Role of CSR and Stakeholder Management in UK Fashion Retail Sector

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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