Evaluating the social performance of Ecuadorian textile MSMEs using Social Organizational Life Cycle Assessment

Abstract

Integrating sustainability into Micro, Small, and Medium-sized Enterprises (MSMEs) poses challenges due to limited resources, low social awareness, and particular cultural factors. Despite this, MSMEs play a crucial role in countries' development since they constitute an essential actor in generating wealth and employment. Therefore, determining tools and methods to support sustainable decision-making and understanding the impacts in MSMEs is a significant challenge. This work describes the application of Social Organizational Life Cycle Assessment (SO-LCA) in three case studies of the Ecuadorian textile MSME sector to analyze their impacts regarding the social dimension. To this end, 121 inventory indicators linked to workers' and consumers' subcategories were applied. Utilizing sunburst charts, social performance is analyzed at subcategory and indicator levels. Company A showed intermediate worker performance with well-managed Occupational Safety and Health (OSH). Company B excelled, particularly in OSH, social benefits, and working hours. Despite its size, Company C had the lowest overall performance but exhibited superior Consumer category performance. This application of SO-LCA in the MSME sector offers insights for systematic evaluation, identifying areas for improvement and commendable practices. The study discusses implementing SO-LCA in small firms, highlighting the need for methodological adjustments to enhance applicability in this sector.