IMPACT OF INADEQUATE HIRING PROCEDURE TO ENSURE COMPLIANCE IN TEXTILE INDUSTRY OF PAKISTAN

Abstract

Purpose: Pakistan’s textile industry is one of the leaders among many other exporting textile industries world-wide. Pakistan’s textile industry has flourished over the years, despite the competitive environment and is also the backbone ofthe economy of Pakistan. While exporting, certain guiding principle need to be followed in accordance with ethical and social standards accepted globally which are inspected through Social Compliance. In order to achieve these standards, adequate processes and strong controls should be present around entity’s infrastructure, governance, managerial operations and hiring procedures. This study is primarily focused around hiring policies and procedures currently practiced in Pakistan textile industries. It is conducted to identify whether inadequate hiring procedures being practiced in the textile factories by the management has any relationship with the occurrence of other violations i.e. “incomplete or missing employment contract” and “unreasonable employment contract”. Methodology & Design: This is achieved by developing and testing the research model between these violations. The sample undertaken for this research includes 191 exporting textile companies of Pakistan selected on convenient sampling basis. Secondary data that has been used in this research is obtained from factories social compliance reports. Hypotheses were tested using correlation and regression analysis for SPSS by Hayes (2013). Findings: The results and findings reflect that there is enough evidence to propose that these violations are statistically significant which suggests that there is a relationship between their occurrences. From the detailed analysis conducted in this research and findings noted, it is clear that these selected violations are present in the textile industry; therefore, this research can prove to be helpful to the suppliers to improve controls, policies and procedures in order to prevent such violations from taking place in the factories.Limitations & Recommendations: Towards the end of this research the researcher mentioned the limitations confronted in the preparation of this research and suggested some future recommendation that can enhance knowledge regarding this field. Doing so would eventually lead to more clean reports from social compliance and would also enable the business to run efficiently and effectively.