Business Ethics, Responsibility and Sustainability

This report discusses the key challenges in implementing corporate social responsibility (CSR) and sustainability in the clothing industry. It explores best practices for organizations in the sector, considering ethical and moral issues. Recommendations are provided for businesses to show their responsibility by considering global considerations.

Business Ethics, Responsibility
and Sustainability

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Key challenges in context with Corporate Social Responsibility ( CSR) and Sustainability in
relation to the clothing industry..............................................................................................1
Analyse and explain what you consider to be 'best practice' within the sector, making
references to ethical and moral issues...................................................................................4
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Corporate social responsibility is defined as a self regulating business model that provides
assistance to organisation to perform their business while considering social accountability
towards its stakeholders, public and itself. By undertaking CSR concept into practice companies
can have positive impact upon society and environment. It further benefits entity to boost their
brand value in marketplace (Herrera and de las Heras-Rosas, 2020). As CSR activities provide
assistance to companies to formulate stronger bond between company and consumer. Present
report has been conducted on the clothing industry of United Kingdom which is rapidly growing
over past many years with the use of low manufacturing cost and aggressive marketing
campaigns that been undertaken by organisations in order to improve their sales ratio. In these
report formative discussions has been made on key challenges in context with social
responsibility as well as sustainability related to clothing industry. In addition to this report
include, best practice for respective sector by undertaking moral and ethical issues into
consideration. Lastly in this report recommendation is being provided to respective sector.
MAIN BODY
Key challenges in context with Corporate Social Responsibility ( CSR) and Sustainability in
relation to the clothing industry
It has been identified that there is a competition prevailing in clothing industry to improve
social responsibility and environmental impact. This raise CSR activities consideration intro this
industrial sector. It has been analysed that globalisation also allow industries in this segment to
become more geographically dispersed and offer products and services to different countries and
regions around the world. It is essential for global retailers involved in this sector to emphasize
towards CSR standards in order to ensure proper safety, product quality, sustainability, labour etc
in order to serve society and environment at its best (Sengupta, Blessinger and Yamin, 2020). It
is essential for the organisations who are conducting their services in clothing industry focus
upon CSR concept in order to strengthen their competitive image in national and international
marketplace. However it has been identified that there are different type of challenges that are
being faced by this industry while implementing sustainability and CSR in their workplace
structure.
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Governmental Laws:
There is fierce competition prevailing in clothing industry in which number of
organisations those who offer products and services at low prices in order to gain high profit
margins. In addition to this it has been evaluated that in order to remain in competition
organisations within this industry offer significantly lower cost services to customers over a
period of time in order to bind them towards organisational offerings (Akdogana, Selimoglu and
Turkcana, 2020). This has been evaluated that in order to implement CSR activities and
sustainable practices entity faces number of challenges. In order to overcome this there are
different type of trading agreements, trading contracts between two countries are being
developed and amended by government of United Kingdom in order to ensure that there is
ethical competition in marketplace. Entities nowadays are required to invest CSR and sustainable
practice in order to conducted operations in effective manner. By undertaking governmental laws
and legislations into considerations company can ensure society and environment concerns in an
effective way.
High investment cost:
It has been evaluated that in order to implement CSR practices and social responsibility
into organisational management there is high investment cost required to be made by
organisations operating their services in this sector (Kasemsap, 2020). This act as a major
challenge, it is essential for entities to effectively concern three essential aspect related to CSR
social, economic and environment as to effectively conduct their operations. It has been
identified that it is essential for organisation involved in this sector to regularly engage in the
process of innovation and offer products and services to customers as to be ensure maximum
competitive edge and long-term sustainability this requires high investment by companies.
Sometime it becomes difficult for entries to invest maximum funds on sustainability and CSR
activities. Thus, it is essential for organisations to properly develop and manage their budget in
order to consider each and every factor and ensure maximum profitable advantages.
Increased consumer interest:
Customers are known as king in marketplace. Organisations involved in any sector are
required to understand actual needs and demands of customers and satisfied them accordingly. In
context with clothing industry, customers acts as most essential element for management as they
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are the major source of revenue generation for industry. It has been evaluated that nowadays
customers not only seeks for high quality product and services from clothing industry but they
also looking forward for the organisations involvement in CSR and sustainable practice.
Furthermore this has been evaluated that 50% of customers judge an organisation as per
according to their social actions. Change in customer’s perception acts as major challenge for
clothing industry. Thus, it is identified that it is essential for entities to effectively consider
sustainable activities and CSR practices into consideration as it also act as marketing factor that
influence consumer purchasing decision in an effective manner. Thus, as to ensure maximum
satisfaction from customers organisations operating their services in clothing industry are
required to invest into CSR and sustainable practices in order to provide immense satisfaction to
customers while ensuring sustainability long period of time.
Change in employee behaviour:
Due to globalisation there is a significant increase in labour cost in maximum number of
geographical location. In context with United Kingdom is having high labour cost comparatively
to other places. It has been evaluated that nowadays employees are also looking for additional
benefits that are offering by organisation in order to satisfy their expectations. In relation with
clothing industry it is essential for organisation to higher potential, skilled, talented employees as
this industry is facing intense competition and employees are the major source of high
productivity (Conte, Covucci and Siano, 2020). Thus, it is essential for companies to effectively
influence behaviour of management as change in employee behaviour proves to be a major
challenge for entities that can negatively affect their overall productivity. In this companies are
required to satisfy and attract workers in marketplace with additional benefits.
Demands for greater disclosure
It is one of the most serious aspects that pose adverse challenges in clothing industry
while adopting sustainability and CSR initiatives within workplace structure. It has been
evaluated that there is significant increase in corporate disclosure among customers, employees,
stakeholders, suppliers, investors, communities and activist organisations that hamper desirable
profitability for organisations. As sometimes disclosure of information’s create hazardous
obstacles for companies that further affects their profitability and market share.
Working conditions
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Working condition is defines as corporate policies that are being designed by
organisation for employees. It is essential for an organisation to have effective working
conditions as it is most important aspect of social responsibilities. In this it is essential for
entities to resolve concern and issues of employees and handle them in a formal and effective
manner with having a body of regulatory measures in order to strengthen relationship between
corporation and workers. Working conditions create number of challenges for organisation while
implementing CSR and sustainability as in this entities are also required to encourage employees
with maximum benefits. With the help of this company can effectively able to provide efficient
job quality and positive work conditions to employees.
As per the above evaluation it has been evaluated that there are different type of challenges
relation with sustainability and CSR relating to clothing Industries that are required to be
effectively overcome by entities involved in this sector as to strengthen their competitive image
in marketplace. Further it has been evaluated that by implementing CSR and sustainability into
workplace structure companies are mainly facing two forms of challenges that are subcontracting
and restructuring. This creates number of obstacles in self interest in attaining desirable and
outcomes.
Analyse and explain what you consider to be 'best practice' within the sector, making references
to ethical and moral issues
Nowadays business organisation in any industrial sector consider moral and ethics as most
important and prominent aspect through which they can perform their business functions with
having concern towards ethical culture. This not only stimulates organization brand value in
marketplace but also facilitate them towards efficient practices in order to provide employees
with positive and ethical workplace culture. Organisation is required to ensure proper
communication along with effective leadership practices and offer efficient training to workforce
through whom they can ensure ethical performance from their workforce. In context with
clothing sector it is essential for involved organisation to eliminate any unethical practices as this
can directly affect customer preferences (Sheehy, 2020). It has been identified that number of
organisations are taking advantage of labour intensive techniques in which they undertake
advantage of large number of labour with less amount of capital in order to stimulate their
production process. With the advantage of the CSR activities entities involved in clothing sector
can operate at large scale in an effective manner and can further promote employment
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opportunities that further enhance living standards of people. By offering employment
opportunities at wide range entities ethically serve economy in a positive way. With the help of
this technique entities can effectively able to ensure capital and skill generation through which
they can not only increase their competitive edge in marketplace but can also satisfied customers
at great extent while serving economy in an effective manner. Along with this ethical
consideration related to providing essential information related to product and services can also
allow company to distinguish image of their organizational offerings in marketplace.
In terms with practical issues it is essential for organisation involved in clothing sector to
have their effect of concern towards saving environment while offering satisfaction to customers.
It has been evaluated that entities now a days are required to have attention on environment in
which they are required to make sure that they have less carbon footprints through their
manufacturing process. In addition to this with the use of cloth with biodegradable fibre is also a
best practice that stimulates higher positioning in market segment. This has been identified that
organisation in clothing industry like H&M and Zara undertake use of sustainable measures. For
example H&M marked its presence in Forbes list as a most sustainable company in the year
2016. As this company take use of recycled materials that not only allows them to save
unnecessary cost but also allow them to ensure show their great concern towards environment.
Other example is Zara, this company is showing their maximum consciousness towards carbon
footprint that have negative impact on environment (Peñaflor-Guerra, Sanagustín-Fons and
Ramírez-Lozano, 2020). For this company undertake use of eco-friendly measures in order to
use renewable energy. According to the evaluation it has been identified that it is essential for
clothing industry to take advantage of best practice to conduct the activities in a sustainable
manner.
Recommendations for businesses in the sector to show thev are being more responsible by taking
into account global considerations
Due to increase in competition in clothing industrial sector there are number of
organisations operating in industry have focus upon considering CSR activities and sustainable
responsibility in order to show their concern towards environment, society, community,
individuals etc. It has been evaluated that entities effectively maximise their efforts in order to
encourage customers towards organizational offerings while undertaking there responsible nature
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towards global consideration (Schlegelmilch and Szőcs, 2020). It has been that evaluated that
companies by having effective concern towards social responsibilities can effectively ensure
higher satisfaction from stakeholders and customers that further affect them in an effective
manner. The constitution of social responsible policies, entities can effectively able to retain their
customers for long period of time as they are most important aspect for an organisation that
encourage them towards long-term successful development. In addition to this has been
identified that maximum number of customers in national and international market place
willingly pay premium for product and services for those organisation contribute their certain
profitability ratio towards social cause. This not only increases company consumer satisfaction
ways but increase their brand image in community at great extent. Due to the increase in CSR
activities in respective industrial segment it is essential for organisation to understand importance
of sustainability and CSR into the management and supply chain as they have maximum
capability to add value in organizational products and services that further generate profitability
and satisfaction with in consumers at great extent. It is essential for business organisation to
undertake use of corporate strategy in order to implement CSR and sustainability in order to
enhance productivity by reducing waste and contribute towards environment.
Integrate CSR:
It is essential for an organisation to ensure effective inter connectivity within top to
bottom level management of organisation in order to ensure desirable outcomes. In this it is
essential for entity to evaluate organisational mission statement and further encourage each and
every employee towards its fulfilment (Grewal, Hauptmann and Serafeim, 2020). In order to
effectively integrate sustainable activities and CSR practices organisations are required to
evaluate vision statement of organisation and plan strategically measures through which they
show more concern towards positive attributes. In addition to this it has been identified that
organisations are required to redefine and update their CSR practices in regular manner as to
satisfy society, community, investors, suppliers, stakeholders, customers according to latest
prevailing trends. In addition to this audit also help entity to effectively communicate their
business objectives and missions to related individuals that increases transparency among them.
Encourage employees to turn off:
It is essential for organisation to effectively integrate CSR practices and sustainable
policies within their organisational culture in formal process as to ensure desirable outcomes. In
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this it is important for companies to effectively consider social justice and climate changes that
act as most important element of organisation and industrial success. It has been identified that
nowadays business organisations effectively drive their corporation towards smooth functioning
of activities. Thus, in this entity are required to undertake use of driving factors as to equalise
sexual preferences, gender and issues related to family. In addition to this in order to formalize
social justice entities can also decide specified percentage of females in board of directors.
Formalise environmental and social justice:
It is one of the most essential aspect in which entities are recommended to effectively
encourage each and every employee in their workplace structure as to effectively fulfil
organisational goals and objectives (Bellucci, Bini and Giunta, 2020). In this entities are required
to not only satisfy employees with basic pay scale but also require to offer them facilities like
swimming pool, medical clinic, gym etc in order to offer them relax. It is most important factor
through which company can ensure their higher profitability and can retain employees for long
period of Time Company. By undertaking activities company can showcase caring nature
towards employees in an effective manner. In this entity are recommended to consider the use of
reflection, replacement and recharging as to encourage employees with number of facilities that
further encourages their loyalty towards entity. It further ensures organisation to ensure the long-
term competitiveness in marketplace, as strong workforce can stimulate higher profitability of
organisation.
Tech and deploy storytelling:
Organisations are recommended to form effective communications with target set of
audience as to promote CSR activities that has been undertaken by entity. With the help of vivid
story yelling that includes the detail points and data but not assist the story. Along with this by
taking advantage of monthly internal communication meeting with clients entity can make them
aware related to updated reports of company in context with sustainable measures and CSR
practices that has duly undertaken by organisation. With having strong communication entity can
communicate statistics and data in an effective manner by taking use of verified information
through which employees can effectively engage themselves with organisation CSR activities
that further ensure effective end outcomes and fulfilment of organisational objectives.
As per the above mentioned discussion it is essential for organisation to consider
recommended attributes as to effectively stimulate sustainable practices and CSR measures in
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workplaces structure as to ensure long-term competitive image in respective market segment. In
context with clothing industry it has been evaluated that this industry is facing maximum
competition in which organisations undertake advantage of aggressive marketing, innovation and
uniqueness as to attract large base of customers. It has been determined that entities are not only
required to focus their attention towards innovation and uniqueness but they are also required to
undertake sustainability and CSR activities into consideration as to remain in competition for
long time period. It further allows companies to perform their work with ethical practices that
further increase their goodwill in marketplace and also ensure your loyalty from customers in an
effective manner.
CONCLUSION
As per the above mentioned report has been concluded that, corporate social responsibility is
an important segment for an organisation through which entity can maximize their brand value in
respective industrial segment. In this it is essential for concern entities to understand challenges
that can be facing by them. By adopting CSR measures into practices entities can perform their
business operation in a smooth and effective manner. With the help of CSR and sustainability
company can not only satisfy customers but can also maximize interest of stakeholders,
employees, customers, suppliers etc towards organisation values. Along with this by taking
advantage of best practice approach entity can effectively able to resolve ethical and moral issues
in an effective manner that further stimulate them towards ensuring long term sustainability and
maximum profitability in marketplace.
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REFERENCES
Books and Journals
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Grewal, J., Hauptmann, C. and Serafeim, G., 2020. Material sustainability information and stock
price informativeness. Journal of Business Ethics, pp.1-32.
Schlegelmilch, B.B. and Szőcs, I., 2020. Rethinking business responsibility in a global context.
Delbard, O., 2020. From Csr To Sustainability—Learning From Nature. World Scientific Book
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Peñaflor-Guerra, R., Sanagustín-Fons, M. and Ramírez-Lozano, J., 2020. Business Ethics Crisis
and Social Sustainability. The Case of the Product “Pura Vida” in
Peru. Sustainability, 12(8), p.3348.
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Corporate Sustainability. Sustainability, 12(3), p.760.
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What is the difference and does it matter?. Sustainability and Corporate Sustainability:
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Akdogana, N., Selimoglu, S.K. and Turkcana, M., 2020. Sustainability accounting and corporate
social responsibility in Turkey and in its region. Accounting & Management Information
Systems/Contabilitate si Informatica de Gestiune, 19(1).
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engagement into business: sustainability management, innovation, and sustainable
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Elsevier.
Johnsen, C.G., 2020. Sustainability Beyond Instrumentality: Towards an Immanent Ethics of
Organizational Environmentalism. Journal of Business Ethics, pp.1-14.
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Şahin, Z. and Çankaya, F., 2020. The Importance of Sustainability and Sustainability Reporting.
In New Approaches to CSR, Sustainability and Accountability, Volume I (pp. 45-59).
Springer, Singapore.
Kasemsap, K., 2020. Advocating sustainable supply chain management and sustainability in
global supply chain. In Supply Chain and Logistics Management: Concepts,
Methodologies, Tools, and Applications (pp. 1462-1490). IGI Global.
Sengupta, E., Blessinger, P. and Yamin, T.S., 2020. Introduction to Integrating Sustainability
into Curriculum. In Integrating Sustainable Development into the Curriculum. Emerald
Publishing Limited.
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