Compliance Practices in Garment
Industries in Dhaka City
MD. ARIFUR RAHMAN1
MIR SOHRAB HOSSAIN2
Abstract
The readymade garment RMG industry in Bangladesh has experienced an unprecedented growth .over the last three decades and become a fast growing industry in Bangladesh. This industry plays a vital role in the economy in terms of export earnings, employment generation ,poverty alleviation and empowering the woman. For development of this sector, Bangladesh needs to emphasize on the factory working environment, social issues, labor relations and compliances with codes of conduct. This paper is based on descriptive and inferential research. The paper suggests the improvement of factory activities through compliances and finds out a close relationship between compliance and productivity. 1. INTRODUCTION
The readymade garment (RMG) industry of Bangladesh commenced its journey in the late 1970s and within a short period of time emerged as an important player in the economy in terms of export earnings, employment generation, poverty alleviation and empowering of women. Bangladesh exports its RMG products mainly to the United States of America (USA) and the European Union (EU).
Garments exports from Bangladesh have been growing at an impressive rate in recent years. In 2007-08 alone, the garment export earned, a record level of
US$10.7 billion in 2007-08. Moreover, it accounts for over 75 percent of the country’s total export earnings, provides employment almost 5 million people, accounts for over 10 percent of the country’s GDP, and contributes around 40% of its manufacturing output.
The prospects of RMG sector, however, in Bangladesh not only depends on availability of cheap labor and government’s liberal policy but also depends on compliance with codes of conduct. Compliance means to comply with something or
1
Senior Lecturer in Management, Department of Business Administration,
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