December 30, 2022
Manufacturing -
The Importance of Ethical Manufacturing in Asia | OneLink Holdings
Find out how to make sure your company is meeting ethical manufacturing standards throughout Asia by reading this article!
There’s a lot of discussion these days about the importance of ethical manufacturing, particularly when it comes to products made in Asia. Many people are concerned about the treatment of workers in factories overseas, and whether they’re being paid a fair wage and treated fairly. While this is an important issue, it’s also important to remember that ethical manufacturing goes beyond just pay and working conditions. It’s about making sure that factories are environmentally responsible and that they’re producing products that don’t harm people or the planet.
A recent survey conducted by OpenText with over 25,000 global participants revealed they prioritise buying products that are ethically sourced, would pay about 17.5% more to buy ethically produced products and noted companies should be more transparent in their sourcing processes. So, what does ethical manufacturing look like in practice? And how can brands make sure their products are made ethically? Read on to find out.
Worker safety standards
Worker safety has always been a concern when it comes to the manufacturing industry and Asia specifically. From notoriously poor safety standards to unsafe working conditions, Asian factories have long been plagued with safety concerns. As awareness of the safety issues has increased, however, companies in Asia and around the world are taking renewed steps towards increasing safety standards. Manufacturing safety initiatives such as safety and sustainability guidelines for workers and improved internal monitoring mechanisms are being implemented in factories across Asia.
Furthermore, subcontracting firms that fail to uphold safety standards can be held accountable through international regulations from organizations like the International Labour Organization. Such measures are essential for preventing safety incidents and ensuring that workers in Asian countries remain safe while performing their daily tasks.
Environmental regulations
Environmental regulations in Asian manufacturing have made positive strides in recent years but there is still much work to be done. This has been a necessary and beneficial step to reduce pollution and environmental destruction, as well as improve public health across various countries within Asia. The industry must take proactive steps towards environmental protection rather than confine these objectives to the requirements of legislation.
Companies that prioritize environmental concerns are consistently rewarded both competitively and with public image. Implementing sustainability initiatives, waste reduction strategies, and a focus on renewables can lead to more efficient production and more satisfied consumers. Ultimately, environmental regulation will be an ever-evolving process, but by prioritizing green practices from the start, companies in the Asian manufacturing industry can maximize their potential for long-term success.
Pay and working hours
The pay and working hours of the production staff in Asian manufacturing industries have become increasingly important topics of discussion. Rising pay expectations, especially among younger generations, has seen pay levels begin to increase across the region.
Working hours in factories have also reduced due to government legislation and unions forcing companies to pay their employees better wages for shorter working days. Labour laws are more strictly enforced than ever before, especially in countries such as China, which is leading the way with progressive practices within its manufacturing sector. It’s clear that pay and working hours are issues being taken seriously by global manufacturers, who acknowledge that these factors can play a large role in determining job satisfaction across the industry.
How can brands be ethically responsible?
To ensure your maintaining an ethically responsible business, companies should have the interests of its workers at heart, ensuring health and happiness while at work is being achieved. Ethical companies invest in their staff, encouraging them to keep progressing by providing continuous training. Employees should also feel safe and receive fair treatment which in turn will boost productivity, benefitting the business.
Beyond employees, considerations of the environment such as the use of material and energy also form part of an ethical business. Is your business using renewable energy for production? If not, can you change to be more environmentally friendly. Another consideration of the environment is using recycled materials or reducing waste from production. Can you integrate the use of the waste into future production? Supporting local businesses will benefit local communities while also reducing emissions associated with transport.
A survey conducted by OpenText revealed that 71% of respondents indicated that businesses have a responsibility to ensure their suppliers abide by an ethical code of conduct. When sourcing products, companies should only engage with suppliers and manufacturers who can follow environmental, social and ethical expectations. To gain consumer trust when it comes to being ethically responsible, organisational transparency is key. Being honest about where your products are sourced and how will aid in gaining the trust of consumers looking to buy your products.
The discussion of ethical manufacturing has often focused on the treatment of workers, and this is certainly an important issue. However, it’s also necessary to consider other factors, such as environmental responsibility and product safety. By taking a holistic approach to ethical manufacturing, we can ensure that factories are operating in a sustainable way and producing products that are safe for people and the planet.
Written By
OneLink Holdings team
With our experience it puts us in a very unique position in being able to take your business from idea to reality, or if you’re part of the way there we can help with a number of individual areas in your business.
