Market Movers: Lessons from a Frontier of Innovation - IFC

Market Movers 33Sustainability performance“Companies that attract the bestpeople perform better – this is trueregardless of where you are in theworld.”From the beginning, MAS set outto be a good employer. In additionto maintaining basic workplacestandards (e.g. a limit on workinghours and overtime, age limits, safeworking conditions), MAS gives itsworkers – over 90% of whom arewomen – benefits including freetransport and a decent breakfastto start their day, insists thatmanagers eat in the same canteenas everyone else and providesonsite health care services. To someextent they did it because, as AjayAmalean, the youngest of the threebrothers, puts it, “it was the rightthing to do. We had absolutely noidea that 20 years down the road,the things we were doing would becalled CSR.”But they did it also because it madebusiness sense. “Companies thatattract the best people performbetter – this is true regardless ofwhere you are in the world,” saysSharmini Ratwatte, director of MASInvestments and a former boardmember. Forbes magazine recentlydescribed its 12-acre ‘campus’ nearChennai in southern India: “Past themanicured lawns and the pleasantsecurity guards is an air-conditionedspacious workplace,” the magazinewrote, where there is “a daynursery and two nurses to watchover the well-being of employeesand their children.” 19Although the company’s turnoveris high by western standards, itis only one-quarter of the localindustry average. Many womenleave to marry and then returnonce their children are at school.To persuade its workers to stayfor longer, however, MAS askedthem what they would most likeit, as a company, to provide. Onething the workers suggested waseducation, in particular educationin information technology and theEnglish language, and the companyis now providing both.The whole programme has becomeformalised into something MAS calls‘Women Go Beyond’, which waslaunched in November 2003, andwhich its customers increasingly seeas a benchmark for ethical sourcingpractices in the industry. The focusis on promoting knowledge, awareness,leadership skills, attitudinalchanges, and the ability to balancework and personal life. It givesworkers the ability to take on moreresponsibility and make decisionson behalf of the company, and helpsthem communicate better with customers.Ultimately, it provides MASwith a deeper pool of talent fromwhich to pick its future managers.Each year, workers’ achievementsare celebrated through the‘Empowered Woman of the YearAwards ceremony’. Those whoreceive this award are seen as rolemodels and, says Mahesh, “Othersare inspired by them.”Courtesy of MASThe programme has gained globalrecognition. In 2005, the programmewas awarded the American Appareland Footwear Association’s Excellencein Social Responsibility Award forwomen’s issues. In March 2006 one ofthe world’s leading business schools(INSEAD) published a case study forits Advanced Management and MBAstudents entitled ‘MAS: Strategic CSRin the Apparel Industry’.Significantly, the company’sexemplary employment practiceshave led its customers to trustit in other areas. In 2006, Gapjoined hands with MAS to launcha ‘Gap Go Beyond’ programme.In 2007, MAS was chosen byMarks & Spencer to be part ofthe flagship British retailer’s PlanA, a programme of sustainabilitythat Marks & Spencer’s CEOStuart Rose has said “will shapeeverything about the way we dobusiness.” MAS was one of only twocompanies in South-East Asia to beselected by the British retailer asa partner in developing an iconicgreen manufacturing plant. MASbelieves it was chosen becausesustainability (in all its forms) wasperceived to be part of its culture.19S. Dinakar, ‘Victoria’s Secret’, Forbes, 23 July 2007.