Improved working conditions and energy efficiency have helped create a virtuous circle for the Canadian manufacturer of active wear.
Textile and clothing manufacturers need to be conscious of working conditions including the physical state of factories and their treatment of employees – particularly in emerging markets – to maintain the integrity of their reputations in the industry that originated the ‘sweatshop’ tag.
Between 2002 and 2004, serious allegations about exploitative labour practices were levelled at Montreal-based apparel maker Gildan. Following these claims, the company underwent an externally verified remediation process to improve practices at its production sites in Honduras, Nicaragua and Haiti. The result was the Gildan Code of Conduct, and this marked the start of the company’s development of best-in-class environmental, social and governance (ESG) practices within its industry. This discipline has helped the company improve productivity, lower costs and generate stronger returns for shareholders.