Towards the end of the multi fibre arrangement mfa

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Tariffs and Trade, which established an agreement on special transitional measures. Towards the end of the Multi-Fibre Arrangement (MFA) and the demise of apparel quotas, Frost and Ho ( 2006 ) argued that one of the favorite games played in the media was guessing industry winners and losers. The consensus was that the rami fi cations would be catastrophic for most countries but a big advantage to China, which gained access to US and European markets. China and Brazil are emerging markets that were differently effected by the MFA process. In fact, Chinese exports rose a whopping 44.95 %, but it was hard to conclude that China was going to gobble up the entire textile and clothing market (Miller 2004 ). On the other hand, textile companies in Brazil were severely affected 8 M.C.S. de Abreu
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by increased competition as a result of the entrance of low-cost products into the Brazilian market. A substantial percentage of textile companies could not withstand these external competitive pressures and failed. It is interesting to review how textile fi rms in these two countries dealt with CSR in this context. 3.1.1 The Case of China China is still listed as a developing country but is rapidly changing. Beginning in 1979, the GDP grew by nearly 10 % per year on average (Braendle et al. 2005 ), until very recently. It is now the second largest economy and the largest trading nation in the world. China highlights the transition from a state planned to a market- oriented economy (Bo et al. 2009 ). The country is fully integrated with the world economy through global supply chains and exports of fi nish products. The Chinese Government has a strategy to attract foreign investments, keeping its exchange rate arti fi cially low and taking advantage of multilateralism to encourage rapid market penetration (Athukorala 2009 ). Impressive legal reforms have been as part of China s obligations as a member of the World Trade Organization (Buhmann 2005 ). China ´ s relationships with other countries has become more intense due to both trade policy and security issues. Social welfare still remains a distinguishing element of Chinese political ideology (Moon and Shen 2010 ). However, structural reforms and accelerated development have not resulted in increased funding to promote social welfare (Fang et al. 2007 ). Privatization did not signi fi cantly change the role of industry related to social and environmental responsibilities. Ip ( 2009 ) pointed out that the CSR activity in China started in the mid-1990s. At that time, a few large multinationals and some major Chinese companies were interested in implementing codes of conduct. By the late 1990s, a greater number of multinational companies began to apply such codes. However, this activity was limited to monitoring audits of the factories themselves. Consumers, government, and the media were not aware of the concept of corporate social responsibility.
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  • Corporate social responsibility, CSR Practices

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