Akbar, Muhammad Usman (2024) Exploring Legal Compliance for Corporate Social Responsibility (CSR) in Pakistan with Respect to the Ready-Made Garment (RMG) Industry: In the Context of Australian RMG Organisations. PhD thesis, Victoria University.

Abstract

This thesis investigates the Corporate Social Responsibility (CSR) practices within the Ready-Made Garment (RMG) industry of Pakistan, with a particular focus on the influence exerted by Australian RMG organisations. The context of this research lies in the increasing importance of CSR in global supply chains, particularly in the textile and apparel sectors. The study aims to explore how collaboration with Australian companies affects the CSR practices of Pakistani RMG organisations, particularly concerning economic, legal, ethical, and philanthropic responsibilities, as conceptualised by Carroll’s CSR pyramid model. The research adopts a mixed-methods approach, combining both qualitative and quantitative methodologies to provide a comprehensive analysis. Qualitative methods were employed to understand the subjective experiences, beliefs, and behaviours of individuals within the industry, particularly regarding ethical and social responsibilities. This involved conducting structured interviews with stakeholders from selected RMG companies, which provided in-depth insights into their CSR practices. Also, it compares Australian and Pakistani CSR laws, annual reports of RMG organisations from both countries and analyses case studies from Pakistan. Quantitative methods, on the other hand, were used to measure the effects of these practices more precisely, utilising the questionnaires with Likert-scale responses to analyse the relationships between various CSR dimensions and organisational performance. Data collection involved both primary and secondary sources. Primary data was gathered from employees of 11 national and multinational RMG companies in Pakistan by using both open and closed-ended questionnaire. Secondary data included a review of relevant literature, legal frameworks, and case studies from both Pakistan and Australia. The black-letter law approach was employed to analyse legal documents, providing a clear understanding of the CSR regulations in both countries. Annual reports were collected from both Australian and Pakistani RMG organisations and 13 case studies from Pakistan were analysed to discuss CSR activities in Australia and Pakistan. The major conclusions drawn from this research indicate that collaboration with Australian RMG organisations positively impacts the CSR practices of Pakistani RMG companies. This influence is particularly evident in the areas of legal compliance, ethical responsibilities, and transparency. However, the study also reveals significant challenges, such as the limited effectiveness of Pakistani legal frameworks in enforcing CSR standards and gaps in the knowledge transfer process between Australian and Pakistani companies. The outcomes show that while Australian companies play a crucial role in enhancing CSR standards in Pakistan, there is still considerable room for improvement, particularly in the enforcement of legal and ethical standards within the local industry. Based on these findings, the thesis offers several recommendations. Policymakers in Pakistan are urged to strengthen the legal frameworks governing CSR, with a focus on more effective enforcement mechanisms. RMG organisations in both Pakistan and Australia are encouraged to engage in cross-border collaborative initiatives that prioritise CSR, including joint projects and knowledge exchange programs. Additionally, the study emphasises the importance of transparency in CSR reporting and the need for increased consumer awareness regarding the CSR practices of RMG organisations. In conclusion, this research contributes to the broader discourse on CSR in developing economies by highlighting the complex dynamics between local industries and their international partners. The insights provided by this study aim to guide both practitioners and policymakers toward more effective and sustainable CSR strategies in the global fashion industry.

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