COMPLIANCE IN BANGLADESH GARMENT INDUSTRY

Compliance is the act of carrying out actions or developing practices or policies in conformity with the demands or expectations of an external authority, such as the International Labor Organization (ILO), a human rights organization, a global customer, etc. The working environment in which the garments are to be produced is equally important to completely address the sweatshop concept, and the code of conduct must be stretched to achieve the goals of social compliance issues if ready-made clothing is to be exported. Quality parameters are important for the acceptance of the product as per the intended end use.

Compliance is the key thing for the garments business in Bangladesh, as all buyers take this issue very seriously, and they are doing a periodical audit after a certain period in the garments industry. So many documents and data need to be kept for Compliance management; all training documents, working hours’ data, salary sheets, and policies must be written in the local language.

Social Accountability

The working conditions of the company where the products were created are valued by retailers and manufacturers in today’s rapidly evolving global market, in addition to the quality of the clothing. Both of those are equally crucial to boosting consumer confidence and developing more trustworthy relationships with providers. To satisfy customers and enhance the product’s social worth, a specific code of conduct that safeguards the fundamental human rights of the workforce participating in the trade must be adhered to.

Code of Conduct (COC)

Reputable brand purchasers in major supply chains have taken these organizations’ guidelines and created their COC standards as well as acceptable standards.
The fundamental tenets of COC were developed from the tenets of international human rights conventions as outlined in the Universal Declaration of Human Rights, the United Nations Convention on the Rights of the Child, and the International Labor Organization Conventions.

The Code of Conduct has nine important areas –

1. Child labor
2. Forced labor
3. Health and safety
4. Compensation
5. Working hours
6. Discrimination
7. Discipline
8. Free association and collective bargaining
9. Management systems

Basic things for Garments Compliance management

1. Follow all the laws and regulations.
2. Policy and procedure documentation.
3. Discipline, discrimination, compensation.
4. Physically monitoring the effectiveness of Compliance.
5. Internal Audit.
6. Audit by customer or customer-nominated nominated 3^rd party.
7. Safety Training for employees.

Compliance Dept. ensures regular/periodical documentation, document control, and disposal policy, prompt communication with local legislation bodies, customers, and other stakeholders on different demands. Conducting a periodical internal audit is one of the prime jobs of this dept.; however, it is not only an issue of auditing or assessing, but also regular monitoring, tracking, and facilitating. This compliance department. represents the organization during the internal audit, external audit, visit, and plant tour, and entertains members of different legitimate bodies and stakeholders in the facility. The garments industry has its own dedicated Internal Compliance and CSR teams under the direct supervision of the Top Management level (CEO, Chairman & Managing Director). The Compliance Team is responsible for following up and developing operating policies and procedures to govern Team functions with the inventory, risk assessment, training, communications, audits, and corrective actions.

They developed a lot of policies like: Company’s COC, Company Overview, Service Rule and Workers Rights and Privileges, Forced and Bonded Labor Policy, Child Labor Policy, Child Labor Remediation Policy, Non-Discrimination Policy and action, Anti-Harassment policy, abuse Policy and action, Policy on Conduct with Workers, Anti-Corruption Policy & Procedure, Policy & Procedure on Freedom of Association, Policy on Human Right & Compliance, Labor Development Rules, Supplier Selection Policy, PPE Use Policy, Safety Policy, Internal Security Policy, Broken Needle Policy & Procedure, Sharp Tools Control Policy & Procedure, Fire Safety Policy, Emergency Fire Safety pre Plan with Fire Service & Civil defense, Emergency Fire Management Plan, Fire Fighting Policy, Fire Fighting Plan/Team, Policy on Emergency Action Plan, Emergency Response Team, Crisis Management Policy, Women’s Right, Special Program for Pregnant Worker, common room for women, prayer room for women, Maternity Benefit Policy, Female Employee & Expected Mother Facility Policy, Policy on House Keeping, Pest Control Policy, Water Management Policy, Hot Work Policy, Excessive Policy, Non-Discrimination Policy, leave policy, Anti-Harassment, attendance policy and Abuse Policy, Policy on Conduct weight Control Policy & Procedure, Business Integrity Policy, Ethical Trading Policy, Urgent Business Needs Policy, Smoking Control Policy, Environmental Policy, Environment Management Policy, Environmental Management Programs, Environmental Accident Management Plan, Waste disposal Management Policy, Procedure for Waste Management, Waste Flow Chart, Waste Inventory, Emergency Response Plan, Chemical Safety Management Policy & Procedure, Chemical Purchasing Policy & Procedure, Chemical Purchase and Use Policy, Chemical Inventory Sheet, Chemical Spill Management Guidelines (Chemical Emergency Plan), Effluent Treatment Plant (ETP) Policy & Procedure, Policy for Sludge Management, Emergency Response Plan for ETP.

Bangladesh Garments Factory Compliance Certificates Required for USA & EU Customers

To export garments from Bangladesh to the USA and EU, factories must obtain several compliance certificates to meet international standards. These certificates ensure ethical sourcing, worker safety, and product quality. Below is a breakdown of the key compliance certificates required and their importance.

1. Compliance Certificates for USA Customers

a) WRAP (Worldwide Responsible Accredited Production)

• Ensures ethical and responsible manufacturing.
• Covers labor rights, workplace safety, and environmental protection.
• Required by major US retailers like Walmart, Target, and GAP.

b) CTPAT (Customs Trade Partnership Against Terrorism)

• Issued by US Customs and Border Protection (CBP).
• Ensures security in the supply chain to prevent terrorist threats.
• Required for hassle-free shipments to the USA.

c) OEKO-TEX Standard 100

• Tests for harmful substances in fabrics.
• Required by brands focusing on skin-friendly and eco-friendly clothing.

 d) GOTS (Global Organic Textile Standard)

• For factories producing organic garments.
• Ensures environmental and social responsibility in organic textile production.

 e) Fair Trade Certification

• Ensures fair wages, worker rights, and sustainability.
• Important for brands focusing on ethical sourcing.

2. Compliance Certificates for EU Customers

a) BSCI (Business Social Compliance Initiative)

• A major requirement for European brands.
• Ensures fair wages, no child labor, and safe working conditions.
• Required by retailers like H&M, Zara, and C&A.

 b) SEDEX (Supplier Ethical Data Exchange) – SMETA Audit

• Ensures ethical and social compliance in the supply chain.
• Buyers use SEDEX audits to verify compliance.

 c) OEKO-TEX Standard 100

• Also required in the EU for textile safety.
• Ensures products are free from harmful chemicals.

 d) GOTS (Global Organic Textile Standard)

• Similar to the USA requirement, it is necessary for organic textiles.

 e) EU REACH Compliance

• Ensures that chemicals in textiles meet European safety regulations.
• Factories must avoid restricted substances under the REACH regulation.

3. Other Certifications That Add Value

These certifications are not always mandatory, but they add credibility and improve a factory’s reputation:

• ISO 9001 – Quality management certification.
• ISO 14001 – Environmental management system.
• SA8000 – Focuses on social accountability and worker conditions.
• Higg Index – Measures sustainability performance in production.

Green factories in Bangladesh

LEED is an internationally recognized green building certification system created in 1998 by the U.S. Green Building Council (USGBC) that provides voluntary guidelines for the development of sustainable buildings around the world. A common starting point for most businesses in the current global climate is the desire to reduce their negative impact on society and the environment, while simultaneously growing sales. Finding ways to increase product efficiency understandably plays a vital role in this pursuit. In this regard, the LEED certification system intends to standardize and certify commercial, institutional, or high-rise residential buildings internationally.

Bangladesh now hosts 268 LEED-certified garment factories, including 114 Platinum, 135 Gold, 15 Silver, and 4 Certified facilities. This marks a significant leap in sustainable industrial growth and further strengthens the country’s reputation as the world’s green manufacturing hub.

Even more impressively, 68 of the world’s top 100 highest-rated green factories are now located in Bangladesh, demonstrating the sector’s commitment to sustainability and clean production.

Details of Green factories in Bangladesh

The minimum level is simply called “certification” and requires applicants to earn 26 of the 69 possible points. Projects that receive 33 points receive silver certification, those with 39 points earn gold, and those with more than 52 points earn platinum.

YEAR	NO OF GREEN FACTORIES	PLATINUM	GOLD	SILVER	CERTIFIED
2011	2		1		1
2012	2	1	1
2013	4	1	3
2014	3		2	1
2015	11	1	6	4
2016	15	8	6	1
2017	16	2	13		1
2018	24	7	17
2019	28	5	21	2
2020	23	9	13	1
2021	24	10	11	1	2
2022	30	16	14
2023	24	16	8
2024	26	16	10
2025	36	22	9	5

Conclusion

According to BGMEA, a green factory requires 20-30% additional investment relative to non-green ones. Yet despite the high initial costs of construction, certification, consultation, and implementation, LEED buildings typically have relatively short payback periods ranging from 3 to 5 years. Setting up green factories still remains far too expensive in Bangladesh owing to its heavy dependency on external sources for raw materials, as well as technical expertise. Although, in a study shows that green factories in Bangladesh have reported using 40 percent less energy, 41 percent less water, and emitting 35 percent less carbon compared to a ‘regular’ RMG factory. Building improvements have also been credited with enhancing working conditions and productivity for building occupants.

As the global apparel market increasingly prioritizes environmental standards, Bangladesh’s record-breaking performance in LEED certifications stands as a powerful example of how industrial progress and sustainability can go hand in hand.