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Adopting The CSR Principles In The Clothing Industry

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Adopting the CSR principles involves costs. These costs might be short term in nature or continuous outflows. These costs might involve the purchase of new environmentally friendly equipment, the change of management structures, or the implementation of stricter quality controls. Since being socially responsible involves costs, it should generate benefits as well in order to be a sustainable business practice. A corporation could not continue a policy that constantly generates negative cash flows. The shareholders invest their money in a corporation, expecting the highest possible risk adjusted return. Therefore, being socially responsible should have bottom-line benefits in order to be sustainable. In many cases, it seems that the time frame …show more content…

Overlooking negative social and environmental externalities when valuing a company might be equal to ignoring significant tail risk. The risks related to CSR could be grouped into three categories: corporate governance, environmental aspects, and social aspects. Companies that adopt the CSR principles are more transparent and have less risk of bribery and corruption. In addition, they may implement stricter and, thus, more costly quality and environmental controls, but they run less risk of having to recall defective product lines and pay heavy fines for excessive polluting (Palmer, 2012). They also have less risk of negative social events which damage their reputation and cost millions of dollars in information and advertising campaigns. The scandals about child–labour and sweatshops that affect the clothing industry are two examples. Thus, socially responsible businesses should have more stable earnings growth and less downside volatility. Since companies that adopt the CSR principles carry less risk, when valuing those companies, a lower discount rate should be used. In the company valuation, this lower tail risk should be considered (Palmer,

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In this paper, I am going to discuss and explain my opinions on why company Q is or is not socially responsible. Company Q recently closed a couple of stores in high crime areas. Company Q also started offering very limited health conscious and organic products. The local food bank has contacted Company Q requesting day old food for donations. Company Q has declined the donation request due to possible fraud by its employees and has started throwing the food away.

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With the recommendation of continued SRI practices and the formation of an official SRI policy, focus can now shift to our recommendation for VTF about investment in the sports apparel industry. We believe that supporting ethical companies in the sports apparel industry, such as Alta Gracia and, more recently, Nike and Adidas is a great investment for VTF. This investment embodies the principles and goals of the foundation and the university. The fight for safe and ethical working conditions is an issue that most students are familiar with, but many are unaware of its severity. If the Virginia Tech bookstore carries additional clothing made by companies that advocate for more humane working environments, a vast number of students could potentially support the cause.

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This ‘standard method’ obeys scientific management. Thus, Kevin Plank uses various of approaches to manage his company and not only an ideal approach. Corporate social responsibility (CSR) means preserving commitment by the firms to be ethical and contribute to the economic development by following the business procedures to produce an overall effect on the society (Rahman, 2017). Companies have a need to balance activities that earns profit

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Such company responsibility efforts profit stakeholders, whereas additionally boosting the company’s corporate and whole image. Investing in socially accountable stocks could be a fashionable strategy these days that aims to search out firms with a balance between solid money returns and social smart. Tesla Motors fits this description, it's laborious to beat Tesla once it involves investment in socially accountable firms. The California-based automotive company manufactures and sells nearly zero-emissions cars, that cause less hurt to the surroundings than gas-powered vehicles, thereby creating it a "socially responsible" company. Tesla's chief Elon Musk, started the energy unit maker with one goal in mind to assist finish the world's dependence on oil.

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The recent performance of socially responsible investment had positive the strong corporate financial performance and ESG focused practice may get higher return on investment whereas the traditional investing strategies may create a portfolio which is under perform. Moreover the socially responsible investment practice determines better operational performance, and the beneficial influence of these practices was found to be constant over time. The research studies exhibited a correlation between attentive sustainability practices and corporates financial performance, as a results indicating that sound sustainability standard lower the cost of capital of the companies, Moreover, the solid ESG practice result in better operational performance of firms which is ultimately translate into the cash flows and the stock price performance is positively influenced by good sustainability

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Davis (as cited by Khalidah, Zulkufly, & Lau, 2014) defined Corporate Social Responsibility (CSR) as “… the firm’s consideration of, and response to, issues beyond the narrow economic, technical, and legal requirements of the firm. It is the firm’s obligation to evaluate in its decision-making processes the effects of its decisions on the external social system in a manner that will accomplish social benefits along with the traditional economic gains, which the firm seeks. It means that social responsibility begins where the law ends. A firm is not being socially responsible if it merely complies with the minimum requirements of the law, because this is what any good citizen would do.” A firm will not survive without the support of both the stakeholders and shareholders, thus the CSR proposes the indication which stats that a firm can never exist In a vacuum (Khalidah et.

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Corporate Social Responsibility (CSR) relates to the actions of an organization and the effects on the environment and social wellbeing. It is about the way that the company assesses its actions and takes responsibility for this. (Investopedia, n.d.) CSR is a management concept whereby companies integrate social and environmental issues in their business operations and interactions with stakeholders . The company aims to achieve a balance of economic, environmental and social objectives, while also listening to the needs of stakeholders.

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It is the firm’s obligation to evaluate in its decision-making processes the effects of its decisions on the external social system in a manner that will accomplish social benefits along with the traditional economic gains, which the firm seeks. It means that social responsibility begins where the law ends. A firm is not being socially responsible if it merely complies with the minimum requirements of the law, because this is what any good citizen would do.” A firm will not survive without the support of both the stakeholders and shareholders, thus the CSR proposes the indication which states that a firm can never exist In a vacuum (Khalidah et. al.).

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As the world becomes more and more aware of global warming and its devastating effects, the spotlight is on various industries that have a negative impact on the environment. The textile industry is one of the industries that have been identified as one of the biggest contributors to the negative effect on the environment. One of the processes that use huge amounts of water in the textile industry is wet processing for dyeing, finishing and printing. These processes enhance the products aesthetically making it appealing to the customer. Finishes such as flame retardants, adding softeners for a luxurious handfeel, dyeing, printing, add value to the textile.

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Corporate Social Responsibility (CSR) relates to the actions of an organization and the effects on the environment and social wellbeing. It is about the way that the company assesses its actions and takes responsibility for this. (Investopedia, n.d.) CSR is a management concept whereby companies integrate social and environmental issues in their business operations and interactions with stakeholders. The company aims to achieve a balance of economic, environmental and social objectives, while also listening to the needs of stakeholders.

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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.

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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

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Upside Factors: These were the factors which benefited the company in some or the other way, such as increased consumer demand due to increased ecological concern; increases in resource productivity; market share growth and new business development due to companies recognising the potential offered by the upside factors. Thus it can be said that though there were factors which would not suggest a company not in get into responsible investment but still there major factors which had evidence that responsible investment will always benefit in the long term sustainability of the organization. Also supporting this statement is a study conducted by Klassen and McLaughlin in 1996 which found that the marketplace rewarded companies that had constructed robust environmental management programs .On the contrary they found that environmental disasters such as oil spills witnessed a major decline in the company share prices. Effect of ethical investment on organizational sustainability and the

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Introduction There is a close relationship between consumers and marketing. A clear understanding of consumer behavior can make people have a greater appreciation of the complexity of decision facing consumers. Also it help to provide a better understanding of our own motives and decision processes as a consumers and a sounder choice of products, services, brands and stores(Walters. C, 1989). Better understanding of consumer result in an efficient marketing strategies.

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the society. By society we mean the segments of society. Like local people, customer, workers. The social responsibility will help have a positive impact on the society. So company will intentionally try to help the society.

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