The document discusses compliance systems in the Bangladeshi ready-made garment industry. It begins with an introduction on the growth of the industry and importance to the economy. It then outlines various social accountability standards developed by international organizations that large buyers use to formulate their own codes of conduct. The basic principles of codes of conduct are derived from international human rights norms. Codes of conduct typically address nine core areas including child labor, forced labor, health and safety, compensation, working hours, discrimination, discipline, freedom of association and collective bargaining, and management systems. While compliance is required, local culture and government regulations must also be considered. Social compliance audits in Bangladeshi factories typically involve opening meetings, factory tours, document reviews,

1. Compliance System In RMG Industry in
Bangladesh

2. Introduction:
The readymade garment (RMG) industry in
Bangladesh has experienced an unprecedented
growth. The industry plays a vital role in the economy
in terms of export earnings, employment generation
and poverty alleviation. It needs to emphasize on the
factory working environment, social issues, labor
relations and labor relations.
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3. Compliance System
In RMG Industry
Social Accountability standards have been developed by the international organizations such
as Fair Labor Association (FLA), Worldwide Responsible Apparel production (WRAP) , Council
on Economic Priorities Accreditation Agency (CEPAA), The Ethical Trading Initiative (ETI)
and Business for Social Responsibility (BSR).
Reputed brand buyers in large supply chain have taken the guideline from those
organizations and formulated their own standard of COC and also the acceptance criteria.
The basic principles of COC have been derived from the principles of international human
rights norms as delineated in International Labour Organization Conventions, the United
Nations Convention on the Rights of the Child and the Universal Declaration of Human
Rights.
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4. 4
• Child labour
• Forced labour
• Health and safety
• Compensation
• Working hours
• Discrimination
• Discipline
• Free association and collective bargaining
• Management systems
It has nine core areas to be addressed upon.
These are as follows:

5. 5
While following the above criteria is compulsory for satisfying COC, local culture
and regulation of Govt. can not be overlooked. For instance, limit of working hours
and compensation for extra work may not be the same for all geographical zones
in the globe. Minimum basic wage also depends on the economic situation of a
particular country in question. The introduction of rights of free association and
collective bargaining is guided by the political environment, the maturity level of
workforce and above all the basic training of the management of the organization.
By keeping in mind the complex scenario, several case studies in Bangladesh have
been made with respect to the information obtained through actual social
compliance audits performed by leading auditors of internationally well known
consumer products service companies.

6. 6
Social compliance audits conducted as per the COC of different brand buyers
of USA and Europe were basically based on the following steps:
Opening meeting with the factory management (informed the scope of audit)
Factory Tour (observed working condition)
Document Review (payroll, time card, personal file, age documentation etc.)
Employees Interview
Closing meeting with factory management (discussed audit findings and
recommended necessary improvements).
Highlights of typical findings in different aspects of social accountability are
described below. Suggested corrective actions in typical cases are also
indicated. Some of the non compliance issues have also been photographed
as shown in Plate no 1 to 6. This is to understand the actual scenario of
social compliance in different RMG factories in Bangladesh.

7. Example
In RANA Plaza collapse death toll approaches 1,300 and many guys get injured.
After this collapse foreign buyers became very anxious about the compliance of GMT. Already Disney mart declared, they don’t source
garments from BD.
Others dominated buyers also create pressure upon Bangladesh to maintain compliance in garment industry.
U.S.A also monitor about the GSP facility. They are in aggressive mood. They can abolish GSP facility for Bangladesh.
Now, I will focus on what are our buyer problems or pain, if we don’t maintain compliance in garments industry.
I would like to clear it by a simple example…
I hope, you all are introduced with burglar. They theft some materials from victim home. Then he sells these materials to a person at
cheap rate.
When this burglar is caught and meeting is called then the burglar confesses his guilt. Then he is punished along with his buyer. Cause
his buyer also guilty for supporting the burglar.
I think you are all clear about out garment buyer’s headache.
As a nation they are very gentle. They don’t like this violation of compliance in our RMG sector.
So, if we want to dominate this world by RMG sector i.e., Made in Bangladesh. we should be compliant.
Otherwise we will lose our market and it causes an adverse effect on our economy.
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8. THANK
YOU!
Fahad rahman