My first graded memo report

Memo report

To:                  Board of Directors

From:             Alina B, Head of Public Relations (PR)

Subject:         Improving Corporate Social Responsibility (CSR) Profile

Date:              20.10.2011

Introduction

Concerning its bad publicity due to working conditions in the manufacturing countries Pakistan and Indonesia, the Head of PR of Stitch Wear has called a meeting on 20 September. The main discussion point dealt with the improvement of the companies CSR profile in order to ameliorate the bad reputation and to comply with the demands of the market in order to stabilize and raise the profits. Agreement was set on the following.

Findings

Proposal for CSR report

Firstly, the department of Public Relations discussed, whether the proposal for a CSR report should be observed or not. When all was said and done the result was to ensure that no children under 14 will be employed by the company or its suppliers. Concerning to the aim to reach an improved reputation, Stitch Wear is indebted to its social and environmental responsibilities.

Overseas manufacturers and supply chain

The second point of the action plan dealt with the suggestion to enter a partnership with the Ethical Trading Initiative (ETI). Nowadays ETI supports Stitch Wear to screen suppliers and to adopt a sustainable purchasing process in order to ensure ethical working practice in the company’s production plants in Indonesia and Pakistan. Furthermore ETI visits overseas manufacturers more frequently to ensure that child labor is prohibited.

Setting up appropriate and ethical working conditions

Thirdly, Stitch Wear advices to introduce an educational training for all employees, this includes regular weekly lessons for children aged 14 to 16. On top of that, a technical training is useful to improve the personnel’s skills on machines and computers. Moreover, the introduction of health programs for only former child employees under 14 will help to receive a better reputation. All this training is feasible and will help to keep the staff motivated. It also creates safe labor conditions and ensures a stronger commitment of the employees to the company.

Improvement of CSR image

Furthermore, a new CSR image is recommended. This can be reached by a marketing campaign in which Stitch Wear is introducing a new slogan for instance: “Stitch Wear- Wear responsible stitching”. On top of that, inside the clothing the customer will find a label with the inscription 14+, which ensures that the production department employees are 14 or older than 14 and therefore allowed to work. Moreover, the department of PR decided not to establish a new brand name because it would take a long period of time until customers would have accustomed to the new name. In order to pursue the main aim of an improved reputation, Stitch Wear could organize sports events with local high profile sports people. An appropriate location would be a school, where Stitch Wear also offers free clothing for children which could not be sold. All this could be affected and controlled by a Corporate Social Responsibility Team assembled by the Head of PR.

Financing the new CSR profile

Finally, the department of PR suggested to observe the development of Stitch Wears total profit after all above measures has been taken. In case the investment will not be successful product prices will increase in order to remain competitive.

Conclusion and recommendation

The department of PR realizes that an investment on improving our CSR profile is absolutely necessary to gain competitiveness and alter the reputation in the market. Moreover, the long-term investment in concerning the staff will cause an image change raising Stitch Wears general attractiveness to consumers. If the company intends to remain competitive in the long run, it has to invest in the above measures to provide sustainability and accountability. For the implementation of this improved CSR profile into the company, the Head of PR will assemble a team which is responsible for the execution of those tasks.

We look forward to your reaction.

Alina B

Head of Public Relations (PR)