ipl-logo

Social Responsibility In Fashion Industry

1293 Words6 Pages

Corporate Social Responsibility (CSR) initiatives seem to be a business imperative nowadays. In a survey done by McKincey (2009), over 80% of interviewed CFOs claimed that corporate social responsibility is included in their evaluation standards of business projects. And the majority of respondents believed in remarkably positive contributions of CSR to shareholders’ value, especially long term benefits. Apparently, fashion industry has realized this trend as well as a growing demand of socially responsible business behavior from consumer and other stakeholders. For example, H&M has been releasing annual conscious actions & sustainability reports since 2002, in which a wide range of dimensions of CSR initiatives are demonstrated carefully and …show more content…

This frequently quoted definition suggests that five dimensions should be incorporated in CSR: environmental, social, economic, stakeholder, and voluntariness (Dahlsrud, 2008), which requires fashion industry to address several environmental and social issues in supply chain and local markets, and to maintain business profitability simultaneously. Therefore it is crucial to demonstrate why CSR engagement will add value to the …show more content…

As demanded by common business projects, CSR initiatives require additional capital expenditure, higher-cost intermediate goods and higher labor inputs (McWilliams & Siegel, 2001). Inditex (2014), the owner of Zara and other fashion brands, reported to have spent 25.8 million euros and 37,760 working hours on CSR in 2014, which are not trivial numbers. The rising costs will be ultimately apportioned to selling price, triggering a potential risk of losing part of the consumers. Above all, consumers’ main concern is price and style while CSR is given a lower priority (Joergens, 2006). Another downside that is frequently ignored is whether CSR is consistent with brand concepts. A recent study shows that conveying CSR messages of luxury brands like Rolex causes consumers to lower the evaluation of the brand (Torelli, Monga & Kaikati, 2012). The rationale behind the surprising result is that luxury brands tend to propagate “self-enhancement concept”, which emphasizes on the dominant possession of resources, while the essence of CSR is welfare for all (Torelli et al., 2012). The dilemma is fairly challenging for luxury brand managers when general public demands disclosure of CSR but their target consumers disrelish

Show More
Related
538 Words | 3 Pages

It is still under the debate within the company that whether the strong CSR communications should be made to the customers, and what impacts it will make on the company and its brands. In order to evaluate the business problem, both sides of the coin need to be looked at before the conclusion can be made. It is reasonable to argue that CSR marketing efforts will promote the company image and grow customer loyalty, as it aligns with the mission of the Dannon company: to bring health through food to as many people as possible. Nonetheless, as a for-profit company, Dannon will need to look at the economical impact of its CSR related decisions.

Read More
488 Words | 2 Pages

Modern day businesses have to be socially responsible; actions are taken to satisfy customers who might have a cause that they care deeply. Social responsibility occurs when a person or a company acts in an ethical and sensitive way towards important social issues of the day such as economic, environmental, and cultural concerns. Many businesses have a section of their website or business literature dedicated to social responsibility. Companies proudly detail the steps they are taking to address concerns that people have with the environment and economic issues. Having companies act in a socially responsible way is necessary because their actions have a tremendous positive impact on society.

Read More
490 Words | 2 Pages

One group member felt that social responsibility is an extra activity that may provide a small benefit against other companies but that stakeholder’s opinions concerning the quality of the product, and the efficiency in which it is produced is more important (Brunseal,

Read More
384 Words | 2 Pages

Trends tend to drive the consumer market and the most recent trend, involving corporations, is corporate social responsibility (CSR). This movement had a small core of organizations trying to change the world for the better but once public opinion started to shift more and more companies got on board. One company that has embraced the core values of CSR and has emerged as a leader in the field is Toms Shoes. This company has gained public support and trust by building an organization with a motto of “buy one, give one”. Toms motto states that if you buy a pair of their shoes they will give a pair to a needy person in a third world country.

Read More
1588 Words | 7 Pages

This seems quite odd as the concept of luxury is tied to rarity and exclusivity. This has put a question mark on the sustainability in the growth of Louis Vuitton, for how long it will be maintained. But it is to be noted that the growth in revenue due to more

Read More
905 Words | 4 Pages

Apart from the financial and non-financial aspects of value chain, it is observed that the company do not own any factory to operate or own their products; however, the company is associated with a number of 700 suppliers all over the world that manufacture and supply the products for the company in over 1060 factories (Ambe, 2014). The company has been involved in CSR and recycling work since its existence. In addition, the value chain system of the organisation is further comprises of different layers of responsibilities including ethical audit program, country risk assessment, the responsible and accountable garment sector project, strategic labour priorities, HR management system and prohibited activities that enables the company to increase their consumer services and increase the effectiveness of their value chain (Ward,

Read More
657 Words | 3 Pages

The documentary, The True Cost, explores the detrimental impact of “fast fashion” on developing nations. The ephemeral fashion trends in today’s society requires mass quantities of cheap clothing, without regard to the workers that produce these goods. In fact, only 3% of clothes are made in the U.S. In recent years, companies like Topshop, Gap, H&M, Forever 21, etc. resorted to globalized production to lower retail prices. As a result, the demand for these products is so high that factory managers encourage, if not, force their workers to cut corners and disregard safety regulations for the sake of mass production.

Read More
9897 Words | 40 Pages

Toyo Tires is one of the best tires manufactures in the world. This company has stood for innovation, quality, performance, and excellent service for 65 years, including nearly 45 years in the United States. Combined, the Toyo group of companies has development, manufacturing, testing, distribution, and marketing operations throughout the Americas, Europe, Asia, the Middle East, and Oceania. As a result, Toyo Tires has built a solid reputation around the world. Toyo Tires Malaysia mainly produces four types of tires which are passenger car, MPV, SUV & 4x4 tires and competition tires.

Read More
6399 Words | 26 Pages

Prior this year, Reputation Institute, a private counselling firm, welcomed more than 55,000 shoppers in 15 nations to take an interest in an overview to distinguish organizations with the most grounded CSR (Corporate Social Responsibility) notoriety. Forbes as of late reported the after effects of that review and The Walt Disney Company, alongside Microsoft, Google and BMW, were perceived as the most socially capable organizations. " CSR identifies with who the organization is, the thing that it has faith in and how it is getting along business," said Kasper Ulf Nielsen, official accomplice at Reputation Institute,. "It's a central component of notoriety and can be utilized to help build up trust and goodwill amongst partners." Introduction

Read More
1413 Words | 6 Pages

The main purpose of this chapter is to discuss the research findings that related to the research questions and hypotheses. Moreover, based on these findings to present a conclusion and recommendation. Finally, the limitations of this research will be discussed and analyzed critically in order to provide empirical evidence for future research that relate to the indirect relationship between CSR and brand loyalty. 5.1 Discussion of Findings Although some of the findings do not present as expected, the hypotheses were verified based on the traditional path analysis method (MRA).

Read More
2166 Words | 9 Pages

In the recent years more and more companies in the retail and food industry are concerned about the environmental consequences of their action and also the social ethics for the people involved in the production process. This is a shift from the philanthropic actions companies used to take in 1970’s and by following basic international standards to a ‘business case’ perspective of CSR (Customer Social Responsibility). According to the World Business Council for Sustainability Develpoment ( WBCSD) CSR is: ‘’ the commitment of business to contribute to sustainable economic development, working with employees, theirfamilies, the local community and society at large to improve their quality of life’’ (World Bank, 2002)

Read More
1816 Words | 8 Pages

ATO’s are an elemental mix of non for profits, exporters and retailers. They work with product producers to help manage many aspects of the business, such as product design, quality control and social responsibility, (Littrell & Dickson, 1997). The practice of ethical fashion was first created in nineteen eighty as a strategy designed to counter the environmentally damaging production methods and sweatshop practices of the mainstream fashion industry brands such as Nike, Levi and numerous others (Shen et al., 2012). Motivated by the positive reaction of consumers to the concept of ethical fashion, many of the major fashion companies have adopted the approaches of eco-friendly and socially acceptable production methods when manufacturing their

Read More
2305 Words | 10 Pages

Sustainability in Design Report Sustainability is important as it impacts our social, cultural and physical environment. In the Fashion and Design industry, some fashion designers take sustainability in textiles very seriously. Textiles are anything from a simple dishcloth that you use every day to the obvious one, your clothing. Sustainability in the fashion industry involves ensuring that the garment that you are making can get maximum wear in its life cycle. Sustainability can be defined as when fashion meets nature.

Read More
3408 Words | 14 Pages

Involved in CSR activities are proven to create good image and reputation for a company. In the long run, it helps a company to increase shareholders’ value and achieve sustainable business

Read More
1611 Words | 7 Pages

Social Responsibility in general terms is the obligation for an Entity, Individual or an Organization, to act for the benefit of the society at large. It creates a balance between economic goals and social, cultural, and environmental issues (Enevoldson, 2012). It is a noble act performed by an entity to fulfill societal needs and to ensure development of a strong well-bonded community. Universities imparting Higher Education are not isolated from the rest of the world and therefore the above definition applies to them as well.

Read More

More about Social Responsibility In Fashion Industry

Related Topics

Open Document