2014
Spanish Fashion in Morocco UPC Internacional Seminar in Sustainable Technology Development 2014
Jaime Culebro Martin Guggenberger Anna Hogberg Enrica Leccisi Adriana Quezada Aina Sundetova
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Global case-study: Spanish Fashion in Morocco 1
INDEX
1. Introduction ...... 3
1.1. Objective of the study ...... 3
1.2. Current trends ...... 3
2. Abstract ...... 4
3. Methodology ...... 4
4. Framework ...... 4
4.1. Legislation ...... 4
4.2. Cultural aspects ...... 7
4.3. Economic aspects ...... 9
4.4. Environment and industry ...... 10
5. Diagnosis Methodology ...... 12
5.1. Textile certifications ...... 12
5.2. Developing indicators ...... 13
5.3. Stakeholder theory ...... 15
6. Discussion ...... 15
7. Conclusions ...... 17
8. References ...... 18
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Global case-study: Spanish Fashion in Morocco 2 SPANISH FASHION IN MOROCCO
1. INTRODUCTION
1.1. OBJECTIVE OF THE STUDY
Morocco is a rich country in terms of history, traditions, people, culture, religion, climate, geography and so forth. Every one of these aspects of the country influences how Moroccan people are dressed. Among the variety of clothes in Morocco, we find the djellaba and kaftan, two fine garments that speak of the luxurious clothing style of the country. Many aspects have to be considered to obtain a global overview of the fashion system.
The final goal of this report is to provide an analysis of the global case-study regarding Spanish Fashion in Morocco. The economic, ecological, technological, social and legal viewpoints were combined in order to show what factors need to be jointly taken into consideration for the sustainability of the local fashion system. The approach proposed here aims at providing a comprehensive evaluation of fashion system. Its purpose is to establish and discuss a basic framework that can help achieve a global picture of the investigated system in order to suggest possible scenarios improvement.
Finally the purpose of the report is to carry out an evaluation of sustainable fashion, what mechanisms can a clothing company establish to become ‘sustainable’, which processes need to be followed, who will they need to work with and what assessment tools can be used to measure sustainability.
In conclusion sustainable fashion is a process which can be supported in terms of environment, social equity and economic point of view.
1.2. CURRENT TRENDS
Since the late 1980s, Morocco has become a major tailoring centre for Spain and Europe. In the industrial areas of Rabat, Tangier and Casablanca there are hundreds of clothing factories for all kinds of garment companies, including large firms with an international presence.
Men usually only wear a djellaba on special occasions, sometimes topped with the famous Moroccan red cap, called a fez or tarbouche, and yellow leather slippers, known as baboush or belgha. The woman’s djellaba is more colorful compared to the man’s, and nowadays djellabas are becoming shorter and slimmer. There are verses of the Koran that mention the djellaba as a garment to be worn by Muslim women. A djellaba is mostly worn outside the house and there are djellabas for every day as well as for special occasions.
The kaftan refers to the Moroccan garment that looks like the djellaba but without a hood. The origins of the kaftan go back to the Ottoman Empire, as it was one of the finest Ottoman clothing worn by the elite. Like other garments, it has gone through changes over the years.
In Morocco, women wear it during special occasions like a wedding. The kaftan is the basic garment of the bride on her wedding day. It is also worn under a takshita, which is another beautifully decorated gown with traditional,
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Global case-study: Spanish Fashion in Morocco 3 hand-made buttons on the front, wide sleeves and a thick belt worn around the waist. As opposed to a djellaba, a kaftan is not worn outside the house.
As a foreigner in Morocco, you can wear any type of traditional Moroccan clothing. It is perfectly acceptable and even well appreciated. In winter, a man can wear a woolen djellaba over his clothes to keep warm. And, if a woman has invited people over to celebrate a holiday, she can put on a kaftan to receive her guests.
2. ABSTRACT
Globally the emergence of large firms in the fashion industry is evident, which spread at different parts of the world in order to obtain an effective and inexpensive production. However, in places like Morocco, the presence of these firms leads to deplorable working conditions of the poor population that is most involved in clothing industry; and the deterioration of its environment. To demonstrate the problem we make an approach to legal, economic, cultural, environmental aspects and evaluation through the collection of information. Through the analysis of these aspects, the need for companies to apply sustainability criteria that address the social, economic and environmental aspects is concluded; provide not only economic but also social benefits.
3. METHODOLOGY
For the development of the subject, an exhaustive search for information on the social, economic and environmental aspects was performed; which was obtained by online documents, academic articles, consulting studies, as well as global institutions involved in the monitoring of sustainable development
Through this documentation, a clear overview of the different actors and factors involved in the sustainability of clothing companies, and the means for evaluation was obtained. Finally, the contrast analysis of assessing indicators and the state of the industry, to reach conclusions was performed.
4. FRAMEWORK
4.1. LEGISLATION
Negotiations for a Deep and Comprehensive Free Trade Area (DCFTA) between the EU and Morocco were launched on 1st March 2013. The first round of negotiation started on 22 April 2013 in Rabat. This DCFTA will extend significantly beyond the scope of the existing Association Agreement to include trade in services, government procurement, competition, intellectual property rights, investment protection and the gradual integration of the Moroccan economy into the EU single market, for example in areas like industrial standards and technical regulations or sanitary and phytosanitary measures.
The main objective of the DCFTA is to bring Moroccan legislation closer to EU legislation in trade-related areas. The current framework for EU-Morocco trade relations is the Association Agreement between the EU and Morocco which entered into force 1st March 2000, and provided for a Free Trade Area. In addition, an EU-
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Global case-study: Spanish Fashion in Morocco 4 Morocco Agreement on agricultural, processed agricultural and fisheries products entered into force 1st October 2012. A protocol on Dispute Settlement Mechanism has been signed and ratified.
Morocco and Euromed
Morocco is one of the partners of the Euro-Mediterranean Partnership (Euromed) that promotes economic integration and democratic reform across 10 neighbours to the EU's south in North Africa and the Middle East. One important part of this work is to achieve mutually satisfactory trading terms for the Euromed region partners.
Morocco is part of the Agadir Agreement with Egypt, Jordan and Tunisia. All parties committed to removing all tariffs on trade between them and to harmonize their legislation with regard to standards and customs procedures.
Morocco was the first Mediterranean country to have adopted the Pan-Euro-Mediterranean system of cumulation of origin in December 2005. The system makes it simpler to import products manufactured in more than one country throughout the Mediterranean basin and has generated new opportunities for economic operators in Morocco, notably in the textile sector. It is also an important spur for further regional economic integration in the whole Mediterranean area. Following the signature of the single regional convention on Pan- Euro-Mediterranean rules of origin on 1 June 2011, rules of origin are under revision in order to simplify and adapt them to technological changes.
Textile and Clothing in Morocco
The textile and clothing industry is one of the core sectors according to the economic and social development in Morocco. Textile and Clothing exports have shown a steady growth until 2008. Such trend is to be seen again since 2010. Southern Europe markets remain strategic: Spain 42%, France 31%, Italy 4%.
In Morocco, short circuit, restocking and updating represent the main sourcing modes of international and particularly European fashion brands.A rich line (Middle high, middle and middle low) and wide range of products.
Figure 1. Clothing Industry in Morocco. Retrieved from: http://ec.europa.eu/
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Global case-study: Spanish Fashion in Morocco 5 Clothing and textiles are the leading industrial sector in Morocco and account for around a third of the country’s exports. The factories and workshops in the sector employ 40% of the workers in the industry and generate 66% of female jobs.
Figure 2. Moroccan Textile and Clothing: Exports and Destination countries. Retrieved from: http://ec.europa.eu/
Figure 3. Moroccan Textile and Clothing: Exports and Destination countries. Retrieved from: http://ec.europa.eu/
1. Correlation between the evolution of consumption and the evolution of imports 2. Distribution favours more and more late purchases, re-ordering and updating (25%) and limits the risk-taking linked to long term orders (72%).
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Global case-study: Spanish Fashion in Morocco 6
3. The Euromed started to recover in 2013 after a tough 2012 year (-2% in tonnage and +2% in value) which indicates less pressure on prices. Textile and clothing products represent many advantages in terms of capacity, quality and competencies.
4.2. CULTURAL ASPECTS
Morocco is a country rich in history, tradition and culture most of which is tied to it’s official religion of Islam. Many of the customs, laws, and practices within Islam widely influence the people and the culture of Morocco today.
As the country develops and westernizes, many modern changes can be noted in the people living in major cities such as Rabat, Casablanca and Tangier, while Fes and Marrakesh maintain the traditions of old world Morocco. In smaller towns and rural areas a much different lifestyle exists. This last are characterized by human settlements of small houses and farmlands, and dessert landscapes.
Lifestyle
The Moroccan society is still dominated by male. In favor of closing the gender gap, in May 2006, the Moroccan government launched a national strategy focused on 5 principal aspects: Civic rights, decision-making, socio- economic rights, individual and collective behaviors to address sexist stereotyping. Even though of government efforts for maintain the rights of women and children, they face discrimination in the public sphere.
Food in Daily Life.
Two of the most basic foods in Moroccan daily life are couscous and harira soup. Couscous, a dish made with granulated seminola grains, is usually topped with mutton, veal, or beef and a variety of vegetables such as tomatoes, turnips, and pimentos. It is eaten by all sectors of society, and may be referred to as the national dish. The national soup, harira, is a thick paste that comes in many varieties, although it is classically made from water, bouillon, beef or mutton, onions, saffron, walnuts, and salt. Figs and dates are among the most common fruits eaten on a daily basis. Breakfast in Morocco may consist of bread served with olive oil or butter, and coffee or mint tea. Schools and businesses close at noon each day for two to three hours for lunch. A traditional dish that may be served during this time is tajine, a steam-cooked stew made of meat and vegetables in a spicy broth. A light dinner of harira soup and bread is commonly eaten in the evening. Cakes and desserts made of fruits and marzipan, a sweet almond paste, are sold in pastry shops and on the streets. Imported foods that are not typically part of the traditional Moroccan diet are available in major cities at French-style street markets. As dictated by Islamic law, Muslims do not consume any alcoholic beverages.
Food Customs at Ceremonial Occasions
Moroccans are famous for their hospitality and proudly serve their guests as much food as they can afford. It is considered disgraceful to allow guests to leave a meal unsatisfied. A specialty dish commonly prepared for ceremonial occasions is pastilla, a layered pastry filled with pigeon, eggs, and nuts, topped with cinnamon and sugar. Another specialty dish is mechoui, a whole roasted lamb or calf, usually stuffed with couscous or other
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Global case-study: Spanish Fashion in Morocco 7 fillings. In Moroccan homes, families and their guests eat from a communal bowl, usually without utensils, while seated on the floor. Hearty Moroccan eating habits come to a halt during the thirty days of Ramadan, when every Islamic person in the country must fast from dawn until dusk. Moroccans seen eating or drinking during daylight hours in Ramadan may be arrested. During this time, every house prepares harira soup to be eaten as the first meal when the sun goes down. Late at night, a main meal with several dishes will be served.
Moroccan Women and Gender Inequality in the Workplace
Woman in Morocco represent half of the local workforce. Actually they have the opportunity to participate in politics, entrepreneurial activities and private sector. In fact some of them have jobs that are strictly reserved for men (for example “murshidar”), however they face significant salary inequality. According to a UNICEF study, Moroccan women on average continue to make 40% less than men with similar degrees and positions, while being perceived by their employers as more productive and more trustworthy.
Although overcoming a 40% salary difference between men and women appears to be a daunting process, progress has begun. Morocco is starting to work on its paradoxes in order to provide decent living to the weakest members of its society: women and children. Results are starting to show in political and family life and they are expected to expand to the professional sector.
The situation of women in Morocco is somewhere in between that of women in the West and those in conservative Islamic countries like Saudi Arabia. In the city of Casablanca, everything seems fine on the surface. Clothing varies: women wear the entire range from the traditional conservative jelaba and foulard (although chadras are rare), to Western suits, to skin-tight shirts and mini-skirts. The choice of dress tends to depend on both age and occupation: in general, teenagers wear sexy or casual Western clothes; professional women wear Western-style business clothing; and older, blue-collar, and unemployed women wear jelabas.
Illiteracy
In the whole of Morocco, there is an extremely high illiteracy rate, especially on the countryside, and among women. According to the UNDP, more than 80% of women in rural Morocco are illiterate.
Women and Work
A married woman must get her husband's permission before seeking a job. Most working women, about 60%, are in textiles and light industry. Another 10% are femmes de ménage (housekeepers or maids). Typically, these women are uneducated, illiterate, and unmarried, and earn room, board and extremely low wages. They usually speak Arabic and possibly a few words of French. Their duties may include cooking, cleaning, and taking care of their employer's children. Those who do not live at their workplace, usually go home to do the chores for their families (which may include illegitimate children, sickly siblings, and/or elderly parents).
Division of the sexes There are at least three places where men and women are kept separate: in hammams (public baths), gyms, and mosques. There are separate hammams for men and women, and gyms are either separate or have "male" days and "female" days. The mosque has separate sections for men and women.
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Global case-study: Spanish Fashion in Morocco 8 4.3. ECONOMIC ASPECTS
Basic Economy Agriculture and forestry form the basis of Morocco's economy. Barley, wheat, citrus, vegetables, olives and livestock are produced for subsistence and trade. Since gaining its independence, the state has owned most of Morocco's major industries. In 1993, however, Morocco started a new stage of privatization, attempting to encourage international investors. The government authorized the transfer of 112 enterprises—75 companies and 37 hotels—to the private sector. The International Monetary Fund and the World Bank support steps to reform the economy. However progress is slow and Morocco remains a heavily indebted developing country.
Commercial Activities
Street markets with local foods and handicrafts, including carpets, traditional dress, pottery, jewelry and carved wood, can be found in every major city. Intense haggling over the price of most of these goods is the local custom. Maintaining good personal relations with everyone is very important as favors, bribes, kickbacks and connections all come into play when making the final deal. In the Rif Mountains, large quantities of marijuana, called kif, are grown for profit. Drug trafficking of marijuana and cocaine is on the rise for both domestic and international drug markets.
Major Industries
Morocco is the world leader in the production and exportation of phosphates, holding three quarters of the world's reserves. Other major industrial activities include rock mining, food processing, construction and manufacturing of leather goods, mineral ores and textiles. A significant amount of foreign exchange revenue is brought in by Morocco's tourist industry. Because of the rich cultural and historic heritage and renowned hospitality of the people, tourism is growing rapidly.
Trade
Morocco's primary exports are phosphates and phosphoric acid, citrus fruits, wheat, fish, and minerals. The products go primarily to the members of the European Union (EU), Japan, the United States, Libya, and India. Primary imports are industrial machinery, foods, and fuel. Morocco's primary source of imports are the EU, the United States, Saudi Arabia, the United Arab Emirates, and Russia. Morocco is a member of the World Trade Organization, the Arab League and is an associate member of the EU.
Division of Labor
Unemployment and underemployment are big problems for the unskilled and uneducated. There is a large number of beggars, and 13 percent of all Moroccans fall below the poverty line. Uneducated individuals who have risen slightly above the poverty level have most likely learned a specific trade or skill. For example, a man who learns to become a stone carver provides himself with lifelong work. Uneducated women may find employment by providing domestic services to families other than their own. Those who are fortunate enough to receive university degrees may become doctors, lawyers, university professors, or other professionals. People of the middle and upper classes do not perform any physical labor, and would consider it lowering themselves to do any
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Global case-study: Spanish Fashion in Morocco 9 of their own housework. Physical work must be left to provide jobs for those who have no alternative source of employment.
4.4. ENVIRONMENT AND INDUSTRY
One of the most important sectors in the Moroccan economy is the clothing sector. Also the textile and the leather sectors play a big part in it. The maroccan textile and clothing industry has also become integrated in the European market since the 80´s. Many of the EU countries are producing their products in Morocco. Therefore Morocco is now an important partner for the EU. The reason why Morocco has been integrated are the Outward Processing Trade (OPT) arrangements, which included preferential market access via reduced duties and higher quotas for finished products.
The termination of the agreement on Textiles and Clothing (ATC) and agreement on Multi Fibre Arrangement (MFA) in the year 2004 did not affect the exports from Morocco to EU, as expected. Moroccan producers had to change their businesses model anyway because of the new competition from Asia. In 2005 the export rates declined slightly but grew again in the following years.
Textiles
In Morocco the textile industry is the smallest compared to clothing and leather. Today’s textile mills are mostly state owned and provide input for products destined for the domestic market. However, investment activities by private investors have been picking up in recent years. This particularly concerns vertically integrated producers, focused on production for the export market.
Leather
Leather production has a long-lasting tradition in Morocco. The products include everything from personal leather goods, to bags and briefcases, garments, and footwear. Subcontracting still plays an important role in the leather industry. However, similar to a full-package supply in the textiles and clothing industries, buyers increasingly demand global solutions, i.e. suppliers that have a high degree of vertical integration. Moroccan companies are adapting to these demands and some have even developed their own brands for the international market. Furthermore, in line with offering global solutions, Moroccan leather goods producers tend to focus on offering high quality goods in order to respond to increasing Asian competition. As a result, not only the share of value added increased but also high quality brands have started producing in Morocco.
Most of the leather industry still operates in small workshops. However, with an increasing international focus companies are transforming to accommodate complexities of international buyers. This transition is supported by the State and the Moroccan Federation of Leather Industries (FEDIC). Morocco is aiming to modernize and develop the production.
Clothing
In Morocco there are four main regions where clothing products are produced; around the cities of Casablanca, Fes, Rabat, and Tangier. Each of these regions has specific characteristics in terms of historical development, buyers, and sourcing models.
Historically, Fes has been the heart of the Moroccan clothing industry. The labor costs are relatively low in Fes and the production is controlled by just a few families. This comes along with a comparably low skill level of the
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Global case-study: Spanish Fashion in Morocco 10 labor force, which stands in contrast to for example Rabat, where employees tend to be more senior and high skilled. This has led to products manufactured in Rabat have a high quality work environment with relatively high social standards. In fact, this consideration has been part of the overall business strategy of the companies located in the region. Unsatisfactory working conditions and low wages have led to the migration of workers from Fez to Casablanca and Tangier, where factory owners tend to be younger and to foster a more dynamic work environment
The companies in Fez are focused on the production of articles of traditional clothing for the domestic market. On the other hand companies in Casablanca, Rabat, Tangier and have modern production facilities and infrastructure. They are usually regions that are producing for the export market. However, export markets should be differentiated in two dimensions; a) the geographic scope, and b) the corresponding business model, or type of service / product.
There are basically three types of agreements between European producers and suppliers in Moroccan industry. These arrangements differ in their degree of vertical integration.
Social and environmental issues
In 2012 Morocco was placed 105th in the Environmental Performance Index, a ranking of 132 countries established on the basis of environmental public health and ecosystem vitality. This places it with some of the weaker performers internationally and among the Arab states: Algeria, Lebanon, and Tunisia, which are in the same group, all have better records and the next higher group includes Egypt, Israel, the United Arab Emirates, and Saudi Arabia. In short, Morocco's performance is poor. The costs of pollution in Morocco are high: the UNDP reported in 2011.
The industry description makes clear that the textiles, leather and clothing sector plays a significant role in terms of employment. However, this is not an indicator for the quality of the work in this sector. Morocco suffers from poor labour standards. This includes issues such as working conditions and hours, use of temporary and casual labour, gender disparity, informality, and wages (average labour costs are estimated at € 1.53 in 2008). Moreover, it is estimated that the informal sector hosts at least as many workers as the formal sector, whereas particularly the share of women is higher in the informal sector compared to the formal sector. Unionization rates are very low, standing at only 3%. Within the few unions active in the sector there is a clear dominance of men. Considering that women account for approximately 85% of the workforce it becomes clear that gender representation in these organizations is not proportional to the gender composition in the workforce. Gender discrimination can also be observed in other fields such as wage discrimination, reduced access to on-the-job training, long working hours, and poorer working conditions.
Environmental issues were identified in the clothing industry. However, the textiles and leather industries are associated with approximately 33% of the country’s hazardous waste. Furthermore, these two industries together produce 16.5 million m3 of liquid waste, which partially falls under hazardous waste. During the local workshop it was mentioned by one industry representative that waste is the biggest challenge for the leather industry. However, industrial zones such as in Fes have active waste management and water treatment plants. These mitigate negative environmental effects.
Lack of clean water
100 percent of the urban population was reported to have access to improved drinking water in 2006; the figure was only 57 percent for rural inhabitants, the lowest for any of the Arab countries in the Mediterranean basin.
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Global case-study: Spanish Fashion in Morocco 11 The similar percentage of the total population using improved sanitation was almost the same to the lowest of any of the Arab countries in the Mediterranean basin. There is substantial water pollution in Morocco today. As measured by biochemical oxygen demand (the amount of oxygen that bacteria in water will consume in breaking down waste), emissions of organic water pollutants are high: 73,989 kg a day in 2009, 43.5 percent of which came from the textile industry, followed by the food industry.
5. DIAGNOSIS METHODOLOGY
The clothing industry today is based on extremely fast cycles of fashion and consumption. The consumer demand for new designs at a higher rate is speeding up production and hence increasing the pressure on the environment. The globalisation and outsourcing has raised concerns regarding inequities between developed and undeveloped countries as well as the continuation of female labour within the low-wage segments of the production processes in the textile industry.
It is essential for companies to include the full life cycle of their products and look at the entire supply chain, including all processes involved in sourcing, production, distribution, use and recovery of the product. This extended producer responsibility where both the upstream and downstream processes are included is important in order to accomplish a comprehensive sustainability management. Linking sustainability with business value is another important aspect that needs to be acknowledged when trying to change the behavior of the textile industry. Both in the sense that enterprises comprehend and make use of the economic benefits that derive from improving your environmental performance and also make sure that the economical upgrading within the business also results in social upgrading upstream in the supply chain.
5.1. TEXTILE CERTIFICATIONS
The outsourcing of textile production has also blurred where the boundaries of the textile enterprises should be drawn. The companies today must live up to the challenge of assuring that their suppliers meet all safety and sustainability requirements. In order to guarantee that these targets are being met a number of certification system has been developed within the textiles industry. There are a large number of different certifications that covers diverse areas within the production lifecycle of textiles. Some of the certifications are conducted by an independent third party, which assess, audit and certify the product or processes. One of the most recent developed certification system of this kind is the STeP system that has been established by the OEKO-TEX association. OEKO-TEX is commonly known as the establishment behind the OEKO-TEX 100-standard, which regulates harmful substances in textiles. The STeP system on the other hand offer a comprehensive focus on the entire production of textiles and the assessment is divided in to six compartments: Chemical assessment and management, Environmental performance, Environmental management, Social responsibility, Quality management, Health and safety performance and management. The companies are then scored according to the performance in these compartments and the STeP system is a non-stop optimization process that is continuing even after the certification is approved. In order to verify the compliance with the certification, OEKO-TEX performs unannounced audits and follow-ups.
Another certification system that has the same comprehensive approach as STeP is Bluesign, which emphasize both environmental and social issues within production of textiles. Processes, products and input components can be Bluesign approved and before certifying a process, all applied components needs to be approved. This way of initial managing of the upstream components within the supply chain is called Input Stream Management and
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Global case-study: Spanish Fashion in Morocco 12 applying this method enables an assurance that the processes that are evaluated is meeting the sustainability requirements.
5.2. DEVELOPING INDICATORS
It is fundamental that each company determines its indicators to assess sustainability according to its nature. The main concept to be considered is the necessity of minimize the consumption of natural resources, to avoid the emission of pollutants to the environment, to complain with its social role as employment provider, and a responsible vision for future generations. In order to define a methodology it is necessary to identify the possible factors that influence sustainability in a short and long term. As is shown in the example of Table 1, the aspects that needs to be considered are economic, social and ecological.
Table 1. Sample list of information required in the development of sustainability indicators at the firm level. Callens, I., & Tyteca, D. (1999). Towards indicators of sustainable development for firms: a productive efficiency perspective. Ecological Economics, 28(1), 41-53.
According to Labuschagne et al. (2003) it is required to build a framework for assessing the sustainability of operational initiatives analysing the following criteria:
a) Criteria for economical sustainability
Financial health is a criteria to assess the internal financial company’s stability. The sub criteria are: Profitability, liquidity ad solvency.
Economic performance, assess the company’s value from the perspective of stakeholders, management and government. The sub criteria are: Profitability, contribution to gross domestic product and market share performance.
Potential financial benefits, for assessing the benefits coming from subsidies based on environmental, social and/or technological improvements due to business initiatives.
Trading opportunities, determines the vulnerability and the risk of the company within its trade network.
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b) Criteria for environmental sustainability
Air resources, this evaluates the effects produced by the company on the regional and global air quality.
Water resources, to assess the company´s impacts produced by the amount of water that this consumes, its wastewater and contaminants.
Land resources, which are impacted due to company’s activities. Its sub criterias are: Land-usage and transformation (assess the biodiversity), pollutants, etc.
Mineral and energy resources, this criteria analyses the reduction or depletion of non/-renewable mineral and energy resources.
c) Criteria for social sustainability
Internal human resources, it is focuses on the company’s social responsibility to its workforce and it is assessing by the following sub criterias:
▪ Employment stability refers to this quality and the fairness of compensation.
▪ Employment practices use to assess compliance with labor laws, international laws, and human rights: to evaluates company’s protocol, etc.
▪ Health and safety; analyzes the condition of workforce, and the prevention and mitigation actions taken by the companies when facing incidents.
▪ Capacity development of the company, related with the contribution of its for sustainable product development, research and training programs to its employees.
External population focuses on the impacts produced by a company in the community where it operates, and it is assessed by:
▪ Human Capital; focuses on the health and educational benefits that the community received by the company’s performance.
▪ Productive capital measures the strain placed on the outfit of assets and infrastructure for business initiatives. It covers housing service infrastructure, mobility infrastructure, and regulatory and public services.
▪ Community capital, it is a key point for developing sustainable initiatives. It evaluates the relationship between the company and its immediate environment; covering the following aspects: Sensory stimuli, cultural properties, social pathologies, economic welfare, and social cohesion.
Stakeholder participation focuses in the relationship between the company and its stakeholders (internal and external). It is divided en two categories:
▪ Information provision measures the quantity and quality of information shared to the stakeholders.
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Global case-study: Spanish Fashion in Morocco 14 ▪ Stakeholder influence, it assesses two main points: The decision influence potential and stakeholder empowerment.
Macro-social performance evaluates the impact of the company in national and regional level. The following subcriterias are considered:
▪ Socio-economic performance; to acknowledge the impacts produced by the company’s performance in the economic system and the trading opportunities.
▪ Socio-environmental performance refers to the contribution of the company on improving environment quality for society. Legislation is also analyzed.
5.3. STAKEHOLDER THEORY
Stakeholders are defined as those who effect or are affected by the actions of companies or organizations. There are two main types of stakeholder, the primary and secondary. Primary stakeholders, from the companies’ point of view, are considered to be employees, customers, investors and suppliers. Secondary stakeholders are those who are indirectly affected by the actions of the company, such as governments, NGOs and communities. For the future and in order to establish a long-term sustainable approach, companies need to cooperate and include the needs and claims of stakeholders, such as consumers, suppliers, rating agencies, ecologist associations etc.
Environmentalists and ecologist associations place an increasing pressure on companies to improve their sustainability performance and it is therefore important for company management to realize that there is a two- way interaction between the company and its stakeholders, which means that there is a degree of influence or power from both sides. Therefore companies need to develop ways of communicating and interact with their stakeholders, one way to do this is to establish Multistakeholder dialogues, where different stakeholders come together around common problems. This is an important way to build trust with the stakeholders and create a strong network. These dialogues could also create an increase in social capital, which is a form of social “glue” that connects people within a system and creates a sense of coherence. Such a coherence enables a stable and positive relationship between stakeholders, which is very important when creating a successful and sustainable business.
The influence from stakeholders is increasing and the demand from e.g. consumers on the attention to issues regarding responsibility, accountability and transparency is also rising. Critical stakeholders are following corporate actions and the current media channels and flows make it difficult to keep information hidden. Listening and cooperating with stakeholders can make sure that the reputation of the company don’t get tarnished and also enable a more sustainable and long-term business approach.
6. DISCUSSION
The textile sector represent around a third of the exported goods from Morocco and it is one of the largest sectors of employment in the country. The increasing trade with Europe are creating business opportunities in Morocco and hence in the textile industry as well. However the outsourcing of many European clothing brands has created issues regarding the social concerns within the factories and surrounding communities as well as the environmental problems connected to the textile industry. In order to address these issues companies need to establish more sustainable businesses and there are several indicators and criteria’s that need to be followed. These are based on the three sustainability pillars; economic, social and environmental. The main concept to be
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Global case-study: Spanish Fashion in Morocco 15 considered when evaluating a business is the necessity of minimizing the consumption of natural resources, to avoid the emission of pollutants to the environment, to complain with the social role as employment provider, and a responsible vision for future generations.
Unemployment and underemployment are big problems for the unskilled and uneducated and the textile sector has, in some parts of Morocco, a very low skill level of labour where women account for approximately 85% of the workforce. It is also clear that the gender representation in the unions are not proportional to the gender composition in the workforce and the gender discrimination can also be observed in other fields. It is therefore important for a clothing company to evaluate how the employment practices comply with labour laws and human rights and establish codes of conduct that are followed up on a regular basis.
The environmental concerns linked to the clothing production in Morocco are the amount of hazardous waste derived from especially the leather industry as well as the continuous pollution of drinking water. In some production areas active waste management and waste water treatment plants has been established and this is a development in the right direction. However the environmental management within textile companies should also address the issues of resource use, such as water and energy, as well as the emission to air. Resource productivity implemented within the manufacturing practice could also reduce the amount of waste generated from the industry. Companies need to implement the sustainable management throughout the supply chain in order to achieve desirable results. The outsourcing of clothing production is making it harder for companies to make sure that the suppliers meet all sustainable requirements. The organisations that work with textile auditing and certifications are an important actors when it comes to assist companies in assuring the environmental and social performance of their suppliers. There are several certifications systems and sustainability frameworks established today. These systems and frameworks provide a helping hand and a graspable approach for companies to follow when moving towards a more sustainable business model. It is however very important that companies allow third party auditing so that they can provide independent information in order measure the performance up- and downstream in the supply chain. To build up a trustworthiness towards consumers, governments, communities and environmental organisations it is important that the companies also try to increase their level of transparency.
Companies need to realize the necessary of understanding the needs and requirements of their stakeholders and the fact that this could forestall problems that otherwise could has come as a surprise. Important actors to communicate with in the textile industry are the employees, suppliers, investors, consumers, communities, governments, NGOs etc. The fact that there is an increased pressure on environmental, social and economic performance from a large number of stakeholders creates a need for new business models with involvement of affected stakeholders. Multistakeholder dialogues might be a way to enable strong relationships but one must also recognize the responsibilities of the stakeholders to be cooperative, proactive and have an honest approach for these methods to work.
It can be seen that a shift in business strategy in for example Rabat, Morocco, has emerged because of the increasing competition from the textile industry in Asia. A focus on high quality products has enabled a higher skilled personnel, which has enabled a better working environment as well as relatively high social standards. This development could create a shift towards a more socially and environmentally sustainable business. The focus on high quality clothing that has a better durability is an important part when trying to shift the current fast fashion trend towards a more sustainable slow fashion model.
STD2014
International Group
Global case-study: Spanish Fashion in Morocco 16 Linking sustainability with business value is another important aspect that is important to emphasize within the textile industry. The fact that a sustainable business approach can provide market opportunities is an important factor. By reducing the use of resources, companies can reduce their production costs, this since the price of raw materials and energy probably will rise in the future. The increasing customer demand for sustainable products is another opportunity that could generate a new clothing market. It is also important to make sure that the economical upgrading within the business also generates social upgrading upstream in the supply chain. If a company experience financial success it is important that all parties involved are considered when distributing investments and profits.
7. CONCLUSIONS
When assessing or establishing a sustainable company the fundamental aspects that needs to be considered are; Social, Economic and Environmental. Several indicators based on these aspects can be used in order to assess the sustainability performance. Companies should apply the sustainable management both up- and downstream in the production life cycle and it is important to develop resource productivity methods and implement available environmental mitigation systems.
Evaluation of how the employment practices comply with labour laws and human rights could be applied by for instance allowing third party auditing. The organisations that work with textile auditing and certifications are important actors when it comes to assisting companies in assuring the environmental and social performance of their suppliers. Assessment tools that can be used to measure sustainability could be methods like the STeP initiative by OEKO-TEX organization or the certification method Bluesign. Another important mechanism is to link sustainability with business value and make sure that economic upgrading also ensures social upgrading.
Listening and cooperating with stakeholders can enable a more sustainable and long-term business approach. In order to develop a sustainable method, companies need to work closely with both primary and secondary stakeholders, such as suppliers, employees, consumers, governments and environmental agencies. Increasing the level of transparency towards the public is another important mechanism when it comes to assuring the credibility of a sustainable company.
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International Group
Global case-study: Spanish Fashion in Morocco 17
8. REFERENCES
▪ Hargraves, Orin (1995) Culture Shock! Morocco: A Guide to Customs and Etiquette. Portland, Ore.: Graphic Arts Center Publishing Co.
▪ Nelson, Harold D., Ed (1985). Morocco: A Country Study. Washington, D.C.: American University.
▪ Park, Thomas K. Historical Dictionary of Morocco. London: Scarecrow Press, 1996.
▪ European Commission: Policy - ec.europa.eu. “Towards new borders to grow: destination Morocco” - st.formazione.ilsole24ore.com
▪ Labuschagne, C., Brent, A. C., & Van Erck, R. P. (2005). Assessing the sustainability performances of industries. Journal of Cleaner Production, 13(4), 373-385.
▪ Callens, I., & Tyteca, D. (1999). Towards indicators of sustainable development for firms: a productive efficiency perspective. Ecological Economics, 28(1), 41-53.
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International Group
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