Leadership, innovation and corporate social responsibility

Q: How can large multinationals ensure that disparate areas of the company work together as a cohesive force to implement innovation, and what role do workers play in making corporate social responsibility a part of the group's DNA, rather than mere lip service?

A: In today's highly competitive landscape, innovation, technology and management are not alternatives, but imperatives that companies use to face challenges and turn them into profit. Being open-minded to change and innovation impels a company to think ahead and build in the quick reflexes that make it possible to deal with the unpredictable.

Getting there, though, has to start with something fundamental: a willingness to change. Change is difficult; it definitely means uncertainty, and it might mean pain. However, being open to change brings tremendous benefits, not least the ability to cope with the unexpected.

So, how should one lead in the face of such growth and change? Esquel Group has matured into a company that competes in a global market and no longer relies on the traditional strength of cheap and efficient labor. Under such a situation, I believe transparency, accountability and discipline are the key elements of leadership. We do not pursue these goals only for their own sake, but also because we believe they will lead to better performance and greater profits. In essence, I believe that leadership with corporate social responsibility and integrity is both good ethics and good business.

Esquel was founded in 1978. In the beginning, Esquel was a trader looking for quotas and cheap labor. Then we moved toward higher-end production, focusing on quality and price. Now it is "time-to-market" and customer service that are most important. Our relationship with our clients has evolved from simply making their shirts, into full-fledged partnerships that incorporate everything from design to inventory management. Esquel is now a half-a-billion dollar a year business and we aim to double that by 2008.

To get to this point, Esquel has developed a corporate culture that works for just about anything that gets thrown at us, be that SARS or the end of the quota era. We start with a set of general principles, embodying values common to both eastern and western cultures. The name Esquel has no special meaning, but the initial gave us the inspiration for what we call E-culture. This has five parts.

The first is ethics. This includes delivering what we promise, treating others as we wish to be treated, and doing the right thing, in the right way. We also always respect other people's property, including intellectual capital, and always obey the law.

Second is the environment. We believe that unless we wake up to the enormous damage that has been caused to our environment over the past few centuries, there is limited chance for future prosperity. We aim to make every activity supportive of our environment.

The third is exploration - that means investing in research and development, technology, innovation and our employees. We encourage people to find new ways of doing things and to question the status quo. We want to create a culture that encourages diversity and creativity.

Excellence is fourth. We make every effort to become more efficient and effective in everything we do. We want every one of our 47,000 employees to have the chance to excel and realize their highest potential.

Finally, there is education. We want to become a learning organization and the first step is to encourage people to try new things and not be afraid to err. If one does not make mistakes, how can one ever improve? We also try to help those in our communities who are less fortunate, by building schools and libraries, for example, and giving scholarships in China's Xinjiang province.

Esquel is a business, and we want to make money. However, we are also committed to the idea that outstanding sustainable business performance can only be achieved on the basis of integrity. Today's global marketplace is no place for the weak; we believe the values embodied in our E-culture make us strong.

I don't see my mission in life as making great cotton shirts. I see my mission as using my skills in making great cotton shirts to make my corner of the world a little happier.