If the CSR is an obligation or opportunity : A case study of Bangladesh Apparel Industry

Purpose The purpose of this study is to explore the perspective of CSR in the apparel industries of Bangladesh. The Rana Plaza disaster in 2013 causes some institutional changes in Bangladesh apparel Industry. Apparel firms are facing strict regulations and monitoring by buyers and different governing bodies. So, the purpose of this study is to investigate different firms’ perceptions of rigorous CSR policy and compliance pressure. The study examines the influence of CSR on different performance parameters like productivity and quality. Design / Methodology / Approach This research uses a qualitative method. Three apparel industries were selected for the study. After that, three different levels of stakeholders were interviewed in semi-structured manner from each of the firms. Interview findings were validated with secondary data in most cases. Finally, interview outcomes were analysed, and research questions were answered accordingly. Findings The results indicate that the studied firms consider CSR as philanthropic and ethical responsibilities. Firms believe that CSR brings long-term business benefit and sustainability despite having high initial costs and enormous competition in the cutthroat nature of the market. So, this research finds CSR should be considered as a business opportunity rather than an obligation. CSR gives the reputational benefit which poises the power balance to the suppliers. Additionally, the research also indicates CSR positively alters the lifestyle of workers and improves the working environment, that reduces absenteeism and increases workers' dedication to the job. Different CSR activities impart financial and non-financial motivation to the workers, which significantly improves productivity and product quality. Limitation / implication The study only deals with some reputed firms of Bangladesh and their perspective was quite positive about CSR. However, the study finds few obligatory aspects of CSR comparing with the previous literature. The research discusses the CSR perspective on specific global proximity, CSR perspective and outcome may be different in the other parts of the world. Moreover, the research is limited to the nature of the impact (Productivity and Quality) of CSR, future research can be carried out to assess the extent of the impact. This study argues on what basis firms should consider CSR as an opportunity. Reputational benefit is one of the major non-financial benefit that firms should use for the business expansion and sustainability. This research can be used as an example for maximizing productivity and quality by enhancing workers motivation.