Evaluating the Social Dimension of ZED Certification: A Qualitative Study of MSMEs in Haryana

Abstract

The growing emphasis on sustainable industrial development has increased attention to integrating economic, environmental and social sustainability within manufacturing systems. In India, the Zero Defect Zero Effect (ZED) Certification Scheme was introduced to improve the quality standards and environmental performance of micro, small and medium enterprises (MSMEs). However, limited research has examined how the framework operationalises social sustainability within workplace settings. This study examines the social sustainability dimension of the ZED framework through qualitative field-based evidence collected from 92 manufacturing MSMEs in Haryana, including 46 ZED-certified and 46 non-certified firms. A matched comparative design was adopted to improve comparability across firms based on size, industrial classification and product similarity. Data were collected through field observations, open-ended interviews and handwritten field notes and analysed using a manual inductive thematic analysis. The findings indicate that while ZED certification contributes to stronger documentation systems, procedural awareness and visible safety compliance, deeper workplace practices relating to labour welfare, safety enforcement, working conditions and contract labour accountability remain unevenly institutionalised. The study further benchmarks the ZED framework against international social sustainability frameworks and reporting systems, including ISO 26000, SA 8000, B Corp Certification, the ILO Better Work Programme and the Business Responsibility and Sustainability Reporting framework. The comparison suggests that ZED lacks measurable social sustainability indicators and structured accountability mechanisms necessary for consistent workplace implementation. The findings indicate that the framework appears more effective in improving procedural compliance than in shaping deeper workplace practices. The study concludes by proposing policy reforms aimed at strengthening the social sustainability dimension of the ZED framework within MSME contexts.