Corporate Social Responsibility in the Clothing Industry

Business ethics, responsibility & sustainability
UGB264
University of Sunderland
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Table of Contents
Introduction................................................................................................................................1
Corporate social responsibility...................................................................................................1
Overview................................................................................................................................1
Significance of CSR for companies.......................................................................................2
Corporate social responsibility and clothing industry............................................................2
Carroll's CSR Pyramid...........................................................................................................3
Key challenges related to corporate responsibility & sustainability..........................................4
Main challenges to CSR in clothing industry.........................................................................4
Best CSR practices within the clothing sector...........................................................................7
Recommending ways to the firms in the clothing sector to become more responsible by
considering global considerations..............................................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................10
List of Figures
Figure 1: Carroll's CSR Pyramid..........................................................................................................3

Introduction
Behind the fascination, the clothing industry is featured by extended working hours,
hard labour conditions, environmental issues and droning tasks. Because of these working
conditions, there are many serious ethical issues that might take place if they are not
addressed and it is where the corporate social responsibility matters. Presently, all fashion
brands are stepping in the direction of fast fashion (de Abreu, 2015). New trends within the
clothing industry are challenging the way firms manage their requirements as well as the
working environment without causing an ethical issue. Pertaining to this, the main aim of the
current research is to investigate the corporate social responsibility and its key challenges
within a clothing industry. The report will also focus on the best practice that should be
adopted by the firms operating in this sector in order to be ethical and moral. The final
section of the research study will include recommendation pertaining to the ways the business
can be more socially responsible by taking into account the global considerations.
Corporate social responsibility
Overview
Many effects of globalization are visible in this current business scenario.
Globalization is now being considered as a process that helps in increasing the
interdependence amid social, economic and political components of the world. In other
words, the borders and national boundaries of the nations are getting open for all and
increasing the flows of capital, people, technology in international business. Because of this
possibility, there has been an increase in challenges and responsibilities (Ackers and Eccles,
2015). It becomes really essential for the business to manage as it helps in leading them to the
path of success and growth in the international arena. The most vital thing is the effective
method of management. Business corporations which substantially have impacts on various
groups and societies from different sections of the globe are required to consider the method
of management wherein demands of the stakeholders at every level of the activities of the
firm is being considered. In addition to this, there is a requirement to accept all ethical rules
related to varied cultures. Consequently, business operating in any sector have to look for
novel methods of management. One of them is the idea that encompasses corporate social
responsibility as well as sustainable development. Nowadays, societies are growingly getting
aware about the role of business in the environmental issues and resolving the same is also an
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important factor which is being added to the vibrant development of social responsibility in
the business (Wynder and Dunbar, 2016).
Significance of CSR for companies
Corporate social responsibility is vital for the companies as it impacts all elements of
the operation and stakeholder groups of the firm. It is a challenge for the firm to keep various
groups of stakeholder happy and satisfied with the health of their firm. However, it is not
right to say that unethical firms are unhealthy but corporate social responsibility influence
varied stakeholder which influence significant facets of the firm like sales, reputation and
brand image. Today, customers are getting more aware of the negative influence of the
products being consumed by them. Along with their awareness, demand for the products that
they are consuming is also increasing (Enderle, 2004). Further, they want to purchase them
from sources which are responsible thereby put more pressure on the corporations to perform
in the right manner. Thus, customers are crucial for each and every firm for driving sales and
profits. Another driving force is the suppliers. They are the one which has a direct impact on
supply chain management. Business corporations always desire to work with suppliers for a
longer period of time because of the several benefits like better quality of products, pricing
etc. In addition to this, firms also create a closer relationship with the long term partners
which enables the firms to have greater control as well as impact over them (Harper, 2015).
Talking in relation with the employees, corporate social responsibility impacts their
willingness to perform and retention and at the same time, it also affects the image of the firm
through the ways workers are being treated within the firm. For example, Nike has come
across with a scandal in the year 1990 due to the working conditions of its employees in the
Asian nations. The big giant was accused of unfair practices in regards to their workers such
as child labour, unsafe factories for producing their products and sweatshops etc. for many
years. Nike's reputation and image were completely damaged because of the protests and
boycotts of the consumers. This has majorly affected the sales of the firm. Consequently, it
can be said that CSR is essential for the existence and good health of the firms (Credo, et. al.,
2010).
Corporate social responsibility and clothing industry
It is being grounded on the fact that management can and should move forward from
their regulatory framework. CSR is a strategy which does not emphasize on augmenting the
profits and income of the firm. Rather it encompasses ethical, social and environmental
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