affected but there will be much
adverse effect on the environment. As now we stand in a world where environment is at high risk. For our
own good and survival it is a must as we go for sustainable model maintaining the proper balance
between these spheres to safeguard the environment specially and our future

Importance of Sustainability
Given the recent changes in the environment, which is a direct result of our activities of economic
development, sustainability has taken top priority, with regards to the environment. Because we are totally
dependent on the planet for our survival, it is important for us to ensure that we do as little damage as
possible. For example, the use of ETPs does not eliminate toxic waste products from the manufacturing
process but it reduces the discharge by a considerable amount. The discharge not only damages the
environment but also causes severe health issues for humans and animals. Taking steps to reduce
pollution will also make the production process more efficient by reducing waste generation at source,
thus resulting in better quality products.

Fig: Importance of Sustainability


Bangladesh Garments Industry: National Perspective
As a developing nation and RMG being on the very boost of the national economy it is very essential that
we maintain and lower down the risk to the environment keeping the up-growth of the economy. In the
garments sector of Bangladesh it is very important that we maintain a quality balance among these
spheres of sustainability and have proper sustainable management plan.

In RMG sector of Bangladesh, there are more than 5000 garment factories at present, employing more
than 12 lack labours, where 85% of the labour force is women. But, according to BGMEA the number of
garment factories in Bangladesh around 4000. Now, RMG industry is the countrys largest export earner
with the value of over $24.49bn of exports in the last financial year. Its a great news for us that,
Bangladesh is clearly ahead from other South Asian suppliers in terms of capacity of the ready-made
garments industry.

Garments industry has have made huge impact in building the-

- National Economy growth


- Employment opportunities and Women and Empowerment
- Adapting new technology

RMG Sector in growing National Economy:

The role RMG sector in Bangladesh economy is noteworthy. From the last decade, RMG sector
contributes to the national economy in considerable rate. About 76% of total export earnings come from
RMG sector. From a statistics its known that, in FY 2003-04 RMG sector of Bangladesh earned US$
5,686.06 million, in FY 2004-05 the value was US$ 6,417.67.67 million, in FY 2005-06 the value was
US$ 7900.80 million, in FY 2006-07 the value was US$ 9,211.23 million, in FY 2007-08 the value was
US$ 10,699.80 million, in FY 2008-09 the value was US$ 12.35 billion and finally in FY 2013-14 the
value stands at $24.49billion.

Fig: Graph showing the


economic growth of Bangladesh RMG sector
RMG Sector in creating Employment Opportunity and boosting Women Empowerment:

The RMG sector created more than 54 Lac jobs in the country. Leading a greater portion of the youth to
employment. The Bangladesh RMG industry recruits a large number of workers of whom 80% are
women. Women workers who work in the garment factories are mostly young women with very little or
no formal education or vocational training for the
garment industry. These young female workers
work as helpers who after a period of three to six
months pick up skills and become machine
operators. This is the common procedure by
which young girls are incorporated in garment
factory work. Since women workers are available
at very cheap wages, the factory owners prefer
women labor, especially young women workers
since they are in abundant supply at a very low
cost. Of the approximately 4.2 million workers in
the RMG industry around 85% are women
workers. This even though has some negative drawbacks but playing a significant role in building women
empowerment. These women earlier had no voice and RMG sector as creating employment opportunities
for them is giving them a voice.

Adapting New Technology:

The RMG industry is making investment and adapting to new technology to make the countrys apparel
industry more competitive, sustainable and profitable, and also to achieve the target of earning the goal of
US$50 billion in fashion exports by 2021. Globalization is widely forcing textile producers to use
technology that improves productivity through
process improvement, product innovation and new
worker skills, and helps serve the customer more
efficiently and provide security to worker and lead
to sustainability. Investment in equipment and
new technology enables greater output per worker
to increase and raise productivity and profitability.
Use of technology in Bangladesh garment industry
is at a promising stage, full-blown intervention of
technology down to unit or operator level
increased efficiency from production to
distribution level. However, large scale
manufacturers in the country are starting to look at global technology for their business. The industry is
also maintaining the global status in keeping the compliance goal. For better environment they are going
for ETP, to minimize risk to workers employers are arranging safety drills, installing proper fire
extinguisher etc. Getting new technologies is heling the industry to grow and maximizing profit.
Bangladesh Garments Industry: Foreign Perspective
Although Bangladesh has doing great in the garments sector but various negative aspects have pushed
back this industry in the eye of foreign buyers and end users of Made in Bangladesh products. The main
factors that have affected the industry in the eye of foreigners are:

- Disaster
- Political Unrest
- Labour inequality, poor wages and working conditions
- Pollution

Disaster:

Small disastrous events are regularly taking place in the RMG sector due to lack of proper maintenance.
Big disasters like Rana Plaza Collapse, Tazreen Garments
Fire etc. where more than thousands gave their life due to
lack of attention from the employers caught the eye of the
foreign buyers. Many buyers rejected our products for being
so irresponsible and ignorant, not maintaining adequate
security level for the workers.

Political Unrest

Political disturbance within the country is another prime


headache functioning against growth in the apparel sector and buyers not willing to do business with
us.Political mayhem is often manifested in countrywide strikes and blockades. During such situations
production, distribution, etc all are disrupted.

Labour inequality, poor wages and working conditions

Labour inequality and poor wages causes labor unrest. There is no denying that the RMG industry has
long been characterized by a wide variety of deprivations of its workers, which include, lack of proper
infrastructure facilities and safety at workplace, non-compliance with
minimum wages, lack of provision of essential service benefits to the
workers and international compliance and standers according to ISO 14001.
Since foreign buyers care about these causes hence sometimes refuses to do
business with us.

Environmental Pollution

Most of the factories in Bangladesh are situated by river banks as they


provide easy transportation for raw materials and finished products. This also results in these factories
discharging their toxic waste products directly into the river. The waters of Turag river has taken a deep
colour and give off foul odor due to excessive dumping of solid and liquid chemical discharge. More than
20 factories dumb their waste into the river. And this water eventually ends in irrigation channels and
agricultural fields. AS we know environmental issues are dealt globally hence this is a vital cause that that
brings a great loss and we lose our foreign customers.
With all these drawbacks shown in the media the foreign end users often tend to avoid garment products
with the label Made In Bangladesh.

Our Major Clients

Fig: Major Clients of Bnagladesh Garments Industry

The Challenges faced by the Garments Industry


RMG businesses begin their journey as a local manufacturer and supplier of garments. After a certain
point, their client base changes from local to national, and eventually large international clothing chains.
But these gains do not come without problems of their own.
Poor Wages:
The minimum wage in RMG sector has steadily risen over the years. But it has not kept up with inflation
and the difference between income and expenditure is decreasing. Also, most of the workers are
uneducated and untrained, doing hard labour which is time consuming. They outnumber the trained
workers and are paid less in comparison.

Gender Equality:
Most of the workers in RMG sectors are women, mainly with no education and formal training. They
progress from manual to mechanical work, which is a normal practice. But they are available at cheaper
wages than men, and are more readily available to work.

Fire Safety & Risk Factors:


The major problems faced by RMG sector currently is the lack of safety in working place and working
conditions for the millions of garments workers. Collapse of Rana Plaza and the burning down of Tazreen
factories are two of the most recent examples. The most devastating results of these disasters was due to
old and weak buildings, built mostly using cheap material. Most international clients will refuse to place
their order in factories where there is very little or no safety measures incorporated for the workers. And
this will be a massive blow to the RMG sectors income. The government needs to ensure that proper
security plans are being developed and worker safety is ensured in factories.

Improper working environment:


Because most of the workers are women, factory owners regularly bypass safety measures. Most factories
build extra floors in addition to the original plan, thus creating more space for machineries and workers to
be cramped into. Owners only focus on profit making and not on workers wellbeing.

Things to do to Address These Problems And Challenges

Manufacturing environment friendly products in a sustainable way is the most important and
emerging issue at the present phase of industrialization. The main focus comprises not only to the
products quality sustainability but also it focuses on the manufacture processes including raw
material resources from cradle to grave.
Nowadays many companies and organizations focus on the environment friendly way of
production. Sustainability of the garments industry is also a burning issue, needed to adopt
cleaner and improved technology and management for better environment.
In the last era the technical-fix approach to economic development has made the most progress.
Of course with much development there were intense drawbacks too. But with time the great
human minds came up with certain green adaptation and mitigation to fight these adverse effects
and draw the line of sustainability.
For example if we consider the textile industry there is much pollution in the process to
production and to limit the pollution this industry has adapted several sustainable approaches,
ETP (Effluent Treatment Plant) is one of the most worthy mention.
We have discussed on the broad perspective of sustainable and environmental management and
integration in our garments industry throughout our whole research, and we used the example of
Epyllion Group & Bitopi Group.

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