Companies take on responsibility
- Conference in Lahore for all stakeholders of the carpet industry in Pakistan
Social responsibility is not only an issue for companies in the carpet importing countries. Moreover, entrepreneurs in the production countries should as well contribute to the sustainability of the carpet industry. With the support of Label STEP, more and more carpet producers turn towards the principles of Corporate Social Responsibility (CSR).
With the support of the Austrian Governmental Development Cooperation and in cooperation with carpet traders in Austria, Germany, France and Switzerland Label STEP is conducting a project that is totally new to the carpet industry: The overall aim of the project is to sustainably improve the living and working conditions of people in the carpet industry by introducing the principles of CSR. The project simultaneously takes place in Nepal and Pakistan.
Greater Involvement on the side of the production countries
Producers in Nepal and Pakistan have to be even more actively involved in the system of fair carpet trade. For that purpose Label STEP organizes workshops and conferences in which local entrepreneurs are sensitized for social and ecological issues and receive support for the implementation of the CSR principles. In that context, an important aspect is to demonstrate to the producers that sustainable production methods not only have a positive impact on the living conditions of the employees but also positively influence business development. Also the relationship between producers on the one side and retailers and importers in the importing countries on the other side are intensified.
Promoting the dialogue in the entire industry
The results of the dialogue with producers in the production countries are remarkable. In Pakistan, a conference of representatives from all sectors of the carpet industry took place. For the first time exporters, producers, weavers and the labour unions assembled in Pakistan in one place and together they discussed the key challenges and problems being faced by the carpet industry on an equal footing. This new culture of dialogue also leads to tangible results in the villages where carpets are produced. The dialogue within the industry is closely coordinated with the project on ‘Participatory Monitoring and Verification’ – a Label STEP initiative based on the principle of “help for self-help”: Weavers form support committees and learn to autonomously stand up for their rights and working conditions. A great part of the employees in the Pakistani carpet industry are women – therefore they are the ones who benefit the most from the project. Already in the project’s pilot phase, thousands of female weavers have achieved higher salaries and better working conditions.
- Help for self-help: Participants of a support committee for carpet weavers, Pakistan
Fair wages for all in Nepal
In Nepal, the Label STEP initiative for more corporate social responsibility has also come to fruition. The difficult economic situation and political instability in the Himalayan state has not only been a threat to carpet sales but also put employment security at risk. Label STEP has offered its valuable services as mediator between entrepreneurs, employees, authorities and labour unions. As a result of a series of CSR workshops, which have received great interest with the carpet producers, as well as encouraging the dialogue between the different parties, in 2009, a great breakthrough has been achieved: the association of carpet producers and five labour unions signed an agreement that defines a new regulatory framework for the carpet industry and outlines constructive cooperation. The salaries for weavers defined in the treaty for the entire Nepalese carpet industry correspond to the fair wage level calculated by Label STEP which is a real breakthrough for fair carpet trade. Apart from the improvement of the situation of employees, the agreement ensures stability and security for the companies due to the agreed labour peace. Thus, an important step towards sustainably securing the carpet industry as one of Nepal’s most important industries has been made.
- Participants of a CSR Workshop in Kathmandu, Nepal
