1.

With cost considerations so important in the global apparel market, will CSR issues adequately raise demand to offset cost issues? 1. Yes, CSR issues will adequately raise demand to offset cost issues with cost considerations so important in the global apparel market. Cost has always been an integral part of the apparel business but cutting cost may not every time serve the purpose for realizing better profits. CSR has a potential of developing or generating demand that can help offset cost issues. As the concept of sustainable development have begun to hold ground in corporations and corporate social responsibility is becoming an essential and inseparable part of the business strategy if not short term then long term. Some of the potential benefits of its CSR are as follows 2. Human resources - It can be an aid to recruitment and retention, particularly within the competitive graduate student market. CSR can also help improve the perception of a company among its staff. 3. Risk management - Reputations that take decades to build up can be ruined in hours through incidents such as corruption scandals or environmental accidents. These can also draw unwanted attention from regulators, courts, governments and media. Building a genuine culture of 'doing the right thing' within a corporation can offset these risks. 4. Brand differentiation - In crowded marketplaces, companies strive for a unique selling proposition that can separate them from the competition in the minds of consumers. CSR can play a role in building customer loyalty based on distinctive ethical values. 5. License to operate - Help to avoid interference in their business through taxation or regulations by persuading governments and the wider public that they are taking issues such as health and safety, diversity, or the environment seriously as good corporate citizens with respect to labour standards and impacts on the environment. In case of Yeim Tekstil (Turkey)following were can be easily observed.
Compliance Was Speedy

There were no delays. The findings of certification audits and follow-up audits were monitored by Yesims own management system and the expected benefits were achieved.
Factory proposed for certification at first audit (no major non conformances). Company Awareness of Workplace Issues Was Raised 2007 (end of September): Only one employee exceeded yearly limit Grievance System Was Improved Communication and training were initiated for a new grievance system.

Feedback that its details were effectively conveyed and it is functioning. New Programs Were Created for Environmental Health and Safety 1. 37% decrease in total lost time due to incidents. 2. Lost days fell from 652 days to 414 days (238 days gained). These facts shoe that Corporate Social Responsibility is cost effective.

2. Is enough being done to publicize certification among buyers? 2. Yes, enough is being done to publicize certification among buyers and it has already hit the world market with the name of fair trade. Certification guarantees compliance to certain norms by an organization. It provides a competitive edge over the competitors. Some countries or group of countries seek some certifications that are necessary to do trade with them, thus it becomes essential to get those certifications. These in turn maintain the requirements of those countries are met properly. Certification also shows the commitment of the company towards excellence. The more the number of certifications the better it is. It has also become a form of advertising. Still the cost of the certification have to be kept in mind and getting it depends on many factors such as whether it is necessary, what is the chances of payback of its cost, what are the benefits ? Etc. Many companies now produce externally audited annual reports that cover Sustainable Development and CSR issues ("Triple Bottom Line Reports"), but the reports vary widely in format, style, and evaluation methodology (even within the same industry). Critics dismiss these reports as lip service, citing examples such as Enron's yearly "Corporate Responsibility Annual Report" and tobacco corporations' social reports. Fair trade is an organized social movement and market-based approach that aims to help producers in developing countries make better trading conditions and promote sustainability. The movement advocates the payment of a higher price to producers as well as higher social and environmental standards. It focuses in particular on exports from developing countries to developed countries. Although no universally accepted definition of fair trade exists, fair trade labelling organizations most commonly refer to a definition developed by FINE. An informal association of four international fair trade networks (Fair-trade Labelling Organizations International, World Fair Trade Organization, Network of European World shops and European Fair Trade Association) also exists. In some nations, legal requirements for social accounting, auditing and reporting exist (e.g. in the French bilan social), though international or national agreement on meaningful measurements of social and environmental performance is difficult. A number of reporting guidelines or standards have been developed to serve as frameworks for social accounting, auditing and reporting including:

AccountAbility's AA1000 standard, based on John Elkington's triple bottom line (3BL) reporting The Prince's Accounting for Sustainability Project's Connected Reporting Framework The Fair Labor Association conducts audits based on its Workplace Code of Conduct and posts audit results on the FLA website. The Fair Wear Foundation takes a unique approach to verifying labour conditions in companies' supply chains, using interdisciplinary auditing teams. Global Reporting Initiative's Sustainability Reporting Guidelines GoodCorporation's Standard developed in association with the Institute of Business Ethics Earthcheck www.earthcheck.org Certification / Standard Social Accountability International's SA8000 standard Standard Ethics Aei guidelines The ISO 14000 environmental management standard The United Nations Global Compact promotes companies reporting in the format of a Communication on Progress (COP). A COP report describes the company's implementation of the Compact's ten universal principles.

The United Nations Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting (ISAR) provides voluntary technical guidance on eco-efficiency indicators, corporate responsibility reporting, and corporate governance disclosure.

Verite's Monitoring Guidelines

The FTSE Group publishes the FTSE4Good Index, an evaluation of CSR performance of companies.