What is Compliance? Understanding Compliance in Textile Sector

Introduction:

Compliance means fulfilling/conforming to certain standards, rules, regulations, policies, SOP’s or goals set out by the organization. It can be:

• National legal requirement
• International legal requirement
• Customer Requirement
• Certification requirements
• Internal Policies, procedures, guidelines

So, in this article, we are going to list down compliance requirements in the Apparel & Footwear sector.

Due to Lack of Compliance, what can happen, You can read it here:

• Rana Plaza Incident, Bangladesh 2013
• Chemical plant Explosion, China 2019

Categories of Compliance:

There are different types of compliance that are required from a textile unit to fulfill. Types of compliance with their brief introduction are as follows:

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1. Social /Labor Compliance:

This is the type of compliance where you are required to fulfill labor law requirements as required by National labor Law or ILO and some best practice requirements by customers. It covers:

• Payment issues
• Working Hours
• Working Environment
• Disciplinary practices
• Labor Practices

2. OHS Compliance:

In this type of compliance, you are asked to fulfill Occupation, health, and safety requirements. It can be Standards set out by local authorities or standards made by customers. Customers can also ask you to fulfill different international standards e.g. OSHAS etc. It covers:

• Fire Safety
• Machine Safety
• Electrical Safety
• Physical/biological Hazards

Read More here: How Lean Manufacturing System can improve EHS

3. Environmental Compliance:

Here a factory has to comply with Environmental requirements that can be local or international or requirements set out by the customer. Environmental Compliance covers:

• How you manage waste of your facility?
• You have environment permit or not?
• What is the impact of your activities / processes?
• How you manage your processes/activities to make it environment friendly

4. Product Quality Compliance:

Product quality is a very important compliance area. This is where there is zero tolerance. If a product is not a quality product then you won’t get the customer. In Product quality compliance, we consider:

• How a company manages its products?
• How a quality product is ensured?
• What are the faults?
• How the defects are removed?
• How material is handled?

5. Security Compliance

This compliance is mostly applicable to export oriented industries. This compliance arises due to terrorism and customer data protection issues. It will include:

• Who have access to certain areas?
• Who have access to data/files?
• How products are packed?
• How some areas are access restricted?
• How site security is ensured?
• How product design security is ensured?

6. Structural / Building Compliance:

After the collapse of Rana Plaza in Bangladesh, international brands have now been trying to make sure that this does not happen again. Brands are conducting building assessments.

• What is the strength of building?
• What is the load capacity of the building?
• What are defect in the building?
• How building can be made safe?

7. Certification Compliances:

There can be different types of certification e.g. Management system certification, social, environmental, quality, safety certification against different standards e.g ISO standards, BSCI, SMETA, etc. there might be some special requirements of these certifications depending on standards e.g. how documents are managed, etc.

Conformance with these requirements depending on their applicability is compulsory. If some requirement is not met, it leads to Non-Conformance or Non- Compliance.

If there is any serious non-compliance then:

• Customer can stop business
• Legal authority can seal the company
• Certification body can cancel certification