Development of sustainability index for ready-made garments sector Bangladesh

Abstract

The aim of this research is to develop a simple and easily useable scale to assess sustainable development in the ready-made garments (RMG) sector of Bangladesh. To pursue the goal, this study is divided into two separate parts; index development and sustainability assessment. Based on an extensive literature review, a three-dimensional framework has been proposed. Dimensions include economic, social and environmental dimensions. Data were gathered from the Tier 1 RMG factories in Bangladesh. Excluding incomplete responses, a total of 238 responses were considered for further analysis. The statistics used in the analysis were item-total correlation, independent t-test, exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) through structural equation modeling (SEM). The result revealed that a 30-items index showed model fit on the proposed second-order sustainability index model. Dimensions of sustainability are found to be well correlated and dimensions as well as sub-dimensions of sustainability load very well on the proposed three-dimensional model. In the second part of this study, level of sustainability of the ready-made garments factories has been assessed based on the developed sustainability index and the modified scale of a sustainability tool named Barometer of Sustainability. Overall sustainability level of the factories participate in this study is at “acceptable” level. Classifying the factories based on their product types does not show much difference than the overall sustainability measure. But while factories are segregated based on their sizes in terms of a number of employees,

the result shows a clear inverse relationship between sustainability level and RMG factory sizes. Sustainability index developed in this research will help all the interested parties including government, factory owners, business associations and international buyers, to assess and monitor sustainable development in this sector. Proper use of this index could help RMG factories in Bangladesh to overcome the difficulties they face in regard to sustainability. Additionally, the index could also serve as a base for similar scales in other industries.