Diploma on Social Compliance

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Diploma on Social Compliance ABSTRACT Over the last years, Ready Made Garments (RMG) sector experienced impressive growth rates, and specifically woven and knitwear products are in high demand by the USA and European markets. Adherence with national and international compliance standards has become increasingly important to ensure customer requirements as well as to maintain the sectors competitiveness, but in many cases factory stuff still lacks adequate skills and knowledge to ensure that required compliance standards are reached. This thesis addresses the need to increase the knowledge level of factory practitioners and other interested parties on major social and environmental issues in order to contribute to the sectors competitiveness and to play major role for job, income generation and national economy.

INTRODUCTION The word compliance is derived from the verb 'to comply’, which means, ‘to act in accordance with the rules'. The rules cover nearly all sectors within the financial services industry, including banking, insurance, investment management and securities, and apply to a vast network of financial institutions, offering a multitude of financial services and products, which have to comply with them. Regulated companies normally have a compliance department, headed by a Compliance Officer, whose role is to develop policy and practices that ensure all obligations and regulations are adhered to, as well as ensuring that no conflicts of interest arise within the organization. This person is also responsible for maintaining the company's relationship with the FSA (Financial Services Authority).Compliance department should be a monitoring team. Monitoring is essential to: # Detect and correct violations. # Provide evidence to support enforcement actions. # Evaluate program progress by establishing compliance status. The primary reason all industries, from utilities to food and including financial services, are regulated, is to protect the consumer.

Social Compliance & Code of Conduct

 Social Compliance  ISO 14000  SA-8000  WRAP  BSCI Code of Conduct  Social Audit

Social compliance

The Global Social Compliance Programme is a business‐driven programme for companies who want to harmonize existing efforts in order to deliver a shared, consistent and global approach for the continuous improvement of working conditions in global supply chains. Retailers and brand manufacturers have responded to the challenges around fair labour conditions in their supply chains by developing codes of conduct and monitoring systems. However, the number of codes has proliferated and approaches have somewhat diverged. This has led to duplication (with the multiplication of overlapping audits per supplier) and sends a confused message to suppliers and to public authorities as to what is expected in terms of fundamental labour rights. To address the need for consistency, and to focus on the resolution of root causes of noncompliance, leading global companies have decided to work together towards convergence of existing systems worldwide by launching the Global Social Compliance Programme. The programme provides a platform for building consensus on best practice in labour Standards in supply chains, in order to develop a single, clear and consistent message for Suppliers globally. It also offers a forum to openly discuss issues and challenges among Leading companies (e.g. in remediation).The programme will:  accommodate the specificities of existing systems while building comparability and transparency between them,  drive convergence and reduce duplication and,  Above all, allow purchasing companies and their suppliers to concentrate on the identification of root causes of non‐compliance and remediation of non‐compliances. The programmed supports existing efforts by helping users identify and share best Practices. The programmed is not another monitoring initiative, nor a substitute to Existing Systems. GSCP will not undertake accreditation or certification activities.

ISO 14000 family The International Organization for Standardization (ISO), based in Geneva, is one of the key international voluntary standards bodies. Standards developed by ISO are available to the 140 or so member countries to adopt as they see fit. ISO has a rigorous process for standards development. When a new standard is proposed, it must be approved either by a technical committee or by the Technical Management Board of ISO. Once a technical committee is established, it may establish subcommittees and working groups to carry out the work. There are currently around 2,850 active technical committees, sub-committees and working groups, made up of qualified representatives from around the world. To date, more than 12,000 ISO standards have been published. ISO has a general rule that all standards be reviewed at least every five years.

The ISO 14000 family The ISO 14000 family of environmental management and auditing standards is not concerned with environmental performance. This distinction is fundamental. Rather than dealing with measures of performance such as energy efficiency and emissions, a management standard establishes what the organization needs to do in order to meet its goals. The ISO 14000 family contains more than 20 standards, guides, and other publications, dealing with a variety of topics such as forest management and life-cycle assessment. The following is a sample of the ISO 14000 series.

ISO 14001 ISO 14004

Environmental Management Systems - Specification with Guidance for Use Environmental Management Systems - General Guidelines on Principles,

ISO 14010 ISO 14011 ISO 14012

Systems and Supporting Techniques Guidelines for Environmental Auditing - General Principles of Environmental Auditing Guidelines for Environmental Auditing - Audit procedures Part 1: Auditing of Environmental Management System Guidelines for Environmental Auditing - Qualification Criteria for Environmental Auditors

SA-8000 In today's global economy, companies are constantly striving to set themselves apart from their competitors. One way is by meeting objective, professional standards, such as the ISO9000 quality and ISO14000 ecological guidelines. Now there's a burgeoning set of standards gaining acceptance in the international arena: Social Accountability (SA) 8000. The SA8000 certification process requires companies to meet uniform standards in the following areas: child labor, forced labor, health and safety, collective bargaining, discrimination, disciplinary practices, working hours and compensation. The standards are comprised from International Labor Organization treaties, the Universal Declaration of Human Rights and the U.N. Convention on Rights of the Child. The process has its supporters and detractors, but already it is being seen as a means to gain a competitive edge. International companies have long known that each country does business in different ways but that being a good "corporate citizen" is important, no matter where they have business activities. In the United States, companies have long recognized the value of supporting their local communities through philanthropy, volunteerism and other aspects of social responsibility. SA8000 seeks to take that effort to a higher plane, even to what might be considered a professional level. HR bewares: The process of striving to meet SA8000 standards often falls to the HR director and department, especially in global entities. The benefits, say supporters, include recognition of good citizenship and another arrow in the quiver of competitiveness. The disadvantage may be yet another layer of quasi-regulations. There also are some suspicions of political motives.

The Birth of a New Standard The Council on Economic Priorities Accreditation Agency (CEPAA) created the SA 8000 standards. CEPAA is a sister organization of the Council on Economic Priorities (CEP), based in New York. CEP, founded in 1969 by Alice Tepper Martin, formerly a securities analyst and labor economist and currently executive director of CEP and president of CEPAA, has been rating companies on issues such as environmental stewardship and treatment of employees since 1975. CEPAA was formed in 1997 specifically to handle the SA8000 process. It accredits independent auditing firms to monitor compliance with SA8000. Accredited SA8000 certification from SGS-ICS provides the solution, according to Brookes, by demonstrating to the world that a company is "doing the right things, right."

WRAP Worldwide Responsible Apparel Production (WRAP) is a factory-based Certification Program for manufacturers of sewn products, including apparel, footwear and accessories. WRAP is an independent, non-profit organization dedicated to the certification of lawful, humane and ethical manufacturing throughout the world. WRAP apparel certification is now a requirement by most garment retailers in the U.S. The market place, the media, and the public increasingly demand that apparel be produced under conditions that respect the rights and comply with labor and environmental laws, and that meet other international standards. A WRAP certification is widely accepted by retailers, brand managers, licensers, as evidence that the facility is socially responsible. The objective of the Apparel Certification Program is to independently monitor and certify compliance with the following standards, ensuring that a given factory produces sewn goods under lawful,

humane, and ethical conditions. Note that it is not enough to subscribe to these principles; WRAP monitors the factory for compliance with detailed practices and procedures implied by adherence to these standards.

Benefits of WRAP Certification The WRAP Certification program is grounded in the belief that factory based certification is the most effective way to ensure that work place comply with the WRAP Production Principles. The WRAP program places primary responsibility for improving work place conditions on those who own and operate sewn product manufacturing facilities. WRAP Certification Offers Market Advantage. Acceptance of WRAP Certificate by multiple brands and Retailers eliminates duplication of monitoring efforts.

BSCI In accordance with the ILO Conventions, The United Nations universal declaration of human Rights, the UN’s Conventions on children’s rights and the elimination of all forms of discrimination against women, the UN Global Compact and the OECD Guidelines for Multinational Enterprises, the BSCI Code of Conduct aims to attain compliance with certain social and environmental standards. Supplier companies must ensure that the Code of Conduct is also observed by subcontractors involved in production processes of final manufacturing stages carried out on behalf of BSCI members.

SOCIAL AUDIT Governments are facing an ever‐growing demand to be more accountable and socially responsible and the people are becoming more assertive about their rights to be informed and to influence governmentsʹ decision‐making processes. Faced with these vociferous demands, the executive and the legislature are looking for new ways to evaluate their performance. Civil society organizations are also undertaking ʺSocial Auditsʺ to monitor and verify the social performance claims of the organizations and institutions. Social Audit is a tool with which government departments can plan, manage and measure non‐ financial activities and monitor both internal and external consequences of the department/organization’s social and commercial operations. It is an instrument of social accountability for an organization. In other words, Social Audit may be defined as an in ‐depth scrutiny and analysis of the working of any public utility vis-à-vis its social relevance.

Purpose of the Social Audit This tool is designed to be a handy, easy to use reference that not only answers basic questions about Social Audit, reasons for conducting Social Audit, and most importantly gives easy‐to‐follow steps for all those interested in using Social Audit. The purpose of conducting Social Audit is not to find fault with the individual functionaries but to assess the performance in terms of social, environmental and community goals of the organization. It is a way of measuring the extent to which an organization lives up to the shared values and objectives it has committed itself to. It provides an assessment of the impact of an organization’s non‐financial objectives through systematic and regular monitoring, based on the views of its stakeholders.

Local factory Law The Factories Act, 1965 [Act No IV of 1965] September 1, 1965 This act is till now in force and the main articles are described chapter wise as below:

CHAPTER I This is the Preliminary chapter and includes the following articles 1. Short titles, extent and commencement 2. Definitions 3. Power to apply the provisions of this Act to certain places 4. Power to declare departments to be separate factories 5. Power to exempt 6. Notice to Inspector before commencement of work 7. Seasonal factory and 8. Approval of plans and fees for licensing and registration

CHAPTER II In this chapter articles are described about Chief Inspector, Inspectors and Certifying Surgeons and include the following: 9. Chief Inspector and Inspectors 10. Power of Inspector and 11. Certifying Surgeons

CHAPTER III In this chapter articles are described about Health and Hygiene and include the following: 12. Cleanliness 13. Disposal of wastes and effluents 14. Ventilation and temperature 15. Dust and fume 16. Artificial humidification 17. Overcrowding 18. Lighting 19. Drinking water 20. Latrines and urinals and 21. Spittoon

CHAPTER IV In this chapter articles are described about Safety and include the following: 22. Precautions in case of fire 23. Fencing of machinery 24. Work on or near machinery in motion 25. Employment of young persons on dangerous machines 26. Striking gear and devices for cutting off power 27. Self acting machines 28. Casing of new machinery 29. Prohibition of employment of women and children near cotton openers 30. Cranes and other lifting machinery 31. Hoists and lifts 32. Revolving machinery 33. Pressure plant 34. Floors, stairs and means of access 35. Pits, sumps, opening of floors, etc. 36. Excessive weights 37. Protection of eyes 38. Powers to require specifications of defective parts or tests or stability 39. Safety of building and machinery 40. Power to make rules to supplement this chapter 41. Precautions against dangerous fumes and 42. Explosive or inflammable dust, gas, etc.

CHAPTER V In this chapter articles are described about Welfare and include the following: 43. Washing facilities

44. 45. 46. 47. 48. 49.

First aid appliances Canteens Shelters, etc. Rooms for children Welfare officers and Power to make rules to supplement this chapter

CHAPTER VI In this chapter articles are described about Working hours of adults and include the following: 50. Weekly hours 51. Weekly holiday 52. Compensatory weekly holiday 53. Daily hours 54. Intervals for rest or meal 55. Spread over 56. Night shift 57. Prohibition of overlapping shifts 58. Extra-allowances for overtime 59. Restriction on double employment 60. Notice of periods of work for adults and preparation thereof 61. Register of adult workers and supply of ticket and cards 62. Hours of work to correspond with notice under section 60 and register under section 61 63. Power to make rules exempting from restrictions 64. Power to make exemption order and 65. Further restrictions on the employment of women

CHAPTER VII In this chapter articles are described about Employment of young persons and include the following: 66. Prohibition of employment of children 67. Non-adult workers to carry tokens 68. Certificates of fitness 69. Effect of certificate of fitness granted to adolescents 70. Working hours for children 71. Notice of periods of work for children 72. Register of children workers 73. Hours of work to correspond with notice under section 71 and register under section 72 74. Power to require medical examination 75. Power to make rules and 76. Provisions of this chapter not in derogation of Act XXVI of 1938

CHAPTER VIII In this chapter articles are described about Leave and holidays with wages and include the following: 77. Application of the Chapter 78. Annual leave with wages 79. Festival holidays 80. Casual leave and sick leave 81. Wage during leave or holiday periods 82. Payment in advance in certain case 83. Power of Inspector to act for workers 84. Power to make rules and 85. Power to exempt factories

CHAPTER IX In this chapter articles are described about Special Provision and include the following: 86. Power to exempt public institution 87. Dangerous operations 88. Notice of certain accidents

89. 90. 91. 92.

Notice of dangerous occurrences Notice of certain disease Power to direct enquiry into cases of accident or disease and Power to take samples

CHAPTER X In this chapter articles are described about Penalties and Procedure and include the following: 93. General penalties for offences 94. Liability of owner of premises in certain circumstance 95. Enhanced penalty after previous convictions 96. Penalty for obstructing Inspector 97. Penalty for wrongful disclosure of information 98. Restriction on disclosure of information 99. Offences by workers 100. Penalty for using false certificates of fitness 101. Penalty for double employment of a child 102. Offences by a firm, company, etc. 103. Exemption of occupier or manager from liability in certain cases 104. Power of the court to make orders 105. Presumption as to employment 106. Onus as to age and 107. Cognizance of offences

CHAPTER XI In this chapter articles are described about Supplement and include the following: 108. Appeals 109. Display of notices 110. Service of notices and returns 111. Obligation of workers 112. General power to make rules 113. No charge for facilities and convenience 114. Publication of rules 115. Protection to persons acting under this Act and 116. Repealed by East Pakistan ordinance XIII of 1966.

Industrial Health, Safety and welfare

 Occupational and industrial Health and Safety (OHS)  Welfare and environmental management  Electrical Safety  Fire prevention And Fire Safety  Accident measurement Occupational and industrial Health and Safety (OHS) Occupational safety and health is a cross-disciplinary area concerned with protecting the safety, health and welfare of people engaged in work or employment. The goal of all occupational safety and health programs is to foster a safe work environment. As a secondary effect, it may also protect coworkers, family members, employers, customers, suppliers, nearby communities, and other members of the public who are impacted by the workplace environment. It may involve interactions among many subject areas, including occupational medicine, occupational (or industrial) hygiene, public health, safety engineering, chemistry, health physics, ergonomics, , environmental health, industrial relations, public policy, sociology, and occupational health psychology.

Welfare and environmental management LABOUR AND LABOUR WELFARE Labour sector addresses multi-dimensional socio-economic aspects affecting labour welfare, productivity, living standards of labour force and social security. To raise living standards of the work force and achieve higher productivity, skill upgradation through suitable training is of utmost importance. Manpower development to provide adequate labour force of appropriate skills and quality to different sectors is essential for rapid socioeconomic development. Employment generation in all the productive sectors is one of the basic objectives. In this context, efforts are being made for providing the environment for self-employment both in urban and rural areas. During the Ninth Plan period, elimination of undesirable practices such as child labour, bonded labour, and aspects such as ensuring workers’ safety and social security, looking after labour welfare and providing of the necessary support measures for sorting out problems relating to employment of both men and women workers in different sectors has received priority attention.

Electrical Safety Working with electricity can be dangerous. Engineers, electricians, and other professionals work with electricity directly, including working on overhead lines, cable harnesses, and circuit assemblies. Others, such as office workers and sales people, work with electricity indirectly and may also be exposed to electrical hazards.

Electrical Cables An electric cable is a group of one, two or more wires or optical fibers bound together, in a common protective jacket or sheath. Individual cables or fibers inside the jacket are usually covered or insulated. There are combination cables, made by manufacturers and may contain both electrical wires and optical fibers. Copper electrical wires are most commonly used because of its excellent conductivity. Aluminum electrical wires are also used as they are less expensive. Electrical cables are sometimes made more flexible by stranding the wires. The process involves twisting or braiding the smaller individual wires to produce larger wires that are far more flexible. Small electrical wires are also bunched before concentric stranding, thereby adding more flexibility .

Electrical Fittings Electrical Fittings are the products, which are used for fitting various electrical devices like switches, fans, wires, tube lights etc. These components are available in a wide variety of shapes and sizes and materials. Before selecting electrical fittings for any hazardous location, the exact nature and concentrations of the flammable materials must be considered. An electrical fitting that is safe for installation in an atmosphere of combustible dust may not be safe for use in an atmosphere containing flammable vapors or gases. Thus, electrical fittings are specifically designed considering various hazards. While buying these fitting items a buyer must always keep in mind the quality of the component, the price of the item and credibility of the supplier. China, Hong Kong, Taiwan and Germany are the leading manufacturing countries of electrical fitting components. These fitting components can be classified as follows: • Brass • Copper • Plastic • Thermoplastic

Electrical Safety Guide Electricity is a common thing in our daily life. Wherever we go, whatever we do, in everything electricity has some part to do. Without its help and without its usage we are unable to perform a number of our important tasks. That's why it has become an integral part of our life. Most of the

devices and appliances are run from electricity so it is present everywhere as in our bed room, kitchen, roof, in our office, in the path, in trains. But one thing that we must be careful of is that we must keep distance from electricity because it is extremely dangerous for the life of living creatures as well as for non living objects. It is harmful for us because if we get in touch with electricity we may get shocks which are very dangerous for our life. The electric shocks affect the nervous system and may cause heart attacks, it can paralyze that part of your body which gets the shock or it may even be responsible for the death if the shock is strong. The electrical shocks may also prove dangerous for the non living objects like electrical appliances, homes etc. During electrical shocks spark is often produced which sometimes become the cause for fire. Electric fire may damage or burn the appliances and devices and also the electric installations. They even create fire in the buildings and homes. So it is very important to follow some electrical safety guides which will definitely be helpful for our safety.

Fire prevention and Fire Safety Fire safety refers to precautions that are taken to prevent or reduce the likelihood of a fire that may result in death, injury, or property damage, alert those in a structure to the presence of a fire in the event one occurs, better enable those threatened by a fire to survive, or to reduce the damage caused by a fire. Fire safety measures include those that are planned during the construction of a building or implemented in structures that are already standing, and those that are taught to occupants of the building. Threats to fire safety are referred to as fire hazards. A fire hazard may include a situation that increases the likelihood a fire may start or may impede escape in the event a fire occurs. Fire safety is often a component of building safety. Those who inspect buildings for violations of the Fire Code and go into schools to educate children on Fire Safety topics are fire department members known as fire prevention officers. The Chief Fire Prevention Officer or Chief of Fire Prevention will normally train newcomers to the Fire Prevention Division and may also conduct inspections or make presentations.

Key elements of a fire safety policy • •

Building a facility in accordance with the version of the local building code Maintaining a facility and conducting your self in accordance with the provisions of the fire code. This is based on the occupants and operators of the building being aware of the applicable regulations and advice.

Buyer Standard comparison with Factory observation  Out sourcing requirements of Apparel importer  Buyer standard  Factory observation Out sourcing requirements of Apparel importer During the time of getting any order from the buyer, some important things should be followed by the supplier or manufacturer. Because buyer always gives importance on these thing. Such kind of important things are given below:

1. Supplier selection: In selecting suppliers, Apparel Importer attempts to identify reputable companies that are committed to compliance with legal requirements relevant to the conduct of their business. 2. Legal Requirements: Apparel Importer requires of its supplier strict compliance with all contract provisions, as well as all applicable laws and regulations, including those of the United States and those of the countries of manufacture and exportation. 3. Country-of-Origin Labeling: Apparel Importer will not knowingly allow the importation into the United States of merchandise that does not have accurate country-of-origin labeling. 4. Prison labour: Apparel Importer will not knowingly allow the importation into the United States of merchandise manufactured with convict labour, forced labour or indentured labour. 5. Child labour: Apparel Importer will not knowingly allow the importation into the United States of merchandise manufactured with illegal child labour. 6. Manufacturer’s Certificate: To emphasize its insistence on accurate country-of-origin labeling and its particular abhorrence of the use of prison labour and illegal child labour, Apparel Importer requires that its foreign suppliers and its U.S. suppliers of imported merchandise, for each shipment of foreign-poduced merchandise, obtain a manufacturer’s certificate that the merchandise was manufactured at a specified factory, identified by name, location and country, and the neither convict labour, forced labour or indentured labour, nor illegal child labour, was employed in the manufacture of the merchandise. 7. Factory Visits: On visits to factories, for any purpose, Apparel Importer associates and buying agents have been asked to be watchful for the apparent use of prison or forced labour, or illegal child labour, or indication of inaccurate country-of-origin labeling, to take immediate responsive action when necessary and to report questionable conduct in these areas to their management for follow-up and when appropriate, corrective action. 8. Corrective Action: If it is determined that a factory utilized a supplier for the manufacture of merchandise for Apparel Importers are in violation of these out sourcing requirements, Apparel Importers will take appropriate corrective actions, which may in include cancellation of the affected order, prohibiting the supplier’s subsequent use of the factory or terminating Apparel Importer’s relationship with the supplier.

BUYERS’ STANDARD During the time of establish a factory or organization it is necessary to introduce some main criteria with the factory & buyer who are working there because of establishment of compliance in the factory which will help to get order from buyer. Name of some popular buyers’ are given below: 1. PUMA 2. H & M 3. MEXX 4. JC penny 5. Esprit 6. Next 7. PVH 8. etc These buyers are working with a fulfilled compliance reliable company. This compliance should have some standard criteria.

Code of Conduct All relevant employees should oversee compliance of the prevailing Buyers Standard Code of Conduct for Vendors by all approved vendors. All trading business units should be familiar with the principles of ethical sourcing (including the respect and support for the protection of human rights, abstinence from human rights abuses, freedom of association, no forced labour, no discrimination in employment, promotion of environmental responsibility, occupational safety and health and compliance with the law) and arrange inspection and audit works as specified under their respective ethical compliance programs. Health and Safety in the factory: Lack of control over the safety situation in factory can cause injuries or deaths. Safety awareness should always be of priority and has to be understood and implemented daily by everyone working in the factory. When setting up a new factory it is it is advisable to seek help from the fire brigade in order to ensure that the building is safe from a fire perspective. Health & safety in the factory is an important factor. Some important factor should be controlled in the factory or organization. 1. Emergency exits: The purpose of emergency exits is to ensure that there is more than one possible way out of the factory in case of an emergency. 2. Fire alarm: The purpose of fire alarm is to ensure that all workers can be immediately notified in case of an emergency. Therefore it is important that the sound and sight of the fire alarm is not used for any other purpose. 3. Evacuation plan: The creation of an evacuation plan is a useful tool when planning the overall fire safety situation in the factory. If any changes are made within the factories that have an effect on the escape routes the evacuation plans should be revised accordingly. 4. Evacuation training: During evacuation training, we can prepare the workers for how to react in case of an emergency. Being well prepared will make the evacuation go quickly and smoothly, and will minimize the risk of panic and casualties. 5. Fire fighting equipment: Installing and maintaining adequate fire fighting equipment in the factory can have a huge impact on how the factory property is affected by fire. 6. Fire fighting training: Part of fire safety training should include fire fighting training in order to ensure that there is always someone in each workshop skilled in fire fighting. It is important to set up a system of roles and responsibilities in case of an emergency. 7. Emergency lighting: In case of power cut or other emergency it is important that people in the factory are able to orientate themselves and to evacuate the factory as quickly as possible. 8. Personal Protective Equipment (PPE): Work protectively to minimize the risk of industrial injuries by making a risk assessment, with the goal of ensuring that potentially dangerous work operations are carried out and machines operated as safely as possible. 9. Electrical installations: Electrical installations are a potential fire hazard in the factory. 10. First aid: A factory is potentially dangerous working environment. Consider possible risks of work-related injuries. 11. Drinking water: Ensuring that the workers have free access to clean drinking water is essential in order to prevent dehydration and exhaustion in hot weather. Ensuring that the workers are provided with individual cups for drinking water ensures that disease is not spread between workers.


To run a 100% export oriented textile or garments factory, compliance is necessary to establish in factory. Because compliance, reserve the rules & regulations of the factory. So it is important to ensure compliance set up in any factory or organization. For that compliance practice is important. To get more order from the buyer it is very important. Because more order from buyer, more profit for the company. So every company must have a compliance department. Under this department a team of officer will work properly & observe rules of compliance in the factory. Now a day every factory tries to be complained. BGMEA claimed that now 97% factories are complained. But actually not like that, Neutral source claimed that 60% factories are complained and 40% are non-complained. But in our project we tried to make a comparison or combination with some practical field. For that, we focused a practical compliance field of SQUARE FASHION LTD in this project, which is one of the leading companies where compliance is followed by the authority. Buyer standard compliance and Square fashion limited are nearer to one another. That’s why they are now a leading company. If they maintain compliance properly, they will go long run in next future.

CONCLUSION: The word compliance is derived from the verb 'to comply’, which means, ‘to act in accordance with the rules'. The rules cover nearly all sectors within the industry including banking, insurance, investment management and securities, and apply to a vast network of financial institutions, offering a multitude of financial services and products, which have to comply with them. Compliance deserves the power of maintaining rules & regulations in the organization. It has a great importance. Some important things are largely depend on compliance like;  Quality Buyer  Better price.  No worker unrest.  Increased factory Image/ brand Value  Uninterrupted business. The reputed buyer always visits in the factory to see the situation of the factory that this is compliance based or not. Compliance depending factory can demand a lot from the buyer because it is sure that they can serve the best. Whenever the buyer satisfied by the factory they give order to the factory because they are sure that the factory will give the best for them. To get reputed buyer & better price it is important. For compliance, no worker unrest is available in the factory. It increases the good factory image which is important for getting buyer & continuous improvement of the factory business, without any interruption. So establishment of compliance in the factory is very important which can not be explained in a word.

REFERENCES: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

The Bangladesh labour Code, 2006 –Md. Abdul halim Employment law –Thomas kibling & tamara lewis Bangladesh labour and industrial law –Prof. A. A. Khan Principles of Employment law – Michael Jefferson Text book on Labour Law – Simon Honeyball & John Bowers Industrial source- Dip Knit Wear Ltd. www.SAI\SA-8000.com www.BSDglobal.com www.Wikipedia\SA-8000.com www.CBI\SA-8000.com www.BENT\SA-8000.com http://www.sa-intl.org/.com

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