Role of CSR and Stakeholder Management in UK Fashion Retail Sector

Business and
Management

TABLE OF CONTENTS
RESEARCH PROPOSAL............................................................................................................................................3
(A) INTRODUCTION..................................................................................................................................................3
Aim of the project.......................................................................................................................................................4
Research Objectives and Questions.............................................................................................................................4
(B) LITERATURE REVIEW.......................................................................................................................................4
(C) JUSTIFICATION AND CONTEXTUALIZATION............................................................................................7
(D) METHODOLOGY.................................................................................................................................................8
REFERENCES............................................................................................................................................................10

RESEARCH PROPOSAL
“An Investigation to Establish the Role of Corporate Social Responsibility and Stakeholder Management in
UK Fashion Retail Sector”
(A) INTRODUCTION
As definition Corporate Social Responsibility is an instrument to help businesses adhere to a set of
legal, ethical, social and environmental standards and acts as form of self-regulation that responds to greater
public awareness of ethical and environmental issues (Reset.Org. 2020). Businesses of all sizes and areas
widely recognise the importance of effective governance where the responsibility for all affected by their
activities goes beyond the mandatory framework. In the tough fight for competitive advantage CSR is one of
the major management tools helping organizations build reputation, gain customer loyalty, create value and
communication with its stakeholders. In regards to competition companies engaged in building social
responsibility and shared value with its stakeholders has the potential to increase “the total economic and
social value” trough innovations in management and production (Porter and Kramer, 2011). In Fashion
Industry main concerns for sustainable practices relate to pollution generated in manufacturing process,
working conditions (child labour, fair pay and health and safety risk) and animal welfare (Pederson and
Anderson, 2015).
1.1 Academic Significance
Relatively new but gaining unprecedented popularity there is no clear concept for appropriate CSR
(Crane et al, 2014). Thus, the topic attracts the attention of both practitioners and academics dividing the
opinions into two different poles regarding the effectiveness of “social consciousness” policies. However,
examining the wide range of data, examples and studies can be rightly argued that investing in CSR,
although sometimes seeming like unnecessary expense, pays off in long term. Due to the unclear concept,
voluntary aspect and the freedom of choice that organizations have for its implementation, the study of
trends would outline the framework for implementation that would help management.
1.2 The Importance of Socially Ethical Management in Fashion Industry
According to Van Boven (2019) consumer, driven by desire for belonging would like to recognise its own
believes, norms and values in their preferred brands. Since the consumer awareness of important
environmental and social problems is ever so increasing, there is no business big or small to ignore the
demand for sustainability. Moreover, as stated in global report on consumer trends (Nielsen, 2014)
organizations with social consciousness are more likely to gain bigger market share. According to the
research fifty five percent of the consumers are ready to pay premium to sustainable brands. As a result, as
confirmed by Mintel (2019), they (the consumers) are more likely to be loyal to a brand behind a cause.
Thus, implementing “ethically informed business strategy” predetermine positive brand image and high

customer loyalty levels (Bloom et al. 2006). Which is why some organizations in the industry communicate
their sustainability trough reporting protocols such as Elkington’s Triple Bottom Line (Ethical Fashion
Forum, 2013). The protocol reports the impact of the fashion industry on social, environmental and
commercial areas. As researchers show there is positive relationship between consumer behaviour and
sustainable businesses (Nam and Huang, 2018).
Today’s fashion companies are operating in global digital era where social platforms and digital
marketing are not only vital when communicating their objectives and products to the end-consumer, but
also leaving “fashion salon doors” widely open for everyone wanting to acquire intelligence on their
business practices, latest developments and affaires. Millennials are increasingly critical to sourcing and
production of their apparel and the effect of their purchase decisions on environment and wider society
(Varley and Rafiq. 2014), demanding transparency, clarity and visibly better corporate practices (Radclyffe-
Thomas, N. and Roncha, A. 2016). That statement is further supported by Ghobadian et al. (2015) outlining
three main factors for innovation in CSR- “availability of information, ability of multinational enterprises to
exert social impact and recognition of stakeholders desire for sustainable business practices”.
Aim of the project
The aim of this investigation is to analyse the quality and the channels for communication
organisation use to reach the society. Moreover, it will delve into the results of that communication and
whether the stakeholder response can be predicted so that business can develop a strategy for successful
initiatives.
Research Objectives and Questions
In order to reach the aim of that investigation this papier will focus on several key issues: Do
companies and stakeholders have the same views on CSR initiatives? Also, whether large corporations reach
consumer more successfully and to what extent, or small companies with more limited tools evoke grater
loyalty. Who lays the foundation for more significant change and create conditions for new innovative
practices?
 What is CRS and how do fashion retail companies interpret it within Stakeholder management policy
for CUSTOMER LOYALTY?
 What is the comparison between large (T/O?) and smaller (T/O) companies’ approach to CRS and
retaining CUSTOMER LOYALTY?
 How do fashion retail companies research and innovate CRS and stakeholder policies to increase
customer loyalty?