A study of Aarong social compliance and producer development (SCPD) and its role in encouraging its existing, next generation and declining producer to maintain export quality products

Abstract

As one of Bangladesh's largest fashion retail chains under the umbrella of one of the world’s largest NGOs, Aarong extended its support to rural artisans by investing in their handicrafts for several years into its operations. In the process, it saw the emergence of independent producers and created income generating opportunities for thousands of artisans from communities beyond the reach of BRAC. A department called SCPD helps to recruit new producers and artisans and acts as Human Resource for them. With the help of SCPD, Merchendising and QC, by exporting in 15 different countries Aarong represents Bangladeshi tradition and culture as well as helps increasing the GDP of Bangladesh. However, comparing to earlier years, the percentage of revenue of Aarong from export has decreased. So, this report aims to identify the reason behind it as well as how SCPD helps to encourage producers and artisans to maintain and improve the quality of export production. This study aims to fill this gap by taking a fresh look at the role and relationship of monthly regular order with cash payment (Incentive), training and monitoring(TNA), production and storage check (Infrastructure) with export production quality. For this study two FGD are done with employees of different departments of Aarong as well as with producers and artisans. Later on, both participants answers are analyzed and some common concerns, problems and mistakes during production are highlighted. The causes of these mistakes and problems are also discussed and finally some recommendations are provided which might be helpful for providing a guideline in maintaining the export production quality.