IMPACT OF SOCIAL COMPLIANCE ON QUALITY IN THE TEXTILE SECTOR OF PAKISTAN

Abstract

Purpose- The aim and focus of this research study is to find the impact of social compliance standards on the quality and how it will help in reducing the number of rejections during quality audit. Workers motivational level is crucial for the quality output and it can be increased if labor laws are being followed properly which is possible if the company complied with social standards. Methodology/sample- To find out the impact of social compliance on quality 30 social compliance audit report is observed of the textile sector of Pakistan. These reports show that how the rejection rate during quality audit decreased when the number of violation in the audit report decreased. As the social compliance violation increases the quality related problem increases which increases the number of rejections during quality audit. Findings-The data is analyzed by using statistical software named MINITAB 17 to find out the result. After the data input two statistical tools or application is being applied one was Pearson correlation and the other one was regression analysis which shows the desired result. The Pearson co-relationship between number of violations in audit report and number of rejections during quality audit is 0.926 which is in the magnitude of 0.9 to 1 which indicates the HIGH correlation between the variables and P-value is 0.0000 which is lower than the magnitude of 0.05 hence the relationship is significant. About 86% variation in dependent variable that is (number of rejections during quality audit) is explained by variation in independent variable that is (number of violations in social audit report) which represents that the regression line between these two variables best fit to the data. Practical implications- The results of the two statistical software shows that complying with social standards by fulfilling their moral obligation to the workers and society will lead to improvement in quality and reduces the number of rejections during quality audit and also increases the motivational level of the labor and workers. This proves the two theories that if Pakistani textile companies complying more and more with the social standards and work according to the code of conduct than they can earn the benefit from it by obtaining the desired result by achieving desired level of quality standards.