Role of CSR and Stakeholder Management in UK Fashion Retail Sector

This research proposal aims to investigate the role of Corporate Social Responsibility (CSR) and stakeholder management in the UK fashion retail sector. It explores the impact of CSR on customer loyalty and compares the approaches of large and small companies. The study also examines how fashion retail companies research and innovate CSR and stakeholder policies to increase customer loyalty. The significance of socially ethical management in the fashion industry is highlighted, along with the challenges and benefits of implementing CSR practices. The literature review provides insights into the importance of CSR in the fashion industry and its impact on sustainability. The research methodology includes data collection and analysis, and the limitations of the study are discussed. The findings of the study will contribute to the understanding of the relationship between CSR and customer loyalty in the fashion industry.

Business and management

TABLE OF CONTENTS
Introduction......................................................................................................................................3
Background..................................................................................................................................3
Aim and objectives......................................................................................................................3
Research questions.......................................................................................................................3
Rationale......................................................................................................................................4
Significance.................................................................................................................................4
Literature Review............................................................................................................................5
Research methodology.....................................................................................................................9
Research type...............................................................................................................................9
Research philosophy....................................................................................................................9
Research approach.....................................................................................................................10
Research design.........................................................................................................................10
Data collection and analysis......................................................................................................10
Limitations of the study.............................................................................................................11
Data Analysis.................................................................................................................................12
Theme 1: CSR and stakeholder engagement in UK fashion sector...........................................12
Theme 2: Comparison of large and small organisations’ approach to CSR..............................13
Theme 3: Company size and innovation in terms of CSR and stakeholder policies.................14
Theme 4: Impact of CSR on the consumer loyalty in the fashion industry...............................14
Conclusion and recommendations.................................................................................................16
References......................................................................................................................................18

RESEARCH PROPOSAL
“An Investigation to Establish the Role of Corporate Social Responsibility and Stakeholder
Management in UK Fashion Retail Sector”
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
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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”.
Background
In the present times, the relevance and requirement of undertaking Corporate social
responsibility and impleading stakeholder driven policies have been gaining a lot of momentum.
CSR can be defined as 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 (Amor‐Esteban and et.al., 2018). Business of all
sizes have started focussing and adopting CS as it is a major management tool for helping
organizations build reputation, gain customer loyalty, create value and communication with its
stakeholders. The customers have been showing appositive attitude towards ethical and
responsible business and it has been evident that sustainable operations, ethical values,
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responsible management and stakeholder engagement helps in overall success of any business in
the long-term (Mitchell and et.al., 2020). There is a gap in understanding how the consumer
loyalty is impacted through CSR in the fashion industry and this report will aim at understanding
and exploring this area.
Aim
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.
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?
Rationale
The primary motivation for the selection of this subject area is the rising importance for
ethical and social responsibility in the fashion industry due to the various sustainability issues
that the industry is encountering. Fashion industry has been showing major concerns in terms of
sustainable practices related to pollution generated in manufacturing process, working conditions
issues like child labour, fair pay and health and safety risk as well as animal welfare. The
consumers in the present times have shown major concerns regarding environmental issues and
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social problems. As per various reports it was also observed that a shift in consumer behaviour is
noted where more conscious purchasing is gaining bigger markets and the demand to pay for
sustainability brands in also rising (Tan and Yu, 2019). This means that if the fashion
organisations start investing and focussing on CSR and stakeholder engagement, they can gain
consumer loyalty which is based on the desire for purchasing from a brand behind a cause.
Significance
This study will be highly significant academic source for the relatively new and less
explored relation between CSR and customer loyalty. This report may be valuable for academic
scholars and practitioners aiming to study the subject area. This report will also be beneficial for
the organisations operating in the fashion industry who aim to explore the significance of CSR
and stakeholder management.
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Literature Review
To conduct credible research and support it with evidence a range of academic sources will
be used. Along with the previously cited literature this papier will examine the factors affecting
customer behaviour and social respond using articles by Fordham and Robinson (2019), Arrigo,
E. (2013) and Hossain et al. (2013). Furthermore, a link with the theory will be made with
Maslow’s hierarchy of needs (Blythe, 2008) and the concept of Utilitarianism (Swaroopa, 2019).
Data will be gathered from Mintel (2019) and research articles from Emerald.Literature review is
one of key parts inside the current research report on the topic of ‘role of stakeholder
management and corporate social responsibility (CSR) on the UK’s fashion retail industry’.
Basically, in the literature review, there was different experts of stakeholder management shared
their point of views and opinions on chosen topic.
Theme:1 Significance of CRS in the fashion industry
According to Hendar, Nurhayati and Sugiyarti, (2018) corporate social responsibilities
(CSR) is a business model that supports organization to be socially accountable in the business
market. It is self-regulating business responsibility that supports busines to perform all business
functions effectively in the business market. Currently, there are various companies who have
adopted CSR strategy to stay competent in its business market for long period. However, there
have another reason as well such as it performs various roles i.e. it supports to control over cost,
enhance reputation of brand, attracts highly talented staff as well as facilitate long-term financial
success. In modern era, CSR is becoming essential part of fashion retail industry because it
supports to make fashion sector sustainable. With this approach most of the fashion companies
have created sustainable policies through which promotes eco-friendly textile for cloth
manufacturing. There are numerous textile manufacturers and brands in the fashion industry are
improving their awareness towards environment and society, creates effective CSR programs.
CSR approach is not only supported fashion retail industry to generate high revenue and
sustainable but also brings mutual benefits. It supports fashion retail industry to deal with
different environmental issues that arises due to fashion sector. Authors stated in their books that
a well-designed CSR strategy for fashion sector sustainability can be implemented effectively by
fashion management consultants that will enhance operational cost savings as well as improve
financial performance of the business effectively.
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However, Leeand Lee, (2018) has criticized over sated fact in their published research
papers that CSR is becoming more essential for the fashion retail company but it brings
numerous challenges in this industry such as multiple countries governments have formulated
various legislation over the CSR practices due to this most of the fashion retail companies have
to bring changer in existing CSR policies that are quite costly. So, it will evident to say that
corporate social responsibilities are quite expensive and requires high maintenance that has
considered one of the major factor for all fashion retailing companies across the world. If there
will discuss over UK’s fashion retail sector which is already susceptible due to Brexit and has
made rules to promote eco-friendly products to deal with economic issues. So, most of the retail
companies have involved this approach in their practice to stay long run in its sector but they
have to face economical loss as well.
According to Hosoda (2018) upper management of a business should always be aware
about the role of CSR in its workplace. Basically, CSR is a very productive concept to different
companies and businesses in order to work in the welfare of society, and this is why currently
lots of companies are taking huge advantages from this concept. For example; currently upper
management within many organisations are opening new free schools, colleges and hospitals in
such areas and zone where they currently operate in order to working in the welfare of society
and public. CRS is very important to a business for gaining an effective brand image or great
goodwill in the market place. Day by day competition is increasing in fashion retail sector or
industry, and this is why upper management of a venture have to improve its brand image by
fulfilling corporate social responsibility in market place. At the end, that venture will be able to
gain very effective competitive advantage. Top-level management of a business have to
understand a little thing that, there are different customers or people fully aware about the impact
of corporate social responsibility, and they are choosing only such brand or companies in marker
place to buy products and services which properly fulfils their obligation of CSR in market place.
Generally, the concept of corporate social responsibility gives opportunity to a business for
putting very positive impact on people or customers in society.
On the basis of Stahl and et.al. (2020) fashion retail industry is one of leading retail
industry in the UK’s business environment, because business which works under this industry
always fulfils the prime needs of a person. According to Maslow’s theory of needs, there are
food, clothes, air and water etc. elements comes under the prime or major needs of people, and
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this why fashion retail is highly growing in each market segment. On the other side, there are
many new entrants comes in this industry regularly after seeing great growth opportunity in this
industry. Due to these all factors, the competition in the UK’s fashion retail industry will be
highly raised in the future, in which an existing business in this country’s fashion industry have
to take such steps which can contribute in gaining huge competition in market place. In this
situation, fulfilling the obligation of CSR is the best way or step to a business for gaining an
excellent competitive advantage in market. Currently the United Kingdom is well-developed
nation, and that’s most local people of this nation knows the value of corporate social
responsibility, and they expect that each business should fulfil the obligation of CSR on time.
Currently many aware people or customers of the country always avoid to buy products and
services from such ventures which not fulfil obligation of corporate social responsibility on time.
Theme:2 Stakeholder management policy in the fashion industry
Illustrated by Goworek and et.al., (2018), stakeholder management policy is the
documented approach for reducing negative impacts stakeholder and influencing support by
offering high quality product on time. Stakeholder management is the approach of maintaining
sustainable relationships with employees who offers their services in the workplace. Stakeholder
management policy has also become one of the major approaches in the retail fashion industry.
The reason behind is that this management policy approach ensures individuals that no illegal
practice will take place in the company. Stakeholder management policy is proposed for all type
stakeholders like external (government and customers) and internal stakeholders (employees) so
that their wellbeing can be maintained for long time period. Most of the retail fashion companies
have adopted this approach and formulates stakeholder policy so that whole team can follow all
guidelines while offering their services to the customers. Corporate social responsibilities play
effective role in developing stakeholder management policy. With the inspection of CSR, retail
companies formulate rules of stakeholder management policy so that product outcomes can be
received. In addition, this management policy provides two-way communication to the
stakeholder so that each can keep their reviews over the management policy. This policy has
brought extensive benefits in the fashion retail industry such as retail fashion companies enable
to bring satisfaction in employees and customers in precise manner.
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Yang, Han and Lee, (2017) have criticized about stakeholder management policy in their
published articles that stakeholder management policy requires high management expertise as
well as managerial skills then they can enable to develop and maintain effective stakeholder
management policy, this approach is quite time-consuming process so it is mandatory for the
retail fashion industry to adapt this approach effectively than expected results can be achieved.
As illustrated by Viesca (2017) top-level management of a business under the fashion
retail industry has highly required to consider the concept of stakeholder management in its
workplace. Basically, each business or venture has different stakeholders, like; customers,
employees, suppliers, government, board of directors, shareholders etc. in which upper
management of a business always need to put its huge efforts for properly managing these all
stakeholders in own business environment. Basically, when a company make any changes its
products and services or policies, then this step of company directly affects to vits various
stakeholders market place. Basically, the task to stakeholder management always enables to a
business for making satisfied to all stakeholders, and this is why that business will be able to gain
huge growth also in market place. Most customers of fashion industry are very crazy to wear
modern or trendy clothes and dresses, in which upper management at a fashion retail business
have to focus on developing new and new attractive clothes and dresses to positively affect to
mindset of customers. Basically, a when a customer or person wears proper clothes, this this
factor will increase its levels of dignity, in which it is very important to businesses of the UK’s
retail fashion industry for manufacturing such types of clothes which make very satisfied to all
stakeholders and specially to customers, because customers is the key stakeholder to a business
who provides appropriate fund in the form of profit margin.
As per the view of Garcia‐Castro and Francoeur (2016) there is customer is not the main
or key stakeholder to a company in fashion industry, because there are other stakeholders also
highly matters to a company or a business in market place. For example; employees enable to the
business for achieving its overall business objectives and aims in own respective industry,
suppliers provided raw-materials on time, so that this factor contribute in producing products and
services in proper way. Lastly, the government is also a key stakeholder to a business, and upper
management of a venture has highly required to consider government in its workplace, because it
is always very important to a business for systematically running own business operations on the
guidelines and rules & regulations of government. Basically, stakeholder management very
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positively impact to a venture in fashion retail industry of the United Kingdom, and this is why
most of businesses within the UK’s fashion industry, like; Marks and Spencer, Tesco, Zara etc.
taking lots of productive steps for systematically managing their stakeholders in daily operations.
There are only such ventures gaining huge success in marketplace, where upper management
knows how to deal with different stakeholders. Garcia‐Castro and Francoeur (2016) said that
well-developed skills of communication plays an excellent role to a company for maintaining an
effective relationship with stakeholder, because when upper management of a busines politely
and properly interact with its stakeholders by using own well-developed communication skills,
then this factor of management will very positively affect to various stakeholders in market
place. At the end, that business will be able systematically manage various stakeholders in
workplace.
Theme:3 Company size/innovation in the fashion industry
As per the view of Szłapka and et.al., (2017), company size is important factor in the
retail fashion industry. When organization is in large size that denotes it has strong financial
position then it have ability to invest high funds in R&D department for innovation perspective.
In other case, when organization has small firm that denotes it has weak financial position then it
unable to bring innovation. Such hypothesises were considered in traditional time because
currently most of the retail fashion companies weather small scale or large scale but they are
putting more efforts to bring innovation in the existing clothing products. Currently retail fashion
companies like Amazon, Walmart, Gucci, Everlane, Patagonia, Tommy Hilfiger and Helmut
Lung have become fastest retail fashion companies. The reason behind is that these companies
were start-up their businesses at small scale but not they have become innovators because they
invest huge funds in R&D department to bring advancement in existing fashions. That’s why
fashion industry has become eco0nomic stimulant in across the world.
Nosi, Pucci and Zanni, (2017) perspectives, retail fashion industry has become important
part in economic stimulant but company size matters for innovation purpose. For example, if
company has small size that requires to have strong funding resources then it can bring
innovation in fashion products. But Brexit already has brough extensive changes in the retail
policies due to this small companies are facing heavily financial loss in the UK’s market. While
MNC’s also have got negative impacts on their business operations such as they have to change
their business policies.
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Theme:4 Roles of managers and leaders in fulfilling CRS obligation and managing
stakeholders
According to Jankalová and Jankal (2017) there are managers and leaders of a business
under the fashion retail industry have to play an excellent role in order to fulfil the obligation of
corporate social responsibility and also in managing various stakeholders. Basically, when a
manager of a business completely aware about the role of CSR, then it always takes decisions
towards working in the welfare of society for fulfilling its obligation of corporate social
responsibility. However, there is a manager no need to visit in market place for fulfilling its
obligation, because it just needs to order its existing leader to do this. In this situation, leaders of
a fashion retail business have to take steps towards following order of its senior manager for
working in the welfare of society and people. It is very necessary to fulfil the obligation of CRS
in the selected market place from the side of business. The manager of a company cannot
achieve its final objectives in market place without taking support from its leaders, in which
there is task of corporate social responsibility is also can be covered with the support of leaders.
On the basis of Kowalczyk (2019) a manager or a leader of a business have to be ready
for managing stakeholder also in the workplace. For example; currently customer is the key
stakeholder to a fashion retail business, in which the manager of that business has to focus on
offering quality products and services to customers in market place. On the other side, the leader
has to focus on maintaining an extra-ordinary quality of products during the manufacturing
process. In this dynamic and modern world, quality products and services of a business highly
impress customers in market place, and that is why the manager of a fashion retail can simply
manage its customer stakeholder in proper way by providing them an excellent products and
services. The manager of a business has to take steps towards maintaining an effective
relationship its suppliers, in which this factor will also contribute in positively affecting mindset
of suppliers. Lastly, government is also a key stakeholder, and this stakeholder always be happy
with business in that condition when existing managers and leaders of business following all
laws, rules & regulations of government in the workplace or in daily operations. After playing
these all roles, leaders and managers of a business can simply fulfil its obligation of CSR and
easily manage various stakeholders. On the other side, there are employees also a key
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stakeholder to a business, in which manager and leader of a fashion retail company have to
provide them proper training and development sessions to manage them properly in workplace.
(C) JUSTIFICATION AND CONTEXTUALIZATION
This research project is very important, because the topic of existing business research
helps us know that the actual role of CSR (corporate social responsibility) and stakeholder
management in the UK’s fashion retail industry. By analysing different data for this research
project, we will able to know that how widely the fashion retail industry has expanded in the
United Kingdom. Currently no fashion retail business within the UK is able to run its different
business operations without considering corporate social responsibility and stakeholder
management (Ferramosca and Verona, 2020). Currently research and development department
within many fashion retail businesses as well, because when any business conduct research about
the UK’s fashion retail industry, then it will enable to get very strategic framework to its
business. This existing research project involves different data and information about the role of
CSR and stakeholder management within fashion retail industry of the United Kingdom. These
data and information have been included within this research project in the form of literatures, so
that when any person will read literatures of this project, then it will simply able to know lots of
new information about the topic of this research.
There are finding data relating to the UK’s fashion retail industry is very important task
within this research project. In this project, there are lots of efforts has putted to find appropriate
data which sufficient to aware different readers about the actual role of corporate social
responsibility and stakeholder management. There are many sources has used in this project
which helps in finding secondary data. For example; currently there are lots of lots of articles
available in different books and journals, newspapers and magazines which has based on the
UK’s fashion retail industry. On the other side, there are many internet blogs also has been used
here to find appropriate data relating to the role of corporate social responsivity and stakeholder
management in the fashion retail industry. After conducing secondary research method while
finding data for this research project, now this project is fully able to give lots of many effective
information about the UK’s fashion retail industry. Currently this country’s fashion industry is
growing very fast with support of various factors including CSR and stakeholder management.
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After conducting whole research steps, now this research project includes those all data
which is completely relating to the extra-ordinary role of corporate social responsibility and
stakeholder management (Illia and et.al., 2017). According to different research data, currently
top-level management within most fashion retail businesses in the United Kingdom has taken
lots of productive steps towards fulfilling their obligations of CSR. Basically, there are CSR
plays great role to different fashion retail businesses in developing their brand value and brane
image within the United Kingdom’s fashion retail industry. On the other side, by conducting the
task of stakeholder management, there are lots of fashion retail businesses within the United
Kingdom able to maintain effective relations with their various stakeholders. There are data
finding task within this research project has taken the largest time period, because every
researcher has always required to give some appropriate time for analysing which research
source is very favourable to its research project and which is not. However, the processes
including in this research project was completed on time, and now this existing research project
is very productive.
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Research methodology
Research methodology can be defined as the process, techniques and strategies which are
adopted by the scholar for conducting the research and using them for carrying out activities of
data collection, sampling, discovering and analysing information and data analysis and
interpretation. The research is aimed at gaining clarity regarding the subject area for better
understanding of the topic and to appropriately answer all the research questions.
Research type
There are primarily two kinds of research, quantitative and qualitative research. The
quantitative research generally encompasses studying and analysing the numerical data to reach
to a finite conclusion, and can be expressed in numbers and graphs. Its basic aim is to confirm
the theories or hypothesis selected after testing and experimenting using various statistical tools.
The qualitative study is based on the interpreting and analysis of words and text, and to gain
deeper understanding through considering qualitative factors like human experiences, meanings,
concepts and thoughts (Mohajan, 2018). This study will undertake the qualitative research type
for gaining an in-depth understanding of the reasons and relation between CSR and customer
loyalty.
Research Philosophy or Paradigm
In order to reach the aim of this investigation that papier will adopt social constructionism
paradigm from subjective perspective where it will seek understanding for the motives,
intentions and actions of the consumers in different realities (Saunders et al, 2016). There are
commonly two philosophies types available here; positivism and interpretive. The positivism
philosophy always contributes in giving right, accurate and logical facts which are currently
available in the business environment. The interpretive philosophy is generally a medium to
deeply know the accuracy of the environment, and this philosophy enables for collecting many
of logical data. The positivism philosophy was chosen for completing this research project. Now,
with the support of this positivism research philosophy, there are lots of productive, logical and
meaningful data has included within this research project which are relating to the role of CSR
and stakeholder management in the UK’s fashion retail industry.
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A research philosophy generally determines the believe regarding the ways in which the
data can be gathered, synthesized, analysed and interpreted that has been undertaken in the
research and the manner in which it will lead to outcomes. There are various research
philosophies that can be used such as positivism, pragmaticism or interpretivism. Positivism
philosophy tend to contribute to right, accurate and logical facts which are currently available in
the business environment. On the other hand, the interpretivist philosophy is used as a medium
for deep understanding of the accuracy of the environment, enabling the collection of logical
data (Kumar, 2018). This research has chosen the positivism philosophy due to the fact that there
exist lots of productive, logical and meaningful information which can be included within this
research project in context to the role of CSR and stakeholder management in the fashion
industry of UK.
Research approach
The investigation will use qualitative data gathered from number of empirical studies
observing CSR in Fashion Industry (Lindgreen and et.al., 2018). Thus, applying inductive
research approach will enable the establishment of the “cause-effect” link within the context of
the phenomena (Sounders et al. 2016). There are basically two types of research approaches has
used by different people for completing a research project called; qualitative and quantitative.
Both are very productive methods in the terms of completing a research project, because the
qualitative research approach helps in collecting data through observation, study and interviews.
On the other side, there are quantitative research approach uses by for collecting data through
different mathematical and statistical sources. However, only qualitative research approach has
been used within this project. This approach has enabled to find different data relating to the role
of CRS and stakeholder management. This approach aware us about that, currently most people
or customers like to consume products and services only through those companies which time to
time fulfils their formalities of corporate social responsibility.
A research approach pertains to planning and procedures that are involved in wider
assumptions to comprehensive methods for collecting the data, analysis and its interpretation.
The research approach infers to the collection and approach for analysis and reasoning. There are
mainly two types of approaches, inductive and deductive. Inductive approach is aimed towards
moving from a clear assumption or idea to in-depth meanings, hidden concept, new revelations
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and relations among various elements and even generation of new theory, it is usually coupled
with qualitative studies. Deductive approach on the other hand is used with quantitative studies
where a general hypothesis is considered with wider assumptions and the research is done for
gaining clarity, testing the assumptions and existing theory to gain a more specific idea
(McFarland and et.al., 2018). This research has undertaken inductive reasoning as new theories
and meaning will be explored in the research of customer loyalty and CSR in fashion industry.
Research design
A research design is the overall strategy that is adopted in conducting and analysing the
research where different components of a study are integrated in logicality and coherence for the
aim of addressing the research questions in the most effective manner. There are various types of
research designs like exploratory, descriptive, causal comparative and experimental. Out of all
the researches, this study will of adopt the exploratory research design as it is the best way to
investigate a problem that does not have clarity. The researcher will use a general idea to identify
issues and adopt a more grounded theory approach to answer that what, how and why of the
issues. The basic advantages of this design is that it is low cost and helps to lay the foundation of
any research, as the subject are is more or less unexplored (Zangirolami-Raimundo, Echeimberg,
and Leone, 2018). This research also adopts a very flexible structure and is essential if the
problem needs to be explained in depth.
Sampling
Sampling is the procedure of selecting number of people from wide population as sample
population. There are two methods of research sampling such as probability and non-probability.
In this research report only the secondary data collection method has been used, that’s why the
sampling step has not conducted here. However, these both methods of sampling called;
probability and non-probability are very binomial in collecting data through sampling of
population.
Data collection and analysis
Data collection can be defined as the procedure used for the gathering, collection,
measurement and analysis of accurate insights in terms of research by using standard and
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validated techniques. There are two sources of collection the data, primary and secondary.
Primary data is the first-hand data that is collected directly from the subject respondents through
methods like surveys, interviews, questionnaires etc, Secondary data, is the second-hand data or
the data that has already been established and published by other individuals, groups and
institutions (Kumar, 2018). This research has adopted a secondary research method as it helped
in understanding fashion retail companies within the United Kingdom, the market, the consumer
insights, the organisations that adopt CSR and its overall impact. The sources used are number of
empirical studies conducted from 2014 to 2020. Since the University of Roehampton provides
access to wide range of academic sources there will be no concerns regarding the ethical aspect
of the research. Data analysis is the process of inspecting, transforming, modelling the collected
data for understanding the hidden meanings, concepts, experiences and links between data to
reach to solutions for the research questions (Zhou, and et.al., 2018). This research will adopt
thematic analysis of the secondary data where themes will distinguish various concepts which
will then be interpreted.
With purpose to investigate the impact of Corporate Social Responsibility in UK’s Fashion
Industry that paper will use secondary data from number of empirical studies conducted from
2014 to 2020. Since the University of Roehampton provides access to wide range of academic
sources there will be no concerns regarding the ethical aspect of the research (Naidoo and
Gasparatos, 2018). Basically, these all mentioned data collected through two types of data
collection methods called; primary data collection method which has contributed in collecting
data through meeting, interviews and observation, and secondary data collection method which
has contributed in collecting data through different books and journals, magazines and
newspaper articles etc. In any research project, there are data collection method is one of key
tasks which takes the longest time period. The secondary method of data collection has helped to
know that, currently many of fashion retail companies within the United Kingdom has gained
great reputation and goodwill within the market place, because existing management within
these businesses always uses CSR for working in the public or social welfare. On the other side,
proper management of stakeholders gives opportunity to different businesses for maintaining
very effective relations with various stakeholders, like; employees, suppliers, customers,
government etc.
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Limitations of the study
There were various limitations that were encountered in the course of conducting and
completing the research. The major limitation was the Corona pandemic, which resulted in
hindrances in data collection and was a major reason why primary research could not be
undertaken. Also, there was a limited access to the data from the university and also the fat that a
major gap was noted in the subject area and there were limited academic resources and lack of
previous researches for the study. There were also constraints in terms of resources like time and
budget. However, in spite all the constraints, the available resources were utilised in the most
optimal manner to get the best results in highly efficient ways.
19

Data Analysis
Secondary data analysis
Theme 1: CSR and stakeholder engagement in UK fashion sector
As per Jehanno, (2020) the brands in the fashion industry of UK have been working
tirelessly for promotion of a positive image. There are many ways which the brands use, which is
through inclusion of corporate social responsibility aiming to leave a positive impact of their
operations. Corporate social responsibility by definition, is practicing sustainability development
to deliver environmental, social and economic benefits for all the stakeholders of the fashion
retailers. Also, the competition among the fashion outlets have been increasing as brands try to
filter out the best strategy to emphasise the connection between the brand and the consumers.
According to a research by Di Benedetto (2017), the fashion industry in UK has been
experiencing rapid changes due to the rise of volatility, reduced predictability, demand
fluctuations, dynamic consumer behaviour, huge volume impulse of buying and short life cycle
of the products. Many fashions have been paying higher attention to the environment impact of
the manufacturing process that involves dyeing, printing, tanning, heavy use of chemical
substances and fresh water. There have been concerns regarding the greenhouse gas emissions
and thus many UK based fashion companies started incorporating environmental impact
reduction and sustainability goals. There also have been major scandals associated with violation
of labour rights, mistreatment and underpayment of workers which prompted many fashion
companies to adopt a code of conduct and also implementing corporate governance in the
extended supply chain and garment factories. The major fashion companies have committed to
industry wide code of conduct allowing external monitoring and independent auditing. The
ethical trading initiatives have been used for the promotion of effective adoption of the labour
rights which has 22 members of the UK who comprises of mostly clothing and footwear brands.
However, as elucidated by White, Nielsen and Valentini, (2017), around 73 articles were
taken for studying the impact of corporate social responsibility in the fashion industry from 41
journals. The major issues that were determined were concerns regarding ethical supply chain
and labour working conditions. The research also indicated that despite a rising stakeholder
pressure on the fashion industry for adopting CSR and also interact effectively with the
stakeholders, there has been a discursive polyphony in the consumers in the UK market which
consequently turns out to be major confusion.
20

As per Feng and Ngai, (2020) the stakeholder engagement is defined as the process
through which fashion organisations try to involve and engage all the stakeholders that are being
directly and indirectly affected by the actions and decisions of the company. Fashion industry
has been emphasizing on being more transparent and involving all stakeholders in the decision-
making process of the company to increase the positive image and, brand equity and goodwill of
the company. As per a study, Inditex group which has many retail outlets across the UK has been
the first to implement online stakeholder engagement at different levels through social media,
Facebook and Instagram pages and official websites where feedback surveys and decision-
making polls are being used to engage the customers. Also, various companies like H&M, John
Lewis, Burberry and others have started practicing this trend of involving all stakeholders like
employees, customers, media along with the shareholders and investors in gaining relevant
opinions regarding decisions and operations.
Theme 2: Comparison of large and small organisations’ approach to CSR
According to the study by Wickert, Scherer and Spence, (2016), the fashion industry in
the UK has been under spotlight due to various negative impacts in environment and social
contexts. Though there has been a limited research on the communication of corporate social
responsibilities by large and small companies, the study has shown the reasons behind the CSR
reporting issues. In the study, content analysis was done for investigation of 12 global fashion
outlets CSR reports from 2013 to 2016. The outcomes were that higher comprehensive reporting
was employed in the fashion sector to counter stakeholder expectations. Around 16 CSR
problems had experienced an increase in the reporting, such as labour and environment issues
which were predominant. Higher emphasis was given to human development, human rights,
employee welfare, engagement and training and utilisation of resources in sustainability ways.
There was a rise in the proactive approach for reporting about environment issues.
As elucidated in the study by Colucci, Tuan, and Visentin, (2020), the research paper has
evaluated and tested the effect of the size of the company, core business and the market segment
in the various dimensions of the corporate social responsibility in the fashion industry, which are
CSR walk and CSR talk. In the study there was a comprehensive evaluation on why companies
of different sizes engage in CSR through integration of various approaches. It was observed in
the study through framework developed for empirically supporting using data on 219 large and
21

small companies in the fashion industry that operated in different market segments and
businesses. The outcomes that were obtained that small sized companies such as micro small and
medium enterprises tend to engage in lower CSR walk and talk in comparison to the larger
companies. Apart from this it was observed that the fashion companies that targeted a lower
market segment or the ones operating for niche markets like the luxury segment were engaging
more in the CSR talks, while the footwear fashion such as shoe and leather-based fashion
companies were engaging more in the CSR walk. The CSR talk was referred to as impression
management and development of documentation and symbolic media while CSR walk referred
to as substantive adoption of CSR policies, procedures and structures.
Theme 3: Company size and innovation in terms of CSR and stakeholder policies
MacGregor, Sroka and MacGregor Pelikánová, (2020) elucidated in their study that the
senior management od various fashion houses in the luxury segment proclaimed a commitment
towards sustainability and stakeholder engagement in all the categories of CSR. The study
reveals that the marketing strategies and innovation that are undertaken in the fashion industry
actually have a very low middle ground with CSR strategies that are implemented. The meta-
analysis revealed that individual and system-based deficiencies were the cause behind the
management and leadership of the CSR strategies not aligned with the innovations. There was
also a reduced knowledge and interest in aligning the marketing and business innovations with
CSR strategies. The outcomes resulted in the loss of customers as the luxury fashion businesses
didn’t share any commitments and went into auxiliary aspects which distorted the CSR
approaches.
Theme 4: Impact of CSR on the consumer loyalty in the fashion industry
As per Brad Davis (2019) brand loyalty is regarded with emotional connections where
the customers tend to attach to a brand, increasing customer retention. Also, millennials have
taken over the customer market share where the purchasing power is the highest, thereby
investment of corporate social responsibility of also increasing. As per the study, 4 in every 5
millennials have high expectations from the fashion outlets they shop in which display corporate
social responsibility and 2/3rds of the customers are even ready to shift to more expensive brands
that adopts CSR. It was observed from the study that brands that undertake efforts for educating
22

customers regarding a cause and also elucidate about the company’s contributions in resolving
the issue, tend to have higher chances of gaining customer support which ultimately leads to
customer loyalty. Fashion retailers like H&M uses complete transparency in operations as a tool
for retaining customers through its annual sustainability report. Also, stakeholder strategies like
getting discount son bringing old clothes for recycling improves customer loyalty in the
company. It was also concluded in the report that loyalty rewards and integration of CSR turns
out to be a factor for increasing consumer loyalty in millennials than any other generations.
A UK CX Trends study (2019) states that the outcome of the study was that 42 percent of
customers believe that the support of the fashion companies for social, political or environmental
causes are becoming highly significant to their buying behaviour and purchase decisions. Apart
from that it can also be noted that the consumers in the UK were ranked more than the
consumers of US or Australia in terms of believing in corporate social responsibility.
However, a study by Y, Cao and Tan (2019) observed a CSR consumption paradox in
context to UK based fashion and apparel companies as the concept of consumer behaviour in
relation to the corporate social responsibility is unexplored area. Various studies have indicated
that CSR has a minor effect on consumer loyalty, although the practices tend to improve the
intentions of the purchase. The study explored this paradox by questionnaire method
administered face-to-face to the consumers of Birmingham, UK which were in context to
consumer behaviour and CSR was evaluated for 21 fashion brads of the UK. The outcomes
suggested that consumer’s belief regarding the pro-social and environmental causes are notably
related to the consumption of pro-social products and services rather than the awareness of
consumers about CSR activities of a company being associated with purchase behaviour. The
empirical results provide implications for UK fashion companies and policy makers regarding
higher engagement and motivation of socially responsible consumers for reaping strategic
rewards for the CSR efforts.
23

Conclusion and recommendations
It can be concluded from the research that fulfilling the obligation of CSR is the best way
for businesses to gaining an excellent competitive advantage in market, improve long term
benefits and improve the goodwill of the brand. It was also noted that this consequently results in
higher customer loyalty. Currently the United Kingdom is well-developed nation, and that’s most
local people of this nation knows the value of corporate social responsibility, and they expect
that each business should fulfil the obligation of CSR on time. It was reviewed from the
secondary research that brands in the fashion industry of UK have been working tirelessly for
promotion of a positive image and major fashion companies have committed to industry wide
code of conduct allowing external monitoring and independent auditing. It was also observed
that emphasizing on being more transparent and involving all stakeholders in the decision-
making process of the company to increase the positive image and, brand equity and goodwill of
the company. In terms of CSR reporting, aspects like labour and environment issues were
predominant along with human development, human rights, employee welfare, engagement and
training and utilisation of resources in sustainability ways. It was also noted that small sized
companies tend to engage in lower CSR walk and talk in comparison to the larger companies. It
was observed that individual and system-based deficiencies were the cause behind the
management and leadership of the CSR strategies not aligned with the innovations resulting in
clientele loss. The ultimate impact on customer loyalty turnout be highly related with CSR
policies as majority of the consumers preferred to purchase brands that are actively engaged in
CSR. Major recommendations for the companies are involving in stakeholder engagement and
corporate social responsibility for increasing the customer loyalty. Companies can use co-
creation as a way to enhance the perspective of consumers and increasing online consumer
participation. Fashion companies need to identify primary stakeholders such as investors,
community and customers and devise strategies to increase their participation through various
sources (Ali Raza and et.al., 2020). Collaboration of primary and secondary stakeholders can
also be done. The major issues that the sustainability reports have to cover are areas like water
depletion, labour treatment, chemical usage and maintenance and the carbon footprint reduction.
The fashion houses can improve their extended supply chain by implementing code of conduct
and oversight and auditing on periodical basis. Innovations can be linked with the CSR strategies
so that customers can benefit from the purchase through satisfaction of both innovation and
24

social and environmental consciousness. The fashion companies can adopt transparency and
reporting strategies to gain customer attention. In conclusion, the fashion companies in the UK
can forge a real strategic connection, higher upfront involvement and ownership, committing
more than just financial resources and integrating all programs for increasing brand equity.
25

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