Assignment 2

Apparel quality
management
Consider one apparel manufacturing company in India. Find out what are
the compliance requirements from State government and central
government. Take any one foreign retailer who is placing order and find out
the compliance requirements from his side

SUBMITTED BY

NAMITHA K I

BFT/18/857
Compliance is all about the quality of products from the factory which must meet the audits
and inspections and to give a proper environment for working.

Social Compliance
Social compliance refers to how a business treats its employees, the environment and their
perspective on social responsibility. It refers to a minimal code of conduct that directs how
employees are treated with regards to wages, working hours and work conditions. To ensure
that the company meets standards of various environmental laws, it may be necessary to
conduct a compliance audit.

Compliance Audit

Audits and assessments provide vital management control for Process Safety Management,
Process Security Management, and Risk Management Programs. Audits focus on the policies
and procedures to verify compliance with regulatory requirements and industry standards.
They help to ensure programs are properly designed and implemented. Further, audits also
identify program deficiencies so that recommendations can be developed for corrective action.

Compliance audit in India includes an examination of rules, regulations, orders and instructions
for their legality, adequacy, transparency and prudence. Auditors gather information through
visual observation at the site, document reviews and interviews of staff. This data is then
compared to the applicable permits and regulations to evaluate how well the operation is
conforming to the applicable legal requirements.

H&M COMPLIANCE
1. CHILD LABOUR: “H&M does not accept child labour. If a supplier does not accept our policy
on child labour, we will not continue our co-operation with this supplier”.

• The factory should develop a policy against child labour and maintain a good recruitment
system that is implemented and communicated to all relevant personnel in the factory. The
purpose is to ensure that all new workers show their original age verification to the factory
upon taking up employment.
• All workers should be registered and copies of their ID verification document should be
kept by the factory.
• Children under the legal working age should never be allowed to enter the work premises,
not even to visit their parents.
• Auditors should be given access to all personnel files and age documentation for all
workers.
2. HEALTH AND SAFETY “We require from H&M suppliers that the workers’ safety should be of
priority at all times. No hazardous equipment or unsafe premises are accepted”.

a. Emergency Exits :“The purpose of emergency exits is to ensure that there is more than one
possible way out of the factory in case of an emergency”.

 Every floor or large room must have at least two ways out.
 All emergency exits must be clearly marked with emergency exit signs.
 Emergency routes should be kept clear and safe all the way out of the factory at all
times.
 All emergency exits on all floors should be unlocked during working hours.

b. Unblocked passages: All workers should have free access to and from their workstations
during working hours.

c. Fire Alarm “The purpose of a fire alarm is to ensure that all workers can be immediately
notified in case of an emergency. Therefore it is important that the sound and sight of the fire
alarm is not used for any other purpose”.

• The panic buttons should be clearly marked and should be located on all floors of the
factory building.
• Fire alarm should be installed on all floors, and they should be connected to ensure
that all alarms are activated by one touch of any panic button in the factory. The sirens
should be alerted continuously after one touch of one of the panic buttons.
• The alarm system should function even in case of electrical power cut.

d. Emergency Exit in Day Care Center

• Emergency Exit should be provided for easy exit for children. e. Safe Building
• Building should be structurally safe.
• Preferably, stability certificate should be obtained from the concerned department.

Workers rights

• Forced Labour : “We do not accept that bonded workers, prisoners or illegal workers are
used in the production of goods for H&M. Involuntary overtime above legal limits in
connection with threats of punishment is considered as forced labour”.
• Prison labour: H&M does not accept that our goods are produced by prison labour, and this
is clearly stated in our Code of Conduct. If the supplier is using prison labour for H&M
orders through its own factory or a subcontractor, we will immediately and permanently
terminate our business with the supplier and withdraw all order(s), both those currently in
 production and those confirmed for later delivery. The subcontractor involved will also be
permanently terminated, and cannot be used by any other supplier in the future.
• . Migrant Workers “If foreign/migrant workers are employed on a contract basis, they
should never be required to remain employed for any period of time against their own will.
All commissions and other fees to the recruitment agency in connection with their
employment should be covered by the employer”. Foreign/migrant workers may not be
treated less favorably than local residents. This includes offering the same wages and other
benefits – such as, for example, social security – as for other workers, and granting them
the same rights (for example, the right to organize) and not imposing any restrictions on
their freedom.
• Freedom of Association and Collective Bargaining “All workers should be free to join any
associations of their own choosing, and they should have the right to bargain collectively.
We do not accept any disciplinary actions from the factory against workers who choose to
peacefully and lawfully organize or join an association”.
• Legal Minimum Wage “Wages should be paid regularly, on time and be fair in respect of
work performance. The legal minimum wages should be a minimum, but not a
recommended, level”.

5. HOUSING CONDITIONS

a. Separate Dormitory : Dormitories / Hostel / Boarding / Housing provided within the factory
premises are unacceptable.

b. Basic Safety Requirements : The doors in dormitory should always be opened from inside at
all times without using a key.

6. ENVIRONMENT

• Use of Chemicals in accordance with H&M Chemical Restriction list

Shahi exports
• To formulate and implement Compliance, HR & Admin policies in line with company
standards.
• To play a proactive part in ensuring compliance of the local labor laws/regulations and
to train staff for following of statutory compliances.
• Implementation of compliance audit through in-house periodical audit, monitoring &
training of factory management on legal, social and safety issues as per requirements
or 3rd party’s requirement.     To inspect, audit and advise compliance CAPs and get
them rectified so that the necessary standards can be met.
 • Effective Liaisoning with government / semi - govt. authorities/ local bodies to ensure
good public relations.
• Contributing to the designing of the manpower plan in terms of manpower numbers
and time schedules of requirements.
• Ability to handle the entire gamut of HR issues such as recruitment, appraisal,
employee engagement, grievances, training etc.
• Handling and processing of payroll for all the employees and ensuring the accurate
and timely disbursement of salaries and wages and other salary components like
allowances.
• To work on new initiatives/ projects such as Self Compliance/ Use of Better Chemicals
etc. for long-term sustainability and fulfilling Corporate Social Responsibility.
• Working closely with internal/ external auditors.

Gokaldas exports
They are committed to take adequate measures related to environment, employee health and
safety in developing, manufacturing, storing, handling and distribution of our products. It is our
responsibility to provide a workplace free from accidents, injuries and exposure to hazardous
substances, conserve natural resources and prevent pollution to protect the environment.

Besides, as a constructive partner in the communities in which it operates, the Company has
been taking concrete actions to realize its social responsibility objectives, thereby building value
for its various stakeholders.

Some of the key initiatives taken by the company are:

• Regular fire safety audits along with mock drills at all locations.
• Identification and implementation for additional fire safety measures for high rising
buildings (beyond 15 Mtrs).
• Up-gradation of existing fire control and safety systems including training on fire
prevention for employees.
• Enhanced focus on product safety and safe working practices through training
programs.
• Implementation of a Zero Liquid Discharge (ZLD) project with enhanced capacity of
Reverse Osmosis Plant in Denim Laundry for recycling of waste water is in progress.
• Installation of CCTV Cameras for improved surveillance system in order to capture any
untoward incidents and to prevent thefts.
• Projects such as P.A.C.E (Personal Advancement and Career Enhancement) and WCP
(Workplace Co-operation program) for the benefit of employees.