Manufacturers that invest in working conditions can improve their profit margins and increase their competitive advantage, according to recent research by KPMG. Business Case Analysis for Responsible Electronics Manufacturing was commissioned as part of the IDH Electronics program, which focuses on establishing worker-management dialogue as a means to improving working conditions and facilitating operational efficiency.
KPMG analyzed data gathered from over 70 factories, interviews with factory management teams and 99 published academic studies on the subject of working conditions. KPMG then built a modeling tool to assess the payback and margin impact resulting from a range of examples of investments in more responsible electronics manufacturing practices.
The report found investing in working conditions can provide a return on investment in as little as four months for electronics manufacturers in China.