Comment: Value and ethics can coexist in the fashion industry

While demand for affordable, fast fashion shows little sign of abating - figures released in May 2012 by Euromonitor International showed that of the UK’s top five clothing companies, four were value brands - consumers also rightly expect the clothes they buy to be good quality. In addition, we’re seeing increasing evidence that customers want the confidence that low prices don’t come at a cost to the people who make those clothes.

Recently, we published our Doing The Right Thing update, a document exploring the work George is doing to reconcile these issues.

Conventional, often unfounded, thinking suggests value and ethics are mutually exclusive - that concern for workers’ rights is a luxury the average shopper can’t afford to worry about.

Ultimately, there is an assumption that value clothes mean that somebody, somewhere along the supply chain, is getting a raw deal.

As one of the UK’s leading fashion retailers, we’re committed to working with suppliers and reassuring consumers that these suspicions are increasingly outdated. A strong, sustainable supply chain is central to our success.

Last year we invested in a world-class sourcing business in Turkey and this integration is helping us to reduce lead times and costs. George is now sold in 35 countries through Asda, Walmart, franchising and online, so investing in our supply chain has never been more important.

We’re at the forefront of pioneering programmes delivering genuine win-win situations by improving quality, reducing time to market, while delivering better working conditions in areas with manufacturing expertise like Bangladesh and Sri Lanka.

Among the innovations enabling this shift is the implementation of ‘lean’ principles, which help garment manufacturers streamline operations, reduce waste and achieve cost-efficiencies. This enables them to reinvest savings into workers’ salaries.

In an industry where factories often service multiple brands, ‘lean’ has potential to improve livelihoods
well beyond our own supply chain.

Over five years, we will train thousands of workers, making this programme one of the largest of its kind. Research shows that wages have increased by 17% in ‘lean’ factories, alongside a 5% reduction in labour turnover and reduced absenteeism. These efficiencies help keep costs low - something we pass on to customers.

Another emerging concept George is helping to pioneer with Doug Miller, emeritus professor of worker rights in fashion, is the concept of ‘standard minute value’. It helps factory owners more accurately define the amount of labour for each garment produced. By understanding exactly how long each task takes, suppliers can ensure their pricing is sustainable and enough to pay employees a fairer wage.

As retailers, it is our responsibility to ensure these standards are driven through the entire supply chain. This will entail collaboration with peers and suppliers, while fostering a productive dialogue with wider stakeholders and NGOs.

The fashion industry is complex and this is very much a journey. Change rarely happens overnight and sharing knowledge is essential in doing the right thing. However, we’re confident that by working together, clothing brands can take ethics right to the needlepoint - delivering a fairer fashion industry for everyone.

• Andrew Moore is managing director of George at Asda
• You can find out more the George Doing the Right Thing programme here: your.asda.com/aislespy-george-ethics/doing-the-right-thing-update