Translations

IMPAHLA CLOTHING – Textile manufacturer in South Africa committed in CSR with its shareholders

1. Organizational Governance

Strategy and organization

Sector Industry

Year 2012

Country South Africa

Transmitter

Context

Located in the Western Cape region of South Africa, employing over 200 staff, Impahla Clothing manufactures sports and lifestyle apparel for local and export markets, including international brand PUMA.
The clothing industry in South Africa has been in serious decline for the past 15 years, losing more than 80% of the original workforce employed. Key contributing issues cited being unfair competition from the East, unfavorable exchange rates and poor productivity.
To survive in the clothing industry in South Africa, Impahla has had to adopt a new strategy. This strategy has been developed with sustainability being the central theme.

Objectives

Grow its business, despite the difficult operating environment

Implementing a sustainable strategy
- Servicing our exclusive customer PUMA, aware of the process
- Creating and sharing wealth
- Environmental protection

APPROACH

The approach is a lead by example strategy (actions are worth better than words) requiring buy-in from all stakeholders around 7 core values:

- Transparent, honest and compliant management
- Respecting the fundamental human rights of all stakeholders
- Recognition that people are your most valuable asset
- Creating a working environment that is conducive to productivity
- Respecting the environment and the limited resources that are taken for granted
- Being a fair and responsible player in the marketplace, respecting clients, suppliers and consumers alike
- Community involvement – giving back

The process is divided into 3 steps: philosophy, engagement and communication.

CONTRIBUTION TO COMPANY PERFORMANCE

- Revenue growth of 633% since 2005

- Employee growth of 390% since 2005
- Absenteeism rate of 1.4% against industry standard of 6%
- No short time worked
- No days lost due to strike action
- ACCA Sustainability Reporting Award 2007 and 2010

Benefits

- Carbon Neutral since 2008

- 2,374 trees planted in needy communities
- Government support to install solar panels with the potential to reduce electricity usage by 25%
- Tax compliant since 2005
- Bargaining Council compliant since 2005