Since the last decades have been a significant strengthening in ethical concern among consumers, which has led to an increase in demand for “ethical” choices in the marketplace. The textile and clothing (T&C) industry is one of the industries with a significant impact on ecological and social footprints on our planet, mainly driven by resource, and labour-intensive practices and driving the largest carbon footprint throughout the value chains. This study contributes to current knowledge of sustainability in the textile and clothing industry. This study first portrays the importance of sustainability and business ethics in the fashion industry based on the extant literature. Second, it seeks to provide a current status of the problematic on sustainable and ethical practices in the fashion industry taking as an example the Swedish multinational clothing retail company, H&M, well-known for its wide controversies. The analysis research is aligned to international organisations’ standards and principles, and it is mainly divided into four dimensions implemented by the United Nations: respect for human rights, labour, environmental protection, and anti-corruption.
Table of Contents
1. Introduction
2. Method
3. CSR and Business Ethics
4. Sustainable issues in the clothing industry
5. International Guidelines
6. Results
6.1 H&M and the DETOX campaign
6.1 H&M’s ethical controversies
6.3 Analysis of H&M’s CSR
7.2.1 Respect for human rights
7.2.2 Labour
7.2.3 Environmental protection
7.2.4 Anti-corruption and Bribery
7. Discussion
8. Conclusions
Research Objectives and Themes
This study investigates the ethical dimensions of business practices within the global textile and clothing industry, focusing on the sustainability challenges and corporate social responsibility (CSR) initiatives of the multinational retailer H&M in the context of global standards.
- The role of sustainability and business ethics in the fashion sector.
- Evaluation of H&M's commitment to ethical practices and environmental standards.
- Analysis of H&M's supply chain transparency and labor conditions.
- Alignment of corporate strategy with United Nations and international sustainability guidelines.
- The tension between fast-fashion business models and ethical responsibilities.
Excerpt from the Book
4. Sustainable issues in the clothing industry
Since the last decades, the clothing industry has faced strong price pressure, aggravating its efforts to become more sustainable (Hansen & Schaltegger, 2013). To remain competitive and low costs, many companies have opted to outsource to emerge and developing countries and tend to transfer to low wages countries such as China or India (Diviney and Lillywhite, 2007). This covers a big part of their supply chain. This reallocation of value chain activities to low-wage countries has created more sustainable challenges since it is even more difficult to manage and control the labour and ecological practices at supplier locations in supply chains (Hansen et al., 2009). Even the European Parliament is using the term “slave labour” to define the current labouring conditions of garment workers in Asia (European Parliament, 2014). Figure 2 depicts the origin of EU textile and clothing imports.
Furthermore, over the last 20 years, the price of garments has dropped, and the textile and clothing industry has been selling exacerbated amounts of goods to a fast-growing demand. This leads to a “take, make and dispose” model (UN News, 2019). Moreover, the clothing industry is linked to severe ecological and social problems in almost all stages of its supply chain process from fibre production to, spinning, fabric production, dyeing, and finishing, to clothing production (Goldbach and Seuring, 2003).
Summary of Chapters
1. Introduction: Outlines the globalization of the fashion industry, its economic importance, and the urgent need for CSR in response to environmental pollution and poor labor conditions.
2. Method: Describes the qualitative research approach, utilizing literature review and content analysis of reports from international organizations and H&M's own CSR disclosures.
3. CSR and Business Ethics: Examines the evolution of CSR theories, including Carroll’s Pyramid, and the integration of ethical values into corporate decision-making.
4. Sustainable issues in the clothing industry: Highlights the challenges of outsourcing, high environmental impact, and the systemic problems inherent in the "take, make and dispose" business model.
5. International Guidelines: Discusses the role of international organizations like the UN and the EU in establishing standards for human rights, labor, and anti-corruption.
6. Results: Analyzes H&M's specific participation in the DETOX campaign, its ethical controversies, and an assessment of its CSR reporting.
7. Discussion: Critically evaluates the findings, noting that while H&M adopts international standards, there remain significant gaps in transparency and actual practice.
8. Conclusions: Summarizes that while H&M demonstrates active ethical commitments, its overall business model remains largely unsustainable and requires deeper systemic changes.
Keywords
Corporate Social Responsibility, CSR, H&M, Fashion Industry, Sustainability, Human Rights, Labor Conditions, DETOX, Greenpeace, Environmental Protection, Supply Chain, Fast Fashion, Ethical Business, United Nations, Circular Economy
Frequently Asked Questions
What is the core focus of this research paper?
The paper examines the ethical business practices of the global textile and clothing industry, specifically utilizing H&M as a case study to evaluate how multinational retailers address sustainability and corporate social responsibility.
What are the primary thematic areas covered?
Key themes include the environmental and social impacts of fast fashion, the role of international guidelines in business, CSR reporting standards, and the specific labor and ecological challenges faced by H&M.
What is the main objective of this study?
The goal is to analyze the ethical status of the fashion industry and assess how H&M’s CSR initiatives counteract ethical and sustainable issues in their operations.
Which scientific methods were applied?
The study employs a qualitative research methodology, including an extensive literature review and a qualitative content analysis of reports from international organizations and H&M’s corporate CSR disclosures.
What does the main body of the work address?
It covers the theoretical framework of CSR, the systemic sustainability issues in global garment production, international compliance guidelines, and a detailed results analysis of H&M’s specific ethical challenges and initiatives.
Which keywords define this work?
The study is characterized by terms such as Corporate Social Responsibility (CSR), H&M, fashion industry, sustainability, supply chain, and ethical business practices.
How does the Rana Plaza tragedy relate to H&M’s corporate history mentioned in the text?
The text references the 2013 Rana Plaza tragedy in Bangladesh as a critical event that highlighted the poor safety and working conditions in the factories supplying H&M, which continues to be a point of criticism regarding the company's real-world impact.
What does the author conclude regarding H&M's "sustainable" claims?
The author concludes that while H&M participates in significant sustainable projects, its continued operation under an unsustainable fast-fashion business model and its lack of transparency in the supply chain suggest that these efforts may partly be perceived as greenwashing.
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- Barbara Beltran Torres (Autor:in), 2021, Ethical issues in the fashion industry, München, GRIN Verlag, https://www.grin.com/document/1126200
