Levi's built worker well-being and sustainability into supply chain

on Wednesday, April 24, 2013

Levi's built worker well-being and sustainability into supply chain

Levi Straus and Co. has used the trend toward sustainability and listening to the voice of its workers to improve supply chain management, according to GreenBiz.com. Levi's new approach involves improving worker well-being by ensuring they have opportunities for economic empowerment, good health, family security, equality, access to education and a safe working environment. 

Companies are beginning to pay attention to how worker satisfaction can impact business profits, GreenBiz stated. If factory employees are dissatisfied, it can lead to turnover, absenteeism and worker strikes, all of which can have a negative impact on the success of a supply chain. Focusing on worker well-being can benefit employees in developing nations, but it can also prevent a loss of profits or disruptions to the supply chain.

Finding sustainable products has become a growing concern for consumers, and Levi's has made efforts to reduce its environmental impact. In 2006, Levi's commissioned an assessment of their products to determine use of resources, said MainStreet. The report found the company was utilizing water inefficiently with 42 liters used in the finishing process alone, so Levi's released a collection of jeans that used the same materials, but 96 percent less water. This initiative has saved 172 million liters of water, according to a blog at Alabama.com.

The move toward sustainability can improve brand image since many consumers seek environmental and social information before purchasing a product. Companies used to see this approach as less profitable, the blog revealed, but 71 percent of consumers consider the environment when shopping and four in five Millennials would switch brands for a good cause. Businesses can educate consumers about sustainability if they speak out about their environmental goals. Large corporations can have a great deal of influence, so they are the ones who can impact global sustainability efforts.


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