Corporate Social Responsibility: Rising Expectations

Businesses across the globe long have been left to their own devices to adopt ethical practices and otherwise act responsibly on social issues. A World Textile Services Congress panel discussion on Oct. 6, in Bruges, Belgium, indicated that corporate social responsibility (CSR) is likely to be closely regulated in the future, although voluntary efforts in our industry indicate that some launderers are well prepared for the heavier legal responsibility.

Sylvie Thonnerieux, international commerce specialist for the French-based consulting firm ACTE International, moderated the session. Drawing on her firm’s experience with global supply chain management, she noted organizations known for promoting and certifying the highest CSR standards, with LEED (green buildings) and Earthrace (marine conservation) among the most visible. Other standouts by CSR discipline include:

• Anti-corruption, conduct codes: BSCI, Sedex
• Certification in CSR: ISO, SAI
• Human rights principles: United Nations
• Multinational enterprises: Organization for Economic Cooperation and Development

She forecast that UN directives are likely to become law in Europe for businesses with 500+ employees and €40+ million in annual revenue, requiring them to publish statements indicating their compliance. France has draft legislation on the “Duty of Care” that will increase transparency of companies with 5,000+ employees. Individual nations can be expected to regulate aspects of CSR with more specific laws like the U.K. Bribery Act and the U.S. Foreign Corrupt Practices Act.

Thonnerieux recommended that executives prepare for the legal onslaught by evaluating current policies involving social, ethical, environmental and anti-corruption issues. Assessing suppliers regarding their practices in these matters is necessary as well. “You’re going to have to know the risks,” she warned. More documentation and employee training is likely needed in these disciplines.

Adopt more formal control and reporting, she advised, encompassing monitoring, audits, sanctions and remediation. Pay greater attention to industry sector initiatives (such as TRSA’s Hygienically Clean and Clean Green certification programs) and strengthen procedures to prompt employees to warn of noncompliance, including providing whistleblower protection.

CSR challenges related to maintaining an international supply chain can be complex. Companies hiring largely migrants often draw suspicions of wrongdoing. Forced labor, human trafficking, debt bondage and child exploitation still exist. Illicit activities often correlate with countries with low-price exports, such as Turkey, Thailand, North Korea and Myanmar. Note reports by nongovernmental organizations (NGOs) including Greenpeace and Human Rights Watch, she advised.

Leading presenters from the industry on CSR was Brian Keegan, senior VP, AmeriPride Services. His presentation largely covered his company’s voluntary efforts, although he noted the need to respond to a questionnaire from Los Angeles County on CSR matters to get its business.

Traveling is sometimes needed to address supply chain challenges, he said. AmeriPride has inspected workers’ quarters for a Chinese supplier and observed wastewater treatment at a dye house. It’s comforting, he notes, when suppliers dedicate personnel to CSR.

Minneapolis-based AmeriPride asks all employees to pledge to uphold its values of integrity, trust and responsibility. Management sees protecting the safety of its 5,000 employees as a high CSR priority. Monthly safety training is required, including special instruction for drivers. Local branches have been honored for improvement and the company received a TRSA award for such gains, having reduced its total incident rate from 9.5 per 100 employees in 2012 to 4.5 in 2015. The company is TRSA Clean Green certified and numerous plants have earned the Hygienically Clean designation.

Keegan highlighted other AmeriPride efforts, including:

• 2010: Reducing the age of the average fleet truck to 7 years; the figure dropped from 10 to 7.7 from 2009 to 2010
• 2012: First-ever third party environmental audit, which revealed need for improved compliance regarding toxic chemical handling
• 2013: More alternative fuel vehicles, now 3.2% of the fleet
• 2014: Telematics installation in fleet to improve driving; adoption of company day of service to charity for all employees (United Way, $400,000 raised nationwide in 2016)
• 2015: Rooftop solar panels at Worcester, MA plant; EPA SmartWay transportation partnership
• 2016: Best in industry status in Department of Transportation compliance

Other industry presenters on the CSR panel included:

Martin Swierzy, managing director, Alsco, Germany. He attended the German government’s first international CSR conference in 2011. The public generally is unfamiliar with the industry’s core values and principles that support its customers’ CSR: hygiene, safety and recycling. Unfortunately, “stakeholders don’t distinguish between textile production and textile service,” he noted, calling for greater promotion of launderers’ sustainability, indicating that the industry can boast that its economy, ecology and social responsibility are “all in the proper balance.”

Nagore Marco, group risk manager, Berendsen PLC, United Kingdom. She pointed out that CSR strengthens business resilience, echoing Thonnerieux’s earlier comments that it produces a competitive edge, lowers risk exposure, improves supply chain quality and enhances morale. From her perspective in risk management, Marco advocated strong use of incident analysis to move forward with CSR. Crisis management should include sharing lessons with employees about events or incidents. Identifying opportunities and threats can help textile service companies gain a competitive edge in attracting employees and managing risk.