Corporate Social Responsibility in Fashion Companies Greenouille, an ecological polo shirt company David Le Buan – Paul Tran 26/04/2012

Corporate Social Responsibility in Fashion Companies 2012

Subject: Development of two different CSR strategy for our fictive company. Analysis and comparison of both strategies. Conclusion on the best strategy.

We have decided to create our fictive company which produces polo shirts. We want that our company have an ecological and social dimension. To make this, we have decided to consider the two aspects separately and after we will try to find the best solution for our company. That is why we make, firstly, an analyze of the traditional way of production for a polo shirt. Secondly we try to improve this process to have the best ecological way of production. Then we try to find the best social and ethic dimension for our company. After that we submit our idea by making a survey for several French students. Finally we present our CSR for our company.

Our polo shirt

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David Le Buan – Paul Tran

Corporate Social Responsibility in Fashion Companies 2012 I.

Ecological dimension

To help you to know how we find out our concept of an ideal ecological company, we will present to you first the classical life cycle of a polo shirt and after that we will see how a Lacoste polo shirt is made in the most important plant of Lacoste in Troyes (France). This may be the traditional way of manufacturing of polo shirt. And finally, we will show to you how we think an ideal ecological company.

1. The classical life cycle of a polo shirt

The classical life cycle of a polo shirt

Concept: Each company has their own concept and style of management. The concept is the mind of a company. There are many type of company’s mind: those which want to make money and profit, those which want to be creative, those which want to have a high quality of polo shirt … The concept can have an impact on the ecology if you don’t consider the ecological aspect in your concept of polo shirt.

Extraction of raw materials: Usually, a polo shirt is made of cotton or polyester or some other fibers… We know that the cotton needs a lot of water and how water becomes rare nowadays. We also know that the polyester is a petroleum and the very bad impact of the oil on the earth. So, that show how the choice of the fiber can have an impact on the ecology.

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David Le Buan – Paul Tran

Corporate Social Responsibility in Fashion Companies 2012

Transformation: After extract the raw materials, the fiber need to be transform into the yarn and after that into knit or fabric. This step needs a lot of power and can produce some waste. The power can have many origins, for example in France the majority of the power comes from the nuclear power. That shows how the transformation can have an impact on the ecology.

Manufacturing: Between the transformation and the manufacturing, there the textile materials are usually delivered by plane, trucks and boat. Sometimes, the plant is located in the other side of the earth. The delivery can generate a lot of pollution which can have an impact on the ecology. The plant can also have an impact on the ecology. We will see in detail how with the example of the manufacturing of the Lacoste polo shirt.

Sale and Use: Before the use, the customer needs to buy the polo shirt in a shop. Consequently the marketing in shop generate some pollution and use some power. And when he got his polo shirt, he will have some impact on the ecology by washing it several times.

End of life: At the end of the polo shirt’s life, it is usually throw into a trash can. After that it may be burn or bury. Even if the polo shirt is unusable, it can keep have an impact on the ecology.

2. Lacoste polo shirt

Lacoste polo shirt

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David Le Buan – Paul Tran

Corporate Social Responsibility in Fashion Companies 2012 We just see how the classic life cycle of a polo shirt is. Let’s see in detail the steps of manufacturing with the example of the Lacoste polo shirt. For its manufacturing, there are 3 main steps: the knitting, the dyeing and the confection. Knitting: The first step of the production of the polo shirt is the knitting. Indeed, Lacoste produce itself the knit used for the polo shirt. So, it is needed to buy first cotton yarn, then the yarns are stocked attending to be knitted. Finally after the knitting, we get rolls of knit.  Ecology: During the knitting, a fleet of hundreds of machines generate a lot of noise, dust and consumes much power. So if there are no filters or soundproof wall, the impacts on ecology can be important. Moreover, we can see another impact. Indeed for the knitting, yarns are usually paraffin to have better mechanical performance during the knitting. So, the knit will be washed later and a water will be use and reject. Dyeing: In the department of dye, there are two services: the laboratory and the factory. After being knitted, the knit are unbleached. So they need to be bleached and dyed. The laboratory has three missions: create new season’s colors, quality control, research and development.  Ecology in the laboratory: The laboratory works with very small quantities. Dyeing test are done on sample of 10grammes or 1 kilograms which is nothing comparing to a dyeing machine of 250kg. However, all the wastewater is sent to the central sewage.  Ecology in the factory: The operating costs are quite high in this department. Indeed a term of dyeing is about 9h for 250kg which represent about 600 polo shirts. During this term, between 5000 and 8500 Liters of water are used, between 50g and 25kg of dye are used depending if the shade is dark or not. After the dyeing, the knits are washed and dry with hot air. For the entire cost, Dyeing is not very ecological. Confection: That is in this department style and tendencies are created then assembled. The first step is the design office which analyses the tendencies and created the new models and style of Lacoste. The design office elaborates the new collection of every season about 1 or 2 years before. For each collection, they create a color palette which is sent to the dyeing laboratory. They also find some new fit for the classic Lacoste polo shirt L1212. After that, the factory just follows the orders. For the sewing/confection, there are many factory based in France but most of them are in Mediterranean countries. There are many steps: first they placed the pattern on CAD like Lectra systems. They print this on the mattress of knit and cut it. All front parts are brought to the embroiderer machine which will embroider the famous crocodile of Lacoste. Finally, all pieces are sewed together.  Ecology: The confection is mainly manual that is why many factories a delocalized into developed countries. Consequently, many trucks, boats and plane travel each day over the world to deliver of the textile to the foreign plant and come back.

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David Le Buan – Paul Tran

Corporate Social Responsibility in Fashion Companies 2012 3. An ideal ecological company After seeing how a polo shirt is usually manufactured, we analyzed all the step and we saw that we can improve to maximum the ecological aspect for our own ecological company. Now we will show to you how we think our ecological company should be.

The life cycle of our ecological polo shirt

Concept: Like we said before, our concept here is to create an ideal ecological company which manufactures polo shirt. And to be ecological, we have to think about all the impacts on the ecology for every step and everything which will be done during not only the manufacturing of the polo shirt but during all the life cycle of the polo shirt from the fiber to the end of its life. That is why we take time to analyze all the traditional way of manufacturing a polo shirt. Now we are creating our own ecological brand: Greenouille

Greenouille’s logo

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David Le Buan – Paul Tran

Corporate Social Responsibility in Fashion Companies 2012

Extraction of raw materials: Like we said before, the choice of the fiber can have an impact on the ecology. That is why we decided to find a natural fiber which is inoffensive for the nature during the production, the use and the end of life. Our choice was to take whether bio cotton whether bio flax. We finally decided to choose the bio flax because 70% of the international production of flax is made in France and as French company this limit transport. Moreover the best quality of flax is made in France in Normandie. And we will see that the transformation is inoffensive for the ecology because it doesn’t need water and is mechanical. Consequently for all reasons, we think the bio flax is the best fiber for our ecological company. Flax is produced on the spot, bio and natural, biodegradable and recyclable. The linen is also a very breathable textile in summer and can be a warm textile in winter. It is also absorbent and more resistant and durable that the cotton, antiallergic and anti-bacterial.

Flax field

Transformation and manufacturing:  Location: We decided to have the culture of flax, the transformation of flax fiber into yarn and the knitting and confection plant in the same factory or area. All this limit pollutant movement by plane, boats or trucks. So, we try to reject the lowest CO2 emission as possible. Normandie is also known for the best quality of flax over the world and consequently the majority of the knowledge in spinning flax is located there. North of France is also known for the tradition in the textile industry and the French high quality.  An ecological factory: Our factory should be the best ecological factory. It will be self-sufficient in power, powered by a photovoltaic panel park. The plant will be energy sufficient because of a good isolation/aeration and the best low-energy machines of production. For example all the engine will be turn off and not only in standby with a nightlight.

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David Le Buan – Paul Tran

Corporate Social Responsibility in Fashion Companies 2012

Our factory powered by solar power  An ecological production: First the company will respect scrupulously the label Oekotex100plus which is the strictest label of Oeko-Tex. This helps the costumers to visualize the most respectful product without harmful chemical product for the skin and also to visualize the company which use environmentally friendly production methods. By respecting the Oeko-Tex label, we automatically respect the program REACH (registration, evaluation and authorization of chemicals) according to the European legislation. To give an example, we will use natural dye and recycling all our waste. Our company will also have others eco-label like Eko-Skal.

Oeko-Tex label and Eko – Skal label  An ecological dyeing: Like we said we will use the best dyeing machine water economic with natural dyes. We choose to work with a young French company which develops natural dyes for the industry. They are created in 2005 by engineers who want to think differently by using extract of dye plants. They cultivate many different dye plants. For example the Rubia tinctorum L for a red color or the Isatis tinctoria L for an indigo. All the production of these natural dyes is eco-friendly like theirs uses in an industrial production. (http://www.couleurs-de-plantes.com/index.html)

Couleurs de plantes – Natural dyes

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David Le Buan – Paul Tran

Corporate Social Responsibility in Fashion Companies 2012  Recycling of waste: During all the process, flax waste can be created but we can recycle all the flax waste and short fiber of flax in example in the paper industry or in the padded industry or in insulation.  An ecological staff: All the employees will be sensible to the ecological aspect of recycling and waste. An eco-behavior will be put in place with a program of carpooling between employees and to help them a unique schedule will be set up 8h12h and 13h-16h.

Sale and Use:  Eco-marketing: For the sale, we decided to not open any store. We only sale in an e-shop. This generates less movement by car of the customers. We send all the delivery in collaboration with colissimo by La Poste, the french post. The program Colissimo since the 1st march 2012 provides the delivery of parcels with a CO2 neutral. That means every CO2 emission will be compensated by financing ecological actions. (http://www.colissimo.fr/compensation_carbone/). We also use recycled paper and cardboard for the packaging of our polo shirt.

Colissimo by La Poste

 Use: In every delivery, we will give some ecofriendly advice about the washing and some other.

End of life: Finally when the polo shirt will come to its end of life, our company will provide a free shipping service by La poste back to the factory to recycling your polo shirt for a new life. It will be recycled like the flax’s waste in the paper industry or in the padded industry or in insulation. In return of the polo shirt, we will give to the customers a discount on the next purchase.

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David Le Buan – Paul Tran

Corporate Social Responsibility in Fashion Companies 2012 II.

Social dimension

Many news companies try to integrate many values like ethics or good working conditions. A French company has succeeded in making a new project which respects the ecology, the little producers and the workers in the production. This brand is VEJA, it make ecological but fashion shoes in the respect of all the workers. To succeed, VEJA built his project by taking care of all their workers by give to them a better wage than the average wage of a textile worker in the country, but also by helping workers to have a good accommodation and to go more easily to the work. For us the social dimension in the work is very important and we think that another way of production, more respectful is possible, here is how we integrate the social character in our company. For the strategy of our company focus on the ethics and the working conditions, we have thought about two different cases. The first is that our production is based in a country with a good quality of life, for example in France and the second is that our production is based in a country where the cost of labor is lower. First of all we have interested on what we make in each country and after what we make in general in our company without the consideration of the country.

1. In France In France, there are many laws which protect the workers like a minimum wage, contributions to retirement, the number of hours worked in a week, … For ours French workers in France, the first thing is to respect all the French laws. But the first goal is to be very productive and to have workers very motivate, that is why all the overtime will be paid twice, and limit to two hours per day. Thus workers can make many things outside their work. Then workers will feel not exploited and respected by the company. Moreover concerning the wage, we think that to pay just the minimum, the motivation of the workers couldn’t be very high and maybe the quality and the productivity could be low. So we decide to pay twice the average wage of a textile worker in our company. The aim is to have a great motivation and a great productivity with workers which have a better standard of living. Further with this wage, we think that we can hire the best workers for our company by making a selection in all applications. Then we want that workers feel involved in the company, and we want to create a bonus at the end of each year according to the results of the company. Moreover, we want to simplify the life of our worker especially concerning family, we create a nursery where our workers are priority but the nursery is also open for people which live all around the company.For their health we want to go further than the French laws, we offer a medical service once a month and not only the compulsory visit like in the French law. To facilitate the transport to the company and to create a more convivial atmosphere we help workers to put in place a schedule of carpooling. And if is always the same workers which take their car (because several workers can’t have a car) then we give to us a financial compensation. Moreover to facilitate access to accommodation for our workers the company make available several house or flat with a good rent.

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David Le Buan – Paul Tran

Corporate Social Responsibility in Fashion Companies 2012 2. In country where the cost of labor is lower In these countries the philosophy of our company got a greater dimension, because for us there are a lot of works in this country about the ethics and the working conditions. Here is our vision about our company in these countries. We can’t apply the same measures that in France because it will create too many inequalities in the country but in this kind of country we can improve significantly and radically the vision that workers have about the work in their country. About the salary, we want also increase the purchasing power of our workers. To make this we see the average salary of a textile worker in this country and we increase this wage by 10% or 15%. The aim of this measure is to give a better way of live to our workers. Moreover, we establish our own system of retirement, with a contribution for each worker, but this contribution will be given to the worker if he leaves the company before his retirement. Thus we assure the future of the workers. This system of retirement won’t be creating in our company if it already exists in the country. According to the rules in the country about the number of working hours per day, in our company we respect this law but we also add a rule about the overtime, we don’t want that workers make more than two hours overtime per day, and this overtime will be paid twice more than normal hours. Thus workers are not exploited and the company respects the workers. Also we want that workers feel involved in the company, and put in place a bonus at the end of each year according to the results of the company. In addition, the social dimension that we give to our company doesn’t stop after work, because the life of the worker is also outside the company. That is why we help our workers have access to decent housing, with water and electricity. The priority is to help the worker to buy an accommodation by himself, thus the accommodation is not the propriety of our company. We help workers by giving our supports for the bank’s step. But if it is not possible for some workers then we propose several accommodations with a low rent, we don’t make profit on the rent. Furthermore if our workers live far from the company, we make a bus tour every day to get workers and to go back home after the work. Thus we think that our workers are more relaxed and don’t have the tiredness to come by their own way to the company. And for us is also a good thing because we stop the eventual delay of workers. Next, we want protect our workers and we want that they are always on top, but we know that in several countries is very hard for people to have access to medicine then every week during a day we have bring a doctor or a nurse for the workers who want a consultation. Thus we take care about our workers and our workforce is always on top. Moreover, families’ workers are also very important for us, therefore we create, in collaboration with the local authorities, a school and a playgroup, thus we give an access to children’s workers to the school, and with this system children can have access to the education system. This school is made for children’s workers but also for the children all around the company. It is our contribution for the community where we are implanted.

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David Le Buan – Paul Tran

Corporate Social Responsibility in Fashion Companies 2012 3. Whatever the country That what we make in our company in each case according to the country but also we make things for the company no matter the country where is the company. A measure very important for us concerns the workers’ protections. Thereby we give to worker according to his workstation all the protection he needs, in particular against chemicals but also against the noise of machines. We create also a works council (financial by company) to give advantages to workers like for example gift for children’s workers during Christmas, or to have reductions for sport or events like for amusement parks. For their free time like during lunch or during breaks, we create inside the company a relaxation room with a great ambiance, and relaxing armchairs, this is important for us because this procure the rest to workers. In our company we don’t want that children work, it is why we ban the work for all children who are under 18 years, but we want included young people in the company by formation like apprenticeship or internship. Moreover we have decided to hire people who need a reintegration in our logistics group. We propose a training to help them to find a work in our company in the aim to be reintegrated in the society. For us to help people when they have problems is very important. Also we want in our company people with disability because we think they can make the same work, and also to improve their welfare we develop special workplace for them. Furthermore to confirm our human and social character, we use our profit (not all the profit because we keep a part of profit to make work our company) to invest in different social causes like association for children, or for people in difficulties. We make also big special operation like for example, each polo sold it is one euro given to an association or for the ecology, for one polo sold, one tree planted. That is our company with a very important social dimension and all aspects that we think are important for workers in a company.

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David Le Buan – Paul Tran

Corporate Social Responsibility in Fashion Companies 2012 III.

Survey

After we made the two strategies, we submitted our work to other student with the questions: “What do you think about these two different strategies? Advantages and disadvantages?” Here are the main answers that we received: advantages -Very good ecological company -It is interesting to have an overview of the life cycle of our polo shirt and see how each step can be improved. -It important to see that your company takes care of their workers with the social dimension and not only with the financial side.

Disadvantages -The ecological dyeing is less resistant than chemical dyeing. There are not so many colors in ecological dyeing. -Maybe in winter your company can’t be selfsufficient because of the bad sunshine in Normandie. -We don’t see enough the side of the formation for workers

We take the remarks into consideration to improve our project and now to make our CSR we combine the two strategies. Moreover, to be more eco-friendly we decide to make our company in France and now here is our CSR.

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David Le Buan – Paul Tran

Greenouille

Corporate Social Responsibility in Fashion companies

Our polo shirt

David Le Buan – Paul Tran

Greenouille

Corporate Social Responsibility in Fashion companies Who are we? Greenouille are a French company which produce ecological polo shirts. Our missions: Our company undertake to make somebody know the pleasure the happiness to wear high French quality of clothes which are eco-friendly and which respect the dignity and the ethic. Our values: We listen our customer needs and we think that an alternative way of producing is possible. Our principles: Respect the environment and the workers. Our aim is to satisfy customers.

David Le Buan – Paul Tran

Greenouille

Time project repartition Survey:

Research:

To know the people opinion about our project. This survey help us and permit us to finalize our project.

To make this project we have done a lot of research about the ecology, the social dimension in companies but also on the production of polo shirt.

Research Survey CSR report

CSR report: Creation of our CSR report.

David Le Buan – Paul Tran

Greenouille

Social Dimension

Ecological Dimension

We make several research: If we are established in France If we are established in country where the cost of labor is lower Actions whatever the country Manufacturing : Knitting Dyeing Confection

David Le Buan – Paul Tran

Greenouille

Exceed laws Bonus Overtime Salary X2 French Laws French laws: minimum salary

Bio Flax  High Quality and main production in Normandie (France)  Natural and eco-friendly  Ecological process of transformation  Biodegradable and recyclable  Very good thermo regulator (warm in winter – breathable in summer)  Anti-allergic  Anti-bacterial  More resistant than cotton

1398€ , 35H/Week, Bonus is not compulsory

David Le Buan – Paul Tran

Greenouille

Worker health  Relaxation room

One Unique Factory  Location : Normandie (French high quality of knowledge)

Protective equipment

 One factory – Less CO2 emission - flax fiber to yarn - yarn to linen knit - linen knit to polo shirt  An ecological factory : - solar power - Flax waste recycled Medical service

 Eco-sensitized staff

David Le Buan – Paul Tran

Greenouille

Corporate contributions  Works Council -Finance by the company for different activities.  Nursery -For our workers in priority

Ecological production  Compliance with environemental labels  An ecological dyeing : Natural dyes extract from dye plants  Eko - Skal  Oeko-Tex 100plus  REACH

 Access to accomodation

Carpooling

David Le Buan – Paul Tran

Greenouille

Integration

Eco-marketing

 Hire different people: -For social integration -For a profesional integration  Fit out special workplace in the logistique department

 E-shop for less CO2 emissions  Delivery with neutral emissions of CO2 by Laposte since 1st March 2012  Eco-packaging with recycled paper and cardboard  With all order, a booklet of eco-advice about the washing and some other

David Le Buan – Paul Tran

Greenouille

Good uses of profits  A part of our profits in associations Special actions Association for children or people in difficulties

Recycling  Service of polo shirt recycling  Recycling of polo short in paper industry or padded industrie or in insulation  One Polo shirt recycled = A discount for the next polo shirt

 association for the environment

David Le Buan – Paul Tran

Greenouille

Conclusion

David Le Buan – Paul Tran