To counter non-tariff barriers, the Indian government has introduced a program called DISHA (Driving Industry towards sustainable human capital advancement) to address social and environment issues faced by the Indian apparel industry. The Apparel Export Promotion Council (AEPC) has been assigned the task of implementing the program. DISHA is a business-driven initiative for the continuous improvement of working and environmental conditions in global supply chains that could lead to achieving a dual goal of job creation and social protection.
Across globe, time and cost pressure prevents producers from implementing the social compliance code of conduct. In the context of globalization and international competition, many companies source labour intensive goods from developing and newly industrialized countries. However, working conditions in these countries often do not comply with labor standards such as those established by the International Labor Organization (ILO). To address this issue, many companies and associations have created individual codes of conduct and monitoring systems like the DISHA program introduced in India.
Social compliance initiatives aim to establish a common platform for the various American and European companies’ codes of conducts and monitoring systems. It also lays the groundwork for a common monitoring system for social compliance. Popular elements under common code of conduct include legal requirements, no child labour, health and safety, workers’ rights, housing conditions, environment, systems approach, monitoring and enforcement and so on.
Experts feel compliance issues should have been covered under WTO preview long ago with clear guidelines of fines and penalties as in the cases of other products. Furthermore, to the extent feasible; the integration of these programs with other private programs should be explored by governments of the developing countries in order to minimize the requirements to comply with multiple labeling requirements.
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