Although it goes against the conventional wisdom of globalized business, a new business model looks to spend more money, not less, on its employees. Fostered by celebrity activist Matt Damon and led by Rob Broggi, a hedge fund analyst, Industrial Revolution II (IRII) sets its sights on evolving the clothing world into an industry with a conscience.
Previously working for Raptor Capital and Tudor Investment Corporation (one of the top hedge funds in the world), Broggi vaulted himself into an industry that combines garment manufacturing with humanitarian mindfulness.
Creating its first garment factory in Haiti, Industrial Revolution II plans to improve workers’ standard of living in a variety of ways. First, IRII pledges to invest 50% of its profits into health and education programs within the local community. On top of that, IRII will treat its workers humanely and provide safe work conditions.
Opposed to the current model of manufacturers focused on the cheapest labor possible to increase production at the most profitable rate, IRII sees both a niche and room for improvement.
What makes Broggi’s endeavor revolutionary in comparison to clothing competitors is his attention to his employees’ wellness.
IRII believes this improvement in health and working conditions will increase workers’ capabilities and production. When it’s all said and done, IRII anticipates its sales to be as competitive, in both price and quality, with other major brands.
What makes Broggi and Damon confident in IRII’s model is their focus on social purpose. With humane conditions, they believe that if they attain competitiveness their benevolent work will tip them over the edge in shoppers’ eyes. “If you can offer the same quality product at the same price you are going to win a tie-breaker nine out of 10 times” IRII’s CEO said.
That’s assuming it can compete with the businesses now dependent on child workers, cheap labor, and terrible conditions to continue their cost effectiveness.
According to Broggi, increased quality of life and improvements to health and education programs will enhance his workers’ productivity and lower turnover rates. With lower turnover rates, IRII can invest more in training its workforce, which promotes greater quality clothing.
Damon and Broggi believe that healthy and better trained workers with an incentive in the company’s profits will jump-start productivity and increase the quality of products, giving the major labels, quite literally, a run for their money.
With history and ethics on their side, Damon, Broggi, and their new founded workers hope to lead the garment industry as a new model to reduce poverty and increase profits. If successful, they may pull millions out of severe poverty.
– Michael Carney
Sources: Boston Common, Industrial Revolution II
Photo: Heritage Daily